IBERIABANK Corporation Reports Improved Credit Quality

LAFAYETTE, La., July 22 /PRNewswire-FirstCall/ -- IBERIABANK Corporation
(Nasdaq: IBKC), the holding company of the 121-year-old IBERIABANK
(http://www.iberiabank.com) and Pulaski Bank and Trust Company
(http://www.pulaskibank.com), announced earnings of $9.5 million for the
quarter ended June 30, 2008, down 5% compared to the same period in 2007 and
down 29% compared to the first quarter of 2008 ("linked quarter basis"). In
the second quarter of 2008, the Company reported fully diluted earnings per
share ("EPS") of $0.74, down 4% compared to $0.78 in the same quarter of 2007,
and down 29% on a linked quarter basis. The second quarter 2008 results
included a negative impact associated with the acquisition of certain assets
and liabilities of ANB Financial ("ANB"). ANB had a pre-tax $1.1 million
negative impact in the second quarter of 2008, or $0.05 per share on an
after-tax basis. Excluding the impact of ANB, the Company earned $10.2
million or $0.80 per share. The consensus analyst EPS estimate for the second
quarter of 2008 for the Company was $0.84 as reported by First Call.
Daryl G. Byrd, President and Chief Executive Officer of the Company
stated, "We are pleased to report a significant improvement in our credit
quality, substantial liquidity, solid loan and deposit growth, and bolstered
capital position. We believe we are uniquely well positioned for this current
difficult banking environment." Byrd continued, "We also believe our near
term margin sacrifice will serve us very well in the second half of 2008 and
thereafter."
Highlights For The Quarter Ended June 30, 2008
-- Asset Quality. Nonperforming Assets ("NPAs") were $42 million at June
30, 2008, down $6 million, or 12% compared to March 31, 2008. The ratio of
NPAs to total assets declined from 0.93% at March 31, 2008 to 0.79% at June
30, 2008. The Company recorded a loan loss provision of $1.5 million in the
second quarter of 2008, down 43% on a linked quarter basis. The Pulaski
residential builder portfolio declined $8 million, or 16%, to $45 million at
June 30, 2008. During the second quarter of 2008, the Company sold
approximately $3.9 million in troubled credits that resulted in a $0.5 million
reduction in pre-tax income.
-- ANB Acquisition Completed. On May 9, 2008, the Company acquired
certain assets and assumed the insured, non-brokered deposits of ANB in
Fayetteville-Springdale-Rogers, Arkansas MSA market area. At June 30, 2008,
the ANB deposits totaled $133 million and loans were $3 million serving
clients through eight banking offices throughout Northwest Arkansas. The
initial deposit run-off results were consistent with the Company's
pre-acquisition projections. The Company believes the deposit run-off has
stabilized at the ANB franchise. Merger-related expenses negatively impacted
the second quarter of 2008 EPS by three-and-a-half cents and the ongoing ANB
operations tempered EPS by approximately $0.02 per share.
-- Loans and Deposits. Average loans increased $95 million, or 3%, on a
linked quarter basis, and $116 million, or 3%, on a period-end basis compared
to March 31, 2008. Average deposits increased $354 million, or 10%, on a
linked quarter basis, and $225 million, or 6% on a period-end basis. The
deposit growth was driven by a significant deposit campaign initiated late in
the first quarter of 2008 and the ANB transaction completed in the second
quarter of 2008. Approximately $752 million in time deposits are scheduled to
mature over the next six months at a weighted average rate of 4.12%.
-- Net Interest Margin. The tax equivalent net interest margin
("margin") declined 15 basis points on a linked quarter basis, to 2.89%.
Approximately eight basis points of the decline was due to the increase in
excess cash emanating from the deposit campaign and five basis points were due
to the ANB transaction.
-- Capital Strength. IBERIABANK issued and sold $25 million in
subordinated debentures on July 21, 2008 at a rate of 3-month LIBOR plus 300
basis points and maturing in seven years. The subordinated debt qualifies as
"tier 2 capital" under regulatory guidelines and is estimated to have only a
modest negative impact on future earnings. At June 30, 2008, the Company
reported a tier 1 leverage ratio of 7.24%, down 22 basis points compared to
March 31, 2008, due to the ANB transaction. Similarly, the Company's total
risk based capital ratio declined by 24 basis points to 10.39% at June 30,
2008. The debt issuance is estimated to increase the pro forma June 30, 2008
total risk based capital ratio by approximately 78 basis points at IBERIABANK
(from 10.28% to 11.06%) and by 58 basis points at IBERIABANK Corporation (from
10.39% to 10.97%).
Balance Sheet And Yields
Since March 31, 2008, total assets climbed $192 million, or 4%, to $5.3
billion at June 30, 2008. During this period, shareholders' equity decreased
$2 million, or less than 1%, to $510 million at June 30, 2008. Excess
liquidity generated from deposit growth and the ANB transaction funded growth
in investment securities, short-term investments, and loans during the second
quarter of 2008.
The investment portfolio volume increased $92 million, or 11%, to $946
million at June 30, 2008 compared to March 31, 2008. The investment portfolio
equated to 18% of total assets at June 30, 2008, compared to 17% at March 31,
2008. At June 30, 2008, the portfolio had a modified duration of 2.9 years,
unchanged compared to March 31, 2008. The Company's investment portfolio has
very limited extension risk. Based on current projected speeds and other
assumptions, the portfolio is expected to generate approximately $292 million
in cash flows, or about 31% of the portfolio, over the next 18 months. The
portfolio had an unrealized loss of approximately $2 million at June 30, 2008,
compared to an unrealized gain of $14 million at March 31, 2008. The average
yield on investment securities decreased 11 basis points on a linked quarter
basis, to 5.07% in the second quarter of 2008. The Company holds in its
investment portfolio primarily agency and municipal securities. The Company
holds no equity securities (including Freddie Mac and Fannie Mae preferred
stock), corporate bonds, trust preferred securities, collateralized debt
obligations ("CDOs"), collateralized loan obligations ("CLOs"), hedge fund
investments, structured investment vehicles ("SIVs"), and auction rate
securities in its investment portfolio.
Period-End Loan Volumes ($ in Millions)

Loans IBERIABANK

3/31/07 12/31/07 3/31/08 6/30/08

Commercial $1,229 $1,515 $1,534 $1,588
Consumer 551 596 607 642
Mortgage 491 511 503 493
Total Loans $2,271 $2,622 $2,644 $2,723
Growth 1% 3%

Loans Pulaski

Acq. Since
2/1/07 12/31/07 3/31/08 6/30/08 Acq.

