IBERIABANK Corporation (IBKC) has reported a 13.17 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $48.07 million, or $1.08 a share in the quarter, compared with $42.48 million, or $1.03 a share for the same period last year.
Revenue during the quarter went up marginally by 1.55 percent to $210.75 million from $207.53 million in the previous year period. Net interest income for the quarter rose 5.35 percent over the prior year period to $163.42 million. Non-interest income for the quarter rose 4.08 percent over the last year period to $59.82 million.
IBERIABANK has made provision of $12.48 million for loan losses during the quarter, up 146.62 percent from $5.06 million in the same period last year.
Efficiency ratio for the quarter improved to 61.90 percent from 68.20 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
Daryl G. Byrd, president and chief executive officer, commented, “We continue to make great strides toward identifying and reducing our risk exposures and resolving our energy-related matters. The resolution process has generally progressed as we expected; however, the 'conveyor belt' on which these matters get resolved accelerated during the third quarter. That acceleration caused us to report higher levels of energy-related non-performing assets, interest accrual reversals, and net charge-offs than in prior quarters. While these energy-related items and other notable expenses suppressed our financial results in the third quarter of 2016, we believe some of these items may diminish or reverse in future periods. We also believe this accelerated process has brought us to the point at which our energy concerns have crested."
Assets outpace liabilities growth
Total assets stood at $20,788.57 million as on Sep. 30, 2016, up 6.42 percent compared with $19,534.22 million on Sep. 30, 2015. On the other hand, total liabilities stood at $18,121.46 million as on Sep. 30, 2016, up 6.28 percent from $17,051.02 million on Sep. 30, 2015.
Loans outpace deposit growth
Net loans stood at $14,776.31 million as on Sep. 30, 2016, up 6.58 percent compared with $13,863.48 million on Sep. 30, 2015. Deposits stood at $16,522.52 million as on Sep. 30, 2016, up 1.35 percent compared with $16,303.06 million on Sep. 30, 2015.
Noninterest-bearing deposit liabilities were $4,787.48 million or 28.98 percent of total deposits on Sep. 30, 2016, compared with $4,392.81 million or 26.94 percent of total deposits on Sep. 30, 2015.
Investments stood at $2,976.07 million as on Sep. 30, 2016, up 1.71 percent or $49.93 million from year-ago. Shareholders equity stood at $2,667.11 million as on Sep. 30, 2016, up 7.41 percent or $183.91 million from year-ago.
Return on average assets moved up 8 basis points to 0.94 percent in the quarter from 0.86 percent in the last year period. At the same time, return on average equity decreased 9 basis points to 7 percent in the quarter from 7.09 percent in the last year period.
Credit quality deteriorates
IBERIABANK witnessed a deterioration in credit quality during the quarter. Nonperforming assets moved up 57.48 percent or $119.83 million to $328.30 million on Sep. 30, 2016 from $208.47 million on Sep. 30, 2015. Nonperforming assets to total loans was 1.96 percent in the quarter, up from 0.65 percent in the last year period. Meanwhile, nonperforming assets to total assets was 1.58 percent in the quarter, up from 1.07 percent in the last year period.
Tier-1 leverage ratio stood at 9.70 percent for the quarter, up from 9.33 percent for the previous year quarter. Book value per share was $61.71 for the quarter, up 5.51 percent or $3.22 compared to $58.49 for the same period last year.
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