Iberiabank in Lafeyette, La., reported lower quarterly earnings, as one-time charges offset gains from the purchase of Sabadell United Bank.
The $28 billion-asset company said in a press release Thursday that its fourth-quarter earnings fell 79% from a year earlier, to $9.3 million, or 17 cents a share. Excluding non-core revenue and expenses, the company earned $1.33 a share.
Iberia absorbed a $51 million his tied to recent tax reform. It also incurred $11.4 million in pretax merger-related expenses for the Sabadell purchase. That deal closed in July, and Iberia completed the conversion of branches and the operating system in October.
The company also a pending deal for Gibraltar Private Bank & Trust that is expected to close in the first quarter.
Total revenue surged by 35%, to $290.2 million.
Net interest income rose 45%, to $235.5 million. Average loans rose almost 34%, to $19.9 billion, while the net interest margin expanded by 31 basis points, to 3.69%.
Noninterest income increased by more than 2%, to $54.7 million. The company had $35 million in securities gains during the fourth quarter.
Daryl Byrd, president and CEO, said in the release that the company “delivered solid core earnings” and provided a “glimpse into the strong underlying earnings power of the franchise.”
“Our team's focus and strategic positioning drove significant improvement over the prior quarter as we continue to reap the benefits of our asset sensitive balance sheet and start to realize the synergies from the Sabadell acquisition following the conversion in mid-October,” Byrd said.
Noninterest expense increased by more than 21%, to $184.4 million. Salaries and employee benefits rose by 29%, to $104.4 million.
