IBERIABANK Corporation Reports First Quarter Results

LAFAYETTE, La., April 17, 2020 /PRNewswire/ -- IBERIABANK Corporation IBKC, holding company of the 133-year-old IBERIABANK (www.iberiabank.com), reported financial results for the first quarter ended March 31, 2020. For the quarter, the Company reported net income available to common shareholders of $32.8 million, or $0.62 diluted earnings per common share ("EPS"). On a non-GAAP basis, EPS excluding non-core revenues and non-core expenses ("Core EPS") in the first quarter of March 31, 2020 was $0.67 per common share, compared to $1.72 in the same quarter of 2019 (refer to press release supplemental tables for a reconciliation of GAAP to non-GAAP metrics).

Daryl G. Byrd, President and Chief Executive Officer, commented, "As we navigate the uncertain and unprecedented COVID-19 environment, the Company is highly focused on servicing the financial needs of our clients, ensuring the health and well-being of our associates, and supporting the communities in which we live and serve. Our teams have been working around the clock to assist clients with payment forbearance and other relief programs, including the SBA Paycheck Protection Program. At the same time, retail operations and branch facilities remain open and committed to serving our clients in a safe and responsible manner. This is truly a Herculean effort and our teams have made a tremendous amount of progress for our clients in a very short time period. I am very proud of the commitment of all our IBERIABANK associates."

"During the first quarter, our fundamental business model performed very well in the face of uncertain economic times. The Company was able to expand our client base, produce significant growth in our loan portfolio, increase core and non-interest bearing deposits, and grow tangible book value. The Company successfully delivered record non-interest income, held non-interest expense in check, and maintained already strong credit quality metrics. First quarter results included the adoption of CECL early in the quarter, and as a result we recorded an approximately $82 million increase in our allowance for expected credit losses and related book value write-down. As we evaluated the economic uncertainties of the current pandemic, at the end of March we recorded an additional $69 million pre-tax increase in provision and other credit-related reserves that significantly impacted our financial results."

Byrd concluded, "We continue to diligently work on the merger planning process. Our employees remain engaged and committed to creating a top-tier regional banking institution and look forward to all we can accomplish for our clients and shareholders as a combined franchise."

First Quarter 2020 Highlights:

	For the three months ended
	GAAP						Non-GAAP Core
	1Q20			4Q19			1Q20			4Q19
Diluted Earnings Per Common Share	$	0.62		$	1.48		$	0.67		$	1.59
Return on Average Assets	0.46		%	1.03		%	0.49		%	1.10		%
Return on Average Common Equity	3.21		%	7.58		%	3.47		%	8.13		%
Return on Average Tangible Common Equity	N/A			N/A			5.53		%	12.39		%
Efficiency Ratio	60.1		%	61.8		%	59.1		%	58.0		%
Tangible Efficiency Ratio (TE)	N/A			N/A			57.4		%	56.2		%

Total loan growth was $520.1 million, or 9% annualized, on a linked quarter basis. Commercial and consumer line utilization was 52.4% and 64.0%, respectively, only slightly higher than at year-end 2019.
Total deposits increased $306.9 million compared to the prior quarter, or 5% annualized. Non-interest bearing deposits increased $309.1 million, or 5%, in the quarter, to 26% of total deposits.
Non-interest income increased $5.3 million, or 9%, on a linked quarter basis to $64.7 million, a record quarter on a core basis for the Company, primarily the result of a $7.9 million increase in mortgage income.

As of April 13, 2020, the Company's locked mortgage pipeline was $662.2 million, up 209% from $214.4 million at January 21, 2020.

Non-interest expense decreased $4.3 million, or 2%, on a linked quarter basis, primarily as a result of decreases in salaries and benefits and professional services expense, partially offset by a $7.3 million increase in credit valuation adjustments on derivatives and a $2.4 million increase in impairment related to mortgage servicing rights.

Non-interest expense included $3.0 million in merger-related expense and other non-core items, a decrease of $8.3 million from the fourth quarter of 2019. Excluding these non-core items, core non-interest expense increased $4.0 million, or 2%, on a linked quarter basis.

The Company's reported and cash net interest margins were down 4 and 2 basis points from the prior quarter at 3.17% and 3.06%, respectively. The lower net interest margin was primarily the result of a 20 basis point decrease in loan yield somewhat offset by a 13 basis point decline in the cost of interest-bearing liabilities.
Effective January 1, 2020, the Company adopted the current expected credit loss (CECL) methodology for estimating its credit losses, which resulted in an $82.3 million increase in the allowance for expected credit losses, increasing the allowance coverage of total loans and leases from 0.68% to 1.02% upon adoption. As of March 31, 2020, the allowance for expected credit losses totaled $305.0 million, or 1.24% of total loans and leases, and covered 172% of non-performing loans.
The provision for expected credit losses, using the baseline scenario published by a nationally recognized service dated March 27, 2020 (adjusted for alternative scenarios), totaled $69.0 million compared to $8.2 million in the prior quarter. The provision for expected credit losses was impacted by both the CECL methodology and the expected impact of the COVID-19 pandemic on future losses.
Net charge-offs to average loans on an annualized basis increased 5 basis points to 0.16% compared to the prior quarter. Non-performing assets to total assets were 0.60% compared to 0.54% in the prior quarter.
Capital ratios remain strong. There were no share repurchases in the first quarter of 2020 due to the pending merger with First Horizon National Corporation.

COVID-19 Operational Update

The Company took early action by executing its proven business continuity plan to protect the health and welfare of its associates and to mitigate disruption.
The Company is operating 181 branches today, with only seven closed. There are approximately 2,000 associates working remotely, which is almost 60% of our total workforce.
We have modified our health care benefits plans to provide additional assistance during the COVID-19 pandemic. Additionally, we are offering pandemic benefits and bonus pay to eligible associates.
The Bank has established client assistance programs, including a payment forbearance plan that is available to assist consumer and commercial clients impacted by COVID-19, upon request. The Company is also waiving and reversing certain fees for impacted clients.
The Company is participating in the Coronavirus Aid, Relief and Economic Security Act ("CARES") Act. As of April 16, 2020, the Company had processed nearly 9,000 loan applications for the SBA Paycheck Protection Program, representing a total of $1.86 billion. The Company has secured funding for 92% of the funds applied for, funding payroll for more than 200,000 people. The Company remains ready to continue to fund eligible client requests if Congress appropriates additional funds.

Table A - Summary Financial Results
(Dollars in thousands, except per share data)

	For the Three Months Ended
	3/31/2020			12/31/2019			*% Change*	3/31/2019			*% Change*
GAAP BASIS:
Income available to common shareholders	$	32,827		$	78,120		(58.0)	$	96,533		(66.0)
Earnings per common share - diluted	0.62			1.48			(58.1)	1.75			(64.6)

Average loans and leases, net of unearned income	$	24,153,182		$	23,830,962		1.4	$	22,599,686		6.9
Average total deposits	25,454,630			25,227,462			0.9	23,678,400			7.5
Net interest margin (TE) ⁽¹⁾	3.17		%	3.21		%		3.59		%

Total revenues	$	294,998		$	293,842		0.4	$	302,993		(2.6)
Total non-interest expense	177,427			181,723			(2.4)	158,753			11.8
Efficiency ratio	60.1		%	61.8		%		52.4		%
Return on average assets	0.46			1.03				1.32
Return on average common equity	3.21			7.58				9.85

NON-GAAP BASIS ⁽²⁾:
Core revenues	$	294,998		$	293,828		0.4	$	302,993		(2.6)
Core non-interest expense	174,416			170,380			2.4	161,230			8.2
Core earnings per common share - diluted	0.67			1.59			(57.9)	1.72			(61.0)
Core tangible efficiency ratio (TE) ^{(1) (3)}	57.4		%	56.2		%		51.3		%
Core return on average assets	0.49			1.10				1.29
Core return on average common equity	3.47			8.13				9.66
Core return on average tangible common equity	5.53			12.39				15.03
Net interest margin (TE) - cash basis ⁽¹⁾	3.06			3.08				3.42

⁽¹⁾ Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 21%.

⁽²⁾ See Table 7 and Table 8 for GAAP to Non-GAAP reconciliations.

⁽³⁾ Tangible calculations eliminate the effect of goodwill and acquisition-related intangible assets and the corresponding amortization expense on a tax-effected basis where applicable.

