LAFAYETTE, La., Oct. 24 /PRNewswire-FirstCall/ -- IBERIABANK Corporation , the holding company of the 120-year-old IBERIABANK (http://www.iberiabank.com/) and Pulaski Bank and Trust Company (http://www.pulaskibank.com/), announced earnings of $12.1 million for the quarter ended September 30, 2007, up 22% compared to the same period in 2006 and up 20% compared to the second quarter of 2007 ("linked quarter basis"). In the third quarter of 2007, the Company reported fully diluted earnings per share ("EPS") of $0.94 down 5% compared to $0.99 in the same quarter of 2006, and up 21% on a linked quarter basis. The reported EPS of $0.94 included merger-related costs and the impact of recent accounting changes, which management has consistently excluded from its annual EPS guidance. The Company incurred in the third quarter of 2007 merger-related and other severance costs totaling $0.2 million on a pre-tax basis, the aggregate negative impact of which was $0.01 per fully diluted share on an after-tax basis. In addition, the Company incurred $0.5 million in pre-tax expense associated with SFAS 133 and SFAS 123R, or $0.02 per share on an after-tax basis.

Excluding these merger-related and severance costs and changes in accounting treatment, the adjusted (non-GAAP) EPS figure was $0.98. The consensus analyst EPS estimate for the third quarter of 2007 for the Company was $0.91 as reported by First Call.

The following table provides a non-GAAP reconciliation of net income and fully diluted earnings per share adjusting for the merger-related and other severance costs that were incurred in the most recent four quarters and the financial impact of recent accounting changes. Management believes this non-GAAP table provides a useful measure of operating earnings trends.

Non-GAAP Pro Forma Net Income And EPS 4Q 1Q 2Q 3Q 2006 2007 2007 2007 (After-tax; Dollars in thousands) Net Income As Reported $8,915 $9,155 $10,027 $12,061 Add: Merger-related And 109 873 1,930 151 Severance Costs Add: Impact of FAS 123R and 133 101 193 117 312 Net Income - Guidance Basis $9,125 $10,221 $12,074 $12,524 (After-tax; Per share basis) Fully Diluted EPS As Reported $0.87 $0.76 $0.78 $0.94 Add: Merger-related And 0.03 0.06 0.14 0.01 Severance Costs Add: Impact of FAS 123R and 133 0.02 0.02 0.01 0.02 EPS - Guidance Basis $0.92 $0.84 $0.93 $0.98 Highlights For The Quarter Ended September 30, 2007 -- Loans. Average loans increased $124 million, or 4%, between the second and third quarters of 2007. On a period-end basis, total loans were $3.3 billion, an increase of $128 million, or 4%, between June 30, 2007 and September 30, 2007. -- Deposits. Average deposits decreased $8 million, on a linked quarter basis. Period-end deposits were $3.4 billion, an increase of $23 million, or 1%, between June 30, 2007 and September 30, 2007. -- Asset Quality. Annualized net charge-offs equated to 0.05% of average loans in the third quarter of 2007, compared to between 0.01% and 0.04% in each of the six preceding quarters. Total nonperforming assets ("NPAs") increased to 0.58% of total assets at September 30, 2007, compared to 0.45% at June 30, 2007. The increase in the NPA ratio was tied to acquisition-related credits. The franchise in Louisiana reported an NPA ratio of 0.17% at September 30, 2007, or an increase of only one basis point compared to 0.16% at June 30, 2007. In contrast, the Pulaski franchise increased from 1.15% to 1.61% during this period. -- Loan Loss Provision. The Company recorded a pre-tax negative provision during the third quarter of $1.7 million which equated to $0.09 per fully diluted share on an after-tax basis. Strong credit trends in the Louisiana loan portfolio, improved market conditions in New Orleans and continued very favorable economic conditions in South Louisiana resulted in a $4.1 million reserve reversal during the quarter. At the Pulaski subsidiary, declining credit quality associated with the construction builder portfolio resulted in a $2.4 million provision. -- Branches. On September 14, 2007, the Company opened a new office at 601 Poydras Street in the central business district of New Orleans. A total of 14 new branch offices have been opened under the Company's branch expansion initiative, open an average duration of 15 months. These offices continue to experience steady loan and deposit growth. Total loan balances in these branches were $67 million at September 30, 2007, up 32% compared to June 30, 2007. Similarly, aggregate deposit balances in these branches totaled $77 million at September 30, 2007, up 12% compared to June 30, 2007. The net after-tax cost of the branches was $0.05 per diluted share in the third quarter of 2007, down $0.01 compared to $0.06 per diluted share in the second quarter of 2007. Balance Sheet And Yields

Total assets climbed $90 million, or 2%, since June 30, 2007 to $4.8 billion. Shareholders' equity increased $10 million, or 2%, during this period to $482 million at September 30, 2007.