Commercial $447 $490 $494 $522 17%
Consumer $240 253 220 231 -4%
Mortgage $67 65 67 65 -3%
Total Loans $754 $808 $781 $818 9%
Growth -3% 5%

Average loans increased $95 million on a linked quarter basis, while on a
period-end basis, total loans increased $116 million, or 3%, from March 31,
2008 to June 30, 2008. IBERIABANK experienced $79 million in loan growth,
including $54 million in commercial loans, $31 million in home equity loans
and lines, and $6 million in direct and indirect automobile, offset by a $9
million decline in mortgage loans. Pulaski reported a $37 million increase in
loans, including $28 million in commercial, $7 million in home equity loans
and lines, and $4 million in credit card receivables.
The Pulaski builder construction portfolio continued to compress in the
second quarter as homes were sold and loans were paid down. The total volume
of this portfolio declined from $113 million prior to the Pulaski acquisition,
to $87 million at acquisition in February 2007, to $53 million at March 31,
2008, and $45 million at June 30, 2008 (down 16% in the second quarter of
2008). The portfolio contains 176 completed houses ($30 million), 21 houses
less than 100% completed ($3 million), 200 lot loans ($8 million), and only
two development loans ($4 million). The average funded amount is
approximately $169,000 per loan (down 3%). At June 30, 2008, Pulaski's
builder construction portfolio accounted for 5.5% of Pulaski's loan portfolio
(6.4% on March 31, 2008) and only 1.3% of the Company's consolidated total
loan portfolio (down from 1.6% on March 31, 2008). The Company's construction
and land development loan portfolio accounted for only 5.1% of total loans at
June 30, 2008.
The builder construction loan portfolio in Northwest Arkansas and Memphis
declined in the second quarter of 2008 despite continued softness in the
spring home selling season. Current loans in this portfolio declined by $5
million, or 16% compared to March 31, 2008. Noncurrent loans declined by $1
million, or 8% over this period. At June 30, 2008, the Company had 36% of
Pulaski's builder loans on nonaccrual status. The Company believes the
combination of reserves and accrued impairments are adequate to account for
the current risk associated with the residential construction loan portfolio.
The Company's commercial real estate ("CRE") loan portfolio, excluding the
Pulaski builder portfolio, is comprised of credits primarily in the Company's
banking markets. The average loan size in this portfolio is $473,000 and
loans past due 30 days or more (including nonaccruing loans) equate to only
0.39% of the CRE loans outstanding excluding the Pulaski builder portfolio.
Approximately 56% of the Company's CRE portfolio is based in southern
Louisiana, 19% in northern Louisiana, and 25% in Pulaski's markets. Elevated
energy prices provide support to many of the local economies in southern
Louisiana, with additional incremental benefits in northwest Louisiana and
central Arkansas. Approximately 55% of the Company's CRE portfolio (including
construction-related credits) is owner-occupied and 45% non-owner occupied.
Non-owner occupied CRE loans equate to 166% of total risk based capital at
June 30, 2008.
The Company's consumer loan portfolio maintains exceptional asset quality.
Based on the most recent evaluation of the consumer loan portfolio, the
average credit score of the portfolio was 718. Loans past due 30 days or more
in this portfolio were 1.45% at June 30, 2008. Home equity loans totaled $351
million with an average credit score of 725 and 0.77% past due 30 days or
more. Home equity lines of credit totaled $135 million with an average credit
score of 727 and 0.43% past due 30 days or more. By comparison, the American
Bankers Association reported the nationwide past due statistics at March 31,
2008 were one-and-a-half times greater, at 1.1%. Approximately 61% of the
Company's total home equity portfolio is in Louisiana, 23% in Arkansas, and
12% in Oklahoma. Annualized net charge-offs in this portfolio were less than
0.02% of loans in the second quarter of 2008. The weighted average
loan-to-value at origination for this portfolio over the last two-and-a-half
years was 73%. Total consumer real estate loan production in the second
quarter of 2008 was over 1,200 loans (up 51% on a linked quarter basis)
totaling $89 million (up 68% on a linked quarter basis), had an average credit
score of 751, and an average loan-to-value of 73%.
The indirect automobile portfolio totaled $248 million at June 30, 2008,
up 3% compared to March 31, 2008. This portfolio had 0.75% in loans past due
30 days or more (including nonaccruing loans) at June 30, 2008, near the
lowest levels over the last eight years. Annualized net charge-offs equated
to 0.14% of loans in the second quarter of 2008, also near an eight year low.
Approximately 79% of the indirect automobile portfolio is in the Acadiana
region of Louisiana, which experiences one of the lowest unemployment rates in
the nation.
At June 30, 2008, approximately 67% of the Company's loan portfolio had
fixed interest rates. Eliminating fixed rate loans that mature within a
one-year time frame reduces this percentage to 57%. Approximately 76% of the
Company's time deposit base reprices within the next 12 months. The Company
has historically been slightly liability sensitive, according to interest rate
risk modeling. The rapid decline in short-term interest rates caused the
Company's interest rate risk position to become more asset sensitive over
time. The Company's interest rate risk modeling at June 30, 2008, indicated
the Company is slightly asset sensitive over a 12-month time frame. A 100
basis point instantaneous and parallel upward shift in interest rates is
estimated to increase net interest income over 12 months by approximately
1.5%. Similarly, a 100 basis point decrease in interest rates is expected to
decrease net interest income by approximately 1.4%. The influence of using
forward curves at June 30, 2008 as the basis for projecting the interest rate
environment would have no material impact on net interest income compared to
the scenario of no change in interest rates.
On a linked quarter basis, the yield on average total loans decreased 49
basis points, to 6.03%. On this basis, the yields on commercial and consumer
loans decreased 58 and 60 basis points, respectively, during the second
quarter of 2008, while the yield on mortgage loans declined seven basis
points.
Period-End Deposit Volumes ($ in Millions)

Deposits IBERIABANK

3/31/07 12/31/07 3/31/08 6/30/08

Noninterest $355 $365 $376 $395
NOW Accounts 657 643 623 623
Savings/MMkt 594 598 693 800
Time Deposits 853 895 999 977
Total Deposits $2,458 $2,501 $2,691 $2,795
Growth 8% 4%

Deposits Pulaski
Acq. Since
2/1/07 12/31/07 3/31/08 6/30/08 Acq.