Operating Results

Net interest income decreased $4.1 million, or 2%, on a linked quarter basis. The decrease in net interest income reflects a 4 basis point decrease in the net interest margin to 3.17% compared to 3.21% in the prior quarter. The lower net interest margin was primarily the result of a 20 basis point decline in loan yield somewhat offset by a 13 basis point decline in the cost of interest-bearing liabilities. The decrease in loan yield was primarily attributable to the repricing of variable rate loans as a result of recent cuts to the targeted federal funds rate and the corresponding impact to LIBOR. Additionally, the loan yield was impacted by lower acquired loan accretion, partially the result of CECL implementation, as well as lower pay-offs in the acquired loan portfolio during the first quarter. The decline in the cost of interest-bearing liabilities was primarily attributable to recent interest rate cuts.

The provision for expected credit losses under the CECL methodology totaled $69.0 million compared to $8.2 million in the prior quarter under the incurred loss methodology. The provision for expected credit losses was impacted by both the CECL methodology and the expected impact of the COVID-19 pandemic on future losses. Net charge-offs to average loans on an annualized basis increased 5 basis points to 0.16% when compared to the prior quarter.

Non-interest income increased $5.3 million, or 9%, on a linked quarter basis, primarily the result of a $7.9 million increase in mortgage income. This increase was partially offset by a $0.7 million decrease in title revenue, a $0.5 million decrease in ATM and debit card fee income, and a $0.4 million decrease in service charges on deposit accounts.

Non-interest expense decreased $4.3 million, or 2%, compared to the linked quarter. Professional services expense decreased $10.9 million and salaries and employee benefits expense decreased $4.4 million when comparing the quarters. These decreases were partially offset by a $7.3 million increase in credit valuation adjustments on derivatives, a $2.4 million increase in impairment on mortgage servicing rights, and a $0.7 million increase in credit and other loan-related expense. Non-interest expense included $3.0 million in merger-related expense and other non-core items, a decrease of $8.3 million from the fourth quarter of 2019. Excluding these non-core items, total core non-interest expense increased $4.0 million, or 2%, on a linked quarter basis.

On a linked quarter basis, the efficiency ratio improved to 60.1% from 61.8%, while the non-GAAP core tangible efficiency ratio increased to 57.4% compared to 56.2%. Refer to Table A for a summary of financial results on both a GAAP and non-GAAP basis.

Table B - Summary Financial Condition Results
(Dollars in thousands, except per share data)

		As of and For the Three Months Ended
		3/31/2020			12/31/2019			% Change	3/31/2019			% Change
PERIOD-END BALANCES:
	Total loans and leases, net of unearned income	$	24,541,632		$	24,021,499		2.2	$	22,968,295		6.9
	Total deposits	25,526,237			25,219,349			1.2	24,092,062			6.0

ASSET QUALITY RATIOS:
	Loans 30-89 days past due and still accruing as a percentage of total loans and leases ⁽¹⁾	0.33		%	0.28		%		0.20		%
	Loans 90 days or more past due and still accruing as a percentage of total loans and leases ⁽¹⁾	0.04			0.01				0.02
	Non-performing assets to total assets ⁽¹⁾⁽²⁾	0.60			0.54				0.58
	Classified assets to total assets ⁽³⁾	0.94			0.84				1.01

CAPITAL RATIOS:
	Tangible common equity ratio (Non-GAAP) ^{(4) (5)}	9.13		%	9.24		%		9.01		%
	Tier 1 leverage ratio ⁽⁶⁾	9.93			9.90				9.67
	Total risk-based capital ratio ⁽⁶⁾	12.48			12.43				12.33

PER COMMON SHARE DATA:
	Book value	$	78.27		$	78.37		(0.1)	$	73.50		6.5
	Tangible book value (Non-GAAP) ^{(4) (5)}	53.70			53.63			0.1	49.48			8.5
	Closing stock price	36.16			74.83			(51.7)	71.71			(49.6)
	Cash dividends	0.47			0.45			4.4	0.43			9.3

_⁽¹⁾

For purposes of this table, for periods prior to the three months ended March 31, 2020, past due and non-accrual loan amounts exclude purchased credit deteriorated (PCD) loans (formerly purchased credit impaired loans), even if contractually past due or if the Company did not expect to receive payment in full, as the Company was accreting interest income over the expected life of the loans. For the three months ended March 31, 2020, NPAs included $16.4 million in PCD loans, of which $14.7 million were non-accrual, and loans 30-89 days past due included $4.0 million in PCD loans.

_⁽²⁾

Non-performing assets consist of non-accruing loans, accruing loans 90 days or more past due and other real estate owned, including repossessed assets. Refer to Table 4 for further detail.

_⁽³⁾

Classified assets include loans rated substandard or worse, non-performing mortgage and consumer loans, and OREO and foreclosed property and include PCD loans. Classified assets were $302.6 million, $265.2 million and $314.6 million at March 31, 2020, December 31, 2019, and March 31, 2019, respectively.

_⁽⁴⁾

See Table 7 and Table 8 for GAAP to Non-GAAP reconciliations.

_⁽⁵⁾

Tangible calculations eliminate the effect of goodwill and acquisition-related intangible assets and the corresponding amortization expense on a tax-effected basis where applicable.

_⁽⁶⁾

Regulatory capital ratios as of March 31, 2020 are preliminary.

Loans and Leases

On a linked quarter basis, total loans and leases increased $520.1 million, or 9% annualized, to $24.5 billion at March 31, 2020. Growth during the first quarter of 2020 was strongest in the Corporate Asset Finance (equipment financing and leasing business) and Energy groups (reserve-based and midstream lending), as well as in the Houston, New Orleans, and New York markets.

Energy loans were 5.4% of total loans outstanding as of March 31, 2020. The E&P (60%) and midstream (38%) space comprise 98% of the Company's energy portfolio. The Company has had no new loan commitments in the past five years to the offshore or the oilfield services space.

Table C - Period-End Loans and Leases
(Dollars in thousands)

	As of and For the Three Months Ended
							*Linked Qtr Change*				Year/Year Change		Mix
	3/31/2020		12/31/2019		3/31/2019		$	%	*Annualized*		$	%	3/31/2020		12/31/2019
Commercial loans and leases	$	17,140,864	$	16,611,633	$	15,628,158	529,231	3.2	12.8	%	1,512,706	9.7	69.8	%	69.2	%
Residential mortgage loans	4,849,119		4,739,075		4,415,267		110,044	2.3	9.3	%	433,852	9.8	19.8	%	19.7	%
Consumer and other loans	2,551,649		2,670,791		2,924,870		(119,142)	(4.5)	(17.9)	%	(373,221)	(12.8)	10.4	%	11.1	%
Total loans and leases	$	24,541,632	$	24,021,499	$	22,968,295	520,133	2.2	8.7	%	1,573,337	6.9	100.0	%	100.0	%

Investment Securities

On a linked quarter basis, the investment portfolio decreased $23.4 million, or 2.3% annualized, to $4.1 billion, as a result of net principal payments, offset by fair value adjustments on AFS securities. At March 31, 2020, approximately 96% of the investment portfolio was in available-for-sale securities, which experience unrealized gains as interest rates fall. The investment portfolio had an effective duration of 2.0 years at March 31, 2020, down from 2.7 years at December 31, 2019, and a $133.0 million unrealized gain at March 31, 2020, up from $57.8 million at December 31, 2019. The average yield on investment securities increased five basis points to 2.56% in the first quarter of 2020. The investment portfolio primarily consists of government agency securities. Municipal securities comprised 8% of total investments at March 31, 2020.

Deposits

Total deposits increased $306.9 million, or 5% annualized, to $25.5 billion at March 31, 2020. Growth during the first quarter of 2020 was strongest in the Energy group (primarily reserve-based lending) and the Palm Beach/Broward, Southwest Louisiana, and Birmingham markets.