Period-End Loan Volumes ($ in thousands) Loans Louisiana Bank Acquired Entities Since 3/31/07 6/30/07 9/30/07 2/1/07 6/30/07 9/30/07 Acq. Commercial $1,229,238 $1,306,476 $1,386,169 $446,640 $495,694 $502,947 13% Consumer 551,469 577,029 587,361 239,721 231,273 248,889 4% Mortgage 490,670 501,722 513,247 67,216 67,038 68,221 1% Total Loans $2,271,377 $2,385,227 $2,486,777 $753,577 $794,005 $820,057 9% Growth 5% 4% 5% 3%

Total loans increased $128 million, or 4%, from June 30, 2007 to September 30, 2007. Loan growth was exhibited in both the Louisiana and the acquired franchise markets. Over this period, commercial loans climbed $87 million, or 5%, consumer loans increased $28 million, or 3%, permanent residential mortgage loans increased $9 million, or 2%, and construction loans to retail clients increased $4 million, or 7%, to $61 million at September 30, 2007. Owner occupied retail construction loans accounted for less than 2% of total loans at September 30, 2007, essentially unchanged compared to June 30, 2007.

In addition to owner occupied residential construction loans, the Company also has residential construction exposure through its commercial division that lends to local builders through its subsidiaries. Commercial builder loans in the Louisiana franchise totaled $115 million, or 4%, of total consolidated loans with no loans past due or on nonaccrual status. As previously stated in the second quarter of 2007, during the acquisition due diligence process at Pulaski Bank, issues were identified associated with some of these loans. At the closing of the Pulaski acquisition, a number of these loans were put on non-accrual status and discounted to expected, realizable value. The Company continued to pursue the strategy Pulaski commenced in May 2006 to compress this construction portfolio in Northwest Arkansas, Little Rock, and Memphis. The Pulaski construction portfolio, which totaled $87 million at acquisition in February 2007 declined $20 million to a level of $68 million at September 30, 2007, including a $6 million decline within the last 90 days as homes were sold and loans continued to be paid down. At September 30, 2007, Pulaski's construction portfolio accounted for only 2% of the consolidated loan portfolio.

This portfolio exhibited further credit deterioration during the third quarter of 2007 as a result of the spill over effect of the sub prime market collapse. Nonaccrual loans in this segment totaled $7.5 million and related discounts totaled $1.0 million. The Company provided additional reserves during the quarter to account for the potential credit risk associated with these loans. The Company believes the combination of reserves and established impairments are adequate to account for the risk associated with the Pulaski portfolio.

At September 30, 2007, approximately 71% of the Company's loan portfolio had fixed interest rates. Eliminating fixed rate loans that mature within a one-year time frame reduces this figure to 56%. Approximately 83% of the Company's deposit base reprices within the next 12 months.

On a linked quarter basis, the yield on average total loans increased eight basis points to 6.97%. On this basis, the yield on commercial, mortgage, and the consumer loans each increased seven or eight basis points during the third quarter of 2007.

The investment portfolio volume increased $28 million, or 3%, to $845 million at September 30, 2007. The investment portfolio equated to 18% of total assets at September 30, 2007, compared to 17% at June 30, 2007. The Company's investment portfolio duration shortened during the quarter. At September 30, 2007, the portfolio had a modified duration of 2.9 years, compared to 3.2 years at June 30, 2007. The Company's investment portfolio had very limited extension risk. At current projected speeds and based on other assumptions, the portfolio is expected to generate approximately $259 million in cash flows, or about 31% of the portfolio, over the next 15 months. The portfolio had an unrealized loss of approximately $2 million at September 30, 2007, compared to an unrealized loss of $13 million at June 30, 2007. The average yield on investment securities increased four basis points on a linked quarter basis, to 5.31% in the third quarter of 2007.

Recent financial media attention has focused on downgrades in mortgage-related investments possessing significant amounts of collateral that is considered "sub-prime" (higher credit risk), "Alt-A" (low documentation), and/or "second lien" by the large rating agencies. At September 30, 2007, the Company had no investment instruments containing material amounts of these types of collateral. Similarly, as described in detail in the Company's press release dated March 21, 2007, the Company considers its mortgage origination business exposure to the sub-prime and Alt-A segments as extremely low. Through the first nine months of 2007, Pulaski Mortgage Company, a subsidiary of Pulaski Bank and Trust Company, originated $466 million in mortgage loans, down 6% compared to the same period in 2006. Approximately 0.9% of the Company's production in 2007 was considered sub-prime, 4.6% was designated Alt-A, and 5.4% of originations were "jumbo" mortgages.

Period-End Deposit Volumes ($ in thousands) Deposits Louisiana Bank Acquired Entities 3/31/07 6/30/07 9/30/07 2/1/07 6/30/07 9/30/07 Non- interest $354,791 $356,902 $366,090 $96,077 $101,212 $98,876 NOW Accounts 656,665 638,986 642,094 193,400 195,349 177,151 Savings/ MMkt 593,548 589,708 605,814 176,322 183,416 176,938 Time Deposits 852,674 831,599 873,645 539,254 529,353 514,555 Total Deposits $2,457,678 $2,417,195 $2,487,643 $1,005,053 $1,009,330 $967,520 Growth -2% 3% 0% -4% Since Acq. Non-interest 3% NOW Accounts -8% Savings/MMkt 0% Time Deposits -5% Total Deposits -4% Growth

Total deposits at September 30, 2007 increased $23 million, or 1%, compared to June 30, 2007. On this basis, noninterest bearing deposits increased $1 million and interest bearing deposits increased $22 million, or 1%. The cost of interest bearing deposits in the third quarter of 2007 was 3.61%, an increase of only one basis point on a linked quarter basis. The cost of total interest bearing liabilities increased six basis points during this period as the cost of short-term borrowings increased 17 basis points. The Company's loans-to-deposits ratio increased from 92.8% at June 30, 2007 to 95.9% at September 30, 2007.

