Ahead Ahead of the of the Curve Curve A N N U A L S H A R E H O L D - - PowerPoint PPT Presentation

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Ahead Ahead of the of the Curve Curve A N N U A L S H A R E H O L D - - PowerPoint PPT Presentation

Ahead Ahead of the of the Curve Curve A N N U A L S H A R E H O L D E R S M E E T I N G 2 0 1 7 Forward Looking Statements And Non GAAP Financial Measures To the extent that statements in this PowerPoint presentation relate to future


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SLIDE 1

Ahead

  • f the

Curve Ahead

  • f the

Curve

A N N U A L S H A R E H O L D E R S ’ M E E T I N G 2 0 1 7

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SLIDE 2

Forward‐Looking Statements And Non‐GAAP Financial Measures

2 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 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. 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. Since the presentation of these GAAP performance measures and their impact differ between companies, 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 included as tables in the Company’s press release dated April 27, 2017 and Annual Report on Form 10‐K for the fiscal year ended December 31,

  • 2016. Refer to the supplemental tables in the press release and Annual Report for these reconciliations.
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SLIDE 3
  • Our Unique And Diversified Business Model
  • A Story Of Performance
  • Gaining Scale Through Client Growth
  • Focusing On Our Shareholders

Ahead of the Curve

OVERVIEW

3

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SLIDE 4
  • Provide Exceptional Value‐Based Client Service
  • Great Place To Work
  • Growth That Is Consistent With High Performance
  • Shareholder Focused
  • Strong Sense Of Community

4

Our Mission Statement

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SLIDE 5

Evolving Banking Industry

5

  • Continuing consolidation of

the banking industry

  • Greater competition from non‐

banks in certain segments

  • Higher short‐term rates
  • Regulatory environment

continues to evolve

  • Potential impact of

technological advancements

  • Impact of FinTech providers
  • Changing client preferences

14,496 5,113

4,000 5,000 6,000 7,000 8,000 9,000 10,000 11,000 12,000 13,000 14,000 15,000

1934 1937 1940 1943 1946 1949 1952 1955 1958 1961 1964 1967 1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 2012 2015

Number of Banks

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SLIDE 6

Changing Client Preferences

6

  • To meet clients’ changing

interests, we offer a convenient and efficient branch system and electronic delivery and communication channels

  • Since 2012:
  • Our number of transactions has

increased by 5.3 million, up 57%

  • Automated transactions

(“ACH”), remote, and mobile transactions are the fastest growing channels

  • Teller usage has declined from

41% to 30% of transactions

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SLIDE 7
  • Grow Our Client Base In A High Quality Manner
  • Complete Sabadell United Acquisition ‐ Convert,

and Integrate Their Branch And Operating Systems

  • Continue To Enhance Our Operating Efficiency
  • Improve Our Core Profitability

7

Priorities For 2017

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SLIDE 8

Our Unique And Diversified Business Model Our Unique And Diversified Business Model

8

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SLIDE 9

Geographic Diversification

9

  • We serve clients in 32 MSAs
  • Serve 15 of the top 28 markets

in the Southeast

  • Serve all top 5 markets
  • Diversification through

uncorrelated markets

  • Our differentiation includes:
  • Market‐centric approach
  • High‐quality, experienced,

and successful banking talent

  • Differentiated strategy and

deposit pricing by market

  • “Branch‐lite” distribution
  • Multiple growth engines
  • Fee income businesses
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SLIDE 10

Growing Fee Income Businesses

10

  • Record 103 client transactions in 18 markets
  • Annual revenues more than doubled

Mortgage Lending And Servicing Mortgage Lending And Servicing Title Insurance Title Insurance Treasury Management Treasury Management Client Derivatives/Hedging Client Derivatives/Hedging