Table D - Period-End Deposits
(Dollars in thousands)
							*Linked Qtr Change*				*Year/Year Change*		Mix
	3/31/2020		12/31/2019		3/31/2019		$	%	*Annualized*		$	%	3/31/2020		12/31/2019
Non-interest-bearing deposits	$	6,628,901	$	6,319,806	$	6,448,613	309,095	4.9	19.7	%	180,288	2.8	26.0	%	25.1	%
Interest-bearing demand deposits	5,046,434		4,821,252		4,452,966		225,182	4.7	18.8	%	593,468	13.3	19.8	%	19.1	%
Money market accounts	9,305,923		9,121,283		8,348,509		184,640	2.0	8.1	%	957,414	11.5	36.4	%	36.2	%
Savings accounts	703,862		683,366		770,754		20,496	3.0	12.1	%	(66,892)	(8.7)	2.8	%	2.7	%
Time deposits	3,841,117		4,273,642		4,071,220		(432,525)	(10.1)	(40.7)	%	(230,103)	(5.7)	15.0	%	16.9	%
Total deposits	$	25,526,237	$	25,219,349	$	24,092,062	306,888	1.2	4.9	%	1,434,175	6.0	100.0	%	100.0	%

Asset Quality

Credit quality remained strong. Non-performing assets to total assets were 0.60% at March 31, 2020, compared to 0.54% in the prior quarter. Loans 30-89 days past due and still accruing represented 0.33% of total loans and leases compared to 0.28% in the prior quarter. The increase in non-performing assets and past due loans was partially driven by the implementation of CECL which requires purchased credit deteriorated loans to be classified as non-accrual or past due based on performance. As a percentage of average loans and leases, annualized net charge-offs for the quarter increased five basis points on a linked quarter basis to 0.16%.

The allowance for expected credit losses, which includes the reserve for unfunded commitments, was $163.2 million at December 31, 2019. Upon adoption of CECL on January 1, 2020, the Company recognized an increase in the allowance of $82.3 million, as a cumulative effect adjustment, with a corresponding after-tax decrease of $67.6 million in retained earnings. At March 31, 2020, the allowance for expected credit losses, totaled $305.0 million, or 1.24% of total loans and leases. The increase in the allowance reflects a higher provision for expected credit losses in the first quarter of 2020 in response to the expected impact of the COVID-19 pandemic on future losses. The allowance coverage of non-performing loans was 171.8% at March 31, 2020, compared to 114.8% at December 31, 2019.

Given the on-going and uncertain impact to the economy of the current COVID-19 pandemic, the Company continues to monitor its portfolio as the potential exists for adverse events to impact credit quality trends.

Refer to Table 4 - Loans and Asset Quality Data for further information.

Capital Position

At March 31, 2020, the non-GAAP tangible common equity ratio was 9.13%, down 11 basis points compared to December 31, 2019, and the preliminary Tier 1 leverage ratio was 9.93%, up 3 basis points compared to December 31, 2019. The preliminary calculation of the total risk-based capital ratio at March 31, 2020, was 12.48%, up 5 basis points compared to December 31, 2019. As part of its response to the impact of COVID-19, on March 31, 2020, the regulatory agencies issued an interim final rule that provided the option to temporarily delay the effects of CECL on regulatory capital for two years, followed by a three-year transition period. The Company's preliminary regulatory capital ratios have been calculated in accordance with this interim final rule.

At March 31, 2020, book value per common share was $78.27, down $0.10 per share, compared to December 31, 2019. Tangible book value per common share was $53.70, up $0.07 per share, compared to the prior quarter. Based on the closing stock price of the Company's common stock of $32.28 per share on April 16, 2020, this price equated to 0.41 times March 31, 2020 book value per common share and 0.60 times March 31, 2020 tangible book value per common share.

Dividends On Capital Stock The declaration of dividends is at the discretion of the Board of Directors. Recent dividend declarations include the following:

Common Stock On January 28, 2020, the Company announced a quarterly cash dividend of $0.47 per common share, an increase of approximately 4% compared to the common dividend paid on January 24, 2020. The dividend was paid on April 1, 2020 to shareholders of record as of March 13, 2020.

Preferred Stock On April 3, 2020, the Company announced a quarterly cash dividend of $0.4125 per depositary share of Series C Preferred Stock that is payable on May 1, 2020 to shareholders of record as of April 16, 2020. On April 3, 2020, the Company also announced a quarterly cash dividend of $0.7625 per depositary share of Series D Preferred Stock that is payable on May 1, 2020 to shareholders of record as of April 16, 2020.

Common Stock Repurchase Program On July 17, 2019, the Board of Directors authorized the repurchase of up to 1,600,000 shares of the Company's common stock. This repurchase authorization equated to approximately 3% of total common shares outstanding. At March 31, 2020, the Company had approximately 1,165,000 remaining shares that could be repurchased under the current Board-approved plan. During the first quarter of 2020, the Company did not repurchase any common shares. No further stock repurchases are expected due to the pending merger with First Horizon National Corporation.

IBERIABANK Corporation

IBERIABANK Corporation is a financial holding company with locations in Louisiana, Arkansas, Tennessee, Alabama, Texas, Florida, Georgia, South Carolina, North Carolina, Mississippi, Missouri, and New York offering commercial, private banking, consumer, small business, wealth and trust management, retail brokerage, mortgage, commercial leasing and equipment financing, and title insurance services.

The Company's common stock trades on the NASDAQ Global Select Market under the symbol "IBKC". The Company's Series B Preferred Stock, Series C Preferred Stock, and Series D Preferred Stock also trade on the NASDAQ Global Select Market under the symbols "IBKCP", "IBKCO", and "IBKCN", respectively. The Company's common stock market capitalization was approximately $1.7 billion, based on the closing stock price on April 16, 2020.

The following 9 investment firms provide equity research coverage on the Company:

Bank of America Merrill Lynch
Janney Montgomery Scott, LLC
Hovde Group, LLC
Jefferies & Co., Inc.
Keefe, Bruyette & Woods, Inc.
Raymond James & Associates, Inc.
Piper Sandler
Stephens, Inc.
SunTrust Robinson-Humphrey

Non-GAAP Financial Measures

This press release contains financial information determined by methods other than in accordance with GAAP. The Company's management uses these non-GAAP financial measures in their analysis of the Company's performance. Non-GAAP measures in this press release include, but are not limited to, descriptions such as core, tangible, and pre-tax pre-provision. These measures typically adjust GAAP performance measures to exclude the effects of the amortization of intangibles and include the tax benefit 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. Transactions that are typically excluded from non-GAAP performance measures include realized and unrealized gains/losses on former bank owned real estate, realized gains/losses on securities, income tax gains/losses, merger-related charges and recoveries, litigation charges and recoveries, debt repayment penalties, and gains, losses, and impairment charges on long-lived assets. Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company's core businesses. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of GAAP to non-GAAP disclosures are presented in the supplemental tables at the end of this release. Please refer to the supplemental tables for these reconciliations.

Caution About Forward-Looking Statements

This press release contains "forward-looking statements," which may include forecasts of our financial results and condition, expectations for our operations and businesses, and our assumptions for those forecasts and expectations. Do not place undue reliance on forward-looking statements. Due to various factors, actual results may differ materially from our forward-looking statements. Factors that could cause our actual results to differ materially from our forward-looking statements are described under "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Risk Factors" and "Regulation and Supervision" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2019, and in other documents, including the Company's proxy statement in the S-4 Registration Statement filed by First Horizon in connection with our pending merger, with the Securities and Exchange Commission, available at the SEC's website, www.sec.gov, and the Company's website, www.iberiabank.com. To the extent that statements in this press release relate to future plans, objectives, financial results or performance by the Company, these statements are deemed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are generally identified by use of words such as "may," "believe," "expect," "anticipate," "intend," "will," "should," "plan," "estimate," "predict," "continue" and "potential" or the negative of these terms or other comparable terminology.

Forward-looking statements represent management's beliefs, based upon information available at the time the statements are made, with regard to the matters addressed; they are not guarantees of future performance. 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. All information is as of the date of this press release. 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.

