Jason Kulpa Comments on the Do’s and Don’ts of Managing Net Worth in a Volatile Market

Jason Kulpa Comments on the Do’s and Don’ts of Managing Net Worth in a Volatile Market

As the global market heads for choppy waters, investors, stockbrokers, and other financial professionals are concerned about how it will affect their respective businesses.

But a volatile market does not discriminate, and every individual should pay special attention to their net worth.

What is Net Worth?

Net worth is the monetary difference between assets (like investments and account balances) and liabilities (mortgages and debt).

Calculating net worth gives people an insight into how their debt can affect their future. This number also highlights areas that can be worked on to improve overall financial standing in the long term.

Here are some dos and don’ts that can help people manage their net worth in a volatile market.

Consider Refinancing

Refinancing loans and credit card payments may seem dicey in times of market volatility. However, if leveraged correctly, it can help trim liabilities by clearing more of the principal amount with each payment.

Don’t ‘Panic Sell’ Investments

When markets become unstable, it’s important to avoid speculation. Investors must evaluate stocks and decide whether they’re worth holding or letting go.

It’s best to evaluate investments on three factors. When an investor is sure about the fundamentals of an investment, it makes sense to hold on. When they’re not sure about why they own stock, they should consult a financial planner. And if they’re unsure why they invested in a stock, it would be best to sell.

As Jason Kulpa, the founder and former CEO of UE.co, says, “It’s not the investment itself, but the security of the investor that determines success in the market.”

Do Avoid Personal Debt

Of course, a volatile market is not the best time to take on additional debt, even if it’s for a well-intentioned reason like starting a business.

When the market drops, financial experts also recommend never to borrow money to buy cars, electronics, or anything that goes down in value. And if possible, avoid increasing personal debt during market volatility.

Starting a business can wait until after the market has stabilized.

Don’t Spend Unnecessarily

Most people fail to abide by this rule simply because they’re unable to see how small, everyday expenses add up. It’s best to review spending habits in times of market volatility and trim unnecessary expenses.

This can involve getting rid of an extra car, cooking at home instead of eating out, and unsubscribing from a monthly magazine.

Desire Less

In times of market instability, one of the easiest ways to manage net worth is to want fewer things in life.

Apart from these tips, reviewing their desires and reducing them can help people grow their net worth because ultimately, the best way to build wealth is to actively abstain from spending it.

About Jason Kulpa

Jason Kulpa is a serial entrepreneur and the Founder and former CEO of UE.co, San Diego’s Fastest Growing Business multi-year award winner, and a Certified Great Place to Work multi-year winner. Mr. Kulpa is a San Diego’s two-time winner of the Most Admired CEO Award of the San Diego Business Journal and also a semi-finalist for the Ernst and Young Entrepreneur award.

Contact

Luke Anderson
Pressrelations@Kulpa.org
Kulpa.org
1 Lincoln Street
Boston, MA 02111

Siam Commercial Bank Of Thailand To Use Ripple For Cross-border Payments With Easy Pay App

Siam Commercial Bank of Thailand uses Ripple for cross-border payments with the Easy Pay application. That has been confirmed in an update on its website. There has been speculation about this news for several months. Now there is finally clarity. They also provide a complete description of how the technology is used and implemented.

The application allows SBC Thailand customers to easily send money to countries such as the United States, United Kingdom, Germany, France, Italy, Spain and Singapore. Payments to the United Kingdom and Singapore are even made in real time. The SBC has been around for over 100 years and is the third largest bank in Thailand.

A few months ago, the SBC announced that they would use Ripple. At that time, xRapid was named as the company’s technology. This is a payment system in which the XRP token plays an important role. However, today it was officially announced that it is xCurrent. There are no benefits for XRP holders.

This is a point of hate for many people who own XRP coins. xCurrent is just the system that banks can use to commit. Payments where XRP can be used are not included in this piece of technology. Therefore, this collaboration does not immediately lead to an additional demand for the currency. You can see it as a disappointment for fans who had high expectations of this collaboration.

The cooperation between the bank and Ripple goes back to 2016. The chief technology officer, Colin Dinn, says he believes that banks that are not going to use the blockchain technique will have a very difficult time.

We saw that it offers a solution in which the client is central. Offer something our customers want. It was not something that we as a bank wanted to promote. With Ripple we have found a way and a partner in which we can work very differently from what we are used to. We have ambition and we want to do things differently and change. We see that a bank will be less relevant for customers in the coming years.

