Iberiabank Corporation, holding company of the 130-year-old Iberiabank, reported financial results for the fourth quarter ended December 31, 2017.
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The company reported income available to common shareholders of $9.3 million, or $0.17 diluted earnings per common share (EPS).
On a non-GAAP basis, EPS excluding non-core revenues and non-core expenses (Core EPS) in the fourth quarter of 2017 was $1.33 per common share vs. $1.16 per common share in the year-ago period, an increase of 15% (refer to press release supplemental tables for a reconciliation of GAAP to non-GAAP metrics).
The company's reported and cash net interest margins increased 5 and 4 basis points on a linked quarter basis, to 3.69% and 3.33%, respectively, primarily as a result of increases in average earning assets and higher loan yields, offset by smaller increases in average interest-bearing liabilities and costs of deposits.
4Q17 results include a $51.0 million estimated net impact of the Tax Cuts and Jobs Act enacted on December 22, 2017 ($0.94 per share decrease in earnings), subject to refinement in future periods as further information becomes available.
The effective tax rate in 2018 is expected to be 21% - 22%, which revises our previous guidance of 32.5% - 33.5% disclosed prior to the passing of tax reform.
Total loan growth was $0.3 billion, or 1.4% (5.6% annualized rate), in 4Q17, driven by originations in New Orleans, Atlanta and Tampa.
Total deposits increased $0.1 billion, or 0.6% (2.4% annualized rate), in 4Q17, driven by growth in the Houston, Acadiana, New Orleans and Baton Rouge markets
Net charge-offs decreased $18.7 million on a linked quarter basis, and equated to an annualized 0.20% of average loans. The provision for loan losses decreased $4.1 million, or 22%.
The company successfully completed the conversion of branch and operating systems associated with the Sabadell acquisition over the weekend of October 13 - 15, 2017.
The company incurred $11.4 million of pre-tax merger-related expense in 4Q17 ($0.16 per share decrease in earnings). ■