Attached files
| file | filename |
|---|---|
| 8-K - 8-K - IBERIABANK CORP | a8-kearningsreleasecoverpa.htm |
| EX-99.1 - EXHIBIT 99.1 - IBERIABANK CORP | earningsreleaseq42016.htm |
focused
4 Q 1 6 E a r n i n g s
C o n f e r e n c e C a l l
S u p p l e m e n t a l
P r e s e n t a t i o n
J a n u a r y 2 6 , 2 0 1 7
Exhibit 99.2
2
Safe Harbor
To the extent that statements in this PowerPoint presentation relate to future plans, objectives, financial results or performance
of IBERIABANK Corporation, these statements are deemed to be forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such statements, which are based on management’s current information, estimates and
assumptions and the current economic environment, are generally identified by the use of the words “plan”, “believe”, “expect”,
“intend”, “anticipate”, “estimate”, “project” or similar expressions. The Company’s actual strategies, results and financial
condition in future periods may differ materially from those currently expected due to various risks and uncertainties. Forward-
looking statements are subject to numerous assumptions, risks and uncertainties that change over time and could cause actual
results or financial condition to differ materially from those expressed in or implied by such statements. Consequently, no
forward-looking statement can be guaranteed. Except to the extent required by applicable law or regulation, the Company
undertakes no obligation to revise or update publicly any forward-looking statement for any reason.
This PowerPoint presentation supplements information contained in the Company’s earnings release dated January 26, 2017,
and should be read in conjunction therewith. The earnings release may be accessed on the Company’s web site,
www.iberiabank.com, under “Investor Relations” and then “Financial Information” and then “Press Releases.”
Non-GAAP Financial Measures
This PowerPoint presentation contains financial information determined by methods other than in accordance with GAAP. The
Company’s management uses core non-GAAP financial metrics (“Core”) in their analysis of the Company’s performance to
identify core revenues and expenses in a period that directly drive operating net income in that period. These Core measures
typically adjust GAAP performance measures to exclude the effects of the amortization of intangibles and include the tax
benefits associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for
certain significant activities or transactions that in management’s opinion can distort period-to-period comparisons of the
Company’s performance. Reference is made to “Non-GAAP Financial Measures” and “Caution About Forward Looking
Statements” in the earnings release which also apply to certain disclosures in this PowerPoint presentation.
Safe Harbor And Non-GAAP Financial Measures
3
4Q16 Highlights
• Total and core revenues down $8 million, or 4%, primarily due to seasonal slowdown in fee income businesses
• Net interest margin and cash margin declined 19 and 15 basis points, respectively, on a linked quarter basis
• Eight basis points of margin decline due to increased cash/liquidity resulting from record 4Q16 deposit growth
• Non-interest income decreased 11% on a linked quarter basis, primarily due to lower mortgage income as a
result of the seasonal decline in the mortgage locked pipeline
Client
Growth
Revenues
Expenses
High Quality
Focus
• Period-end total loan growth of 1% in 4Q16; 4% annualized growth rate
• Period-end legacy loan growth of 2%; 9% annualized growth rate
• Period-end and average deposits each up 5%; non-interest bearing deposits up 3% and 6%, respectively
• Quarterly organic deposit growth of $886 million – strongest organic deposit growth in our Company’s history
• Originated/renewed $936 million in loans in 4Q16, down 4% on a linked quarter basis
• Non-performing assets decreased $12 million, or 4%, as energy loan resolution “conveyor belt” progresses
• Energy loans declined to 3.7% of total loans and energy-related reserves were 4.2% of total energy loans
• Total “risk-off trade” in energy, indirect auto, and Acadiana-based loans now down $797 million cumulatively
• Remain very asset-sensitive and well positioned for increase in interest rates; slight benefit in 4Q16
• 64% of 4Q16 originations/renewals were floating rate; at 12/31/16, 56% of total loan portfolio has floating rates
• Total expenses increased $13 million, or 10%, and core expenses decreased $5 million, or 3%
• Termination of FDIC loss share agreements resulted in a non-core pre-tax charge of $18 million, or $0.28 per
common share on an after-tax basis