Earnings Recap: Armada Hoffler Properties Inc. (NYSE: AHH)

VIRGINIA BEACH, Va., July 22, 2019 – Shares of Armada Hoffler Properties Inc. (NYSE: AHH) declined -0.95% to $16.69. The stock traded total volume of 267.602K shares higher than the average volume of 221.09K shares.

Armada Hoffler Properties Inc. (AHH) reported net income for the first quarter reduced to $6.50M contrast to $7.00M for the first quarter of 2018. The period-over-period change was mainly because of a $2.40M swing in the change in fair value of interest rate derivatives and a $1.50M increase in interest expense. This was partially offset by a $3.10M increase in interest income and a boost in property net operating income because of 2018 and 2019 property acquisitions and certain development projects coming online.

Normalized FFO for the first quarter increased to $18.50M contrast to $15.40M for the first quarter of 2018. FFO for the first quarter increased to $16.60M contrast to $16.30M for the first quarter of 2018. The period-over-period changes in Normalized FFO and FFO were positively influenced by property acquisitions, completion of development projects, and higher interest income. These increases in Normalized FFO and FFO were partially offset by increased interest expense.

Operating Performance:

At the end of the first quarter, the Company’s office, retail and multifamily core operating property portfolios were 94.9%, 96.1% and 97.2% occupied, respectively.

Total construction contract backlog was $160.90M at the end of the first quarter.

Balance Sheet and Financing Activity:

As of March 31, 2019, the Company had $744.10M of total debt outstanding, counting $91.00M outstanding under its revolving credit facility. Total debt outstanding excludes unamortized GAAP fair value adjustments and deferred financing costs. About 56.8% of the Company’s debt had fixed interest rates or was subject to interest rate swaps as of March 31, 2019. After considering LIBOR interest rate caps with strike prices at or below 250 basis points as of March 31, 2019, 97.1% of the Company’s debt was either fixed or hedged. There is no debt maturing during the remainder of 2019.

AHH has the market capitalization of $1.18B and its EPS growth ratio for the past five years was -7.20%. The return on assets ratio of the Company was 1.40% while its return on investment ratio stands at 3.30%. Price to sales ratio was 6.22 while 86.40% of the stock was owned by institutional investors.

Stock in the News: Santander Consumer USA Holdings Inc. (NYSE: SC)

DALLAS, July 11, 2019 – Shares of Santander Consumer USA Holdings Inc. (NYSE: SC) gained 0.32% to $25.42. The stock grabbed the investor’s attention and traded 1.553M shares as compared to its average daily volume of 1.11M shares. The stock’s institutional ownership stands at 32.70%.

Santander Consumer USA Holdings Inc. (SC) reported first-quarter profit of $247.50M. On a per-share basis, the Dallas-based company said it had profit of 70 cents. The results topped Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of 66 cents per share.

SC’s serviced for others portfolio of $8.70B as of Q1 2019 remained relatively flat as compared to the prior year quarter. Servicing fee income reduced 9 percent to $24.0M in Q1 2019, from $26.0M in Q1 2018, driven by the change in the composition of those balances. Fees, commissions and other increased from $85.0M in Q1 2018 to $94.0M in Q1 2019, driven by origination fees from the SBNA program.

Recorded net investment losses of $67.0M in Q1 2019, contrast to net investment losses of $87.0M in Q1 2018. The current period losses were mainly driven by held for sale accounting for SC’s personal lending portfolio.

SC has a market value of $8.77B while its EPS was booked as $2.56 in the last 12 months. The stock has 345.18M shares outstanding. In the profitability analysis, the company has gross profit margin of 62.00%. Beta value of the company was 1.00; beta is used to measure riskiness of the security. Analyst recommendation for this stock stands at 2.40.

News Buzz: Horace Mann Educators Corporation (NYSE: HMN)

SPRINGFIELD, Ill., June 24, 2019 – Shares of Horace Mann Educators Corporation (NYSE: HMN) declined -0.57% to $41.53. The stock traded total volume of 314.503K shares higher than the average volume of 138.60K shares.

Horace Mann Educators Corp. (HMN) reported first-quarter net income of $32.20M. The Springfield, Illinois-based company said it had profit of 77 cents per share. Earnings, adjusted for investment gains, were 63 cents per share.