During the third quarter, deposits at Pulaski declined $42 million between June 30, 2007 and September 30, 2007. The decline was due to two primary factors. First, the Company announced the closure of Pulaski's branch office in Broken Arrow, Oklahoma. Deposits at this office were primarily high-cost institutional deposits. During the third quarter of 2007, deposits at this office declined $23 million. Second, the Company continued efforts to reposition Pulaski's deposit pricing strategy from a high priced deposit strategy to more of a relationship driven pricing strategy. The result was a reduced level of deposits, primarily in northeast Arkansas.

Operating Results

Tax-equivalent net interest income increased $1.4 million, or 4% on a linked quarter basis, driven by average earning asset growth of $129 million, or 3%, and a three basis point improvement in the margin. On a linked quarter basis, an eight basis point increase in earning asset yield was only partially offset by a six basis point increase in the cost of interest bearing liabilities. The earning asset growth was primarily commercial and consumer loan volume growth and increase in cost of liabilities was due to higher short-term borrowing costs. The Company's net interest spread and tax-equivalent margin each improved three basis points on a linked quarter basis. The Company's margin in the third quarter of 2007 was 3.12% and 3.16% in the month of September 2007.

Average Yields/Cost (Taxable Equivalent Basis) Louisiana Bank IBERIABANK Corporation 4Q06 1Q07 2Q07 3Q07 4Q06 1Q07 2Q07 3Q07 Earning Asset Yield 6.20% 6.35% 6.40% 6.50% 6.20% 6.42% 6.52% 6.60% Cost Of Int-Bearing Liabs 3.39% 3.49% 3.55% 3.63% 3.48% 3.72% 3.83% 3.89% Net Interest Spread 2.81% 2.86% 2.86% 2.87% 2.72% 2.70% 2.69% 2.72% Net Interest Margin 3.33% 3.37% 3.35% 3.37% 3.20% 3.13% 3.09% 3.12%

Noninterest income in the third quarter of 2007 decreased $1.5 million, or 7%, on a linked quarter basis. Revenue declines in the third quarter were driven by seasonal declines in certain business lines, the gain of $0.8 million on the sale of MasterCard common stock in the second quarter of 2007, and interest rate movements related to FAS 133. Regarding seasonal businesses, gains on the sale of mortgage loans in the third quarter of 2007 decreased $0.1 million, or 3%, on a linked quarter basis. Loans sold into the secondary market totaled $244 million during the quarter. Brokerage commissions declined $0.1 million, or 8% and title revenues decreased $0.9 million, or 16% on a linked quarter basis. The decline in title revenue resulted primarily from fewer commercial title opportunities in Louisiana and national accounts activity, which tend to be unpredictable in nature. Partially offsetting these revenue declines were significant improvements in service charges on deposit accounts (up $0.3 million, or 6% on a linked quarter basis) and ATM/debit card fee income (up $0.3 million, or 31%).

Noninterest expense decreased $2.4 million, or 6%, on a linked quarter basis, due primarily to three factors. First, recent staff reduction initiatives throughout the Company and lower incentive and commission payments resulted in a $0.9 million, or 4%, decline in salary and benefit costs. Second, financial results in the third quarter benefited from acquisition cost savings. Third, the Company incurred $0.2 million in pre-tax merger-related and other severance costs during the third quarter of 2007, compared to $3.1 million of these expenses in the second quarter of 2007. Finally, the Company experienced increases in certain expense categories associated with specific initiatives which partially offset the aforementioned expense reductions. These initiative-driven expense categories include occupancy and equipment, computer service expense, ATM/debit card expenses, and credit/loan related costs, each of which were up $0.1 to $0.2 million on a linked quarter basis.

Net income in the third quarter of 2007 totaled $12.1 million, up 20% from $10.0 million on a linked quarter basis, and up 22% compared to one year ago. Return on average assets ("ROA") was 1.01% for the third quarter of 2007. Return on average equity ("ROE") was 10.03%, and return on average tangible equity was 22.17%. Excluding merger-related and other severance costs and changes in accounting treatment, the comparable figures were 1.05%, 10.42%, and 23.00%, respectively.

Asset Quality

The Company experienced continued strength in credit quality statistics at the legacy IBERIABANK franchise and market-driven deterioration in the acquired construction portfolio at the Pulaski franchise. The Company reported a ratio of net charge-offs to average loans of 0.05% in the third quarter of 2007, compared to between 0.01% and 0.04% in each of the preceding six quarters.

