Iberiabank's stock fell in morning trading after the Lafayette, La., company posted third-quarter profits that missed expectations.

The $20.8 billion-asset company reported Wednesday after the market closed that its earnings rose nearly 5% from a year earlier to $44.5 million. Earnings per share of $1.08 missed analysts' estimates by 12 cents.

Management also lowered guidance for full-year earnings from about $4.58 a share to $4.40-$4.45 a share.

Net interest income rose more than 5%, to $163.4 million. Total loans increased almost 6%, to $14.9 billion, though the net interest margin widened by 3 basis points, to 3.53%.

Stephen Scouten, an analyst at Sandler O'Neill, wrote in a note to clients that the loan growth was weaker than what he had expected.

The company accelerated the resolution of energy-related credits in a move designed to reduce its risk exposure, President and Chief Executive Daryl Byrd said in a press release. This caused Iberia to report higher levels of energy-related nonperforming assets, interest accrual reversals and net chargeoffs compared to prior quarters, he added. The loanloss provision more than doubled from a year earlier, to $12.5 million.

Scouten said he was "a bit surprised by the pace of energy credit migration," though he continued "to feel confident about the overall credit quality of Iberia's energy book," which now comprises just 4% of total loans.

Noninterest income rose 4% to $59.8 million. Mortgage income increased almost 6%, to $21.8 million, and income from bank owned life insurance increased 19%, to $1.3 million.

Noninterest expenses fell almost 5%, to $138.1 million, as occupancy and equipment costs declined roughly 8%, to $16.5 million.

Iberia's stock was down about 7%, to $65.08 a share, in Thursday morning trading.


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