Table 1 - IBERIABANK CORPORATION
FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)

		As of and For the Three Months Ended
INCOME DATA:		3/31/2020			12/31/2019			% Change	3/31/2019			% Change
	Net interest income	$	230,342		$	234,490		(1.8)	$	250,484		(8.0)
	Net interest income (TE) ⁽¹⁾	231,653			235,858			(1.8)	251,833			(8.0)
	Total revenues	294,998			293,842			0.4	302,993			(2.6)
	Provision for expected credit losses	68,971			8,153			746.0	13,763			401.1
	Non-interest expense	177,427			181,723			(2.4)	158,753			11.8
	Net income available to common shareholders	32,827			78,120			(58.0)	96,533			(66.0)

PER COMMON SHARE DATA:
	Earnings available to common shareholders - basic	$	0.62		$	1.49		(58.4)	$	1.76		(64.8)
	Earnings available to common shareholders - diluted	0.62			1.48			(58.1)	1.75			(64.6)
	Core earnings (Non-GAAP) ⁽²⁾	0.67			1.59			(57.9)	1.72			(61.0)
	Book value	78.27			78.37			(0.1)	73.50			6.5
	Tangible book value (Non-GAAP)^{(2) (3)}	53.70			53.63			0.1	49.48			8.5
	Closing stock price	36.16			74.83			(51.7)	71.71			(49.6)
	Cash dividends	0.47			0.45			4.4	0.43			9.3

KEY RATIOS AND OTHER DATA ⁽⁶⁾:
	Net interest margin (TE) ⁽¹⁾	3.17		%	3.21		%		3.59		%
	Efficiency ratio	60.1			61.8				52.4
	Core tangible efficiency ratio (TE) (Non-GAAP) ^{(1) (2) (3)}	57.4			56.2				51.3
	Return on average assets	0.46			1.03				1.32
	Return on average common equity	3.21			7.58				9.85
	Core return on average tangible common equity (Non-GAAP) ⁽²⁾⁽³⁾	5.53			12.39				15.03
	Effective tax rate	25.1			20.6				23.3
	Full-time equivalent employees	3,399			3,401				3,384

CAPITAL RATIOS:
	Tangible common equity ratio (Non-GAAP) ^{(2) (3)}	9.13		%	9.24		%		9.01		%
	Tangible common equity to risk-weighted assets ⁽³⁾	10.44			10.59				10.60
	Tier 1 leverage ratio ⁽⁴⁾	9.93			9.90				9.67
	Common equity Tier 1 (CET 1) ratio ⁽⁴⁾	10.43			10.52				10.73
	Tier 1 capital ratio ⁽⁴⁾	11.28			11.38				11.25
	Total risk-based capital ratio ⁽⁴⁾	12.48			12.43				12.33
	Common stock dividend payout ratio	75.3			30.2				24.3
	Classified assets to Tier 1 capital ⁽⁷⁾	9.9			8.8				11.2

ASSET QUALITY RATIOS:
	Non-performing assets to total assets ⁽⁵⁾	0.60		%	0.54		%		0.58		%
	Allowance for expected credit losses to total loans and leases	1.17			0.61				0.62
	Net charge-offs to average loans (annualized)	0.16			0.11				0.13
	Non-performing assets to total loans and OREO ⁽⁵⁾	0.79			0.71				0.79

⁽¹⁾

Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 21%.

⁽²⁾

See Table 7 and Table 8 for GAAP to Non-GAAP reconciliations.

⁽³⁾

Tangible calculations eliminate the effect of goodwill and acquisition-related intangible assets and the corresponding amortization expense on a tax-effected basis where applicable.

⁽⁴⁾

Regulatory capital ratios as of March 31, 2020 are preliminary.

⁽⁵⁾

Non-performing assets consist of non-accruing loans, accruing loans 90 days or more past due and other real estate owned, including repossessed assets. The Company's adoption of CECL on January 1, 2020 resulted in a change in the accounting for purchased credit impaired loans, which are considered purchased credit deteriorated (PCD) loans under CECL. Prior to January 1, 2020, past due and non-accrual loan amounts excluded purchased credit impaired loans, even if contractually past due or if the Company did not expect to receive payment in full, as the Company was accreting interest income over the expected life of the loans. For the three months ended March 31, 2020, NPAs included $16.4 million in PCD loans, of which $14.7 million were non-accrual, and loans 30-89 days past due included $4.0 million in PCD loans.

⁽⁶⁾

All ratios are calculated on an annualized basis for the periods indicated.

⁽⁷⁾

Classified assets include loans rated substandard or worse, non-performing mortgage and consumer loans, and OREO and foreclosed property and include PCD loans.

Table 2 - IBERIABANK CORPORATION
CONDENSED CONSOLIDATED INCOME STATEMENTS
(Dollars in thousands, except per share data)

	For the Three Months Ended
					Linked Qtr Change								*Year/Year Change*
	3/31/2020		12/31/2019		$	%	9/30/2019		6/30/2019		3/31/2019		$	%
Interest income	$	302,929	$	314,779	(11,850)	(3.8)	$	333,178	$	335,967	$	326,084	(23,155)	(7.1)
Interest expense	72,587		80,289		(7,702)	(9.6)	83,845		80,628		75,600		(3,013)	(4.0)
Net interest income	230,342		234,490		(4,148)	(1.8)	249,333		255,339		250,484		(20,142)	(8.0)
Provision for expected credit losses	68,971		8,153		60,818	746.0	8,986		10,755		13,763		55,208	401.1
Net interest income after provision for expected credit losses	161,371		226,337		(64,966)	(28.7)	240,347		244,584		236,721		(75,350)	(31.8)
Mortgage income	23,245		15,305		7,940	51.9	17,432		18,444		11,849		11,396	96.2
Service charges on deposit accounts	12,525		12,970		(445)	(3.4)	13,209		12,847		12,810		(285)	(2.2)
Title revenue	5,936		6,638		(702)	(10.6)	7,170		6,895		5,225		711	13.6
Broker commissions	2,127		2,483		(356)	(14.3)	1,800		2,044		1,953		174	8.9
ATM/debit card fee income	2,838		3,309		(471)	(14.2)	2,948		3,032		2,582		256	9.9
Income from bank owned life insurance	1,822		1,887		(65)	(3.4)	1,760		1,750		1,797		25	1.4
Gain (loss) on sale of available-for-sale securities	—		8		(8)	(100.0)	27		(1,014)		—		—	—
Trust department income	4,226		4,222		4	0.1	4,281		4,388		4,167		59	1.4
Other non-interest income	11,937		12,530		(593)	(4.7)	15,047		10,439		12,126		(189)	(1.6)
Total non-interest income	64,656		59,352		5,304	8.9	63,674		58,825		52,509		12,147	23.1
Salaries and employee benefits	102,545		106,941		(4,396)	(4.1)	103,257		103,375		98,296		4,249	4.3
Occupancy and equipment	19,984		20,894		(910)	(4.4)	21,316		18,999		18,564		1,420	7.6
Amortization of acquisition intangibles	4,187		4,259		(72)	(1.7)	4,410		4,786		5,009		(822)	(16.4)
Computer services expense	10,167		9,930		237	2.4	9,638		9,383		9,157		1,010	11.0
Professional services	5,322		16,267		(10,945)	(67.3)	6,323		6,244		4,450		872	19.6
Credit and other loan-related expense	3,643		2,916		727	24.9	4,532		4,141		2,859		784	27.4
Other non-interest expense	31,579		20,516		11,063	53.9	23,186		22,690		20,418		11,161	54.7
Total non-interest expense	177,427		181,723		(4,296)	(2.4)	172,662		169,618		158,753		18,674	11.8
Income before income taxes	48,600		103,966		(55,366)	(53.3)	131,359		133,791		130,477		(81,877)	(62.8)
Income tax expense	12,175		21,390		(9,215)	(43.1)	31,509		32,193		30,346		(18,171)	(59.9)
Net income	36,425		82,576		(46,151)	(55.9)	99,850		101,598		100,131		(63,706)	(63.6)
Less: Preferred stock dividends	3,598		4,456		(858)	(19.3)	3,599		949		3,598		—	—
Net income available to common shareholders	$	32,827	$	78,120	(45,293)	(58.0)	$	96,251	$	100,649	$	96,533	(63,706)	(66.0)

Income available to common shareholders - basic	$	32,827	$	78,120	(45,293)	(58.0)	$	96,251	$	100,649	$	96,533	(63,706)	(66.0)
Less: Earnings allocated to unvested restricted stock	367		752		(385)	(51.2)	874		999		933		(566)	(60.7)
Earnings allocated to common shareholders	$	32,460	$	77,368	(44,908)	(58.0)	$	95,377	$	99,650	$	95,600	(63,140)	(66.0)

Earnings per common share - basic	$	0.62	$	1.49	(0.87)	(58.4)	$	1.83	$	1.87	$	1.76	(1.14)	(64.8)

Earnings per common share - diluted	0.62		1.48		(0.86)	(58.1)	1.82		1.86		1.75		(1.13)	(64.6)
Impact of non-core items (Non-GAAP)⁽¹⁾	0.05		0.11		(0.06)	100.0	—		0.01		(0.03)		0.08	266.7
Earnings per share - diluted, excluding non-core items (Non-GAAP)⁽¹⁾	$	0.67	$	1.59	(0.92)	(57.9)	$	1.82	$	1.87	$	1.72	(1.05)	(61.0)

NUMBER OF COMMON SHARES OUTSTANDING (in thousands)
Weighted average common shares outstanding - basic	51,979		51,835		144	0.3	51,984		53,345		54,177		(2,198)	(4.1)
Weighted average common shares outstanding - diluted	52,196		52,142		54	0.1	52,292		53,674		54,539		(2,343)	(4.3)
Book value shares (period end)	52,618		52,420		198	0.4	52,266		52,805		54,551		(1,933)	(3.5)

⁽¹⁾ See Table 7 and Table 8 for GAAP to Non-GAAP reconciliations.