The Company believes it uses a conservative definition of NPAs. The Company considers NPAs to include nonaccruing loans, accruing loans more than 90 days past due, foreclosed assets, and other real estate owned. NPAs amounted to $28.0 million at September 30, 2007, or 0.58% of total assets, up $6.9 million, or 33%, compared to $21.1 million, or 0.45% of total assets, at June 30, 2007. The acquired entities accounted for $22.0 million, or 79%, of the NPAs at September 30, 2007, up $6.1 million, or 38%, compared to $15.9 million at June 30, 2007. Loans past due 30 days or more (including nonaccruing loans) represented 1.11% of total loans at September 30, 2007, compared to 1.07% of total loans at June 30, 2007.

Loans Past Due Loans Past Due 30 Days Or More And Nonaccruing Loans As % Of Loans Outstanding

By Entity: 12/31/06 3/31/07 6/30/07 9/30/07 IBERIABANK 30+ Days Past Due 0.25 % 0.50 % 0.32 % 0.29 % Non- accrual 0.12 % 0.14 % 0.11 % 0.12 % Total Past Due 0.37 % 0.64 % 0.42 % 0.41 % Pulaski Bank & Trust 30+ Days Past Due - 1.07 % 1.54 % 1.51 % Non- accrual - 1.63 % 1.48 % 1.53 % Total Past Due - 2.70 % 3.02 % 3.04 % Consolidated 30+ Days Past Due 0.25 % 0.64 % 0.62 % 0.62 % Non-accrual 0.12 % 0.51 % 0.45 % 0.49 % Total Past Due 0.37 % 1.15 % 1.07 % 1.11 %

For Pulaski Bank & Trust Company, the increase in past dues resulted primarily from construction and land development credits in Northwest Arkansas and Memphis.

At September 30, 2007, the allowance for loan losses was 1.08%, compared to 1.19% at June 30, 2007. Loan loss reserve coverage of nonperforming loans and nonperforming assets at September 30, 2007 were 1.7 and 1.3 times, respectively, compared to 2.2 and 1.8 times, respectively, at June 30, 2007.

Capital Position

Average shareholders' equity increased $1.3 million on a linked quarter basis. At September 30, 2007, shareholders' equity was $482 million, or an increase of $10 million, or 2% compared to June 30, 2007. The Company's equity-to-assets ratio was 10.00% at September 30, 2007, compared to 9.98% at June 30, 2007. Book value per share and tangible book value per share each increased significantly between June 30, 2007 and September 30, 2007. At September 30, 2007, book value was $37.74, up $1.10 per share, or 3% compared to June 30, 2007. Similarly, tangible book value per share climbed $0.95 or 6% over that period. Tier 1 leverage ratio was 6.79% at September 30, 2007, down 12 basis points compared to 6.91% at June 30, 2007, driven by strong loan growth.

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 are 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. During the third quarter of 2007, the Company repurchased approximately 141,000 shares at a weighted average price of $45.16 per share.

On September 19, 2007, the Company announced the declaration of a quarterly cash dividend of $0.34 per share, an increase of 6% compared to the same quarter last year. This dividend level equated to an annualized dividend rate of $1.36 per share and an indicated dividend yield of 3.04%, based on the closing stock price of the Company on October 24, 2007 of $44.70 per share. Based on that closing stock price, the Company's common stock traded at a price-to-earnings ratio of 12.2 times current consensus analyst estimates of $3.67 per fully diluted EPS for 2007 and 11.0 times the average analyst 2008 estimate of $4.07. This price also equates to 1.18 times September 30, 2007 book value per share of $37.74.

EPS Expectations For 2007

On July 24, 2007, the Company stated its expectations for the full year 2007 EPS to be in the range of $3.70 to $3.75, excluding the impact of merger-related and severance costs (including the additional cost of carrying financing incurred in advance of completion of the acquisitions), the cost of adoption of SFAS 123R, and other changes in accounting treatment. The Company stated today that it expects to be on the bottom end of the range described above.

The EPS comfort range is based on management's current information, estimates and assumptions. Factors include the projected shape of the yield curve in 2007 as indicated in forward interest rate curves, the synergistic benefits of the recent acquisitions, and loan and deposit growth.

IBERIABANK Corporation

IBERIABANK Corporation is a multi-bank financial holding company with 141 combined offices, including 82 bank branch offices in Louisiana, Arkansas, Tennessee, and Oklahoma, 27 mortgage offices in eight states, and 32 title insurance offices in Arkansas and Louisiana. The Company's common stock trades on the Nasdaq Global Market under the symbol "IBKC" and the Company's market capitalization is approximately $575 million.

The following investment firms currently provide equity research coverage on IBERIABANK Corporation:

-- FIG Partners, LLC -- FTN Midwest Securities Corp. -- Howe Barnes Hoefer & Arnett, Inc. -- Keefe, Bruyette & Woods -- Robert W. Baird & Company -- Stanford Group 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 Thursday, October 25, 2007, beginning at 8:00 a.m. Central Time by dialing 1-800-288-8961. The confirmation code for the call is 889110. A replay of the call will be available until midnight Central Time on November 1, 2007 by dialing 1-800-475-6701. The confirmation code for the replay is 889110.