  • Originated and sold $2.5 billion loans in 2016
  • Retained $1.1 billion in loans serviced for clients
  • $84 million in mortgage income, up 4%
  • Title transactions up 5% (record level)
  • $22 million in revenue (second highest)
  • 18% increase in clients
  • Fee income up 28%

Wealth Management Wealth Management

  • Assets under administration grew 93% to $2.7 billion
  • Record level of annual revenues and net income
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SLIDE 11

Multiple Growth Engines

11

  • We invested heavily in new businesses and

markets

  • Diverse markets and multiple sources of revenue
  • Strong client growth in recent acquisition markets
  • Atlanta, Orlando, Tampa, and Dallas
  • $589 million in loan growth in 2016 (80% of total)
  • $508 million in deposit growth in 2016 (41% of

growth)

  • In 2016, we entered the vibrant Greenville market

in Upstate South Carolina

  • 10‐county area with population of 1.4 million people
  • One of the nation’s top markets for economic growth
  • Sam Erwin joined as South Carolina Regional

President in December 2016

  • Our first full‐service office opened in Spring 2017

Greenville, South Carolina

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SLIDE 12

Community Focus

12

  • Provided assistance to associates,

clients, and communities impacted by August 2016 flooding

  • Innovative investment in New Orleans‐

based Liberty Financial Services, one of the nation’s largest African‐American‐

  • wned banks
  • Sponsored the National Community

Reinvestment Coalition’s Annual Conference, one of the largest gatherings of community non‐profits, policymakers, government officials, small businesses, and academia, all coming together to create a just economy

  • Invested $60 million in various

community development projects

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SLIDE 13

A Story Of Performance A Story Of Performance

13

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SLIDE 14

The Numbers At Year‐End 2016

14

Total Assets $21.7 Billion Up $2.2 Billion, or 11% Market Cap. $3.8 Billion Up $1.5 Billion, or 66% Shareholders’ Equity $2.9 Billion Up $441 Million, or 18% Cash Equiv. & Securities $4.9 Billion Up $1.5 Billion, or 44% Total Revenues $883 Million Up $75 Million, or 9% Net Income To Common $179 Million Up $36 Million, or 25% Total Locations 300 Down 19, or 6% Bank Branches 200 Down 19, or 9% Associates (FTE) 3,100 Down 51, or 2% Advisory Boards 218 Members No Change

Size Size Strength Strength Financials Financials Distribution Distribution People People

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SLIDE 15

Taking Proactive Steps

15

  • We believe it is very important to stay ahead of the curve in risk management
  • We were very active in reducing our exposures to energy, indirect automobile,

and tightening our credit standards in other areas of concern

  • During 2016, we reduced our energy‐related loans by $120 million, or 18%,

declining to 3.7% of total loans by year‐end

  • We also reduced our indirect automobile loans by $115 million, or 47% during

the year

  • In aggregate since year‐end 2014:
  • Cumulative decline in “risk‐off loans” was $797 million
  • Estimated opportunity cost of $15 million in 2016
  • While costly in then near‐term, we believe these prudent steps provided

appropriate long‐term benefit to our shareholders

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SLIDE 16

Improved Efficiency

16

  • Revenue growth has been

significantly greater than expense growth

  • Very active in branch closures

and staff efficiency

  • Particularly this past year:
  • Revenues up $75 million, or 9%
  • Expenses down $4 million, or <1%
  • Total assets were up 11% and

staffing declined 2%

  • Closed/consolidated 19 bank

branches and eight mortgage locations

  • We achieved our long‐term core

tangible efficiency target of 60%

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SLIDE 17

Enhanced Profitability

17

  • Earnings up $36 million, or 25%,

compared to 2015

  • Earnings per common share up 17%
  • Second highest annual EPS results
  • Core earnings up $22 million, or 14%,

compared to 2015

  • Core earnings per common share up 6%
  • Record annual core EPS results
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SLIDE 18

Gaining Scale Gaining Scale

18

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SLIDE 19

Acquisitions

19

Over the last four years:

  • Completed five live bank acquisitions plus

Memphis branches

  • Acquired $3.3 billion in loans and $3.8 billion

in deposits

  • Acquired 62 bank branches, and closed or

consolidated 60 bank branches

  • Efficiency gains were a primary focus in 2016
  • We were one of the most active acquirers

and branch consolidators during this period

  • On a pro forma basis, we will be the 40th

largest bank holding company in the U.S.