• Good expense control, resulting in stable core tangible efficiency ratio of approximately 60%
Other
• Non-core tax benefit of $7 million in 4Q16 as a result of 2015 tax return filing, or $0.16 per common share
• Issued and sold $280 million in common stock; one-month cost of carry of $0.03 per common share in 4Q16
4
$-
$2
$4
$6
$8
$10
$12
$14
$16
2Q
13
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
$2 $2
$5
$2
$5
$6
$6
$5
$9
$5
$12
$15
$12
$12
$5
$8
$7
$1
($ i
n
M
ill
io
ns
)
Provision
Net Charge-Offs - Energy
Net Charge-Offs - Non-Energy
Notable Items of Interest In 4Q16
• In 4Q16, loan growth was slower, and deposit
growth was significantly greater, than expected
• Energy issues have crested as evidenced by decline
in energy-related NPAs and net-charge-offs
• Overall improvement in consolidated credit quality
resulted in a $7 million decline in the loan loss
provision on a linked quarter basis
• Full year provision of $44 million
• No energy-related interest accrual reversals in
4Q16
• Non-core items in 4Q16:
–No meaningful non-interest income items
– Termination of FDIC loss share agreements was the
primary non-core non-interest expense item in 4Q16,
which equated to a $17.8 million pre-tax cost
(unfavorable $0.28 EPS)
– Tax benefit of $6.8 million (favorable $0.16 EPS)
• Notable items unfavorably impacted 4Q16 EPS by
two cents
Highlights
Dollars in millions
Provision And Charge-Offs
Note: Total loans increased 75% during this time period
Notable Items In 4Q16
Impact on 4Q 6 Results - Better/(Worse)
(Dollars in Millions)
Non-
Interest
Income
Non-
Interest
Expense
Income
Taxes at
35%
Net
Income
Fully
Diluted
EPS
Lower Health Care Costs 2.7$ (0.9)$ 1.8$ 0.04$
FDIC Insurance Premium Expense Reduction 1.3 (0.5) 0.8 0.02
Phanto Stock Incentives Due To Share Price (1.5) 0.5 (1.0) (0.02)
Reserve For Unfunded Commitments (1.1) 0.4 (0.7) (0.01)
Mortgage Market Volatility (1.4)$ 0.5 (0.9) (0.02)
Common Stock Raise Cost of Carry (0.03)
Total Impact In 4Q16 (1.4)$ 1.4$ -$ -$ (0.02)$
5
$-
$50
$100
$150
$200
$250
$300
$350
$400
2012 2013 2014 2015 2016
$27 $25 $33
$52
$82 $31 $29
$43
$69
$86
$38 $35
$55
$70
$85
$37 $40
$55
$79
$81
Q
ua
rt
er
ly
C
or
e
P
re
-P
ro
vs
io
n
Pr
e-
Ta
x
($
in
m
ill
io
ns
)
4Q
3Q
2Q
1Q
$134 $129
$186
$270
$335
+44%
+24%
+45%
GAAP EPS
4Q16 Summary EPS Results
• Income available to common shareholders of $44 million,
down less than 1%, compared to 3Q16
• 4Q16 GAAP EPS of $1.04, down 4% compared to 3Q16
and 4Q15
• 4Q16 Core EPS of $1.16, up 7% compared to 3Q16
• Provision decreased $7 million on a linked quarter basis
• 4Q16 Core Pre-Tax Pre-Provision EPS of $1.92, down 7%
linked quarter, and down 1% compared to 4Q15
• 4Q16 Core ROA of 0.94% and Core ROTCE of 10.75%
CORE EPS CORE Pre-Provision Pre-Tax
Highlights
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
$4.50
2012 2013 2014 2015 2016
$0.66
$0.02
$0.75 $0.75
$0.97
$0.43
$0.53
$0.53
$0.79
$1.21
$0.73
$0.78
$0.92
$1.03
$1.08
$0.79
$0.86
$1.07
$1.08
$1.04
Q
ua
rt
er
ly
E
PS
4Q
3Q
2Q
1Q
$2.59
$2.20
$3.30
$3.68
-15%
+50%
+12% $4.30
+17%
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
$4.50
2012 2013 4 2015 2016
$0.62 $0.74 $0.73
$0.95 $1.01
$0.54
$0.69 $0.89
$1.05
$1.18 $0.83
$0.83
$1.04
$1.07
$1.08
$0.80
$0.87
$1.05
$1.11
$1.16
Qu
ar
te
rly
C
or
e
EP
S 4Q
3Q
2Q
1Q
$2.74
$3.12
$3.72
$4.18
+14%
+19%
+12%
+6%
$4.43
Note: Excludes the impact of preferred stock dividends
6
2016 Highlights Compared To 2015
• Year-end asset growth of $2.2 billion, or 11%
• Year-end loan growth of $738 million, or 5%, including:
– Legacy loan growth of $1.5 billion, or 13%
– Acquired loans declined $767 million, or 24%
– Energy-related loans declined $120 million, or 18%
– Indirect automobile loans declined $115 million, or 47%
• Originated $3.8 billion in loans (up 10%) with total commitments of $5.2 billion (up 7%)
• Year-end deposit growth of $1.2 billion, or 8%, including:
– Non-interest bearing deposit growth of $577 million, or 13%
– NOW account growth of $340 million, or 11%
– Money market growth of $209 million, or 3%
• Year-end shareholders’ equity growth of $441 million, or 18%
• Year-end market capitalization of $3.8 billion, or growth of $1.5 billion, or 66%
• Total tax-equivalent revenues of $893 million, up $76 million, or 9%
• T/E net interest income growth of $62 million, or 10%, with only a two basis point margin decline
• GAAP earnings growth of $36 million, or 25%, and EPS growth of 17%
• Core earnings growth of $22 million, or 14%, and core EPS growth of 6%
• Total cash dividends to common and preferred shareholders of $67 million, up 22%
7