TABLE 3 - IBERIABANK CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)

PERIOD-END BALANCES					*Linked Qtr Change*								*Year/Year Change*
ASSETS	3/31/2020		12/31/2019		$	%	9/30/2019		6/30/2019		3/31/2019		$	%
Cash and due from banks	$	279,388	$	289,794	(10,406)	(3.6)	$	353,346	$	289,502	$	280,680	(1,292)	(0.5)
Interest-bearing deposits in other banks	665,674		604,929		60,745	10.0	577,587		499,813		391,217		274,457	70.2
Total cash and cash equivalents	945,062		894,723		50,339	5.6	930,933		789,315		671,897		273,165	40.7
Investment securities available for sale	3,914,960		3,933,360		(18,400)	(0.5)	4,238,082		4,455,308		4,873,778		(958,818)	(19.7)
Investment securities held to maturity	177,960		182,961		(5,001)	(2.7)	185,007		192,917		198,958		(20,998)	(10.6)
Total investment securities	4,092,920		4,116,321		(23,401)	(0.6)	4,423,089		4,648,225		5,072,736		(979,816)	(19.3)
Mortgage loans held for sale	207,845		213,357		(5,512)	(2.6)	255,276		187,987		128,451		79,394	61.8
Loans and leases, net of unearned income	24,541,632		24,021,499		520,133	2.2	23,676,537		23,355,311		22,968,295		1,573,337	6.9
Allowance for loan and lease losses	(286,685)		(146,588)		140,097	95.6	(146,235)		(146,386)		(142,966)		143,719	100.5
Loans and leases, net	24,254,947		23,874,911		380,036	1.6	23,530,302		23,208,925		22,825,329		1,429,618	6.3
Premises and equipment, net	297,551		296,688		863	0.3	298,309		295,897		297,342		209	0.1
Goodwill and other intangible assets	1,307,673		1,312,701		(5,028)	(0.4)	1,314,676		1,317,151		1,319,992		(12,319)	(0.9)
Other assets	1,133,985		1,004,749		129,236	12.9	982,013		999,032		944,442		189,543	20.1
Total assets	$	32,239,983	$	31,713,450	526,533	1.7	$	31,734,598	$	31,446,532	$	31,260,189	979,794	3.1

LIABILITIES AND SHAREHOLDERS' EQUITY
Non-interest-bearing deposits	$	6,628,901	$	6,319,806	309,095	4.9	$	6,518,783	$	6,474,394	$	6,448,613	180,288	2.8
Interest-bearing demand deposits	5,046,434		4,821,252		225,182	4.7	4,503,353		4,610,577		4,452,966		593,468	13.3
Savings and money market accounts	10,009,785		9,804,649		205,136	2.1	9,325,761		8,895,463		9,119,263		890,522	9.8
Time deposits	3,841,117		4,273,642		(432,525)	(10.1)	4,629,388		4,314,897		4,071,220		(230,103)	(5.7)
Total deposits	25,526,237		25,219,349		306,888	1.2	24,977,285		24,295,331		24,092,062		1,434,175	6.0
Short-term borrowings	218,000		—		218,000	100.0	275,000		813,000		845,000		(627,000)	(74.2)
Securities sold under agreements to repurchase	172,747		204,208		(31,461)	(15.4)	223,049		184,507		261,131		(88,384)	(33.8)
Trust preferred securities	120,110		120,110		—	—	120,110		120,110		120,110		—	—
Other long-term debt	1,168,062		1,223,577		(55,515)	(4.5)	1,274,092		1,254,649		1,355,345		(187,283)	(13.8)
Other liabilities	687,720		609,472		78,248	12.8	581,762		540,935		444,710		243,010	54.6
Total liabilities	27,892,876		27,376,716		516,160	1.9	27,451,298		27,208,532		27,118,358		774,518	2.9
Total shareholders' equity	4,347,107		4,336,734		10,373	0.2	4,283,300		4,238,000		4,141,831		205,276	5.0
Total liabilities and shareholders' equity	$	32,239,983	$	31,713,450	526,533	1.7	$	31,734,598	$	31,446,532	$	31,260,189	979,794	3.1

TABLE 3 Continued - IBERIABANK CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)

AVERAGE BALANCES					*Linked Qtr Change*								*Year/Year Change*
ASSETS	3/31/2020		12/31/2019		$	%	9/30/2019		6/30/2019		3/31/2019		$	%
Cash and due from banks	$	304,733	$	294,487	10,246	3.5	$	272,273	$	275,917	$	291,659	13,074	4.5
Interest-bearing deposits in other banks	796,980		756,223		40,757	5.4	531,665		436,948		332,638		464,342	139.6
Total cash and cash equivalents	1,101,713		1,050,710		51,003	4.9	803,938		712,865		624,297		477,416	76.5
Investment securities available for sale	3,949,555		4,095,950		(146,395)	(3.6)	4,365,558		4,650,757		4,816,855		(867,300)	(18.0)
Investment securities held to maturity	180,689		184,272		(3,583)	(1.9)	189,400		195,639		202,601		(21,912)	(10.8)
Total investment securities	4,130,244		4,280,222		(149,978)	(3.5)	4,554,958		4,846,396		5,019,456		(889,212)	(17.7)
Mortgage loans held for sale	189,597		239,346		(49,749)	(20.8)	209,778		159,931		95,588		94,009	98.3
Loans and leases, net of unearned income	24,153,182		23,830,962		322,220	1.4	23,522,892		23,120,689		22,599,686		1,553,496	6.9
Allowance for loan and lease losses	(231,914)		(147,641)		(84,273)	57.1	(148,203)		(145,854)		(140,915)		(90,999)	64.6
Loans and leases, net	23,921,268		23,683,321		237,947	1.0	23,374,689		22,974,835		22,458,771		1,462,497	6.5
Premises and equipment, net	299,096		299,607		(511)	(0.2)	298,055		298,119		299,741		(645)	(0.2)
Goodwill and other intangible assets	1,310,237		1,313,169		(2,932)	(0.2)	1,315,359		1,318,182		1,322,288		(12,051)	(0.9)
Other assets	1,033,984		971,873		62,111	6.4	997,514		961,494		1,013,359		20,625	2.0
Total assets	$	31,986,139	$	31,838,248	147,891	0.5	$	31,554,291	$	31,271,822	$	30,833,500	1,152,639	3.7

LIABILITIES AND SHAREHOLDERS' EQUITY
Non-interest-bearing deposits	$	6,540,532	$	6,501,529	39,003	0.6	$	6,425,026	$	6,442,217	$	6,271,313	269,219	4.3
Interest-bearing demand deposits	4,834,171		4,526,694		307,477	6.8	4,451,579		4,488,691		4,458,634		375,537	8.4
Savings and money market accounts	9,930,353		9,708,541		221,812	2.3	9,188,186		9,014,822		9,089,099		841,254	9.3
Time deposits	4,149,574		4,490,698		(341,124)	(7.6)	4,523,555		4,156,974		3,859,354		290,220	7.5
Total deposits	25,454,630		25,227,462		227,168	0.9	24,588,346		24,102,704		23,678,400		1,776,230	7.5
Short-term borrowings	19,626		118,557		(98,931)	(83.4)	606,739		782,516		859,576		(839,950)	(97.7)
Securities sold under agreements to repurchase	207,039		207,478		(439)	(0.2)	187,305		214,090		291,643		(84,604)	(29.0)
Trust preferred securities	120,110		120,110		—	—	120,110		120,110		120,110		—	—
Other long-term debt	1,221,833		1,265,077		(43,244)	(3.4)	1,240,382		1,345,575		1,343,752		(121,919)	(9.1)
Other liabilities	623,868		582,643		41,225	7.1	545,838		463,803		434,516		189,352	43.6
Total liabilities	27,647,106		27,521,327		125,779	0.5	27,288,720		27,028,798		26,727,997		919,109	3.4
Total shareholders' equity	4,339,033		4,316,921		22,112	0.5	4,265,571		4,243,024		4,105,503		233,530	5.7
Total liabilities and shareholders' equity	$	31,986,139	$	31,838,248	147,891	0.5	$	31,554,291	$	31,271,822	$	30,833,500	1,152,639	3.7