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SLIDE 20

Sabadell United Acquisition (Pending)

20

  • Our largest acquisition to date, equal

to 21% of our pro forma size

  • Announced on February 28, 2017

with anticipated closing in the second half of 2017

  • Subsidiary of Banco de Sabadell, S.A.
  • $5.8 billion in total assets with

40,000 Florida clients

  • 25 offices in Florida, including 23 in

the Miami MSA

  • Total purchase price of $1 billion
  • Significant cost savings opportunities
  • Projected favorable financial impact
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SLIDE 21

Client Growth – Loans and Deposits

21

Year‐end loan growth of $738 million, up 5% Year‐end deposit growth of $1.2 billion, up 8%

Notes: “Other” market includes Mortgage, Lenders Title, Credit Card, and Other. “Pro Forma” includes Sabadell United Bank, based on total loans and deposits at December 31, 2016.

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SLIDE 22

Asset Quality

22

  • Asset quality remains a hallmark
  • f our Company
  • Energy‐related concerns crested

in the second half of 2016

  • Non‐energy‐related asset quality

remained strong throughout 2016

1.08% 1.00% 0.49% 2.59% 1.55%

0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00%

Non‐Performing Assets

(As a % of Total Assets)

IBKC IBKC Excluding Energy Peer Average ($10‐$30 Billion BHCs)

%

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SLIDE 23

Capital Strength

23

  • In May 2016:
  • Board authorized a new common stock

repurchase program for 950,000 shares

  • Issued preferred stock with net proceeds of

$55 million

  • In December 2016:
  • Issued common stock with net proceeds of

$279 million

  • Issued at $81.50 per common share (31%

above 2016 average trading price)

  • In March 2017:
  • Issued common stock with net proceeds of

$485 million

  • Issued at $83.00 per common share
  • During 2016, our common stock market

capitalization grew $1.5 billion, or 66%

8.00% 9.00% 10.00% 11.00% 12.00% 13.00% 14.00% 15.00% 16.00% 17.00% 18.00% 2012 2013 2014 2015 2016 3/31/17

Capital Ratio Trends

Equity to Assets Tier 1 Leverage Tier 1 Risk Based Total Risk Based

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SLIDE 24

Focusing On Our Shareholders Focusing On Our Shareholders

24

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SLIDE 25

Near‐Term Shareholder Returns

25

  • We experience enhanced

liquidity and higher trading levels in our common stock

  • Our average daily trading

value in our common stock increased 48% compared to 2015

  • During 2016, our common

stock:

  • Achieved an all‐time high of

$91.10 per share in early December 2016

  • Ended the year at $83.75 per

common share

  • Gained $28.68 per share, or

52% compared to year‐end 2015

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SLIDE 26

Long‐Term Shareholder Returns

26

  • Strategic direction changed 17 years ago
  • Focused on lowering risk posture and

improving total return to shareholders

  • Between year‐ends 1999 and 2016:
  • Our common stock price improved 661%
  • Total return to shareholders (including the

reinvestment of cash dividends) was 1,051%

  • Compounded annual return of 15%
  • We outperformed nearly all of our peers

(BHCs with $10‐30 billion in total assets)

  • Importantly, these results also significantly
  • utperformed broader market indexes and

well‐known investment alternatives

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SLIDE 27

c

“No great thing is created suddenly.” “No great thing is created suddenly.”

‐ Epictetus, Roman Philosopher, c. 60‐120

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SLIDE 28

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