The provider of auto and homeowners’ insurance for teachers and other educators posted revenue of $313.20M in the period. Horace Mann anticipates full-year earnings in the range of $2 to $2.20 per share.

HMN has the market capitalization of $1.72B and its EPS growth ratio for the past five years was -30.30%. The return on assets ratio of the Company was 0.30% while its return on investment ratio stands at 2.00%. Price to sales ratio was 1.42.

Stock Buzz: Highwoods Properties Inc. (NYSE: HIW)

RALEIGH, N.C., June 24, 2019 – Shares of Highwoods Properties Inc. (NYSE: HIW) showed the bearish trend with a lower momentum of -1.49% to $43.50. The company traded total volume of 713.421K shares as contrast to its average volume of 564.37K shares. The company has a market value of $4.58B and about 105.27M shares outstanding.

Highwoods Properties Inc. (HIW) recently reported that it had funds from operations of $76.50M, or 72 cents per share, in the period. The average estimate of six analysts surveyed by Zacks Investment Research was for funds from operations of 84 cents per share. Funds from operations are a closely watched measure in the REIT industry. It takes net income and adds back items such as depreciation and amortization.

The company said it had net income of $7.30M, or 7 cents per share. The real estate investment trust posted revenue of $172.40M in the period, also missing Street forecasts. Six analysts surveyed by Zacks expected $181.50M.

The Company offered net profit margin of 20.20% while its gross profit margin was 65.80%. ROE was recorded as 6.60% while beta factor was 0.85. The stock, as of recent close, has shown the weekly downbeat performance of -1.65% which was maintained at 12.43% in this year.

Hot Stock to Track: FS Bancorp Inc. (NASDAQ: FSBW)

MOUNTLAKE TERRACE, Wash., June 23, 2019 – Shares of FS Bancorp Inc. (NASDAQ: FSBW) showed the bearish trend with a lower momentum of -1.44% to $48.50. The company traded total volume of 18.926K shares as contrast to its average volume of 9.53K shares. The company has a market value of $221.16M and about 4.56M shares outstanding.

FS Bancorp, Inc. (FSBW), the holding company for 1st Security Bank of Washington recently reported 2019 first quarter net income of $5.20M, or $1.15 per diluted share, contrast to $4.30M, or $1.15 per diluted share for the same period last year.

2019 First Quarter Highlights:

  • Net income was $5.20M for the first quarter of 2019, contrast to $11.70M in the previous quarter which included a $7.40M bargain purchase gain from the acquisition of Anchor Bancorp (“Anchor Acquisition”), and $4.30M for the comparable quarter one year ago;
  • Net income for the first quarter adjusted for $374.0K of acquisition related costs, $131.0K of core deposit intangible (“CDI”) amortization and $321.0K of net accretion/amortization on loans, certificates of deposit (“CDs”) and borrowings (adjusted at a 21% tax rate) would have been $5.30M, or $1.18 per diluted share (See “Non-GAAP Financial Measures”);
  • Total assets increased to $1.630B at March 31, 2019, contrast to $1.620B at December 31, 2018, and $1.040B one year ago;
  • Total gross loans reduced $29.20M, or 2.2% during the quarter, mainly because of construction and construction warehouse loan payoffs, to $1.300B at March 31, 2019, contrast to $1.330B at December 31, 2018, and increased $479.40M, or 58.6%, from $817.70M at March 31, 2018, regarding the loans attained from the Anchor Acquisition of $311.60M at March 31, 2019;
  • Deposits increased $47.30M, or 3.7%, during the quarter to $1.320B at March 31, 2019, contrast to $1.270B at December 31, 2018, and increased $464.10M, or 54.1%, from $857.50M at March 31, 2018, mainly because of the deposits attained from the Anchor Acquisition of $343.60M at March 31, 2019; and Capital levels at the Bank were 14.7% for total risk-based capital and 11.0% for Tier 1 leverage capital at March 31, 2019, contrast to 13.5% and 10.7% at December 31, 2018, respectively.

Balance Sheet and Credit Quality:

Total assets increased $4.50M, or 0.3%, to $1.63B at March 31, 2019, contrast to $1.62B at December 31, 2018, and increased $582.50M, or 55.8%, from $1.04B at March 31, 2018.  The quarter over linked quarter increase in total assets included increases in total cash and cash equivalents of $30.30M, operating lease right-of-use asset of $4.80M, other assets of $2.70M, and securities available-for-sale of $2.60M, partially offset by a decrease in loans receivable, net of $28.60M, loans held for sale (“HFS”) of $5.60M, and Federal Home Loan Bank (“FHLB”) stock of $1.70M. The year over year increase was mainly because of the $474.90M of assets attained in the Anchor Acquisition, with the remaining growth partially funded by organic growth in deposits.