Client Growth
• Total period-end loan growth of $140 million, or 1% vs. 9/30/16
• Acquired loans declined $141 million, or 6%, and aggregate
“risk off” assets declined $70 million during 4Q16
• Legacy loans grew $282 million, or 2% (9% annualized rate)
• 4Q16 loan originations of $936 million, down 4% versus 3Q16
Loan Highlights
Dollars in millions
Deposits – Period-End And Average GrowthLoans – Period-End Growth
Deposit Highlights
• Period-end total deposits grew $886 million, or 5%, vs. 9/30/16
• Average total deposits grew $817 million, or 5% vs. 3Q16
• Very strong growth in non-interest bearing deposits, up $141
million, or 3%, on a period-end basis and up $264 million, or
6%, on an average balance basis
$(300) $(200) $(100) $- $100 $200 $300 $400 $500 $600
All Other Legacy
Indirect Auto
Energy
Acquired
$343
$(23)
$(38)
$(141)
$519
$(28)
$(62)
$(227)
$557
$(31)
$(70)
$(185)
$320
$(33)
$51
$(214)
$485
$(35)
$(39)
$(201)
4Q15 1Q16 2Q16 3Q16 4Q16
$(600) $(400) $(200) $- $200 $400 $600 $800
Interest Bearing (Average)
Interest Bearing (P-E)
Non-Interest Bearing (Average)
Non-Interest Bearing (P-E)
$553
$744
$264
$141
$(44)
$412
$142
$248
$(41)
$(454)
$76
$55
$(276)
$(50)
$(72)
$132
1Q16 2Q16 3Q16 4Q16
8
Revenues – Net Interest Income
HighlightsQuarterly Yield/Cost Trend
Drivers Of Change In Margin
• Tax-Equivalent net interest income down $1.7 million, or 1%
• Tax-Equivalent net interest margin down 19 basis points and
cash margin down 15 basis points on a linked quarter basis
• Approximately eight basis points of the margin decline was
the result of increased cash and liquidity during 4Q16 and
five basis points due to higher deposit costs (primarily due
to change in mix)
• Average earnings assets increased $827 million, or 4%,
driven primarily by $298 million in average legacy loan
growth and $724 million growth in investment securities
and other liquid assets
Dollars in millions
0.00% 1.00% 2.00% 3.00% 4.00% 5.00%
Cash Margin
Net Interest Margin
Interest Bearing Deposits
Investments
Loans & Loss Share
Receivable
3.16%
3.34%
0.50%
2.09%
4.31%
3.31%
3.53%
0.44%
2.09%
4.39%
3.41%
3.61%
0.42%
2.18%
4.43%
3.48%
3.64%
0.42%
2.25%
4.45%
3.38%
3.64%
0.43%
2.21%
4.44%
4Q15 1Q16 2Q16 3Q16 4Q16
Net Interest Income Net Interest
($ in Millions) Margin
163.4$ 3Q16 3.53%
1.6 Bond Portfolio Purchases -0.02%
0.4 Higher Cash Balances -0.06%
2.0 Excess Liquidity Impact -0.08%
(2.3) Higher Deposit Costs -0.05%
3.6 Legacy Loan Volume Increase/Higher Resets 0.02%
(1.2) Full Quarter Impact of 3Q16 Non-Accruals -0.02%
(4.0) Lower Acquired Loan Portfolio -0.05%
0.0 Change In Number of Business Days 0.00%
0.2 All Other Factors -0.01%
161.7$ 4Q16 3.34%
9
Revenues – Interest Rate Risk
Highlights
Assets Liabilities
• Loans: 44% fixed and 56% floating
• Adjustable loans composition:
Prime-based 42%
LIBOR-based 55%
All other 3%
• Most LIBOR-based loans are priced off of 30-Day LIBOR
• Approximately $700 million in loans with an average floor
that is 50 basis points above the corresponding rate index
• Bond portfolio had an effective duration of 3.8 years
• Asset-sensitive from an interest rate risk perspective
• The degree of asset-sensitivity is a function of the reaction
of competitors to changes in deposit pricing
• The level of asset sensitivity has increased over time
• Forward curve has a positive impact on net interest income
over 12-month period
• Estimated impact of the next 25 basis point increase in the
Federal Funds Rate would equate to a $0.05 increase in
quarterly EPS
12-Month Net Interest Income Scenarios
• Non-interest-bearing equated to 28% of total deposits
• Non-interest-bearing deposits up $141 million, or 3%, on
a period-end basis, and up $264 million, or 6%, on an
average balance basis
• Interest-bearing deposit cost of 0.50%, up six basis points
from 3Q16
• No significant change in deposit rates since Fed Funds
move in 4Q16, but mix has changed slightly
• Cost of interest-bearing liabilities increased four basis
points to 0.57%
-8.0%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
-7.9%
6.1%
11.8%
1.9%
1.4%
3.8%
1.9%
1Q16 2Q16 3Q16 4Q16
% Change In NII From Base
-100 Bps
+100 Bps +200 Bps Blue Chip Forward
Curve
Steepening
Curve
Flattening
Curve
10
Revenues – Non-Interest Income
• No meaningful non-core
income in 4Q16, so change
in income was due to core
income changes
• Core non-interest income
declined $6.6 million, or
11%, compared to 3Q16:
Mortgage income
decreased $5.7 million,
or 26%
Title revenues decreased
$0.7 million, or 11%
Brokerage and client
swap income decreased
$0.9 million on a linked
quarter basis
Capital markets income