Noninterest $96 $103 $102 $124 29%
NOW Accounts 193 185 196 195 1%
Savings/MMkt 176 168 193 239 36%
Time Deposits 539 528 630 684 27%
Total Deposits $1,005 $984 $1,120 $1,242 24%
Growth 14% 11%

Total average deposits increased $354 million, or 10%, on a linked quarter
basis. The Company initiated a deposit campaign late in the first quarter of
2008, resulting in substantial deposit growth. Between March 31, 2008 and
June 30, 2008, total deposits grew $225 million of which $133 million, or 59%,
was the result of the ANB transaction. During this period, deposits at
IBERIABANK increased $104 million, or 4%, while Pulaski deposits increased
$122 million, or 11%. The campaign had an eight-basis point estimated
negative impact on the margin for the second quarter of 2008 until the funds
are fully deployed in higher yielding earning assets.
On a linked quarter basis, average noninterest bearing deposits increased
$39 million, or 9%, and interest bearing deposits increased $316 million, or
10%. The average interest rate of interest bearing deposits in the second
quarter of 2008 was 3.01%, a decrease of 27 basis points on a linked quarter
basis. The average interest rate of total interest bearing liabilities
decreased 31 basis points during this period as the cost of short-term
borrowings decreased 159 basis points and long-term borrowing costs declined
50 basis points.
Quarterly Average Yields/Cost (Taxable Equivalent Basis)

IBERIABANK
2Q07 3Q07 4Q07 1Q08 2Q08

Earning Asset Yield 6.40% 6.50% 6.45% 6.11% 5.73%
Cost Of Int-Bearing Liabs 3.55% 3.63% 3.52% 3.20% 2.93%
Net Interest Spread 2.86% 2.87% 2.94% 2.91% 2.80%

Net Interest Margin 3.35% 3.37% 3.43% 3.34% 3.22%

Pulaski Bank and Trust
2Q07 3Q07 4Q07 1Q08 2Q08

Earning Asset Yield 6.79% 6.84% 6.84% 6.28% 5.69%
Cost Of Int-Bearing Liabs 4.23% 4.24% 4.08% 3.81% 3.43%
Net Interest Spread 2.56% 2.60% 2.76% 2.47% 2.26%

Net Interest Margin 2.94% 2.99% 3.15% 2.86% 2.54%

Operating Results
Tax-equivalent net interest income decreased $0.3 million, or 1% on a
linked quarter basis, driven by the 15 basis point decline in the margin. On
a linked quarter basis, the average earning asset yield declined 44 basis
points as short-term assets rapidly repriced downward due to Federal
Reserve-induced interest rate cuts in early 2008. The decline in earning
asset yield outpaced the 31 basis point decline in the cost of interest
bearing liabilities, due to the lag in time deposit repricing until those time
deposits mature.

Quarterly Repricing Schedule
$ In Millions; At June 30, 2008

3Q08 4Q08 1Q09 2Q09 3Q09 4Q09

Cash Equivalents $238.2 $- $- $- $- $-
0.46% 0.00% 0.00% 0.00% 0.00% 0.00%

Investments $115.7 $81.1 $36.6 $44.4 $36.9 $35.0
2.91% 4.03% 4.99% 4.87% 4.97% 4.86%

Loans $1,390.3 $182.6 $162.0 $131.8 $95.5 $93.7
4.78% 6.39% 6.69% 6.69% 6.83% 6.95%

Time Deposits $402.0 $349.7 $372.0 $99.3 $111.1 $51.1
4.26% 3.96% 3.91% 3.23% 3.97% 3.36%

Borrowed Funds $188.5 $1.4 $5.8 $5.8 $57.3 $30.8
2.28% 4.07% 4.85% 4.42% 4.81% 5.41%

6 mos. 12 mos.
17.12315 13.84942 14.54432 3.205943 4.12% 3.98%
$402.0 $349.7 $372.0 $99.3 $751.7 $1,222.9

The Company anticipates that its net interest margin may improve in future
periods due to a combination of factors. First, the excess cash generated
from the successful deposit campaign and the ANB transaction will be
methodically redeployed into higher yielding assets consistent with the
Company's high quality standards. Second, the higher rate features associated
with a portion of funds raised in the recent deposit campaign provide an
opportunity to improve funding costs as those rates reset to prevailing market
rates. Third, the Company has a significant volume of time deposits that are
scheduled to mature over the next few quarters at rates well above current
market levels. Finally, the Company initiated its annual home equity campaign
in the first half of 2008 with promotional rates that will reprice beginning
in the third quarter of 2008.
Noninterest income in the second quarter of 2008 decreased $3.6 million,
or 14%, on a linked quarter basis. Two significant factors that influenced
the reported decline were a $6.9 million gain of the sale of credit card
receivables in the first quarter of 2008 and a $1.1 million loss on sales of
troubled assets in the second quarter of 2008. In May 2008, the Company sold
four non-builder related credits totaling $3.9 million, resulting in a $1.1
million loss recorded in the "Gain on Sale of Loans" line of the income
statement. The Company had previously placed $0.6 million in reserves and
discounts against these credits, which were released upon completion of the
sales. As a result, the effect of the sales reduced noninterest income by
$1.1 million and income before taxes by approximately $0.5 million. Excluding
those two sale items, noninterest income was up $4.4 million, or 23% on a
linked quarter basis, driven by income from mortgage, brokerage, service
charges, and gains on the sale of investments.
The Company's mortgage origination business remained brisk throughout the
second quarter. Consistent with seasonal patterns, the Company originated
$268 million in mortgage loans during the second quarter of 2008, up 8% on a
linked quarter basis. Loan refinancing accounted for approximately 26% of
mortgage loan originations in the second quarter of 2008 compared to 34% in
the first quarter of 2008. The Company sold $267 million in mortgage loans to
investors during this period, up 16% compared to the first quarter of 2008,
while sales margins expanded 20 basis points. Gains on sales of mortgage
loans totaled $5.8 million in the second quarter of 2008, up 30% on a linked
quarter basis. The mortgage pipeline totaled $70 million at June 30, 2008,
down compared to $97 million at March 31, 2008.
Title insurance revenues totaled $5.5 million during the quarter, an
increase of $1.0 million, or 21% on a linked quarter basis. The increase in
title revenues was due in part to the full-quarter impact of the acquisition
of American Abstract in Little Rock, Arkansas, consummated on March 2, 2008.
Brokerage commissions totaled $1.7 million in the second quarter, up $0.4
million, or 30%, over this period. Service charges on deposit accounts
improved $0.8 million, or 16%, on a linked quarter basis, due primarily to the
acquired ANB deposits.
During the second quarter of 2008, the Company bought and sold
approximately $21 million in investment securities. The purchases were
collateralized mortgage obligations ("CMOs"), municipals, and mortgage backed
securities, and the sales were agency and mortgage backed securities. The
effect of the bond swap transaction was a $0.5 million gain on the sale of the
securities, with no material change in projected income, average life, or
yield of the investment portfolio.
Noninterest expense increased $3.5 million, or 9%, on a linked quarter
basis. ANB and merger-related expenses accounted for $1.2 million, or
one-third of the linked quarter expense growth. Salary and benefit costs
increased $1.5 million, or 7%, due to the acquisitions and higher
mortgage-related commissions. FDIC deposit insurance premiums increased $0.5
million, or 160%, on a linked quarter basis, as a result of the ANB
transaction and the deposit campaign.
Net income in the second quarter of 2008 totaled $9.5 million, down 5% on
a linked quarter basis. Return on average assets ("ROA") was 0.73% for the
second quarter of 2008. Return on average equity ("ROE") was 7.45%, and
return on average tangible equity was 15.70%. The Company believes earnings
improvements over time will result as the excess cash generated from the
deposit campaign and ANB transaction are fully deployed into higher yielding
assets.
Asset Quality
The Company experienced continued strength in credit quality at the legacy
IBERIABANK franchise and improvement in the acquired builder construction
portfolio at the Pulaski franchise.
Summary Asset Quality Statistics