The Company offered net profit margin of 35.20%. ROE was recorded as 16.00% while beta factor was 0.99. The stock, as of recent close, has shown the weekly downbeat performance of -2.28% which was maintained at 13.11% in this year.

Worth Watching Stock: Fulton Financial Corporation (NASDAQ: FULT)

LANCASTER, Pa., June 22, 2019 – Shares of Fulton Financial Corporation (NASDAQ: FULT) lost -0.50% to $15.86. The stock grabbed the investor’s attention and traded 2.547M shares as compared to its average daily volume of 920.00K shares. The stock’s institutional ownership stands at 66.70%.

Fulton Financial Corp. (FULT) recently reported first-quarter profit of $56.70M, or $0.33 per diluted share, for the first quarter of 2019.

Net Interest Income and Balance Sheet:

Net interest income for the first quarter of 2019 was $163.30M, slightly higher than the fourth quarter of 2018, as the positive impact of a five basis point increase in the net interest margin, to 3.49%, and a boost in average loans, was mostly offset by two fewer days of interest accruals during the first quarter of 2019 in comparison to the fourth quarter of 2018. The improvement in the net interest margin resulted from a thirteen basis point increase in the average yield on interest-earning assets which outpaced the nine basis point increase in the average cost of funds.

Total average assets for the first quarter of 2019 were $20.70B, a boost of $178.20M from the fourth quarter of 2018. Average loans, net of unearned income, increased $228.70M, or 1.4%, in comparison to the fourth quarter of 2018.

Total average liabilities increased $194.80M, or 1.1%, from the fourth quarter of 2018, while average deposits reduced $137.40M, or 0.8%.

Asset Quality:

The provision for credit losses for the first quarter of 2019 was $5.10M, contrast to $8.20M for the fourth quarter of 2018.

Non-performing assets were $147.70M, or 0.70% of total assets, at March 31, 2019, contrast to $150.20M, or 0.73% of total assets, at December 31, 2018 and $145.40M, or 0.73% of total assets, at March 31, 2018. Annualized net charge-offs for the quarter ended March 31, 2019 were 0.10% of total average loans, contrast to 0.17% and 0.10% for the quarters ended December 31, 2018 and March 31, 2018, respectively. The allowance for credit losses as a percentage of non-performing loans was 123% at March 31, 2019, contrast to 121% at December 31, 2018 and a 131% at March 31, 2018.

Non-interest Income:

Non-interest income in the first quarter of 2019, excluding investment securities gains, was $46.70M, a decrease of $2.80M, or 5.7%, in comparison to the fourth quarter of 2018 and a boost of $0.80M, or 1.8%, contrast to the first quarter of 2018. Seasonal decreases occurred in consumer fees, specifically overdraft fees and card income. In addition, commercial fees showed a decrease in Small Business Administration lending income and commercial loan interest rate swap fees.

Non-interest Expense:

Non-interest expense was $137.80M in the first quarter of 2019, a decrease of $2.90M, or 2.0%, contrast to the fourth quarter of 2018 and a boost of $1.20M, or 0.9%, contrast to the first quarter of 2018. The decrease in amortization of tax credit investments resulted from $4.90M of amortization of a tax credit investment in the fourth quarter of 2018 that generated a corresponding credit to income taxes. Excluding the amortization of this tax credit investment in the fourth quarter, non-interest expense increased $2.00M, or 1.5%, in the first quarter of 2019, which was driven by increases in salaries and employee benefits, specifically a seasonal increase in payroll taxes, marketing and professional fees. These increases were partially offset by a decrease in other outside services.

In the first quarter of 2019, the Corporation incurred $1.00M of costs related to the consolidation of eight branches, unchanged from the fourth quarter of 2018. Expenses related to charter consolidation efforts were $1.50M in the first quarter of 2019, a $600.0K increase from the fourth quarter of 2018.

FULT has a market value of $2.69B while its EPS was booked as $1.23 in the last 12 months. The stock has 169.44M shares outstanding. In the profitability analysis, the company has net profit margin of 27.40%. Beta value of the company was 1.04; beta is used to measure riskiness of the security. Analyst recommendation for this stock stands at 3.00.