was up $0.6 million on a
linked quarter basis
HighlightsDrivers Of Non-Interest Income Change Quarter-Over-Quarter
Dollars in millions
$50.0
$52.0
$54.0
$56.0
$58.0
$60.0
$62.0
Core Non-
Interest
I c me
3Q16
Capital
Markets
Income
Mortgage
Income
Brokerage
commission
and Swap
Income
Title
Revenues
All Other
Core Income
Core Non-
Interest
Income
4Q16
Total Non-
Core Income
Total Non-
Interest
Income
4Q16
$53.2
$59.8 $0.6
($5.7)
($0.9 )
($0.7)
$0.0
$53.2
$ in Millions
11
$-
$50
$100
$150
$200
$250
$300
$350
$400
$450
M
or
tg
ag
e
Lo
an
Lo
ck
ed
P
ip
el
in
e
($
in
M
ill
io
ns
)
2017
2016
2015
2014
2013
2012
Revenues – Mortgage Income
Highlights
Volume Trends
Mortgage Income Trends
• Mortgage income of $16.1 million, down $5.7 million, or 26%:
Loan originations down 23% to $538 million in 4Q16
Sales volume of $583 million (down 17% versus 3Q16)
Excluding $1.4 million of market volatility losses described below,
$4.3 million lower net gains on sales due to lower sales volumes
and margins
Hedging losses of $1.4 million due to post-election interest rate
volatility in the 10-year U.S. Treasury
Dollars in millions
Mortgage Weekly Locked Pipeline
-$5.0
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
3Q15 4Q15 1Q16 2Q16 3Q16 4Q16
$20.6
$16.8
$19.9
$26.0
$22.9
$16.1
-$1.1
$ i
n
M
ill
io
ns
Mortgage Non-Interest Income HFI Adjustment
$0
$100
$200
$300
$400
$500
$600
3Q15 4Q15 1Q16 2Q16 3Q16 4Q16
$283 $227
$345 $345 $282
$166
$202
$166
$193 $230
$211
$157
$ in
Mi
llio
ns
Pipeline and Loan HFS Volumes
(Period End)
Pipeline Loans HFS
$493$538
$393
$485
$575
$323$0
$200
$400
$600
$800
3Q15 4Q15 1Q16 2Q16 3Q16 4Q16
$720
$558 $516
$709 $699
$538
$726
$597
$488
$673 $706
$583
$ in
Mi
llio
ns
Volumes of Mortgage Loans Originated and Sold
Originations Sold
12
Expense Control
• Total core revenues were down $8.3 million, or 4%,
compared to 3Q16 while core expenses were down
$4.6 million, or 3%, over that period
• Our core tangible efficiency ratio remained at 60% in
4Q16, essentially unchanged from 3Q16
• Notable items included lower health care costs and
mortgage commissions partially offset by higher
provision for unfunded commitments and phantom
stock expenses due to our share price increase
Highlights
Efficiency Ratio Trends
Drivers Of Expense Change Quarter-Over-Quarter
Dollars in millions
102.4%
70.5%
79.0%
60.3%
74.2%
60.2%
55.0%
5.0%
75.0%
85.0%
95.0%
105.0%
1
Q
1
3
2
Q
1
3
3
Q
1
3
4
Q
1
3
1
Q
1
4
2
Q
1
4
3
Q
1
4
4
Q
1
4
1
Q
1
5
2
Q
1
5
3
Q
1
5
4
Q
1
5
1
Q
1
6
2
Q
1
6
3
Q
1
6
4
Q
1
6
C
o
re
T
an
gi
b
le
E
ff
ic
ie
n
cy
R
at
io
Efficiency Ratio
Core Tangible Efficieny Ratio (TE)
Core Tangible Efficiency Ratio (TE)
Trailing 12 Months
$130.0
$135.0
$140.0
$145.0
$150.0
$155.0
Core Non-
Interest
Expense
3Q16
Credit &
Loan
Related
Phantom
Stock
Incentives
Computer
Services
Health Care
Costs
Mortgage
Commission
Occupancy
Expense
FDIC
Insurance
Legal And
Professional
Marketing
Expense
All Other
Operating
Changes
Core Non-
Interest
Expense
4Q16
Total Non-
Core
Expense
Total Non-
Interest
Expense
4Q16
$133.6
$138.1
$1.5
$1.5
$0.9
($2.7)
($1.7)
($1.0)
($1.0)
($0.8)
($0.7)
($0.5)
$18.0$151.6
$ in Millions
13
• High single-digit loan growth at consolidated level
• Headwinds to loan growth from risk-off trade to decline materially
• Mid-single-digit deposit growth
• Net interest margin will improve as excess liquidity is deployed
• Amortization expense associated with the FDIC indemnification asset, which was previously expected to be
approximately $8 million in 2017, will no longer be amortized and will positively impact the net interest margin
beginning in 2017
• Overall credit metrics expected to improve throughout 2017
• Provision expense will decline from 2016 levels in conjunction with improving credit within the energy portfolio
• Non-interest income is expected to show minimal growth in 2017 over 2016
• Continued cost containment with core tangible efficiency ratio below 60%
• Tax rate is expected to be approximately 34% assuming no change in the statutory rate
• Excess capital will have a monthly three cent EPS drag until the capital is fully deployed from cash
• Based on asset sensitivity modeling, future increases in the Fed funds rate is estimated to increase quarterly EPS
by five cents for each 25 basis point increase
The Company’s guidance is subject to risks, uncertainties, and assumptions which could, individually or in aggregate, cause actual
results or financial condition to differ materially from those anticipated above. Reference is made to “Caution About Forward-Looking
Statements” in the earnings release which also applies to this guidance.