($thousands) IBERIABANK Pulaski
4Q07 1Q08 2Q08 4Q07 1Q08 2Q08

Nonaccruals $3,545 $4,408 $6,295 $32,562 $29,698 $24,534
OREO & Foreclosed 1,688 2,164 850 7,726 7,560 8,862
90+ Days Past Due 1,684 1,437 867 971 2,394 501
Nonperforming Assets $6,917 $8,009 $8,012 $41,259 $39,652 $33,897

NPAs/Assets 0.19% 0.22% 0.22% 3.14% 2.73% 2.12%
NPAs/(Loans + OREO) 0.26% 0.30% 0.29% 5.06% 5.03% 4.10%
LLR/Loans 0.93% 0.92% 0.92% 1.72% 1.89% 1.81%
Net Charge-Offs/Loans 0.12% 0.10% 0.04% 0.14% 0.58% 0.35%

($thousands) IBERIABANK Corporation
4Q07 1Q08 2Q08

Nonaccruals $36,107 $34,107 $30,829
OREO & Foreclosed 9,413 9,724 9,712
90+ Days Past Due 2,655 3,831 1,367
Nonperforming Assets $48,175 $47,662 $41,908

NPAs/Assets 0.98% 0.93% 0.79%
NPAs/(Loans + OREO) 1.40% 1.39% 1.18%
LLR/Loans 1.12% 1.14% 1.12%
Net Charge-Offs/Loans 0.12% 0.21% 0.11%

NPAs declined $6 million, or 12% to $42 million at June 30, 2008, or 0.79%
of total assets, down compared to 0.93% of total assets at March 31, 2008.
Pulaski accounted for 81% of the NPAs at June 30, 2008. Loans past due 30
days or more (including nonaccruing loans) represented 1.38% of total loans at
June 30, 2008, compared to 1.69% of total loans at March 31, 2008. While
IBERIABANK experienced a decline in past dues, a more dramatic drop was
exhibited at Pulaski, from 4.99% of loans at March 31, 2008 to 3.88% at June
30, 2008.
Loans Past Due
Loans Past Due 30 Days Or More And Nonaccruing Loans As % Of Loans
Oustanding

By Entity: 3/31/07 6/30/07 9/30/07 12/31/07 3/31/08 6/30/08

IBERIABANK
30+ days past due 0.50% 0.32% 0.29% 0.45% 0.42% 0.32%
Non-accrual 0.14% 0.11% 0.12% 0.14% 0.17% 0.23%
Total Past Due 0.64% 0.42% 0.41% 0.58% 0.59% 0.55%

Pulaski
30+ days past due 1.07% 1.54% 1.51% 1.08% 1.45% 1.06%
Non-accrual 1.63% 1.48% 1.53% 3.85% 3.54% 2.82%
Total Past Due 2.70% 3.02% 3.04% 4.93% 4.99% 3.88%

Consolidated
30+ days past due 0.64% 0.62% 0.62% 0.61% 0.68% 0.51%
Non-accrual 0.51% 0.45% 0.49% 1.05% 1.01% 0.87%
Total Past Due 1.15% 1.07% 1.10% 1.66% 1.69% 1.38%

At June 30, 2008, the allowance for loan losses was 1.12%, compared to
1.14% at March 31, 2008. Loan loss reserve coverage of nonperforming loans
and nonperforming assets at June 30, 2008 were 1.2 and 1.0 times,
respectively, slightly above the ratios at March 31, 2008.
The Company reported net charge-offs of $1.0 million in the second quarter
of 2008, down $0.8 million, or 45%, on a linked quarter basis. The ratio of
net charge-offs to average loans was 0.11% in the second quarter of 2008,
compared to 0.21% in the first quarter of 2008. The Company recorded a $1.5
million loan loss provision in the second quarter of 2008, down 43% from a
$2.7 million provision in the first quarter of 2008. Management considers the
loan loss reserve adequate to absorb credit losses inherent in the loan
portfolio.
Capital Position
Period-end and average shareholders' equity did not materially change on a
linked quarter basis. The Company's equity-to-assets ratio was 9.57% at June
30, 2008, compared to 9.97% at March 31, 2008. At June 30, 2008, book value
was $39.49, down $0.27 per share, or 1%, compared to March 31, 2008.
Similarly, tangible book value per share declined $0.31, or 2%, over that
period to $19.27. Tier 1 leverage ratio was 7.24% at June 30, 2008, down 22
basis points compared to March 31, 2008. The total risk-based capital ratio
was 10.39% at June 30, 2008, down 24 basis points compared to March 31, 2008.
On July 21, 2008, the Company issued and sold $25 million in seven-year
subordinated debentures at a rate of 3-month LIBOR plus 300 basis points. The
debt qualifies as "tier 2" regulatory capital. On a pro forma basis on June
30, 2008, the debt would improve the total risk based capital ratios of
IBERIABANK and the Company by 78 and 58 basis points, respectively.
On April 25, 2007, the Board of Directors of the Company authorized a
share repurchase program of up to 300,000 shares of the Company's outstanding
common stock, or approximately 2.3% of total shares outstanding. Stock
repurchases under this program will be made from time to time, on the open
market or in privately negotiated transactions, at the discretion of the
management of the Company. The timing of these repurchases will depend on
market conditions and other requirements. The Company purchased no shares
during the second quarter of 2008. Approximately 149,000 shares remain to be
purchased under the current authorized program.
On June 17, 2008, the Company announced the declaration of a quarterly
cash dividend of $0.34 per share. This dividend level equated to an
annualized dividend rate of $1.36 per share and an indicated dividend yield of
2.82%, based on the closing stock price of the Company's common stock on July
21, 2008 of $48.31 per share. Based on that closing stock price, the
Company's common stock traded at a price-to-earnings ratio of 14.4 times the
current First Call average consensus analyst estimate of $3.36 per fully
diluted EPS for 2008. This price also equates to 1.22 times June 30, 2008
book value per share of $39.49.
IBERIABANK Corporation
IBERIABANK Corporation is a multi-bank financial holding company with 157
combined offices, including 88 bank branch offices in Louisiana, Arkansas, and
Tennessee, 33 title insurance offices in Arkansas and Louisiana, and mortgage
representatives in 36 locations in eight states. The Company's common stock
trades on the NASDAQ Global Select Market under the symbol "IBKC" and the
Company's market capitalization is approximately $620 million.
The following eleven investment firms currently provide equity research
coverage on IBERIABANK Corporation:
-- B. Riley & Company
-- FIG Partners, LLC
-- FTN Midwest Securities Corp.
-- Howe Barnes Hoefer & Arnett, Inc.
-- Janney Montgomery Scott
-- Keefe, Bruyette & Woods
-- Robert W. Baird & Company
-- Stephens, Inc.
-- Sterne, Agee & Leach
-- Stifel Nicolaus & Company
-- SunTrust Robinson-Humphrey

