IberiaBank Corp. (NASDAQ:IBKC) Q3 2019 Earnings Conference Call - Final Transcript

Oct 18, 2019 • 09:30 am ET


IberiaBank Corp. (NASDAQ:IBKC) Q3 2019 Earnings Conference Call - Final Transcript


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Good morning, and welcome to the IBERIABANK Corporation Third Quarter Earnings Conference Call. [Operator Instructions]

I would now like to turn the conference over to Jeff Parker, Vice Chairman, Director of Capital Markets, Energy Lending and Investor Relations. Please go ahead, sir.

Jefferson G. 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 of 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 October 25th. 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 solid results. We reported both GAAP and core earnings per share of $1.82 for the third quarter. Given the ever-changing economy and interest rate environment, I'm extremely proud of our company's ability to produce strong financial results, grow our client base, show good gains in both loan growth and core deposit growth, while remaining focused on expense management and maintaining strong credit quality.

For the quarter, both on a reported and core basis, we achieved a 1.26% return on average assets, a 14.48% return on tangible common equity, and a tangible efficiency ratio of 53%.

In the third quarter, total loans increased $321 million or 6% on an annualized basis. On a year-to-date basis, we added $1.2 billion in total loan balances, an annualized growth rate of 7%.

Deposit growth was also very strong, as we experienced growth in all the three of our operating markets. Total deposits increased $682 million or 11% on an annualized basis, with no increase in our broker deposit position. On a year-to-date basis, we have added $1.2 billion in total deposit balances, an annualized growth rate of 7%.

With continued client growth and positive expectations for the remainder of the year, we are adjusting our guidance range for both loans and deposits to between 6.5% and 7.25% for the full year 2019.

I think it's important to reflect on the success of our business model over the years in growing our franchise through strong loan and deposit growth and recruiting talented teams. For example, over the past 10 years, we've grown our presence in Alabama from our initial entrance in 2009 to over $2 billion in total loans.