Table 4 - IBERIABANK CORPORATION
LOANS AND ASSET QUALITY DATA
(Dollars in thousands)

							*Linked Qtr Change*											*Year/Year Change*
LOANS	3/31/2020			12/31/2019			$	%	9/30/2019			6/30/2019			3/31/2019			$	%
Commercial loans and leases:
Real estate- construction	$	1,322,627		$	1,321,663		964	0.1	$	1,330,014		$	1,342,984		$	1,219,647		102,980	8.4
Real estate- owner-occupied ⁽¹⁾	2,424,139			2,475,326			(51,187)	(2.1)	2,468,061			2,373,143			2,408,079			16,060	0.7
Real estate- non-owner occupied	6,484,257			6,267,106			217,151	3.5	6,011,681			6,102,143			6,147,864			336,393	5.5
Commercial and industrial ⁽⁶⁾	6,909,841			6,547,538			362,303	5.5	6,490,125			6,161,759			5,852,568			1,057,273	18.1
Total commercial loans and leases	17,140,864			16,611,633			529,231	3.2	16,299,881			15,980,029			15,628,158			1,512,706	9.7

Residential mortgage loans	4,849,119			4,739,075			110,044	2.3	4,649,745			4,538,194			4,415,267			433,852	9.8

Consumer and other loans:
Home equity	1,926,753			1,987,336			(60,583)	(3.0)	2,053,588			2,147,897			2,220,648			(293,895)	(13.2)
Other	624,896			683,455			(58,559)	(8.6)	673,323			689,191			704,222			(79,326)	(11.3)
Total consumer and other loans	2,551,649			2,670,791			(119,142)	(4.5)	2,726,911			2,837,088			2,924,870			(373,221)	(12.8)
Total loans and leases	$	24,541,632		$	24,021,499		520,133	2.2	$	23,676,537		$	23,355,311		$	22,968,295		1,573,337	6.9

Allowance for loan and lease losses	$	(286,685)		$	(146,588)		140,097	95.6	$	(146,235)		$	(146,386)		$	(142,966)		143,719	100.5
Loans and leases, net	24,254,947			23,874,911			380,036	1.6	23,530,302			23,208,925			22,825,329			1,429,618	6.3

Reserve for unfunded commitments	(18,302)			(16,637)			1,665	10.0	(16,144)			(15,281)			(15,981)			2,321	14.5
Allowance for expected credit losses ⁽²⁾	(304,987)			(163,225)			141,762	86.9	(162,379)			(161,667)			(158,947)			146,040	91.9

ASSET QUALITY DATA
Non-accrual loans ⁽³⁾	$	166,563		$	138,905		27,658	19.9	$	153,113		$	158,992		$	148,056		18,507	12.5
Other real estate owned and foreclosed assets	15,893			27,985			(12,092)	(43.2)	27,075			28,106			30,606			(14,713)	(48.1)
Accruing loans more than 90 days past due ⁽³⁾	10,963			3,257			7,706	236.6	4,790			851			4,111			6,852	166.7
Total non-performing assets ⁽³⁾⁽⁴⁾	$	193,419		$	170,147		23,272	13.7	$	184,978		$	187,949		$	182,773		10,646	5.8

Loans 30-89 days past due ⁽³⁾	$	80,702		$	68,204		12,498	18.3	$	54,618		$	43,021		$	45,334		35,368	78.0

Non-performing assets to total assets ⁽³⁾⁽⁴⁾	0.60		%	0.54		%			0.58		%	0.60		%	0.58		%
Non-performing assets to total loans and OREO⁽³⁾⁽⁴⁾	0.79			0.71					0.78			0.80			0.79
ALLL to non-performing loans ⁽³⁾⁽⁵⁾	161.5			103.1					92.6			91.6			94.0
ALLL to non-performing assets ⁽³⁾⁽⁴⁾	148.2			86.2					79.1			77.9			78.2
ALLL to total loans and leases	1.17			0.61					0.62			0.63			0.62

Quarter-to-date charge-offs	$	12,119		$	8,398		3,721	44.3	$	10,777		$	10,275		$	8,918		3,201	35.9
Quarter-to-date recoveries	(2,591)			(1,683)			908	54.0	(2,336)			(2,218)			(1,586)			1,005	63.4
Quarter-to-date net charge-offs	$	9,528		$	6,715		2,813	41.9	$	8,441		$	8,057		$	7,332		2,196	30.0

Net charge-offs to average loans (annualized)	0.16		%	0.11		%			0.14		%	0.14		%	0.13		%

(1) Real estate- owner-occupied is defined as loans with a "1E1" call report code (loans secured by owner-occupied non-farm non-residential properties).

(2) Effective January 1, 2020, the Company adopted the CECL accounting guidance, which resulted in an $82.3 million increase in the allowance upon adoption.

(3) Amounts are not comparative due to the Company's adoption of CECL on January 1, 2020. The adoption resulted in a change in the accounting for purchased credit impaired loans, which are considered purchased credit deteriorated (PCD) loans under CECL. Prior to January 1, 2020, past due and non-accrual loan amounts excluded purchased credit impaired loans, even if contractually past due or if the Company did not expect to receive payment in full, as the Company was accreting interest income over the expected life of the loans. For the three months ended March 31, 2020, NPAs included $16.4 million in PCD loans, of which $14.7 million were non-accrual, and loans 30-89 days past due included $4.0 million in PCD loans.

(4) Non-performing assets consist of non-accruing loans, accruing loans 90 days or more past due and other real estate owned, including repossessed assets.

(5) Non-performing loans consist of non-accruing loans and accruing loans 90 days or more past due.

(6) Includes equipment financing leases.

TABLE 5 - IBERIABANK CORPORATION
QUARTERLY AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES
(Dollars in thousands)

	For the Three Months Ended
	3/31/2020						12/31/2019						Basis Point Change
ASSETS	Average Balance		Interest Income/Expense		Yield/Rate (TE)⁽¹⁾		Average Balance		Interest Income/Expense		Yield/Rate (TE)⁽¹⁾		Yield/Rate (TE)⁽¹⁾
Earning assets:
Commercial loans and leases	$	16,791,766	$	188,063	4.52	%	$	16,441,658	$	195,487	4.74	%	(22)
Residential mortgage loans	4,800,131		50,457		4.20		4,706,745		50,879		4.32		(12)
Consumer and other loans	2,561,285		33,226		5.22		2,682,559		36,198		5.35		(13)
Total loans and leases	24,153,182		271,746		4.53		23,830,962		282,564		4.73		(20)
Mortgage loans held for sale	189,597		1,678		3.54		239,346		2,132		3.56		(2)
Investment securities⁽²⁾	4,035,469		25,403		2.56		4,218,720		25,926		2.51		5
Other earning assets	960,762		4,102		1.72		937,076		4,157		1.76		(4)
Total earning assets	29,339,010		302,929		4.17		29,226,104		314,779		4.30		(13)
Allowance for loan and lease losses	(231,914)						(147,641)
Non-earning assets	2,879,043						2,759,785
Total assets	$	31,986,139					$	31,838,248

LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Interest-bearing demand deposits	$	4,834,171	$	9,962	0.83	%	$	4,526,694	$	10,091	0.88	%	(5)
Savings and money market accounts	9,930,353		31,244		1.27		9,708,541		34,422		1.41		(14)
Time deposits	4,149,574		22,470		2.18		4,490,698		25,860		2.28		(10)
Total interest-bearing deposits⁽³⁾	18,914,098		63,676		1.35		18,725,933		70,373		1.49		(14)
Short-term borrowings	226,665		266		0.47		326,035		946		1.15		(68)
Long-term debt	1,341,943		8,645		2.59		1,385,187		8,970		2.57		2
Total interest-bearing liabilities	20,482,706		72,587		1.43		20,437,155		80,289		1.56		(13)
Non-interest-bearing deposits	6,540,532						6,501,529
Non-interest-bearing liabilities	623,868						582,643
Total liabilities	27,647,106						27,521,327
Total shareholders' equity	4,339,033						4,316,921
Total liabilities and shareholders' equity	$	31,986,139					$	31,838,248

Net interest income/Net interest spread			$	230,342	2.74	%			$	234,490	2.74	%	—
Taxable equivalent benefit			1,311		0.02	%			1,368		0.02		—
Net interest income (TE)/Net interest margin (TE) ⁽¹⁾			$	231,653	3.17	%			$	235,858	3.21	%	(4)

(1) Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 21%.