Conference Call
In association with this earnings release, the Company will host a live
conference call to discuss the financial results for the quarter just
completed. The telephone conference call will be held on Tuesday, July 22,
2008, beginning at 3:00 p.m. Central Time by dialing 1-877-777-1968. The
confirmation code for the call is 931310. A replay of the call will be
available until midnight Central Time on July 29, 2008 by dialing
1-800-475-6701. The confirmation code for the replay is 931310. The Company
has prepared a PowerPoint presentation that supplements information contained
in this press release. The PowerPoint presentation may be accessed on the
Company's web site, http://www.iberiabank.com, under "Investor Relations" and
then "Presentations."
Non-GAAP Financial Measures
This press release contains financial information determined by methods
other than in accordance with GAAP. The Company's management uses these
non-GAAP financial measures in their analysis of the Company's performance.
These measures typically adjust GAAP performance measures to exclude the
effects of the amortization of intangibles and include the tax benefit
associated with revenue items that are tax-exempt. Since the presentation of
these GAAP performance measures and their impact differ between companies,
management believes presentations of these non-GAAP financial measures provide
useful supplemental information that is essential to a proper understanding of
the operating results of the Company's core businesses. These non-GAAP
disclosures should not be viewed as a substitute for operating results
determined in accordance with GAAP, nor are they necessarily comparable to
non-GAAP performance measures that may be presented by other companies.
Forward Looking Statements
To the extent that statements in this press release relate to future
plans, objectives, financial results or performance of IBERIABANK Corporation,
these statements are deemed to be forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Such
statements, which are based on management's current information, estimates and
assumptions and the current economic environment, are generally identified by
the use of the words "plan", "believe", "expect", "intend", "anticipate",
"estimate", "project" or similar expressions. IBERIABANK Corporation's actual
strategies and results in future periods may differ materially from those
currently expected due to various risks and uncertainties.
Actual results could differ materially because of factors such as our
ability to execute our growth strategy, risks relating to the integration of
acquired companies that have previously been operated separately, credit risk
of our customers, effect of the on-going correction in residential real estate
prices and reduced levels of home sales, sufficiency of our allowance for loan
losses, changes in interest rates, access to funding sources, reliance on the
services of executive management, competition for loans, deposits and
investment dollars, reputational risk and social factors, changes in
government regulations and legislation, geographic concentration of our
markets, rapid changes in the financial services industry, and hurricanes and
other adverse weather events. These and other factors that may cause actual
results to differ materially from these forward-looking statements are
discussed in the Company's Annual Report on Form 10-K and other filings with
the Securities and Exchange Commission, available at the SEC's website,
http://www.sec.gov, and the Company's website, http://www.iberiabank.com. All
information in this release is as of the date of this release. The Company
undertakes no duty to update any forward-looking statement to conform the
statement to actual results or changes in the Company's expectations.

IBERIABANK CORPORATION
FINANCIAL HIGHLIGHTS

For The
For The Quarter Ended Quarter Ended
June 30, March 31,
2008 2007 % Change 2008 % Change
Income Data (in
thousands):
Net Interest Income $32,473 $30,664 6% $32,826 (1%)
Net Interest
Income (TE) (1) 33,692 31,883 6% 34,025 (1%)
Net Income 9,526 10,027 (5%) 13,355 (29%)

Per Share Data:
Net Income - Basic $0.76 $0.80 (5%) $1.08 (29%)
Net Income - Diluted 0.74 0.78 (4%) 1.05 (29%)

Book Value 39.49 36.64 8% 39.76 (1%)
Tangible Book
Value (2) 19.27 16.81 15% 19.58 (2%)
Cash Dividends 0.34 0.34 - 0.34 -

Number of Shares
Outstanding:
Basic Shares
(Average) 12,504,549 12,456,110 0% 12,413,477 1%
Diluted Shares
(Average) 12,824,304 12,914,251 (1%) 12,737,599 1%
Book Value Shares
(Period End) (3) 12,903,682 12,884,113 0% 12,870,064 0%

Key Ratios: (4)
Return on Average
Assets 0.73% 0.87% 1.08%
Return on Average
Equity 7.45% 8.45% 10.46%
Return on Average
Tangible Equity (2) 15.70% 19.34% 21.48%
Net Interest
Margin (TE) (1) 2.89% 3.09% 3.04%
Efficiency Ratio 72.9% 73.7% 62.2%
Tangible
Efficiency Ratio
(TE) (1) (2) 69.9% 70.4% 59.7%
Average Loans to
Average Deposits 88.5% 90.5% 94.7%
Nonperforming
Assets to Total
Assets (5) 0.79% 0.45% 0.93%
Allowance for Loan
Losses to Loans 1.12% 1.19% 1.14%
Net Charge-offs to
Average Loans 0.11% 0.04% 0.21%
Average Equity to
Average Total
Assets 9.86% 10.29% 10.28%
Tier 1 Leverage Ratio 7.24% 6.91% 7.46%
Dividend Payout Ratio 46.1% 43.7% 32.8%

(1) Fully taxable equivalent (TE) calculations include the tax benefit
associated with related income sources that are tax-exempt using a marginal
tax rate of 35%.
(2) Tangible calculations eliminate the effect of goodwill and acquisition
related intangible assets and the corresponding amortization expense on a tax-
effected basis where applicable.
(3) Shares used for book value purposes exclude shares held in treasury at
the end of the period.
(4) All ratios are calculated on an annualized basis for the period
indicated.
(5) Nonperforming assets consist of nonaccruing loans, accruing loans 90
days or more past due and other real estate owned, including repossessed
assets.

