IBERIABANK Corp. Reports Operating Results (10-Q)
Iberiabank Corporation has a market cap of $1.34 billion; its shares were traded at around $46.9925 with a P/E ratio of 16.3 and P/S ratio of 2.4. The dividend yield of Iberiabank Corporation stocks is 3%. Iberiabank Corporation had an annual average earning growth of 1% over the past 10 years.
Highlight of Business Operations:During the first six months of 2012, the Companys income available to common shareholders totaled $32.0 million, or $1.08 per share on a diluted basis, a 61.1% increase compared to the $19.8 million earned during the same period of 2011. On a per share basis, this represents an increase of 51.0% from the $0.72 per diluted share earned in 2011. On a quarterly basis, the Company earned $0.43 per diluted share in the second quarter of 2012, a 131.0% increase compared to $0.18 per diluted share in the second quarter of 2011. The Companys net income was $12.6 million for the quarter ended June 30, 2012, an increase of $7.4 million from net income of $5.2 million in the second quarter of 2011. Primary drivers of the increase in earnings over the comparable periods of the prior year include a full quarter of earnings from the net assets acquired from OMNI and Cameron and a decrease in merger-related noninterest expenses. Key components of the Companys performance during the first six months of 2012 are summarized below.
Net interest income increased $17.2 million, or 22.7%, in the second quarter of 2012 when compared to the same period of 2011. This increase was attributable to a $12.2 million increase in interest income, primarily from acquired and organic loan growth, and a $5.0 million, or 23.9%, decrease in interest expense. Interest income was positively affected by a $1.2 billion increase in average earning assets, due primarily to the full inclusion of OMNI and Cameron earning assets in the current quarter. In the second quarter of 2011, OMNI and Cameron earning assets were included in the Companys operating results for one month. Compared to the second quarter of 2011, the Companys net interest margin ratio on a tax-equivalent basis increased 31 basis points to 3.59% from 3.28% due primarily to a 33 basis point decrease in the cost of interest-bearing liabilities from the second quarter of 2011.
The quarterly trends noted above are consistent on a year-to-date basis. An increase in net interest income of $30.3 million, driven by an increase of $21.9 million in interest income, was offset by a 19.8%, or $34.5 million, increase in noninterest expenses. For the six months ended June 30, 2012, income available to common shareholders of $32.0 million was $12.1 million, or 61.1%, higher than the same period of 2011. On a per share basis, earnings were $1.08 per diluted share, a 51.0% increase from the $0.72 per share for the six months ended June 30, 2011.
Companys net interest spread, which is the difference between the yields earned on average earning assets and the rates paid on average interest-bearing liabilities, was 3.45%, and 3.09% during the three months ended June 30, 2012 and 2011, respectively. On a year-to-date basis, the Companys net interest spread of 3.44% was 21 basis points above the 3.23% earned during the first six months of 2011. The Companys net interest margin on a taxable equivalent (TE) basis, which is net interest income (TE) as a percentage of average earning assets, was 3.59% and 3.28% during the three months ended June, 30, 2012 and 2011, respectively, and 3.59% and 3.41% for the six month periods then ended.
Average loans made up 71.8% and 68.9% of average earning assets in the second quarter of 2012 and 2011, respectively. Average loans increased $368.1 million, or 5.1%, since December 31, 2011, and $1.1 billion, or 16.9%, since June 30, 2011, and was the result of loan growth in the Companys non-covered loan portfolio, both from OMNI and Cameron acquired loans and organic loan growth. Investment securities made up 18.8% of average earning assets during the second quarter of 2012, compared to 21.6% during the same 2011 period. Over the past year, management has focused efforts to reduce its lower-yielding excess liquidity (defined as fed funds sold and interest-bearing cash) by investing in higher-yielding loans and investment securities, as well as paying down its short- and long-term debt in efforts to improve net interest income. Other significant components of earning assets during 2012 included the Companys FDIC loss share receivable (4.8% of average earning assets) and excess liquidity (2.8% of average earning assets). During the second quarter of 2011, the Companys FDIC loss share receivable and excess liquidity were 8.2% of average earning assets, with excess liquidity accounting for 1.1% of average earning assets.
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