(2) Balances exclude unrealized gain or loss on securities available for sale and the impact of trade date accounting.

(3) Total deposit costs for the three months ended March 31, 2020 and December 31, 2019 were 1.01% and 1.11%, respectively.

TABLE 5 Continued - IBERIABANK CORPORATION
QUARTERLY AVERAGE BALANCES, NET INTEREST INCOME AND YIELDS/RATES
(Dollars in thousands)

	For the Three Months Ended
	9/30/2019						6/30/2019						3/31/2019
ASSETS	Average Balance		Interest Income/Expense		Yield/ Rate (TE)⁽¹⁾		Average Balance		Interest Income/Expense		Yield/ Rate (TE)⁽¹⁾		Average Balance		Interest Income/Expense		Yield /Rate (TE)⁽¹⁾
Earning assets:
Commercial loans and leases	$	16,155,962	$	205,350	5.06	%	$	15,766,423	$	205,093	5.24	%	$	15,253,655	$	194,510	5.19	%
Residential mortgage loans	4,588,549		50,939		4.44		4,482,150		49,388		4.41		4,385,634		47,829		4.36
Consumer and other loans	2,778,381		40,501		5.78		2,872,116		42,205		5.89		2,960,397		42,540		5.83
Total loans and leases	23,522,892		296,790		5.03		23,120,689		296,686		5.16		22,599,686		284,879		5.11
Mortgage loans held for sale	209,778		1,936		3.69		159,931		1,588		3.97		95,588		1,054		4.41
Investment securities⁽²⁾	4,493,789		29,932		2.71		4,853,858		33,803		2.83		5,052,922		36,125		2.90
Other earning assets	733,305		4,520		2.44		639,232		3,890		2.44		533,745		4,026		3.06
Total earning assets	28,959,764		333,178		4.59		28,773,710		335,967		4.70		28,281,941		326,084		4.68
Allowance for loan and lease losses	(148,203)						(145,854)						(140,915)
Non-earning assets	2,742,730						2,643,966						2,692,474
Total assets	$	31,554,291					$	31,271,822					$	30,833,500

LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Interest-bearing demand deposits	$	4,451,579	$	11,305	1.01	%	$	4,488,691	$	11,623	1.04	%	$	4,458,634	$	11,396	1.04	%
Savings and money market accounts	9,188,186		32,959		1.42		9,014,822		30,845		1.37		9,089,099		28,762		1.28
Time deposits	4,523,555		26,489		2.32		4,156,974		23,398		2.26		3,859,354		20,077		2.11
Total interest-bearing deposits⁽³⁾	18,163,320		70,753		1.55		17,660,487		65,866		1.50		17,407,087		60,235		1.40
Short-term borrowings	794,044		3,880		1.94		996,606		5,197		2.09		1,151,219		5,716		2.01
Long-term debt	1,360,492		9,212		2.69		1,465,685		9,565		2.62		1,463,862		9,649		2.67
Total interest-bearing liabilities	20,317,856		83,845		1.64		20,122,778		80,628		1.61		20,022,168		75,600		1.53
Non-interest-bearing deposits	6,425,026						6,442,217						6,271,313
Non-interest-bearing liabilities	545,838						463,803						434,516
Total liabilities	27,288,720						27,028,798						26,727,997
Total shareholders' equity	4,265,571						4,243,024						4,105,503
Total liabilities and shareholders' equity	$	31,554,291					$	31,271,822					$	30,833,500

Net interest income/Net interest spread			$	249,333	2.95	%			$	255,339	3.09	%			$	250,484	3.15	%
Taxable equivalent benefit			1,320		0.02				1,338		0.02				1,349		0.02
Net interest income (TE)/Net interest margin (TE)⁽¹⁾			$	250,653	3.44	%			$	256,677	3.57	%			$	251,833	3.59	%

(1) Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 21%.

(2) Balances exclude unrealized gain or loss on securities available for sale and the impact of trade date accounting.

(3) Total deposit costs for the three months ended September 30, 2019, June 30, 2019, and March 31, 2019 were 1.14%, 1.10% and 1.03%, respectively.

Table 6 - IBERIABANK CORPORATION
LEGACY AND ACQUIRED LOAN PORTFOLIO VOLUMES AND YIELDS
(Dollars in millions)

	For the Three Months Ended
	3/31/2`020						12/31/2019						9/30/2019						6/30/2019						3/31/2019
AS REPORTED (US GAAP)	Income		Average Balance		Yield		Income		Average Balance		Yield		Income		Average Balance		Yield		Income		Average Balance		Yield		Income		Average Balance		Yield
Legacy loans and leases, net	$	220	$	19,936	4.43	%	$	225	$	19,374	4.60	%	$	229	$	18,721	4.86	%	$	225	$	17,984	5.00	%	$	213	$	17,192	5.02	%
Acquired loans	52		4,217		4.94		58		4,457		5.18		68		4,802		5.62		72		5,137		5.64		72		5,408		5.35
Total loans and leases	$	272	$	24,153	4.52	%	$	283	$	23,831	4.71	%	$	297	$	23,523	5.01	%	$	297	$	23,121	5.14	%	$	285	$	22,600	5.10	%

	3/31/2020						12/31/2019						9/30/2019						6/30/2019						3/31/2019
ADJUSTMENTS	Income		Average Balance		Yield		Income		Average Balance		Yield		Income		Average Balance		Yield		Income		Average Balance		Yield		Income		Average Balance		Yield
Legacy loans and leases, net	$	—	$	—	—	%	$	—	$	—	—	%	$	—	$	—	—	%	$	—	$	—	—	%	$	—	$	—	—	%
Acquired loans	(8)		95		(0.79)		(9)		97		(0.90)		(14)		111		(1.24)		(14)		124		(1.15)		(11)		136		(0.92)
Total loans and leases	$	(8)	$	95	(0.14)	%	$	(9)	$	97	(0.17)	%	$	(14)	$	111	(0.25)	%	$	(14)	$	124	(0.25)	%	$	(11)	$	136	(0.22)	%

	3/31/2020						12/31/2019						9/30/2019						6/30/2019						3/31/2019
AS ADJUSTED (CASH YIELD, NON-GAAP)	Income		Average Balance		Yield		Income		Average Balance		Yield		Income		Average Balance		Yield		Income		Average Balance		Yield		Income		Average Balance		Yield
Legacy loans and leases, net	$	220	$	19,936	4.43	%	$	225	$	19,374	4.60	%	$	229	$	18,721	4.86	%	$	225	$	17,984	5.00	%	$	213	$	17,192	5.02	%
Acquired loans	44		4,312		4.15		49		4,554		4.28		54		4,913		4.38		58		5,261		4.49		61		5,544		4.43
Total loans and leases	$	264	$	24,248	4.38	%	$	274	$	23,928	4.54	%	$	283	$	23,634	4.76	%	$	283	$	23,245	4.89	%	$	274	$	22,736	4.88	%

Table 7 - IBERIABANK CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Dollars in thousands, except per share amounts)

	For the Three Months Ended
	3/31/2020						12/31/2019						9/30/2019
	Pre-tax		After-tax		Per share⁽²⁾		Pre-tax		After-tax		Per share⁽²⁾		Pre-tax		After-tax		Per share⁽²⁾
Net income	$	48,600	$	36,425	$	0.69	$	103,966	$	82,576	$	1.57	$	131,359	$	99,850	$	1.89
Less: Preferred stock dividends	—		3,598		0.07		—		4,456		0.09		—		3,599		0.07
Income available to common shareholders (GAAP)	$	48,600	$	32,827	$	0.62	$	103,966	$	78,120	$	1.48	$	131,359	$	96,251	$	1.82