IBERIABANK CORPORATION
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
(dollars in thousands except per share data)

BALANCE SHEET (End of Period)
June 30, March 31, December 31,
2008 2007 % Change 2008 2007
ASSETS
Cash and Due From
Banks $197,133 $88,911 121.7% $103,371 $93,263
Interest-bearing
Deposits in Banks 42,713 54,540 (21.7%) 159,829 29,842
Total Cash and
Equivalents 239,846 143,451 67.2% 263,200 123,105
Investment
Securities
Available for Sale 888,934 755,633 17.6% 795,834 745,383
Investment
Securities Held
to Maturity 56,903 61,179 (7.0%) 58,489 59,494
Total Investment
Securities 945,837 816,812 15.8% 854,323 804,877
Mortgage Loans
Held for Sale 76,189 97,358 (21.7%) 80,130 57,695
Loans, Net of
Unearned Income 3,540,546 3,179,231 11.4% 3,424,545 3,430,039
Allowance for
Loan Losses (39,753) (37,826) 5.1% (39,203) (38,285)
Loans, net 3,500,793 3,141,405 11.4% 3,385,342 3,391,754
Premises and
Equipment 134,344 125,948 6.7% 121,087 122,452
Goodwill and Other
Intangibles 260,937 255,538 2.1% 259,648 254,627
Mortgage Servicing
Rights 18 27 (31.7%) 24 19
Other Assets 165,915 151,261 9.7% 168,538 162,429
Total Assets $5,323,879 $4,731,800 12.5% $5,132,292 $4,916,958

LIABILITIES AND
SHAREHOLDERS' EQUITY
Noninterest-bearing
Deposits $519,516 $458,113 13.4% $478,133 $468,001
Interest-bearing
Deposits 3,517,105 2,968,412 18.5% 3,333,028 3,016,827
Total Deposits 4,036,621 3,426,525 17.8% 3,811,161 3,484,828
Short-term
Borrowings 7,000 349,799 (98.0%) 70,000 300,450
Securities Sold
Under Agreements
to Repurchase 114,481 117,323 (2.4%) 117,596 135,696
Long-term Debt 569,710 331,780 71.7% 560,558 457,624
Other Liabilities 86,533 34,252 152.6% 61,319 40,301
Total
Liabilities 4,814,345 4,259,679 13.0% 4,620,634 4,418,899
Total Shareholders'
Equity 509,534 472,121 7.9% 511,658 498,059
Total
Liabilities and
Shareholders'
Equity $5,323,879 $4,731,800 12.5% $5,132,292 $4,916,958

For The Three Months Ended For The Six Months Ended
INCOME STATEMENT June 30, June 30,
2008 2007 % Change 2008 2007 % Change

Interest Income $65,120 $65,816 (1.1%) $132,430 $122,916 7.7%
Interest Expense 32,647 35,152 (7.1%) 67,131 64,761 3.7%
Net Interest Income 32,473 30,664 5.9% 65,299 58,155 12.3%
Provision for Loan
Losses 1,537 (595) 358.1% 4,231 (384) 1202.0%
Net Interest Income
After Provision for
Loan Losses 30,936 31,259 (1.0%) 61,068 58,539 4.3%
Service Charges 5,935 5,025 18.1% 11,049 9,046 22.2%
ATM / Debit Card Fee
Income 1,608 1,096 46.8% 3,015 2,070 45.7%
BOLI Proceeds and Cash
Surrender Value Income 767 592 29.5% 1,509 2,088 (27.7%)
Gain on Sale of
Loans, net 4,690 4,896 (4.2%) 16,037 7,703 108.2%
Gain on Sale of
Investments, net 482 824 (41.5%) 605 835 (27.6%)
Title Revenue 5,472 5,824 (6.1%) 9,981 8,017 24.5%
Broker Commissions 1,682 1,387 21.2% 2,972 2,664 11.6%
Other Noninterest
Income 2,047 2,167 (5.5%) 3,801 3,553 7.0%
Total Noninterest
Income 22,683 21,811 4.0% 48,969 35,976 36.1%
Salaries and Employee
Benefits 22,393 21,873 2.4% 43,311 39,370 10.0%
Occupancy and
Equipment 5,617 5,272 6.6% 10,948 9,218 18.8%
Amortization of
Acquisition
Intangibles 575 673 (14.6%) 1,150 1,209 (4.9%)
Other Noninterest
Expense 11,697 10,874 7.6% 21,670 17,992 20.4%
Total Noninterest
Expense 40,282 38,692 4.1% 77,079 67,789 13.7%
Income Before Income
Taxes 13,337 14,378 (7.2%) 32,958 26,726 23.3%
Income Taxes 3,811 4,351 (12.4%) 10,077 7,544 33.6%
Net Income $9,526 $10,027 (5.0%) $22,881 $19,182 19.3%

Earnings Per Share,
diluted $0.74 $0.78 (4.3%) $1.79 $1.53 16.7%

IBERIABANK CORPORATION
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
(dollars in thousands except per share data)

BALANCE SHEET (Average) For The Quarter Ended
June 30, March 31, December 31, September 30, June 30,
2008 2008 2007 2007 2007
ASSETS
Cash and Due From
Banks $84,213 $83,926 $74,595 $71,339 $79,968
Interest-bearing
Deposits in Banks 141,713 118,606 30,641 29,614 32,324
Investment
Securities 896,585 841,266 822,913 829,472 824,705
Mortgage Loans
Held for Sale 73,610 57,441 55,429 83,921 89,505
Loans, Net of
Unearned Income 3,487,916 3,393,264 3,345,799 3,236,412 3,112,725
Allowance for
Loan Losses (39,531) (37,542) (35,668) (37,932) (38,421)
Other Assets 569,343 537,949 539,416 537,523 522,970
Total Assets $5,213,849 $4,994,910 $4,833,125 $4,750,349 $4,623,776

LIABILITIES AND
SHAREHOLDERS'
EQUITY
Noninterest-bearing
Deposits $482,845 $444,284 $454,587 $443,631 $448,652
Interest-bearing
Deposits 3,456,278 3,140,505 3,023,649 2,986,487 2,989,449
Total
Deposits 3,939,123 3,584,789 3,478,236 3,430,118 3,438,101
Short-term
Borrowings 15,160 222,659 282,660 337,336 222,110
Securities Sold
Under Agreements
to Repurchase 114,636 120,003 121,203 117,123 123,116
Long-term Debt 573,563 507,099 417,595 351,484 331,561
Other Liabilities 57,298 46,753 41,961 37,275 33,181
Total
Liabilities 4,699,780 4,481,303 4,341,655 4,273,336 4,148,069
Total Shareholders'
Equity 514,069 513,607 491,470 477,013 475,707
Total Liabilities
and
Shareholders'
Equity $5,213,849 $4,994,910 $4,833,125 $4,750,349 $4,623,776

