UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2004
Commission File Number 0-25756
IBERIABANK Corporation
(Exact name of registrant as specified in its charter)
| Louisiana | 72-1280718 | |
| (State or other jurisdiction of incorporation or Organization) |
(I.R.S. Employer Identification Number) |
| 200 West Congress Street Lafayette, Louisiana |
70501 | |
| (Address of principal executive office) | (Zip Code) |
(337) 521-4003
(Registrant’s telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes x No ¨
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:
The registrant had 6,897,739 shares of common stock, $1.00 par value, which were issued and outstanding as of July 31, 2004.
IBERIABANK CORPORATION AND SUBSIDIARY
| Page | ||||
| Part I. |
Financial Information | |||
| Item 1. | Financial Statements | 2 | ||
| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 9 | ||
| Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 20 | ||
| Item 4. | Controls and Procedures | 20 | ||
| Part II. |
Other Information | |||
| Item 1. | Legal Proceedings | 21 | ||
| Item 2. | Changes in Securities, Use of Proceeds and Issuer Purchases of Equity Securities | 21 | ||
| Item 3. | Defaults Upon Senior Securities | 21 | ||
| Item 4. | Submission of Matters to a Vote of Security Holders | 21 | ||
| Item 5. | Other Information | 21 | ||
| Item 6. | Exhibits and Reports on Form 8-K | 22 | ||
| Signatures | 23 | |||
1
IBERIABANK CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS (unaudited)
(dollars in thousands, except share data)
| June 30, 2004 |
December 31, 2003 |
June 30, 2003 |
||||||||||
| Assets |
||||||||||||
| Cash and due from banks |
$ | 46,360 | $ | 48,849 | $ | 40,441 | ||||||
| Interest-bearing deposits in banks |
15,070 | 20,722 | 15,449 | |||||||||
| Total cash and cash equivalents |
61,430 | 69,571 | 55,890 | |||||||||
| Securities available for sale, at fair value |
544,839 | 426,130 | 392,953 | |||||||||
| Securities held to maturity, fair values of $45,574, $55,207, and $70,324, respectively |
44,841 | 53,492 | 67,615 | |||||||||
| Mortgage loans held for sale |
6,273 | 5,781 | 18,540 | |||||||||
| Loans, net of unearned income |
1,529,362 | 1,412,349 | 1,333,705 | |||||||||
| Allowance for loan losses |
(19,683 | ) | (18,230 | ) | (16,772 | ) | ||||||
| Loans, net |
1,509,679 | 1,394,119 | 1,316,933 | |||||||||
| Premises and equipment, net |
36,728 | 31,992 | 28,929 | |||||||||
| Goodwill |
64,655 | 59,523 | 60,564 | |||||||||
| Other assets |
83,325 | 75,203 | 67,873 | |||||||||
| Total Assets |
$ | 2,351,770 | $ | 2,115,811 | $ | 2,009,297 | ||||||
| Liabilities |
||||||||||||
| Deposits: |
||||||||||||
| Noninterest-bearing |
$ | 216,111 | $ | 189,786 | $ | 190,212 | ||||||
| Interest-bearing |
1,576,580 | 1,399,320 | 1,336,032 | |||||||||
| Total deposits |
1,792,691 | 1,589,106 | 1,526,244 | |||||||||
| Short-term borrowings |
187,128 | 162,590 | 109,593 | |||||||||
| Long-term debt |
155,500 | 156,291 | 166,041 | |||||||||
| Other liabilities |
12,142 | 12,655 | 20,471 | |||||||||
| Total Liabilities |
2,147,461 | 1,920,642 | 1,822,349 | |||||||||
| Shareholders’ Equity |
||||||||||||
| Preferred stock, $1 par value - 5,000,000 shares authorized |
— | — | — | |||||||||
| Common stock, $1 par value - 25,000,000 shares authorized; 8,649,777, 8,362,492, and 8,362,492 shares issued, respectively |
8,650 | 8,362 | 8,363 | |||||||||
| Additional paid-in-capital |
135,223 | 114,674 | 112,387 | |||||||||
| Retained earnings |
129,510 | 119,967 | 110,814 | |||||||||
| Unearned compensation |
(5,121 | ) | (2,668 | ) | (2,887 | ) | ||||||
| Accumulated other comprehensive income |
(5,256 | ) | 183 | 868 | ||||||||
| Treasury stock at cost - 1,747,994, 1,644,034, and 1,650,818 shares, respectively |
(58,697 | ) | (45,349 | ) | (42,597 | ) | ||||||