Guidance And Key Assumptions
14
“Risk-Off” Focus
• Purpose: reduce current exposures to
avoid future potential loss exposures
(though some near-term cost)
• $797 million in cumulative risk-off
trade since the beginning of 2015
• An estimated pre-tax opportunity cost
of $5.5 million during 2015, $15.1
million for the full year of 2016, and
$0.07 EPS after-tax in 4Q16
• Percentage of total loans at December
31, 2016:
Energy loans equal 3.7%
Indirect Auto loans equal 0.9%
Multi-Family loans equal 2.9%
Construction and Land loans equal
6.1% (45% of Total Risk Based
Capital*)
Non-Owner Occupied CRE equals
27% (200% of Total Risk Based
Capital*)
Highlights Risk Off Trend (Period-End)
Dollars in millions
($38) mm,
-6%
($23) mm,
-15%
($9) mm,
-4%
Linked Qtr
Change
* Preliminary; based on bank-level capital
-$900
-$800
-$700
-$600
-$500
-$400
-$300
-$200
-$100
$0
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16
($30)
($74)
($116)
($151) ($184) ($215) ($243) ($266)
($61)
($93)
($161)
($200) ($149)
($219)
($281)
($319)
($47)
($57)
($74)
($91) ($126)
($154)
($203)
($212)Cu
m
u
la
ti
ve
D
ec
lin
e
Si
n
ce
Y
ea
r-
En
d
201
4
Cumulative Decline In Risk Off Assets
Acadiana Loans
Energy Loans
Indirect Loans
($138)
($224)
($351)
($442)
$ in Millions
($459)
($588)
($727)
($797)
15
Continued Resolution of Energy Portfolio
Highlights
Energy Loan Portfolio Asset Quality
Declining Energy Loan Balances
Energy-Related Criticized Assets
• Energy-related loans equated to 3.7% of total loans, down
$38 million, or 6%, compared to 9/30/16
• 86% of energy-related loan balances on non-accrual remain
current with their payments
• Resolution of energy credits continues as they “roll down
the conveyor belt”
• Classified energy-related loans decreased $16.5 million, or
7%; equated to 42% of energy loans
• Criticized energy-related loans decreased $1.7 million, or
less than 1%; equated to 57% of energy loans
• Energy-related non-accrual loans declined $3 million to $150
million, or 27% of the energy portfolio
• Energy provision reversal of $4 million as credit conditions
improved in the quarter; $1.5 million energy net charge-offs
• Allowance for energy-related loans of $24 million; equal to
4.2% of the energy-related loans outstanding.
E&P:
$102mm
Dollars in millions
Services:
$48mm
Midstream:
$0mm
$0
$50
$100
$150
$200
$250
$300
$350
$400
3Q15 4Q15 1Q16 2Q16 3Q16 4Q16
$55
$138
$310
$252
$165 $167
$5
$8
$46
$61
$154 $150
Non-Accrual Loans Criticized Accruing Loans
$60
$147
$356
$313 $319 $317
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16
$456 $430
$380 $336 $314
$370 $328 $301 $291
$272
$254
$263
$261
$250
$231
210
$188 $180
$152
$136
$144
$123
$117
$131
$124
$111
$90
$881
$819
$788
$719
$681
$732
$662
$600
$561
E&P Service Midstream
% of Total
Loans
7.7% 6.4% 5.6% 5.1% 4.8% 5.0% 4.5% 4.1% 3.7%
% Total
Energy
16%
32%
52%
16
Continued Strong Credit Results
Highlights NPAs To Total Assets
Non-Energy-Related NPAs
• Continued workout of acquired portfolios
• Legacy loans increased $282 million, or 2%, since 9/30/16
• Legacy NPAs/Assets equal to 1.20%, a decrease of 13 basis
points on a linked-quarter basis
• Legacy loans past due 30 days or more (excluding non-
accruals) declined $20 million, or 44%, and equated to
0.20% of total legacy loans at year-end 2016
• Annualized legacy net charge-offs equal to 0.24% of average
legacy loans in 4Q16, compared to 0.33% in 3Q16
• Non-energy NPAs were 0.48% of total non-energy assets
Dollars in millions
Source: SNL Financial – Publicly Traded Bank Holding Companies With Total Assets Between $10 - $30 Billion
1.08%
1.16%
0.48%
2.59%
1.58%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16
IBERIABANK
IBERIABANK Excl. Energy
Avg $10-$30b Peers
%
$0
$20
$40
$60
$80
$100
$120
$140
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16
$65
$78
$52 $49 $53 $42
$87 $80
$53
$50
$40
$34 $31
$27
$22
$21
ORE All Other Non-performing Loans
$118
$128
$92
$83 $84
$69
$109
$101
17
Credit Quality Trends
Energy And Non-Energy Asset Quality
$Mill. %Loans $Mill. %Loans $Mill. %Loans $Mill. % Loans $Mill. %Loans
Loans Outstandings
Energy 732 5.1% 662 4.5% 600 4.0% 561 3.7% (38) -6%
Non-Energy 13,720 94.9% 14,061 95.5% 14,325 96.0% 14,504 96.3% 179 1%
Total 14,451$ 100.0% 14,723$ 100.0% 14,924$ 100.0% 15,065$ 100.0% 140$ 1%
Net Charge-Offs
Energy - 0.00% 8 4.44% 7 4.39% 1 1.02% (5) -79%
Non-Energy 4 0.12% 4 0.12% 3 0.09% 6 0.17% 3 89%
Total 4$ 0.11% 12$ 0.33% 10$ 0.28% 8$ 0.21% (3)$ -25%
Provision 15$ 12$ 12$ 5$ (7)$ -59%
Reserve Build 11 (0) 2 (2) (5)$ -210%
Coverage Ratio 372% 100% 122% 68%
Allowance For Loan Losses
Energy 38 5.26% 33 4.99% 28 4.71% 23 4.01% (6) -20%
Non-Energy 108 0.79% 114 0.81% 120 0.84% 122 0.84% 2 2%
Total 147$ 1.01% 147$ 1.00% 148$ 0.99% 145$ 0.96% (3)$ -2%
Loans 30-89 Days Past Due
Energy - 0.00% 3 0.46% - 0.00% 2 0.27% 2 n.m.
