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IBERIABANK Corp. Reports Operating Results (10-K)

March 04, 2011 | About:
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10qk

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IBERIABANK Corp. (IBKC) filed Annual Report for the period ended 2010-12-31.

Iberiabank Corp. has a market cap of $1.55 billion; its shares were traded at around $57.56 with a P/E ratio of 26.8 and P/S ratio of 2.9. The dividend yield of Iberiabank Corp. stocks is 2.4%. Iberiabank Corp. had an annual average earning growth of 9.3% over the past 10 years. GuruFocus rated Iberiabank Corp. the business predictability rank of 3-star.Hedge Fund Gurus that owns IBKC: Jim Simons of Renaissance Technologies LLC. Mutual Fund and Other Gurus that owns IBKC: John Keeley of Keeley Fund Management, RS Investment Management.

Highlight of Business Operations:

IBERIABANK Corporation, a Louisiana corporation, is a financial holding company with 226 combined offices, including 145 bank branch offices in Louisiana, Arkansas, Florida, Alabama, Tennessee, and Texas, 27 title insurance offices in Arkansas and Louisiana, and mortgage representatives in 54 locations in 12 states. As of December 31, 2010, we had consolidated assets of $10.0 billion, total deposits of $7.9 billion and shareholders equity of $1.3 billion.

IBERIABANK has eight active, wholly-owned non-bank subsidiaries: Iberia Financial Services, LLC, IBERIABANK Insurance Services, LLC, IB SPE Management Inc., Acadiana Holdings, LLC, IBERIABANK Mortgage Company (IMC), P.F. Services, Inc., Iberia Investment Fund I, LLC, and Iberia Investment Fund II, LLC. Iberia Financial Services manages the brokerage services offered by IBERIABANK. At December 31, 2010, IBERIABANKs equity investment in Iberia Financial Services, LLC was $3.6 million, and Iberia Financial Services, LLC had total assets of $5.2 million. IBERIABANK Insurance Services, LLC is a licensed insurance agency and facilitates the receipt of insurance commissions from the sale of variable annuities, life, health, dental and accident insurance products. At December 31, 2010, IBERIABANKs equity investment in IBERIABANK Insurance Services, LLC was $0.1 million, and IBERIABANK Insurance Services, LLC had total assets of $0.2 million. IB SPE Management Inc. operates and then sells certain foreclosed assets acquired in our recent Florida acquisitions. At December 31, 2010, IBERIABANKs equity investment in IB SPE Management Inc. was $32.6 million, and IB SPE Management Inc. had total assets of $32.7 million. Acadiana Holdings, LLC owns and operates a commercial office building that also serves as our headquarters and IBERIABANKs main office. At December 31, 2010, IBERIABANKs equity investment in Acadiana Holdings, LLC was $9.8 million, and Acadiana Holdings,

LLC had total assets of $10.7 million. Iberia Investment Fund I, LLC and Iberia Investment Fund II, LLC are investment funds held for the purpose of funding new market tax credits and are disregarded entities for tax purposes. IBERIABANKs equity investment in Iberia Investment Fund I, LLC and Iberia Investment Fund II, LLC was $23.9 million and $2.2 million, respectively, at December 31, 2010. Iberia Investment Funds I, LLC and Iberia Investment Fund II, LLC has total assets of $107.7 million and $9.8 million, respectively, at December 31, 2010.

As of December 31, 2010, IBERIABANK fsb had two active, wholly-owned non-bank subsidiaries, IBERIABANK Mortgage Company (IMC, formerly Pulaski Mortgage Company) and P.F. Services, Inc. IMC (formerly Pulaski Mortgage Company) offers one-to-four family residential mortgage loans in Louisiana, Arkansas, Alabama, Tennessee, Mississippi, Oklahoma, Texas, Missouri, Illinois, Georgia, Florida, and Idaho. At December 31, 2010, IBERIABANKs equity investment in IMC was $38.0 million, and IMC had total assets of $107.3 million. P.F. Services, Inc. owns an office building which we plan to divest. IBERIABANKs equity investment in P.F. Services, Inc. was $0.5 million, and P.F. Services, Inc. had total assets of $0.5 million at December 31, 2010. IMC and P.F. Services, inc. are now wholly-owned subsidiaries of IBERIABANK.

Lenders Title provides a full line of title insurance and loan closing services for both residential and commercial customers in locations throughout Arkansas. Lenders Title has three active, wholly-owned subsidiaries, Asset Exchange, Inc., United Title of Louisiana, Inc. (United Title), and American Abstract and Title Company, Inc (AAT). Asset Exchange, Inc. provides qualified intermediary services to facilitate Internal Revenue Code Section 1031 tax deferred exchanges. At December 31, 2010, Lenders Titles equity investment in Asset Exchange, Inc. was $0.3 million, and Asset Exchange, Inc. had total assets of $0.3 million. United Title and AAT provide a full line of title insurance and loan closing services for both residential and commercial customers in locations throughout Louisiana. At December 31, 2010, Lenders Titles equity investment in United Title was $5.4 million, and United Title had total assets of $6.3 million. Lenders Titles equity investment in AAT was $2.3 million and AAT had total assets of $3.1 million.

In February 2011, the FDIC adopted a final rule (the New Assessment Rule) to revise the deposit insurance assessment system for large institutions. The New Assessment Rule creates a two scorecard system for large institutions, one for most large institutions that have more than $10 billion in assets, and another for highly complex institutions that have over $50 billion in assets and are fully owned by a parent with over $500 billion in assets. Each scorecard will have a performance score and a loss-severity score that will be combined to produce a total score, which will be translated into an initial assessment rate. In calculating these scores, the FDIC will continue to utilize the banks supervisory CAMELS ratings and will introduce certain new forward-looking financial measures to assess an institutions ability to withstand asset-related stress and funding-related stress. The New Assessment Rule also eliminates the use of risk categories and long-term debt issuer ratings for calculating risk-based assessments for institutions having more than $10 billion in assets. The FDIC will continue to have the ability under the New Assessment Rule to make discretionary adjustments to the total score, up or down, based upon significant risk factors that are not adequately captured in the scorecard. The total score will then translate to an initial base assessment rate on a non-linear, sharply-increasing scale. The New Assessment Rule preserves the adjustments to an institutions base assessment rates based on its long-term unsecured debt and brokered deposits (if greater than 10%) and creates a new adjustment based on the institutions holdings of long-term unsecured debt issued by a different insured depository institution. The New Assessment Rule eliminates the adjustment to an institutions base assessment rate based on the its secured liabilities. The final rule will be effective April 1, 2011.

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