To access a supplemental PowerPoint presentation titled ''3Q07 Earnings Conference Call'', visit http://www.iberiabank.com/, click ''Investor Relations'' and then ''Investor 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, sufficiency of our allowance for loan losses, changes in interest rates, 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 Quarter Ended September 30, 2007 2006 % Change Income Data (in thousands): Net Interest Income $32,073 $23,926 34% Net Interest Income (TE) (1) 33,286 24,810 34% Net Income 12,061 9,879 22% Per Share Data: Net Income - Basic $0.97 $1.06 (8%) Net Income - Diluted 0.94 0.99 (5%) Book Value 37.74 28.90 31% Tangible Book Value (2) 17.76 18.62 (5%) Cash Dividends 0.34 0.32 6% Number of Shares Outstanding: Basic Shares (Average) 12,394,860 9,337,060 33% Diluted Shares (Average) 12,789,353 9,932,163 29% Book Value Shares (Period End) (3) 12,770,460 9,697,731 32% Key Ratios: (4) Return on Average Assets 1.01% 1.30% Return on Average Equity 10.03% 14.30% Return on Average Tangible Equity (2) 22.17% 22.90% Net Interest Margin (TE) (1) 3.12% 3.54% Efficiency Ratio 69.7% 62.8% Tangible Efficiency Ratio (TE) (1) (2) 66.7% 59.7% Average Loans to Average Deposits 94.4% 88.8% Nonperforming Assets to Total Assets (5) 0.58% 0.19% Allowance for Loan Losses to Loans 1.08% 1.56% Net Charge-offs to Average Loans 0.05% 0.01% Average Equity to Average Total Assets 10.04% 9.07% Tier 1 Leverage Ratio 6.79% 7.63% Dividend Payout Ratio 36.0% 31.4% For The Quarter Ended June 30, 2007 % Change Income Data (in thousands): Net Interest Income $30,664 5% Net Interest Income (TE) (1) 31,883 4% Net Income 10,027 20% Per Share Data: Net Income - Basic $0.80 21% Net Income - Diluted 0.78 21% Book Value 36.64 3% Tangible Book Value (2) 16.81 6% Cash Dividends 0.34 - Number of Shares Outstanding: Basic Shares (Average) 12,456,110 (0%) Diluted Shares (Average) 12,914,251 (1%) Book Value Shares (Period End) (3) 12,884,113 (1%) Key Ratios: (4) Return on Average Assets 0.87% Return on Average Equity 8.45% Return on Average Tangible Equity (2) 19.34% Net Interest Margin (TE) (1) 3.09% Efficiency Ratio 74.2% Tangible Efficiency Ratio (TE) (1) (2) 70.8% Average Loans to Average Deposits 90.5% Nonperforming Assets to Total Assets (5) 0.45% Allowance for Loan Losses to Loans 1.19% Net Charge-offs to Average Loans 0.04% Average Equity to Average Total Assets 10.29% Tier 1 Leverage Ratio 6.91% Dividend Payout Ratio 43.7% (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) September 30, 2007 2006 % Change ASSETS Cash and Due From Banks $76,917 $58,516 31.4% Interest-bearing Deposits in Banks 15,086 12,550 20.2% Total Cash and Equivalents 92,003 71,066 29.5% Investment Securities Available for Sale 784,433 576,634 36.0% Investment Securities Held to Maturity 60,829 24,023 153.2% Total Investment Securities 845,262 600,657 40.7% Mortgage Loans Held for Sale 63,392 20,055 216.1% Loans, Net of Unearned Income 3,306,834 2,173,484 52.1% Allowance for Loan Losses (35,713) (33,954) 5.2% Loans, net 3,271,121 2,139,530 52.9% Premises and Equipment 125,857 68,231 84.5% Goodwill and Other Intangibles 255,179 99,727 155.9% Mortgage Servicing Rights 22 53 (58.5%) Other Assets 168,708 112,945 49.4% Total Assets $4,821,544 $3,112,264 54.9% LIABILITIES AND SHAREHOLDERS' EQUITY Noninterest-bearing Deposits $459,200 $348,023 31.9% Interest-bearing Deposits 2,990,197 2,057,814 45.3% Total Deposits 3,449,397 2,405,837 43.4% Short-term Borrowings 339,799 80,500 322.1% Securities Sold Under Agreements to Repurchase 118,283 88,827 33.2% Long-term Debt 391,746 234,265 67.2% Other Liabilities 40,334 22,576 78.7% Total Liabilities 4,339,559 2,832,005 53.2% Total Shareholders' Equity 481,985 280,259 72.0% Total Liabilities and Shareholders' Equity $4,821,544 $3,112,264 54.9% BALANCE SHEET (End of Period) June 30, December 31, 2007 2006 ASSETS Cash and Due From Banks $88,911 $51,078 Interest-bearing Deposits in Banks 54,540 33,827 Total Cash and Equivalents 143,451 84,905 Investment Securities