Lafayette-based IberiaBank reported first-quarter earnings of $32.8 million, or 62 cents per diluted share, down from $96.5 million, or $1.75 per share, for the same period in 2019.

Lafayette-based IberiaBank reported first-quarter earnings dropped to $32.8 million from $96.5 million for the same period in 2019.

Expected credit losses rose from $8.2 million in the fourth quarter to $69 million because of a new methodology for estimating losses and more money being set aside because of the economic uncertainty surrounding the coronavirus pandemic. Banks are taking precautions against potential loan defaults.

At the same time, noninterest expenses rose from $158.8 million to $177.4 million.

Per-share earnings fell to 62 cents for the first quarter from $1.75 a year ago.

The bank posted a 2.6% drop in quarterly revenue to $295 million from $303 million a year ago. Lower interest rates played a role in the drop in revenue. 

IberiaBank said it spent $3 million during the quarter on merger-related expenses tied to the upcoming purchase of IberiaBank by Memphis, Tennessee-based First Horizon — a $3.8 billion deal expected to close during the second quarter.

IberiaBank and Tennessee-based bank First Horizon combine in nearly $4 billion deal

“During the first quarter, our fundamental business model performed very well in the face of uncertain economic times,” said Daryl Byrd, chief executive officer. “The company was able to expand our client base, produce significant growth in our loan portfolio, increase core and non-interest bearing deposits, and grow tangible book value.” 

The bank said seven branches have had to close because of the coronavirus pandemic, but 181 remain open. Nearly 60% of the bank’s employees are working remotely.

As of Thursday, IberiaBank had processed nearly 9,000 business loan applications for the federal Paycheck Protection Program, representing a total of $1.86 billion. It has secured funding for 92% of the funds applied for, covering payroll for more than 200,000 workers.

IberiaBank had $25.5 billion in deposits as of March 31, up from $24 billion in March 2019. 

The bank fell short of estimated earnings per share, which were pegged at $1.33 by Zacks, but it beat estimated revenue projections of $281.2 million.

Shares of IberiaBank were trading at $35.97 Friday, up $3.69, or 11%.

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