| Total Shareholders’ Equity |
204,309 | 195,169 | 186,948 | |||||||||
| Total Liabilities and Shareholders’ Equity |
$ | 2,351,770 | $ | 2,115,811 | $ | 2,009,297 | ||||||
See Notes to Consolidated Financial Statements
2
IBERIABANK CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
(dollars in thousands, except per share data)
| For the Three Months Ended June 30, |
For the Six Months Ended June 30, | |||||||||||
| 2004 |
2003 |
2004 |
2003 | |||||||||
| Interest and Dividend Income |
||||||||||||
| Loans, including fees |
$ | 20,270 | $ | 20,340 | $ | 40,228 | $ | 38,754 | ||||
| Mortgage loans held for sale, including fees |
129 | 253 | 260 | 371 | ||||||||
| Investment securities: |
||||||||||||
| Taxable interest |
4,978 | 3,284 | 9,466 | 6,645 | ||||||||
| Tax-exempt interest |
639 | 607 | 1,285 | 1,146 | ||||||||
| Other |
176 | 223 | 355 | 403 | ||||||||
| Total interest and dividend income |
26,192 | 24,707 | 51,594 | 47,319 | ||||||||
| Interest Expense |
||||||||||||
| Deposits |
5,891 | 5,668 | 11,249 | 10,760 | ||||||||
| Short-term borrowings |
489 | 325 | 873 | 738 | ||||||||
| Long-term debt |
1,693 | 1,649 | 3,387 | 2,843 | ||||||||
| Total interest expense |
8,073 | 7,642 | 15,509 | 14,341 | ||||||||
| Net interest income |
18,119 | 17,065 | 36,085 | 32,978 | ||||||||
| Provision for loan losses |
704 | 1,574 | 1,759 | 3,149 | ||||||||
| Net interest income after provision for loan losses |
17,415 | 15,491 | 34,326 | 29,829 | ||||||||
| Noninterest Income |
||||||||||||
| Service charges on deposit accounts |
3,043 | 2,954 | 5,949 | 5,552 | ||||||||
| ATM/debit card fee income |
519 | 504 | 951 | 932 | ||||||||
| Gain on sale of mortgage loans, net |
605 | 1,132 | 1,467 | 1,834 | ||||||||
| Gain on sale of assets |
32 | 158 | 42 | 187 | ||||||||
| Gain on sale of investments, net |
329 | 6 | 472 | 78 | ||||||||
| Other income |
1,297 | 1,242 | 2,500 | 2,285 | ||||||||
| Total noninterest income |
5,825 | 5,996 | 11,381 | 10,868 | ||||||||
| Noninterest Expense |
||||||||||||
| Salaries and employee benefits |
7,521 | 6,718 | 14,634 | 12,769 | ||||||||
| Occupancy and equipment |
1,713 | 1,627 | 3,414 | 3,058 | ||||||||
| Franchise and shares tax |
718 | 556 | 1,418 | 1,052 | ||||||||
| Communication and delivery |
709 | 699 | 1,363 | 1,400 | ||||||||
| Marketing and business development |
359 | 282 | 810 | 575 | ||||||||
| Data processing |
385 | 445 | 760 | 892 | ||||||||
| Printing, stationery and supplies |
218 | 236 | 436 | 420 | ||||||||
| Amortization of acquisition intangibles |
234 | 248 | 452 | 332 | ||||||||
| Other expenses |
2,156 | 2,056 | 3,941 | 4,091 | ||||||||
| Total noninterest expense |
14,013 | 12,867 | 27,228 | 24,589 | ||||||||
| Income before income tax expense |
9,227 | 8,620 | 18,479 | 16,108 | ||||||||
| Income tax expense |
2,740 | 2,641 | 5,501 | 4,911 | ||||||||
| Net Income |
$ | 6,487 | $ | 5,979 | $ | 12,978 | $ | 11,197 | ||||
| Earnings per share - basic |
$ | 0.96 | $ | 0.92 | $ | 1.93 | $ | 1.82 | ||||
| Earnings per share - diluted |
$ | 0.88 | $ | 0.85 | $ | 1.78 | $ | 1.68 | ||||
See Notes to Consolidated Financial Statements
3
IBERIABANK CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (unaudited)
(dollars in thousands, except share and per share data)
| Common Stock |
Additional Paid-In Capital |
Retained Earnings |
Unearned Compensation |
Accumulated Other Comprehensive Income |
Treasury Stock |
Total |
||||||||||||||||||||
| Balance, December 31, 2002 |
$ | 7,381 | $ | 72,769 | $ | 102,390 | $ | (2,690 | ) | $ | 712 | $ | (40,964 | ) | $ | 139,598 | ||||||||||
| Comprehensive income: |
||||||||||||||||||||||||||
| Net income |
11,197 | 11,197 | ||||||||||||||||||||||||
| Change in unrealized gain on securities available for sale, net of deferred taxes |
838 | < | ||||||||||||||||||||||||