2008 2007
Second First Fourth Third Second
INCOME STATEMENT Quarter Quarter Quarter Quarter Quarter

Interest Income $65,120 $67,310 $69,981 $69,349 $65,816
Interest Expense 32,647 34,484 36,689 37,276 35,152
Net Interest
Income 32,473 32,826 33,292 32,073 30,664
(Reversal of)
Provision for
Loan Losses 1,537 2,695 3,602 (1,693) (595)
Net Interest
Income After
Provision for
Loan Losses 30,936 30,131 29,690 33,766 31,259
Total Noninterest
Income 22,683 26,286 20,291 20,327 21,811
Total Noninterest
Expense 40,282 36,796 36,034 36,294 38,692
Income Before
Income Taxes 13,337 19,621 13,947 17,799 14,378
Income Taxes 3,811 6,266 3,880 5,738 4,351
Net Income $9,526 $13,355 $10,067 $12,061 $10,027

Earnings Per Share,
basic $0.76 $1.08 $0.81 $0.97 $0.80

Earnings Per Share,
diluted $0.74 $1.05 $0.79 $0.94 $0.78

Book Value Per
Share $39.49 $39.76 $38.99 $37.74 $36.64

Return on Average
Assets 0.73% 1.08% 0.83% 1.01% 0.87%
Return on Average
Equity 7.45% 10.46% 8.13% 10.03% 8.45%
Return on Average
Tangible Equity 15.70% 21.48% 17.41% 22.17% 19.34%

IBERIABANK CORPORATION
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
(dollars in thousands)

LOANS RECEIVABLE June 30, March 31, December 31,
2008 2007 % Change 2008 2007
Residential Mortgage
Loans:
Residential
1-4 Family $500,329 $511,636 (2.2%) $508,182 $515,912
Construction/
Owner Occupied 57,998 57,123 1.5% 61,067 60,558
Total
Residential
Mortgage Loans 558,327 568,759 (1.8%) 569,249 576,470
Commercial Loans:
Real Estate 1,449,844 1,229,037 18.0% 1,391,792 1,369,882
Business 659,854 573,133 15.1% 635,925 634,495
Total
Commercial
Loans 2,109,698 1,802,170 17.1% 2,027,717 2,004,377
Consumer Loans:
Indirect
Automobile 248,172 235,006 5.6% 240,633 240,860
Home Equity 473,876 396,341 19.6% 435,669 424,716
Automobile 30,146 33,457 (9.9%) 31,251 32,134
Credit Card Loans 32,578 51,216 (36.4%) 29,014 58,790
Other 87,749 92,282 (4.9%) 91,012 92,692
Total Consumer
Loans 872,521 808,302 7.9% 827,579 849,192
Total Loans
Receivable 3,540,546 3,179,231 11.4% 3,424,545 3,430,039
Allowance for Loan
Losses (39,753) (37,826) (39,203) (38,285)
Loans Receivable,
Net $3,500,793 $3,141,405 $3,385,342 $3,391,754

ASSET QUALITY DATA June 30, March 31, December 31,
2008 2007 % Change 2008 2007
Nonaccrual Loans $30,829 $14,250 116.3% $34,107 $36,107
Foreclosed Assets $52 12 342.6% 19 25
Other Real Estate
Owned $9,660 4,254 127.1% 9,705 9,388
Accruing Loans More
Than 90 Days Past
Due $1,367 2,584 (47.1%) 3,831 2,655
Total Nonperforming
Assets $41,908 $21,100 98.6% $47,662 $48,175

Nonperforming Assets
to Total Assets 0.79% 0.45% 76.5% 0.93% 0.98%
Nonperforming Assets
to Total Loans
and OREO 1.18% 0.66% 78.1% 1.39% 1.40%
Allowance for Loan
Losses to
Nonperforming
Loans (1) 123.5% 224.7% (45.1%) 103.3% 98.8%
Allowance for Loan
Losses to
Nonperforming Assets 94.9% 179.3% (47.1%) 82.3% 79.5%
Allowance for Loan
Losses to Total Loans 1.12% 1.19% (5.6%) 1.14% 1.12%
Year to Date
Charge-offs $4,158 $1,816 129.0% $2,332 $4,706
Year to Date
Recoveries $(1,395) $(1,358) 2.7% $(554) $(2,799)
Year to Date Net
Charge-offs $2,763 $458 503.3% $1,778 $1,907
Quarter to Date Net
Charge-offs $985 $294 235.0% $1,778 $1,029

(1) Nonperforming loans consist of nonaccruing loans and accruing loans 90
days or more past due.

DEPOSITS June 30, March 31, December 31,
2008 2007 % Change 2008 2007
Noninterest-bearing
Demand Accounts $519,516 $458,113 13.4% $478,133 $468,001
NOW Accounts 817,474 834,336 (2.0%) 818,527 828,099
Savings and Money
Market Accounts 1,038,965 773,124 34.4% 885,497 766,429
Certificates of
Deposit 1,660,666 1,360,952 22.0% 1,629,004 1,422,299
Total Deposits $4,036,621 $3,426,525 17.8% $3,811,161 $3,484,828

IBERIABANK CORPORATION
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
Taxable Equivalent Basis
(dollars in thousands)

For The Quarter Ended
June 30, 2008 March 31, 2008 June 30, 2007
Average Average Average
Average Yield/ Average Yield/ Average Yield/
Balance Rate(%) Balance Rate(%) Balance Rate(%)
ASSETS
Earning Assets:
Loans Receivable:
Mortgage Loans $563,072 5.87% $575,096 5.94% $569,351 5.85%
Commercial
Loans (TE) (1) 2,075,062 5.64% 1,999,916 6.22% 1,751,960 6.91%
Consumer and
Other Loans 849,782 7.07% 818,252 7.67% 791,414 7.59%
Total Loans 3,487,916 6.03% 3,393,264 6.52% 3,112,725 6.89%
Mortgage Loans
Held for Sale 73,610 5.80% 57,441 5.55% 89,505 5.64%
Investment
Securities
(TE) (1)(2) 879,303 5.07% 821,032 5.18% 827,002 5.26%
Other Earning
Assets 183,779 2.91% 159,952 3.70% 63,829 6.15%
Total Earning
Assets 4,624,608 5.72% 4,431,689 6.16% 4,093,061 6.52%
Allowance for
Loan Losses (39,531) (37,542) (38,421)
Nonearning
Assets 628,772 600,763 569,136
Total Assets $5,213,849 $4,994,910 $4,623,776