Available for Sale 755,633 558,832 Investment Securities Held to Maturity 61,179 22,520 Total Investment Securities 816,812 581,352 Mortgage Loans Held for Sale 97,358 54,273 Loans, Net of Unearned Income 3,179,231 2,234,002 Allowance for Loan Losses (37,826) (29,922) Loans, net 3,141,405 2,204,080 Premises and Equipment 125,948 71,007 Goodwill and Other Intangibles 255,538 99,070 Mortgage Servicing Rights 27 42 Other Assets 151,261 108,307 Total Assets $4,731,800 $3,203,036 LIABILITIES AND SHAREHOLDERS' EQUITY Noninterest-bearing Deposits $458,113 $354,961 Interest-bearing Deposits 2,968,412 2,067,621 Total Deposits 3,426,525 2,422,582 Short-term Borrowings 349,799 100,000 Securities Sold Under Agreements to Repurchase 117,323 102,605 Long-term Debt 331,780 236,997 Other Liabilities 34,252 21,301 Total Liabilities 4,259,679 2,883,485 Total Shareholders' Equity 472,121 319,551 Total Liabilities and Shareholders' Equity $4,731,800 $3,203,036 For The Three Months Ended INCOME STATEMENT September 30, 2007 2006 % Change Interest Income $69,349 $43,645 58.9% Interest Expense 37,276 19,719 89.0% Net Interest Income 32,073 23,926 34.0% (Reversal of) Provision for Loan Losses (1,693) (2,389) (29.1%) Net Interest Income After Provision for Loan Losses 33,766 26,315 28.3% Service Charges 5,300 3,426 54.7% ATM / Debit Card Fee Income 1,440 857 68.0% BOLI Proceeds and Cash Surrender Value Income 688 524 31.2% Gain on Sale of Loans, net 4,770 420 1036.3% Title Revenue 4,913 -- -- Broker Commissions 1,281 895 43.1% Other Noninterest Income 1,935 1,153 67.8% Total Noninterest Income 20,327 7,275 179.4% Salaries and Employee Benefits 20,281 11,477 76.7% Occupancy and Equipment 5,300 2,414 119.6% Amortization of Acquisition Intangibles 496 276 79.9% Other Noninterest Expense 10,449 5,424 92.6% Total Noninterest Expense 36,526 19,591 86.4% Income Before Income Taxes 17,567 13,999 25.5% Income Taxes 5,506 4,120 33.6% Net Income $12,061 $9,879 22.1% Earnings Per Share, diluted $0.94 $0.99 (5.2%) For The Nine Months Ended INCOME STATEMENT September 30, 2007 2006 % Change Interest Income $192,265 $121,026 58.9% Interest Expense 102,037 51,924 96.5% Net Interest Income 90,228 69,102 30.6% (Reversal of) Provision for Loan Losses (2,077) (3,856) (46.1%) Net Interest Income After Provision for Loan Losses 92,305 72,958 26.5% Service Charges 14,345 9,669 48.4% ATM / Debit Card Fee Income 3,509 2,516 39.5% BOLI Proceeds and Cash Surrender Value Income 2,775 1,548 79.3% Gain on Sale of Loans, net 12,473 1,206 934.4% Title Revenue 12,930 -- -- Broker Commissions 3,946 2,792 41.3% Other Noninterest Income 6,324 1,069 491.7% Total Noninterest Income 56,302 18,800 199.5% Salaries and Employee Benefits 58,500 30,487 91.9% Occupancy and Equipment 14,394 7,045 104.3% Amortization of Acquisition Intangibles 1,705 849 100.8% Other Noninterest Expense 30,154 15,788 91.0% Total Noninterest Expense 104,753 54,169 93.4% Income Before Income Taxes 43,854 37,589 16.7% Income Taxes 12,611 10,809 16.7% Net Income $31,243 $26,780 16.7% Earnings Per Share, diluted $2.48 $2.70 (8.1%) IBERIABANK CORPORATION CONDENSED CONSOLIDATED FINANCIAL INFORMATION (dollars in thousands except per share data) For The Quarter Ended BALANCE SHEET (Average) September 30, June 30, March 31, 2007 2007 2007 ASSETS Cash and Due From Banks $71,339 $79,968 $73,422 Interest-bearing Deposits in Banks 29,614 32,324 42,549 Investment Securities 829,472 824,705 755,780 Mortgage Loans Held for Sale 83,921 89,505 55,726 Loans, Net of Unearned Income 3,236,412 3,112,725 2,749,118 Allowance for Loan Losses (37,932) (38,421) (34,965) Other Assets 537,523 522,970 434,815 Total Assets $4,750,349 $4,623,776 $4,076,445 LIABILITIES AND SHAREHOLDERS' EQUITY Noninterest-bearing Deposits $443,631 $448,652 $409,774 Interest-bearing Deposits 2,986,487 2,989,449 2,696,535 Total Deposits 3,430,118 3,438,101 3,106,309 Short-term Borrowings 337,336 222,110 113,537 Securities Sold Under Agreements to Repurchase 117,123 123,116 110,851 Long-term Debt 351,484 331,561 