Non-Energy 49 0.36% 48 0.34% 45 0.32% 27 0.19% (18) -39%
Total 49$ 0.34% 51$ 0.34% 45$ 0.30% 29$ 0.20% (16)$ -36%
NPAs: %Assets %Assets %Assets %Assets
Energy 46 6.32% 61 9.19% 154 25.62% 150 26.79% (3) -2%
Non-Energy 84 0.43% 69 0.35% 109 0.53% 101 0.48% (8) -8%
Total 130$ 0.65% 130$ 0.64% 263$ 1.26% 251$ 1.16% (12)$ -4%
3Q16 Linked Qtr. Chg.1Q16 2Q16 4Q16
APPENDIX
19
Louisiana And Texas MSAs Our Other MSAs
Local Market Conditions –MSA Unemployment Trends
• Prior to 2014, nearly all unemployment rates below national
average
• Louisiana markets exhibit seasonality (December peaks)
• Recent improvements in many Louisiana markets
• Houston and Dallas in downward tandem until year-end 2014
• Many markets are near national average in magnitude
and trend
• Most MSAs have exhibited an improvement in
unemployment rates, though some Alabama markets
have shown some deterioration beginning in the summer
of 2016
• Unemployment in Mobile remains at elevated level
• Lowest unemployment rates in Arkansas MSAs
US Average, 4.6%
Baton Rouge, 5.1%
Houma-Thibodaux, 6.4%
Lafayette, 6.8%
Lake Charles, 4.9%
Monroe, 6.2%
New Orleans, 5.5%
Shreveport, 6.5%
Dallas-Fort Worth, 3.7%
Houston, 5.1%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
D
ec
-1
1
M
ar
-1
2
Ju
n-
12
Se
p-
12
D
ec
-1
2
M
ar
-1
3
Ju
n-
13
Se
p-
13
D
ec
-1
3
M
ar
-1
4
Ju
n-
14
Se
p-
14
D
ec
-1
4
M
ar
-1
5
Ju
n-
15
Se
p-
15
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ec
-1
5
M
ar
-1
6
Ju
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16
Se
p-
16
M
on
th
ly
U
ne
m
pl
oy
m
en
t R
at
es
(S
ea
so
na
lly
A
dj
us
te
d)
LA And TX MSAs US Average
Baton Rouge
Houma-Thibodaux
Lafayette
Lake Charles
Monroe
New Orleans
Shreveport
Dallas-Fort Worth
Houston
US Average, 4.6%
Birmingham, 5.6%
Huntsville, 5.4%
Mobile, 7.2%
Fayetteville-Springdale, 2.9%
Jonesboro, 3.5%
Little Rock, 3.6%
Jacksonville, 4.8%
Miami-Ft. Laud., 5.0%
Naples, 5.0%
Sarasota-Bradenton, 4.7%
Orlando, 4.5%
Tampa-St. Pete., 4.7%
Atlanta, 5.1%
Memphis, 5.3%
2.5%
3.5%
4.5%
5.5%
6.5%
7.5%
8.5%
9.5%
D
ec
-1
1
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ar
-1
2
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12
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12
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2
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ar
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3
Ju
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13
Se
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13
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3
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4
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14
Se
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14
D
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4
M
ar
-1
5
Ju
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15
Se
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15
D
ec
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5
M
ar
-1
6
Ju
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16
Se
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16
M
on
th
ly
U
ne
m
pl
oy
m
en
t R
at
es
(S
ea
so
na
lly
A
dj
us
te
d)
AL, FL, GA, and TN MSAs
US Average
Birmingham
Huntsville
Mobile
Fayetteville-Springdale
Jonesboro
Little Rock
Fort Myers
Jacksonville
Miami-Ft. Laud.
Naples
Sarasota-Bradenton
Orlando
Tampa-St. Pete.