Investor’s Roundup: Independent Bank Group Inc. (NASDAQ: IBTX)

MCKINNEY, Texas, June 21, 2019 – Independent Bank Group, Inc. (IBTX), the holding company for Independent Bank, recently declared net income of $37.10M, or $0.85 per diluted share, for the quarter ended March 31, 2019 contrast to $29.00M, or $1.02 per diluted share, for the quarter ended March 31, 2018 and $34.00M, or $1.11 per diluted share, for the quarter ended December 31, 2018.

First Quarter 2019 Operating Results

Net Interest Income:

  • Net interest income was $121.70M for first quarter 2019 contrast to $74.00M for first quarter 2018 and $87.10M for fourth quarter 2018, representing a 39.7% increase for the quarter. The increase in net interest income from the previous year and linked quarter was mainly because of increased average earning assets resulting mainly from the acquisition of Guaranty Bancorp. The acquisition of Integrity Bancshares in second quarter 2018 also contributed to the increase in net interest income from the prior year period.
  • The average balance of total interest-earning assets grew by $4.70B and totaled $12.20B for the quarter ended March 31, 2019 contrast to $7.50B for the quarter ended March 31, 2018 and increased $3.50B contrast to $8.70B for the quarter ended December 31, 2018. The increase from the prior year and linked quarter was mainly because of $3.40B in earning assets attained in the Guaranty transaction as well as organic growth. Earning assets of $718.90M attained in the Integrity transaction also contributed to the increase from the prior year.

Noninterest Income:

  • Total noninterest income increased $7.00M contrast to first quarter 2018 and increased $6.50M contrast to fourth quarter 2018.
  • The increase from the prior year mainly reflects increases of $2.40M in service charges, $2.20M in investment advisory and trust services, $620.0K in earnings on bank owned life insurance and $1.60M in other noninterest income all resulting mainly from the additional accounts attained in the Guaranty transaction. The investment management partner and trust division were attained with Guaranty. The increase in other noninterest income is mainly because of a boost in attained loan recoveries during first quarter 2019.
  • The increase from the linked quarter mainly reflects increases of $2.30M in service charges, $2.20M in investment advisory and trust services, $517.0K in earnings on bank owned life insurance and $1.40M in other noninterest income all resulting mainly from the acquisition of Guaranty Bancorp. The increase in other noninterest income is mainly because of a boost in attained loan recoveries during first quarter 2019. In addition, mortgage revenue of $3.10M in first quarter 2019 contrast to $3.40M in the linked quarter was negatively influenced by our hedging loss of $369.0K as compared to fourth quarter income of $394.0K.

Noninterest Expense:

  • Total noninterest expense increased $41.60M contrast to first quarter 2018 and increased $34.70M contrast to fourth quarter 2018.
  • The increase in noninterest expense contrast to first quarter 2018 is due mainly to increases of $17.20M in salaries and benefits, $3.30M in occupancy expenses, $1.40M in data processing, $1.90M in amortization of other intangibles, $14.40M in acquisition expenses and $1.90M in other noninterest expense. The overall increase in salaries and benefits, occupancy, data processing, amortization of other intangibles and noninterest expense from the prior year is reflective of additional headcount, branch locations and accounts attained in the Guaranty transaction in January 2019 and the Integrity transaction in June 2018 as well as organic growth during the year. The increase in other noninterest expense is mainly because of higher deposit- and loan-related expenses for the year over year period. Salaries and benefits expense is also elevated because of severance and retention payments made or accrued totaling $3.20M related mainly to the Guaranty transaction and our declared branch restructuring in second quarter 2019, as well as the Company’s increase in the 401(k) contribution match in third quarter 2018. The increase in acquisition expenses in the first quarter was mainly because of $8.70M in change in control payments as well as a boost in professional fees, contract termination fees, and conversion-related expenses related to Guaranty.
  • The increase from the linked quarter is mainly related to increases of $12.80M in salaries and benefits, $2.50M in occupancy, $876.0K in data processing, $1.70M in amortization of intangibles, $14.50M in acquisition expenses and $1.20M in other noninterest expense.