Non-interest income adjustments ⁽¹⁾⁽³⁾:
(Gain) loss on sale of investments	—		—		—		(14)		(11)		—		—		—		—

Non-interest expense adjustments⁽¹⁾⁽³⁾:
Merger-related expense	2,734		2,157		0.04		11,321		10,828		0.21		—		—		—
Hazard-related expense	281		213		—		—		—		—		—		—		—
Impairment of long-lived assets, net of (gain) loss on sale	(4)		(3)		—		30		23		—		—		—		—
Other non-core non-interest expense	—		—		—		(8)		(6)		—		—		—		—
Total non-interest expense adjustments	3,011		2,367		0.04		11,343		10,845		0.21		—		—		—
Income tax expense (benefit) - other	—		241		0.01		—		(5,209)		(0.10)		—		—		—
Core earnings (Non-GAAP)	51,611		35,435		0.67		115,295		83,745		1.59		131,359		96,251		1.82
Provision for expected credit losses⁽¹⁾	68,971		52,418				8,153		6,196				8,986		6,829
Pre-provision earnings, as adjusted (Non-GAAP) ⁽³⁾	$	120,582	$	87,853			$	123,448	$	89,941			$	140,345	$	103,080



	For the Three Months Ended
	6/30/2019						3/31/2019
	Pre-tax		After-tax		Per share⁽²⁾		Pre-tax		After-tax		Per share⁽²⁾
Net income	$	133,791	$	101,598	$	1.88	$	130,477	$	100,131	$	1.82
Less: Preferred stock dividends	—		949		0.02		—		3,598		0.07
Income available to common shareholders (GAAP)	$	133,791	$	100,649	$	1.86	$	130,477	$	96,533	$	1.75

Non-interest income adjustments ⁽¹⁾⁽³⁾:
Loss on sale of investments	1,012		769		0.01		—		—		—

Non-interest expense adjustments ⁽¹⁾⁽³⁾:
Merger-related expense	(10)		(7)		—		(334)		(254)		—
Compensation-related expense	—		—		—		(9)		(7)		—
Impairment of long-lived assets, net of (gain) loss on sale	(22)		(17)		—		986		749		0.01
Other non-core non-interest expense	107		81		—		(3,129)		(2,378)		(0.04)
Total non-interest expense adjustments	75		57		—		(2,486)		(1,890)		(0.03)
Core earnings (Non-GAAP)	134,878		101,475		1.87		127,991		94,643		1.72
Provision for credit losses ⁽¹⁾	10,755		8,174				13,763		10,460
Pre-provision earnings, as adjusted (Non-GAAP) ⁽³⁾	$	145,633	$	109,649			$	141,754	$	105,103

(1) Excluding preferred stock dividends and merger-related expense, after-tax amounts are calculated using a tax rate of 24%, which approximates the marginal tax rate.

(2) Diluted per share amounts may not appear to foot due to rounding.

(3) Adjustments to GAAP results include certain significant activities or transactions that, in management's opinion, can distort period-to-period comparisons of the Company's performance. These adjustments include, but are not limited to, realized gains or losses on the sale of investment securities, merger-related expenses, hazard-related expenses, including those incurred as a result of the Company's response to the COVID-19 pandemic, realized or unrealized gains or losses on former bank-owned real estate, and gains, losses, and impairment charges on long-lived assets.

Table 8 - IBERIABANK CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Dollars in thousands)

	For the Three Months Ended
	3/31/2020			12/31/2019			9/30/2019			6/30/2019			3/31/2019
Net interest income (GAAP)	$	230,342		$	234,490		$	249,333		$	255,339		$	250,484
Taxable equivalent benefit	1,311			1,368			1,320			1,338			1,349
Net interest income (TE) (Non-GAAP) ⁽¹⁾	231,653			235,858			250,653			256,677			251,833

Non-interest income (GAAP)	64,656			59,352			63,674			58,825			52,509
Taxable equivalent benefit	484			502			468			465			478
Non-interest income (TE) (Non-GAAP) ⁽¹⁾	65,140			59,854			64,142			59,290			52,987
Taxable equivalent revenues (Non-GAAP) ⁽¹⁾	296,793			295,712			314,795			315,967			304,820
Securities (gains) losses and other non-interest income	—			(14)			—			1,012			—
Core taxable equivalent revenues (Non-GAAP) ⁽¹⁾	$	296,793		$	295,698		$	314,795		$	316,979		$	304,820

Total non-interest expense (GAAP)	$	177,427		$	181,723		$	172,662		$	169,618		$	158,753
Less: Intangible amortization expense	4,187			4,259			4,410			4,786			5,009
Tangible non-interest expense (Non-GAAP) ⁽²⁾	173,240			177,464			168,252			164,832			153,744
Less: Merger-related expense	2,734			11,321			—			(10)			(334)
Hazard-related expense	281			—			—			—			—
Compensation-related expense	—			—			—			—			(9)
Impairment of long-lived assets, net of (gain) loss on sale	(4)			30			—			(22)			986
Other non-core non-interest expense	—			(8)			—			107			(3,129)
Core tangible non-interest expense (Non-GAAP) ⁽²⁾	$	170,229		$	166,121		$	168,252		$	164,757		$	156,230
Return on average assets (GAAP)	0.46		%	1.03		%	1.26		%	1.30		%	1.32		%
Effect of non-core revenues and expenses	0.03			0.07			—			0.01			(0.03)
Core return on average assets (Non-GAAP)	0.49		%	1.10		%	1.26		%	1.31		%	1.29		%
Efficiency ratio (GAAP)	60.1		%	61.8		%	55.2		%	54.0		%	52.4		%
Effect of tax benefit related to tax-exempt income	(0.3)			(0.3)			(0.3)			(0.3)			(0.3)
Efficiency ratio (TE) (Non-GAAP) ⁽¹⁾	59.8		%	61.5		%	54.9		%	53.7		%	52.1		%
Effect of amortization of intangibles	(1.3)			(1.5)			(1.5)			(1.5)			(1.6)
Effect of non-core items	(1.1)			(3.8)			—			(0.2)			0.8
Core tangible efficiency ratio (TE) (Non-GAAP) ^{(1) (2)}	57.4		%	56.2		%	53.4		%	52.0		%	51.3		%
Return on average common equity (GAAP)	3.21		%	7.58		%	9.46		%	10.05		%	9.85		%
Effect of non-core revenues and expenses	0.26			0.55			—			0.08			(0.19)
Core return on average common equity (Non-GAAP)	3.47		%	8.13		%	9.46		%	10.13		%	9.66		%
Effect of intangibles ⁽²⁾	2.06			4.26			5.02			5.45			5.37
Core return on average tangible common equity (Non-GAAP)⁽²⁾	5.53		%	12.39		%	14.48		%	15.58		%	15.03		%
Total shareholders' equity (GAAP)	$	4,347,107		$	4,336,734		$	4,283,300		$	4,238,000		$	4,141,831
Less: Goodwill and other intangibles	1,292,910			1,297,095			1,301,348			1,305,752			1,310,458
Preferred stock	228,485			228,485			228,485			228,485			132,097
Tangible common equity (Non-GAAP) ⁽²⁾	$	2,825,712		$	2,811,154		$	2,753,467		$	2,703,763		$	2,699,276
Total assets (GAAP)	$	32,239,983		$	31,713,450		$	31,734,598		$	31,446,532		$	31,260,189
Less: Goodwill and other intangibles	1,292,910			1,297,095			1,301,348			1,305,752			1,310,458
Tangible assets (Non-GAAP) ⁽²⁾	$	30,947,073		$	30,416,355		$	30,433,250		$	30,140,780		$	29,949,731
Tangible common equity ratio (Non-GAAP) ⁽²⁾	9.13		%	9.24		%	9.05		%	8.97		%	9.01		%

(1) Fully taxable equivalent (TE) calculations include the tax benefit associated with related income sources that are tax-exempt using a rate of 21%.

(2) Tangible calculations eliminate the effect of goodwill and acquisition-related intangibles and the corresponding amortization expense on a tax-effected basis where applicable.

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IBERIABANK Corporation Reports First Quarter Results

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