Atlanta
Memphis
20
Total Loans
Strong Market Growth And Diversification
• 4Q16 loan growth in 59% of our markets
• Acadiana and Houston each account for 9% of total loans
• Strongest 4Q16 market loan growth in:
Atlanta
Tampa
Dallas
Baton Rouge
Total Deposits
• Indirect and Texas energy deposits account for only 3% of total deposits
• Florida, Acadiana, and New Orleans account for over half of deposits
• Deposit growth in 70% of our markets in 4Q16
• Strongest 4Q16 market deposit growth in:
New Orleans
Acadiana
Houston
Florida Keys
Alabama, 10%
Arkansas, 7%
Florida, 20%
Tennessee, 4%
Georgia, 7%
New Orleans,
12%
Acadiana, 9%
Baton Rouge,
6%
Other Louisiana,
5%
Houston, 9%
Dallas, 4%
Indirect, 1%
Energy, 4%All Other, 5%
Alabama, 7%
Arkansas, 8%
Florida, 28%
Tennessee, 2%
Georgia, 5%New Orl ans, 11%
Acadiana, 16%
Baton Rouge, 4%
Other Louisiana,
7%
Houston, 5%
Dallas, 3%
Indirect, 0%
Energy, 3%
21
Seasonal Influences
Legacy Loan Growth
• Loan growth typically softer in first quarter, stronger in second
quarter and somewhat slower in the third quarter
• Mortgage and title income typically are softer in fourth and first
quarters and stronger in second and third quarters
• Payroll taxes and retirement contributions decrease ratably
throughout the year
Dollars in millions
Seasonal Revenue Trends
Seasonal Expense Trends
-$50
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
$550
$600
M
ar
-0
4
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04
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4
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4
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5
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5
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5
M
ar
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6
Ju
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06
S
ep
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6
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ec-0
6
M
ar
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7
Ju
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07
S
ep
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7
D
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7
M
ar
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8
Ju
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S
ep
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8
D
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8
M
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9
Ju
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9
D
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9
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Ju
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Se
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1
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2
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S
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2
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3
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S
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3
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S
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6
70
(15)
39
37
61
23
123
(5)
115
14
107
64
173
149
338
246
362
243
568
165
489
181
411
338
282
Pe
rio
d-
En
d
Qu
ar
te
rly
Le
ga
cy
Lo
an
G
ro
w
th
$ in Millions
First Quarter Growth
Other Quarter Growth
$0
$2
$4
$6
$8
$10
$12
$14
$16
$18
$20
$22
$24
$26
$28
$30
$32
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 Q 5 2Q15 3Q15 4Q 5 1Q16 2Q16 3Q 6 4Q16
$19
$18
$15
$12
$10
$14 $14 $14
$18
$25
$21
$17
$20
$26
$22
$16
$5
$6
$5
$4
$4
$5
$6
$5
$5
$6
$7
$5
$5
$6
$6
$5
N
on
-In
te
rest
In
co
me
($
in
M
ill
io
ns
)
$ in Millions
Title Revenues
Mortgage Revenues
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16
$4.6
$3.4
$2.8
$2.5
$4.3
$3.4 $3.3
$2.8
$4.9
$4.3 $4.1
$3.4
$5.4
$4.2
$3.3 $3.2
$0.5
$0.8
$0.3
0.2
$0.6
$0.5
$0.4
$0.4
$0.7
$0.4
$0.5
$0.4
$0.6
$0.6
$0.5
$0.4
Ex
pe
nses
($
in
M
ill
io
ns
)
Millions
Retirement Contributions
Payroll Taxes
22
Non-Interest Income And Expense Trend Details
Dollars in millions
Non-interest Income ($ millions) 4Q15 1Q16 2Q 16 3Q 16 4Q 16 $ Change % Change
Service Charges on Deposit Accounts 11.4$ 11.0$ 10.9$ 11.1$ 11.2$ 0.1$ 1%
ATM / Debit Card Fee Income 3.6 3.5 3.6 3.5 3.6 0.1 3%
BOLI Proceeds and CSV Income 1.1 1.2 1.4 1.3 1.3 0.0 1%
Mortgage Income 16.8 19.9 26.0 21.8 16.1 (5.7) -26%
Title Revenue 5.4 4.7 6.1 6.0 5.3 (0.7) -11%
Broker Commissions 4.1 3.8 3.7 3.8 4.0 0.2 5%
Other Non-interest Income 9.9 11.5 11.3 12.3 11.7 (0.6) -5%
Non-interest income (Excluding non-core income) 52.3$ 55.6$ 63.0$ 59.8$ 53.2$ (6.6)$ -11%
Gain (Loss) on Sale of Investments, Net - 0.2 1.8 - - - 0%
Other Non-core income 0.2 - - - - - 0%
Total Non-interest Income 52.5$ 55.8$ 64.8$ 59.8$ 53.2$ (6.6)$ -11%
Non-interest Expense ($ millions) 4Q15 1Q16 2Q 16 3Q 16 4Q 16 $ Change % Change
Mortgage Commissions 4.9$ 4.6$ 7.3$ 6.9$ 5.2$ (1.7)$ -25%
Hospitalization Expense 5.5 5.6 5.3 6.6 3.9 (2.7) -41%
Other Salaries and Benefits 71.2 70.1 72.3 71.5 71.6 0.1 0%