LIABILITIES AND
SHAREHOLDERS'
EQUITY
Interest-bearing
Liabilities:
Deposits:
NOW Accounts $826,131 1.47% $849,280 1.88% $845,560 2.62%
Savings and
Money Market
Accounts 969,195 2.32% 781,890 2.36% 770,496 2.79%
Certificates of
Deposit 1,660,952 4.17% 1,509,335 4.54% 1,373,393 4.67%
Total
Interest-
bearing
Deposits 3,456,278 3.01% 3,140,505 3.28% 2,989,449 3.60%
Short-term
Borrowings 129,796 1.53% 342,662 3.12% 345,226 4.48%
Long-term Debt 573,563 4.33% 507,099 4.83% 331,561 5.23%
Total
Interest-
bearing
Liabilities 4,159,637 3.15% 3,990,266 3.46% 3,666,236 3.83%
Noninterest-
bearing Demand
Deposits 482,845 444,284 448,652
Noninterest-
bearing
Liabilities 57,298 46,753 33,181
Total
Liabilities 4,699,780 4,481,303 4,148,069
Shareholders'
Equity 514,069 513,607 475,707
Total
Liabilities
and
Shareholders'
Equity $5,213,849 $4,994,910 $4,623,776

Net Interest
Spread $32,473 2.57% $32,826 2.70% $30,664 2.69%
Tax-equivalent
Benefit 1,219 0.10% 1,199 0.11% 1,219 0.12%
Net Interest
Income (TE) /
Net Interest
Margin (TE) (1) $33,692 2.89% $34,025 3.04% $31,883 3.09%

(1) Fully taxable equivalent (TE) calculations include the tax benefit
associated with related income sources that are tax-exempt using a marginal
tax rate of 35%.
(2) Balances exclude unrealized gain or loss on securities available for
sale and impact of trade date accounting.

IBERIABANK CORPORATION
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
Taxable Equivalent Basis
(dollars in thousands)

For The Year Ended
June 30, 2008 June 30, 2007
Average Average
Average Yield/ Average Yield/
Balance Rate(%) Balance Rate(%)
ASSETS
Earning Assets:
Loans Receivable:
Mortgage Loans $569,084 5.91% $554,126 5.81%
Commercial Loans (TE) (1) 2,037,489 5.93% 1,634,310 6.87%
Consumer and Other Loans 834,017 7.36% 743,489 7.59%
Total Loans 3,440,590 6.27% 2,931,925 6.85%
Mortgage Loans Held for Sale 65,525 5.69% 72,709 5.81%
Investment Securities (TE) (1)(2) 850,167 5.12% 793,388 5.19%
Other Earning Assets 171,866 3.28% 68,485 6.02%
Total Earning Assets 4,528,148 5.93% 3,866,507 6.47%
Allowance for Loan Losses (38,537) (36,702)
Nonearning Assets 614,769 521,816
Total Assets $5,104,380 $4,351,621

LIABILITIES AND SHAREHOLDERS'
EQUITY
Interest-bearing Liabilities:
Deposits:
NOW Accounts $837,705 1.68% $816,732 2.65%
Savings and Money Market
Accounts $875,542 2.34% 736,393 2.76%
Certificates of Deposit $1,585,143 4.35% 1,290,676 4.60%
Total Interest-bearing
Deposits 3,298,390 3.14% 2,843,801 3.57%
Short-term Borrowings 236,229 2.68% 285,141 4.34%
Long-term Debt 540,331 4.57% 314,682 5.21%
Total Interest-bearing
Liabilities 4,074,950 3.30% 3,443,624 3.78%
Noninterest-bearing Demand
Deposits 463,565 429,320
Noninterest-bearing Liabilities 52,027 31,647
Total Liabilities 4,590,542 3,904,591
Shareholders' Equity 513,838 447,030
Total Liabilities and
Shareholders' Equity $5,104,380 $4,351,621

Net Interest Spread $65,299 2.63% $58,155 2.69%
Tax-equivalent Benefit 2,418 0.11% 2,328 0.12%
Net Interest Income (TE) / Net
Interest Margin (TE) (1) $67,717 2.96% $60,483 3.11%

(1) Fully taxable equivalent (TE) calculations include the tax benefit
associated with related income sources that are tax-exempt using a marginal
tax rate of 35%.
(2) Balances exclude unrealized gain or loss on securities available for
sale and impact of trade date accounting.

IBERIABANK CORPORATION
RECONCILIATION TABLE
(dollars in thousands)

For The Three Months Ended
6/30/2008 3/31/2008 6/30/2007

Net Interest Income $32,473 $32,826 $30,664
Effect of Tax Benefit on Interest
Income 1,219 1,199 1,219
Net Interest Income (TE) (1) 33,692 34,025 31,883
Noninterest Income 22,683 26,286 21,811
Effect of Tax Benefit on Noninterest
Income 413 400 319
Noninterest Income (TE) (1) 23,096 26,686 22,130
Total Revenues (TE) (1) $56,788 $60,711 $54,013

Total Noninterest Expense $40,282 $36,796 $38,692
Less Intangible Amortization Expense (575) (575) (673)
Tangible Operating Expense (2) $39,707 $36,221 $38,019

Return on Average Equity 7.45% 10.46% 8.45%
Effect of Intangibles (2) 8.25% 11.02% 10.89%
Return on Average Tangible Equity (2) 15.70% 21.48% 19.34%

Efficiency Ratio 72.9% 62.2% 73.7%
Effect of Tax Benefit Related to Tax
Exempt Income (2.1%) (1.6%) (2.1%)
Efficiency Ratio (TE) (1) 70.9% 60.6% 71.6%
Effect of Amortization of Intangibles (1.0%) (0.9%) (1.2%)
Tangible Efficiency Ratio (TE) (1)(2) 69.9% 59.7% 70.4%

(1) Fully taxable equivalent (TE) calculations include the tax benefit
associated with related income sources that are tax-exempt using a marginal
tax rate of 35%.
(2) Tangible calculations eliminate the effect of goodwill and acquisition
related intangible assets and the corresponding amortization expense on a tax-
effected basis where applicable.
SOURCE IBERIABANK Corporation

Daryl G. Byrd, President and CEO, +1-337-521-4003, or John R. Davis, Senior
Executive Vice President, +1-337-521-4005, both of IBERIABANK Corporation