Iberiabank in Lafayette, La., reported higher fourth-quarter profit on loan growth and mortgage revenue and planned an additional round of branch closings.
The $19.5 billion-asset company’s net income rose 23.6% from the previous year, to $44.4 million. Earnings per share rose 0.9% to $1.08, beating the consensus estimate of analysts polled by Bloomberg by a penny.
Iberiabank said it will close 19 branches during the first quarter, adding to the 11 branches it closed last year. Iberiabank will record $2.7 million of expenses to close the branches. It estimated the closings will save at least $1 million per quarter, starting in the second quarter.
Net interest income rose 29.3% to $161.2 million. Total loans grew 25.2% to $14.3 billion. The net interest margin expanded 11 basis points to 3.64%.
Iberiabank had $681 million of energy loans at Dec. 31, or about 5% of total loans. Energy-related reserves were 3.9% of energy loans outstanding. Iberiabank has had no energy-related charge-offs to date. It raised the number of nonaccrual energy loans 71% to $8.4 million, from the third quarter to the fourth quarter.
Iberiabank's expansion into other Southeastern markets allows it “to offset our risk-off positions in impacted energy segments of business,” Chief Executive Daryl Byrd said in a news release.
Noninterest income rose 11.5% to $52.5 million, mainly on higher mortgage and service-charge revenue.
Noninterest expense rose 16.7% to $139 million on higher employee compensation and occupancy costs. Iberiabank also recorded $3.4 million in additional costs to close branches during the quarter.