Salaries and Employee Benefits 81.6$ 80.3$ 85.0$ 85.0$ 80.7$ (4.3)$ -5%
Credit/Loan Related 2.5 2.7 2.9 1.9 3.4 1.5 77%
Occupancy and Equipment 16.9 16.9 16.8 16.5 15.6 (1.0) -6%
Amortization of Acquisition Intangibles 1.8 2.1 2.1 2.1 2.1 (0.0) -1%
All Other Non-interest Expense 31.3 32.9 32.7 32.5 31.8 (0.7) -2%
Noninterest Expense (Excluding Non-Core Exp.) 134.1$ 134.9$ 139.4$ 138.1$ 133.6$ (4.6)$ -3%
Severance 1.8 0.5 0.1 - 0.2 0.2 100%
Impairment of Long-lived Assets, net of gains on sales 3.4 1.0 (1.3) - (0.5) (0.5) 100%
Loss on early termination of loss share agreements - - - - 17.8 17.8 100%
Consulting and Professional - - 0.6 - - - 0%
Other Non-interest Expense (0.2) 1.1 0.6 - - - 0%
Merger-Related Expenses (0.2) - - - 0.5 0.5 100%
Total Non-interest Expense 139.0$ 137.5$ 139.5$ 138.1$ 151.6$ 13.4$ 10%
Tangible Efficiency Ratio - excl Non-Core-Exp 61.1% 60.3% 60.0% 60.1% 60.3%
4Q16 vs. 3Q16
4Q16 vs. 3Q16
23
GAAP And Non-GAAP Cash Margin
• Adjustments represent accounting
impacts of purchase discounts on
acquired loans and related accretion
as well as the indemnification asset
and related amortization on the
covered portfolio
Dollars in millions
Balances, As
Reported Adjustments
As Adjusted
Non-GAAP
4Q15
Average Balance 17,688$ 87$ 17,775$
Income 161.1$ (10.7)$ 150.4$
Rate 3.64% -0.29% 3.38%
1Q16
Average Balance 17,873$ 86$ 17,959$
Income 161.4$ (6.5)$ 154.9$
Rate 3.64% -0.16% 3.48%
2Q16
Average Balance 18,155$ 84$ 18,239$
Income 162.8$ (8.6)$ 154.2$
Rate 3.61% -0.20% 3.41%
3Q16
Average Balance 18,521$ 77$ 18,598$
Income 163.4$ (9.1)$ 154.3$
Rate 3.53% -0.22% 3.31%
4Q16
Average Balance 19,349$ 73$ 19,422$
Income 161.7$ (8.4)$ 153.3$
Rate 3.34% -0.18% 3.16%
24
Strong Capital Position
• On May 4, 2016, the Company’s Board
of Directors of the Company
authorized the repurchase of up to
950,000 common shares
• To date, 202,506 common shares
were purchased at a weighted average
price of $57.61 per common share
• During 4Q16, the Company did not
repurchase any shares of its common
stock
Highlights
Impact Of Recent Capital Raises On Capital Ratios At Year-End 2016
Capital Ratios (Preliminary)
Share Repurchase Program
• In 3Q15, issued and sold preferred stock with gross
proceeds of $80 million; pays cash dividends semi-annually
• In 2Q16, issued and sold preferred stock with gross
proceeds of $57.5 million; pays cash dividends quarterly
• In 4Q16, issued and sold 3.6 million shares of common
stock at a price of $81.50 per common share, with net
proceeds of $280 million
• Preferred stock had a 2016 cost of $8.0 million, or $0.19
negative impact to EPS until fully deployed
• Common stock cost $0.03 negative impact to 4Q16 EPS
IBERIABANK Corporation 3Q16 4Q16 Change
Common Equity Tier 1 (CET1) ratio 10.14% 11.84% 170 bps
Tier 1 Leverage 9.70% 10.86% 116 bps
Tier 1 Risk-Based 10.90% 12.59% 169 bps
Total Risk-Based 12.49% 14.13% 164 bps
IBERIABANK and Subsidiaries 3Q16 4Q16 Change
Common Equity Tier 1 (CET1) ratio 10.52% 10.67% 15 bps
Tier 1 Leverage 9.37% 9.21% (16) bps
Tier 1 Risk-Based 10.52% 10.67% 15 bps
Total Risk-Based 11.44% 11.56% 12 bps
IBERIABANK Corporation
12/31/16 Capital
Ratios Excluding
Preferred And
Common
Issuances
Impact Of
3Q15
Preferred
Stock Raise
Impact Of
2Q16
Preferred
Stock Raise
Impact Of
4Q16
Common
Stock Raise
12/31/16
Capital
Ratios
Common Equity Tier 1 (CET1) ratio 10.26% 0.00% 0.00% 1.58% 11.84%
Tier 1 Leverage 8.85% 0.38% 0.27% 1.36% 10.86%
Tier 1 Risk-Based 10.26% 0.44% 0.31% 1.58% 12.59%
Total Risk-Based 11.80% 0.44% 0.31% 1.58% 14.13%
25
Reconciliation Of Non-GAAP Financial Measures
• No material non-core income in 4Q16
• Non-core expenses equal to $18.0 million pre-tax, or $0.28 EPS after-tax
• Non-core tax benefit of $6.8 million, or $0.16 EPS after-tax
Dollars in millions
Pre-tax After-tax
(2)
Per share Pre-tax After-tax
(2)
Per share Pre-tax After-tax
(2)
Per share
Net Income available to common shareholders (GAAP) 76.3$ 50.0$ 1.21$ 72.6$ 44.5$ 1.08$ 58.2$ 44.2$ 1.04$
Non-interest income adjustments
Gain on sale of investments and other non-interest income (1.8) (1.2) (0.03) (0.0) (0.0) 0.00 (0.0) (0.0) 0.00
Non-interest expense adjustments
Merger-related expenses - - - - - - - - -
Severance expenses 0.1 0.1 0.00 - - - 0.2 0.1 -
Impairment of long-lived assets, net of (gain) loss on sale (1.3) (0.8) (0.02) - - - (0.5) (0.3) (0.01)
Loss on early termination of loss share agreements - - - - - - 17.8 11.6 0.28
Other non-operating non-interest expense 1.2 0.8 0.02 - - - 0.5 0.3 0.01
Total non-interest expense adjustments 0.1 0.0 (0.00) - - - 18.0 11.7 0.28
Income tax benefits - - - - - - - (6.8) (0.16)
Core earnings (Non-GAAP) 74.6 48.8 1.18 72.6 44.5 1.08 76.2 49.0 1.16
Provision for loan losses 11.9 7.7 0.19 12.5 8.1 0.20 5.2 3.4 0.08
Pre-provision core earnings (Non-GAAP) 86.4$ 56.5$ 1.37 85.1$ 52.6$ 1.28 81.3$ 52.4$ 1.24
(1) Per share amounts may not appear to foot due to rounding.
(2) After-tax amounts estimated based on a 35% marginal tax rate.
Dollar Amount Dollar Amount Dollar Amount
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(1)
(dollars in thousands)
For The Quarter Ended
June 30, 2016 September 30, 2016 December 31, 2016
