IberiaBank Corp. (NASDAQ:IBKC) Q2 2019 Earnings Conference Call - Final Transcript

Jul 19, 2019 • 09:30 am ET


IberiaBank Corp. (NASDAQ:IBKC) Q2 2019 Earnings Conference Call - Final Transcript


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Good morning and welcome to the IBERIABANK Corporation Second Quarter Earnings Conference Call.

[Operator Instructions]

After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Jeff Parker, Vice Chairman and Director of Capital Markets, Energy Lending and Investor Relations. Please go ahead, sir.

Jefferson Glenny Parker

Good morning and thank you for joining us today for this conference call. On our call this morning Daryl Byrd, our President and CEO will make summary comments on our earnings report, after which we will move into Q&A. Anthony Restel, our Chief Financial Officer; Michael Brown, our Chief Operating Officer; Fernando Perez-Hickman, our Director of Corporate Strategy; Terry Akins, our Chief Risk Officer; and Nick Young, our Chief Credit Officer, are all available for the Q&A session on this call.

If you've not already obtained a copy of the press release and supplemental PowerPoint presentation, you may access those documents from our website at www.iberiabank.com under Investor Relations.

A replay of this call will be available until midnight on July 26. Information regarding that replay is provided in the press release. Our discussion this morning deals with both historical and forward-looking information. Our Safe Harbor disclaimer is provided in the press release and in the supplemental presentation.

At this point, I'll turn it over to Daryl for his opening remarks. Daryl?

Daryl G. Byrd

Thanks Jeff and good morning everyone. I'm pleased to report another quarter of strong results. We reported GAAP and core earnings per share of $1.86 and $1.87 respectively, an improvement on a linked quarter basis of 6% and 9%. Also want to note that our core EPS of $1.87 was a record for the Company. We increased revenues 4% or 15% annualized during the second quarter, primarily from strong loan growth, a stable net interest margin and non-interest income gains from both our mortgage and title businesses. For the quarter and on a core basis, we achieved a 1.31% return on average assets, a 15.58% return on tangible common equity and a tangible efficiency ratio of 52%, all better than the 2020 strategic goal metrics.

Loan growth continued to be solid in the second quarter, as total loans increased $387 million or 7% on an annualized basis, reaching the top end of our 2019 guidance. Our corporate asset finance team had a very good quarter, providing a significant portion of our overall loan growth along with both our mortgage and energy businesses. Net interest margin for the quarter was 3.57% on a GAAP basis, relatively flat as compared to the first quarter and 3.37% on a cash basis. As anticipated, we realized approximately $7.2 million in recoveries this quarter, rebounding from the first quarter and in line with our previous expectations of approximately $5 million a quarter for 2019. As we mentioned in our first quarter release, we delevered approximately $424 million of securities in our bond portfolio in the second quarter as a result of a sale