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Iberiabank Q3 EPS up 74%, net income $97.9 million

Staff Writer | October 22, 2018
Iberiabank Corporation, holding company of the 131-year-old Iberiabank, reported financial results for the third quarter ended September 30, 2018.
Iberiabank   Core EPS was $1.74 per common share
For the quarter, the company reported net income available to common shareholders of $97.9 million, or $1.73 diluted earnings per common share ("EPS").

On a non-GAAP basis, EPS excluding non-core revenues and non-core expenses ("Core EPS") in the third quarter of 2018 was $1.74 per common share, compared to $1.00 in the year-ago period, an increase of 74%.

Excluding quarters where we had bargain purchase gains, Core EPS was a record in the third quarter of 2018.

On a linked quarter basis, both GAAP and Core EPS improved driven by loan growth, margin stability and expense reduction.

Revenue growth and declining expense produced positive operating leverage in the quarter.

Solid returns in 3Q18 allowed the company to achieve previously announced 2020 Strategic Goals for the second consecutive quarter. The company's reported and cash net interest margins declined 2 basis points on a linked quarter basis, to 3.74% and 3.47%, respectively. Non-interest expense declined $27.5 million on a linked quarter basis.

On a core basis, non-interest expense decreased $6.8 million.

Total loan growth was $268.1 million, or 5% annualized. Total deposits decreased $237.0 million, or -4% annualized.

As of September, 30, 2018, total non-interest bearing deposits represented 28% of total deposits.

Third quarter deposits were significantly influenced by several large commercial deposit outflows, which were expected. Credit metrics remained stable.

Classified assets are down 20% from the same time a year ago. As previously announced, during 3Q18 the company closed 22 retail branches and expects to realize $2 million in operating expense savings per quarter.

During 3Q18, the company repurchased 363,210 common shares at a weighted

verage price of $83.63 per common share. The company announced a third quarter cash dividend equal to $0.39 per common share, a 3% increase compared to the common dividend declared in June 2018.

On October 19, 2018, the company announced a fourth quarter cash dividend equal to $0.41 per common share, payable on January 25, 2019, to shareholders of record on December 31, 2018.

This equates to a 5% increase to the third quarter common dividend.

This announcement marks the third common dividend increase in 2018.