Provision for Loan Losses:

  • Provision for loan loss was $3.20M for first quarter 2019, a boost of $529.0K contrast to $2.70M for first quarter 2018 and a boost of $314.0K contrast to $2.90M for fourth quarter 2018. Provision expense is mainly reflective of organic loan growth as well as charge-offs or specific reserves taken during the respective period.
  • The allowance for loan losses was $46.50M, or 0.43% of total loans at March 31, 2019, contrast to $42.00M, or 0.64% of total loans at March 31, 2018, and contrast to $44.80M, or 0.58% of total loans, at December 31, 2018. The dollar increases from prior periods are mainly because of additional general reserves for organic loan growth. In addition, the decrease in the allowance for loan losses as a percentage of loans from prior year reflects that loans attained in the Guaranty and Integrity transactions were recorded at fair value without an allowance at acquisition date.

Income Taxes:

  • Federal income tax expense of $11.10M was recorded for the quarter ended March 31, 2019, an effective rate of 23.1% contrast to tax expense of $6.80M and an effective rate of 19.0% for the quarter ended March 31, 2018 and tax expense of $8.30M and an effective rate of 19.6% for the quarter ended December 31, 2018. The higher effective tax rate in first quarter 2019 was because of $1.40M in deductibility limitations related to the change in control payments made as part of the Guaranty transaction and $203.0K in nondeductible acquisition expenses.

First Quarter 2019 Balance Sheet Highlights

Loans:

  • Total loans held for investment, net of mortgage warehouse purchase loans, were $10.70B at March 31, 2019 contrast to $7.70B at December 31, 2018 and $6.50B at March 31, 2018. Loans held for investment increased $3.00B, or 38.5% for the quarter, $2.80B of which was attained in the Guaranty acquisition. Loans held for investment increased $4.20B from March 31, 2018, or 63.8%, $3.40B of which was attained in the Integrity and Guaranty acquisitions and $724.60M of which was organic growth, or 11.1% for the year over year period. Organic loan growth for the first quarter 2019 was 7.2% on an annualized basis.
  • Average mortgage warehouse purchase loans were $128.00M for the quarter ended March 31, 2019 contrast to $120.90M for the quarter ended December 31, 2018, representing a boost of $7.00M, or 5.8% for the quarter, and contrast to $114.40M for the quarter ended March 31, 2018, a boost of $13.50M, or 11.8% year over year. The change from the linked quarter and prior year quarter is reflective of increased mortgage loan market activity related to seasonality and fluctuating interest rates during the respective periods.
  • Commercial real estate (CRE) loans were $5.80B at March 31, 2019 contrast to $4.10B at December 31, 2018 and $3.50B at March 31, 2018, or 53.3%, 52.3% and 52.4% of total loans, respectively.

Asset Quality:

  • Total nonperforming assets were unchanged at $16.90M or 0.12% of total assets at March 31, 2019, contrasts to $16.90M or 0.17% of total assets at December 31, 2018, and reduced from $20.50M or 0.23% of total assets at March 31, 2018.
  • Total nonperforming loans reduced to $10.70M or 0.10% of total loans at March 31, 2019, from $12.60M, or 0.16% of total loans at December 31, 2018, and from $14.90M, or 0.23% of total loans at March 31, 2018.

Deposits and Borrowings:

  • Total deposits were $11.20B at March 31, 2019 contrast to $7.70B at December 31, 2018 and contrast to $6.80B at March 31, 2018. The increase in deposits from the linked quarter is mainly because of $3.10B of deposits attained in the Guaranty acquisition as well as organic growth of $392.80M, or 3.6% for the period. The increase in deposits from the prior year is because of $3.70B of deposits attained in the Integrity and Guaranty acquisitions as well as organic growth of $742.90M, or 10.9%, for the year over year period.
  • Total borrowings (other than junior subordinated debentures) were $538.40M at March 31, 2019, a boost of $111.10M from December 31, 2018 and a decrease of $79.20M from March 31, 2018. The change in the linked quarter and prior year reflects the use of short-term FHLB advances as needed for liquidity. The change in the linked quarter also reflects the addition of $40.0M in subordinated debt assumed in the Guaranty acquisition as well as $21.0M borrowings against the Company’s unsecured revolving line of credit with an unrelated commercial bank.

Active Mover: IBERIABANK Corporation (NASDAQ: IBKC)

LAFAYETTE, La., June 21, 2019 – IBERIABANK Corporation (IBKC), holding company of the 132-year-old IBERIABANK, stated net income available to common shareholders of $96.50M, or $1.75 diluted earnings per common share (“EPS”). On a non-GAAP basis, EPS excluding non-core revenues and non-core expenses (“Core EPS”) in the first quarter of 2019 was $1.72 per common share, contrast to $1.37 in the year-ago period, a boost of 26%.

Operating Results

Net interest income reduced $14.50M, or 5%, on a linked quarter basis. Average loans increased $235.50M, or 4% annualized, while the associated taxable-equivalent yield reduced 15 basis points. The yield on total earning assets was 6 basis points lower at 4.68% contrast to 4.74% in the prior quarter. The decline in loan yield was mainly driven by lower recoveries in the attained loan portfolio.

Average interest-bearing deposits increased $568.60M, or 14% annualized, and the cost of interest-bearing deposits raised 17 basis points to 1.40% on a linked quarter basis. Total average interest-bearing liabilities increased by $766.30M, or 16% annualized, and the cost of interest-bearing liabilities raised 19 basis points to 1.53%. The total cost of funding in the first quarter of 2019 was 1.17%, contrast to 1.00% in the prior quarter. The increase in cost of funds was mainly because of an unfavorable funding balance mix shift from lower cost deposits to wholesale borrowings, an upward repricing of remaining deposits, promotional activity in customer time deposits, and brokered wholesale CD issuances. The lower loan yields, together with the increase in cost of funds, resulted in a decrease in the stated and cash net interest margins of 22 and 10 basis points to 3.59% and 3.42%, respectively.

The provision for credit losses totaled $13.80M contrast to $13.10M in the prior quarter. Asset quality measures remained strong and stable. Net charge-offs to average loans on an annualized basis were 0.13% contrast to 0.14% in the prior quarter.  Non-performing assets to total assets were 0.58% contrast to 0.55% in the prior quarter. The allowance for loan and lease losses to total loans and leases remained unchanged at 0.62% and covered 94% of non-performing loans.

Non-interest income increased $51.50M, mainly driven by $49.80M in losses realized on sales of available-for-sale securities during the prior quarter. On a core basis, non-interest income increased $1.30M, or 2%, driven by higher customer swap commissions of $2.30M and higher mortgage income of $1.00M. These increases were partially offset mainly by decreases of $0.80M in title revenue and $0.60M in service charges on deposit accounts.

Non-interest expense reduced $10.20M, or 6%, contrast to the linked quarter, mainly driven by a $4.20M decrease in professional service expenses, a $3.30M decrease in salaries and employee benefits expenses, and a $1.90M decrease in credit and other loan related expenses. Non-core expense items resulted in a $2.50M reduction in GAAP non-interest expense, mainly from interest related to tax refunds received.

Income tax expense increased $76.50M to $30.30M when contrast to the prior quarter. This increase was mainly attributable to the $65.30M, non-core, permanent net tax benefit that was recorded in the fourth quarter of 2018 which resulted in a $46.10M income tax benefit.

Loans and Other Assets

Total loans increased $448.50M, or 8% annualized, to $23.00B at March 31, 2019. Period-end loan growth during the first quarter of 2019 was strongest in the Energy Group (mainly reserve-based lending), the Corporate Asset Finance Group (equipment financing business), and the Atlanta, South Florida Commercial, and Dallas markets. The Company believes it is well-positioned for diversified loan growth based on our planned presence in noteworthy MSAs in the Southeastern United States.

On an average balance and linked quarter basis, the investment portfolio increased $240.60M, or 20% annualized, to $5.00B, mainly because of purchases of available-for-sale securities and favorable fair value adjustments. On a period-end basis, investment securities were $5.10B, or 16% of total assets. About 96% of the investment portfolio is in available-for-sale securities, which experience unrealized losses as interest rates rise. The investment portfolio had an effective duration of 3.0 years at March 31, 2019, down from 3.4 years at December 31, 2018, and a $6.00M unrealized loss at March 31, 2019, down from a $62.90M loss at December 31, 2018. The average yield on investment securities increased 29 basis points to 2.90% in the first quarter of 2019. The investment portfolio mainly consists of government agency securities. Municipal securities comprised 7% of total investments at March 31, 2019.

Deposits and Funding

Total deposits increased $328.60M, or 6% annualized, to $24.10B at March 31, 2019. First quarter deposit growth included a $270.0M increase in brokered and reciprocal deposits. Deposit growth during the first quarter of 2019 was strongest in the Miami-Dade, Southwest Louisiana, and Palm Beach/Broward markets.