297,614 Other Liabilities 37,275 33,181 30,099 Total Liabilities 4,273,336 4,148,066 3,658,410 Total Shareholders' Equity 477,013 475,707 418,035 Total Liabilities and Shareholders' Equity $4,750,349 $4,623,776 $4,076,445 For The Quarter Ended BALANCE SHEET (Average) December 31, September 30, 2006 2006 ASSETS Cash and Due From Banks $49,304 $49,863 Interest-bearing Deposits in Banks 18,661 11,415 Investment Securities 608,489 619,057 Mortgage Loans Held for Sale 22,398 17,166 Loans, Net of Unearned Income 2,204,048 2,089,350 Allowance for Loan Losses (33,899) (35,642) Other Assets 279,359 271,198 Total Assets $3,148,360 $3,022,407 LIABILITIES AND SHAREHOLDERS' EQUITY Noninterest-bearing Deposits $342,374 $334,453 Interest-bearing Deposits 2,064,653 2,018,469 Total Deposits 2,407,027 2,352,922 Short-term Borrowings 77,978 43,101 Securities Sold Under Agreements to Repurchase 98,216 96,942 Long-term Debt 243,573 238,058 Other Liabilities 23,296 17,240 Total Liabilities 2,850,090 2,748,263 Total Shareholders' Equity 298,270 274,144 Total Liabilities and Shareholders' Equity $3,148,360 $3,022,407 2007 Third Second First INCOME STATEMENT Quarter Quarter Quarter Interest Income $69,349 $65,816 $57,100 Interest Expense 37,276 35,152 29,610 Net Interest Income 32,073 30,664 27,490 (Reversal of) Provision for Loan Losses (1,693) (595) 211 Net Interest Income After Provision for Loan Losses 33,766 31,259 27,279 Total Noninterest Income 20,327 21,811 14,165 Total Noninterest Expense 36,526 38,911 29,316 Income Before Income Taxes 17,567 14,159 12,128 Income Taxes 5,506 4,132 2,973 Net Income $12,061 $10,027 $9,155 Earnings Per Share, basic $0.97 $0.80 $0.79 Earnings Per Share, diluted $0.94 $0.78 $0.76 Book Value Per Share $37.74 $36.64 $36.65 Return on Average Assets 1.01% 0.87% 0.91% Return on Average Equity 10.03% 8.45% 8.88% Return on Average Tangible Equity 22.17% 19.34% 16.67% 2006 Fourth Third INCOME STATEMENT Quarter Quarter Interest Income $44,266 $43,645 Interest Expense 21,845 19,719 Net Interest Income 22,421 23,926 (Reversal of) Provision for Loan Losses (3,947) (2,389) Net Interest Income After Provision for Loan Losses 26,368 26,315 Total Noninterest Income 4,651 7,275 Total Noninterest Expense 18,960 19,591 Income Before Income Taxes 12,059 13,999 Income Taxes 3,144 4,120 Net Income $8,915 $9,879 Earnings Per Share, basic $0.93 $1.06 Earnings Per Share, diluted $0.87 $0.99 Book Value Per Share $31.07 $28.90 Return on Average Assets 1.12% 1.30% Return on Average Equity 11.86% 14.30% Return on Average Tangible Equity 18.15% 22.90% IBERIABANK CORPORATION CONDENSED CONSOLIDATED FINANCIAL INFORMATION (dollars in thousands) LOANS RECEIVABLE September 30, 2007 2006 % Change Residential Mortgage Loans: Residential 1-4 Family $520,438 $472,499 10.1% Construction/ Owner Occupied 61,029 38,336 59.2% Total Residential Mortgage Loans 581,467 510,835 13.8% Commercial Loans: Real Estate 1,289,416 680,300 89.5% Business 599,700 443,743 35.1% Total Commercial Loans 1,889,116 1,124,043 68.1% Consumer Loans: Indirect Automobile 240,033 227,315 5.6% Home Equity 415,341 233,304 78.0% Automobile 33,169 23,795 39.4% Credit Card Loans 53,706 8,387 540.3% Other 94,002 45,805 105.2% Total Consumer Loans 836,251 538,606 55.3% Total Loans Receivable 3,306,834 2,173,484 52.1% Allowance for Loan Losses (35,713) (33,954) Loans Receivable, Net $3,271,121 $2,139,530 LOANS RECEIVABLE June 30, December 31, 2007 2006 Residential Mortgage Loans: Residential 1-4 Family $511,636 $431,585 Construction/ Owner Occupied 57,123 45,285 Total Residential Mortgage Loans 568,759 476,870 Commercial Loans: Real Estate 1,229,037 750,051 Business 573,133 461,048 Total Commercial Loans 1,802,170 1,211,099 Consumer Loans: Indirect Automobile 235,006 228,301 Home Equity 396,341 233,885 Automobile 33,457 24,179 Credit Card Loans 51,216 8,829 Other 92,282 50,839 Total Consumer Loans 808,302 546,033 Total Loans Receivable 3,179,231 2,234,002 Allowance for Loan Losses (37,826) (29,922) Loans Receivable, Net $3,141,405 $2,204,080 ASSET QUALITY DATA September 30, 2007 2006 % Change Nonaccrual Loans $16,191 $2,904 457.6% Foreclosed Assets 26 24 10.6% Other Real Estate Owned 6,707 1,153 481.6% Accruing Loans More Than 90 Days Past Due 5,113 1,873 172.9% Total Nonperforming Assets $28,037 $5,954 370.9% Nonperforming Assets to Total Assets 0.58% 0.19% 203.9% Nonperforming Assets to Total Loans and OREO 0.85% 0.27% 209.0% Allowance for Loan Losses to Nonperforming Loans (1) 167.6% 710.8% (76.4%) Allowance for Loan Losses to Nonperforming Assets 127.4% 570.3% (77.7%) Allowance for Loan Losses to Total Loans 1.08% 1.56% (30.9%) Year to Date Charge-offs $3,062 $2,031 50.8% Year to Date Recoveries $(2,184) $(1,759) 24.2% Year to Date Net Charge-offs $878 $272 222.7% Quarter to Date Net Charge-offs $420 $76 453.3% ASSET QUALITY DATA June 30, December 31, 2007 2006 Nonaccrual Loans $14,250 $2,701 Foreclosed Assets 12 8 Other Real Estate Owned 4,254 2,000 Accruing Loans More Than 90 Days Past Due 2,584 310 Total Nonperforming Assets $21,100 $5,019 Nonperforming Assets to Total Assets 0.45% 0.16% Nonperforming Assets to Total Loans and OREO 0.66% 0.22% Allowance for Loan Losses to Nonperforming Loans (1) 224.7% 993.7% Allowance for Loan Losses to Nonperforming Assets 179.3% 596.2% Allowance for Loan Losses to Total Loans 1.19% 1.34% Year to Date Charge-offs $1,816 $2,621 Year to Date Recoveries $(1,358) $(2,264) Year to Date Net Charge-offs $458 $357 Quarter to Date Net Charge-offs $294 $85 (1) Nonperforming loans consist of nonaccruing loans and accruing loans 90 days or more past due. DEPOSITS September 30, 2007 2006 % Change Noninterest-bearing Demand Accounts $459,200 $348,023 31.9% NOW Accounts 819,245 632,273 29.6% Savings and Money Market Accounts 782,752 613,938 27.5% Certificates of Deposit 1,388,200 811,603 71.0% Total Deposits $3,449,397 $2,405,837 43.4% DEPOSITS June 30, December 31, 2007 2006 Noninterest-bearing Demand Accounts $458,113 $354,961 NOW Accounts 834,336 628,541 Savings and Money Market Accounts 773,124 588,202 Certificates of Deposit 1,360,952 850,878 Total Deposits $3,426,525 $2,422,582 IBERIABANK CORPORATION CONDENSED CONSOLIDATED FINANCIAL INFORMATION Taxable Equivalent Basis (dollars in thousands) For The Quarter Ended September 30, 2007 June 30, 2007 Average Average Average Yield/ Average Yield/ Balance Rate (%) Balance Rate (%) ASSETS Earning Assets: Loans Receivable: Mortgage Loans $571,394 5.93% $569,351 5.85% Commercial Loans (TE) (1) 1,843,537 6.98% 1,751,960 6.91% Consumer and Other Loans 821,481 7.66% 791,414 7.59% Total Loans 3,236,412 6.97% 3,112,725 6.89% Mortgage Loans Held for Sale 83,921 6.08% 89,505 5.64% Investment Securities (TE) (1)(2) 834,593 5.31% 827,002 5.27% Other Earning Assets 66,748 5.92% 63,829 6.15% Total Earning Assets 4,221,674 6.60% 4,093,061 6.52% Allowance for Loan Losses (37,932) (38,421) Nonearning Assets 566,607 569,136 Total Assets $4,750,349 $4,623,776 LIABILITIES AND SHAREHOLDERS' EQUITY Interest-bearing Liabilities: Deposits: NOW Accounts $824,741 2.59% $845,560 2.62% Savings and Money Market Accounts 790,316 2.77% 770,496 2.79% Certificates of Deposit 1,371,430 4.71% 1,373,393 4.67% Total Interest-bearing Deposits 2,986,487 3.61% 2,989,449 3.60% Short-term Borrowings 454,459 4.65% 345,226 4.48% Long-term Debt 351,484 5.23% 331,561 5.23% Total Interest-bearing Liabilities 3,792,430 3.89% 3,666,236 3.83% Noninterest-bearing Demand Deposits 443,631 448,652 Noninterest-bearing Liabilities 37,275 33,181 Total Liabilities 4,273,336 4,148,069 Shareholders' Equity 477,013 475,707 Total Liabilities and Shareholders' Equity $4,750,349 $4,623,776 Net Interest Spread $32,073 2.72% $30,664 2.69% Tax-equivalent Benefit 1,213 0.11% 1,219 0.12% Net Interest Income (TE) / Net Interest Margin (TE) (1) $33,286 3.12% $31,883 3.09% For The Quarter Ended September 30, 2006 Average Average Balance Yield/Rate (%) ASSETS Earning Assets: Loans Receivable: Mortgage Loans $497,266 5.63% Commercial Loans (TE) (1) 1,055,086 7.17% Consumer and Other Loans 536,998 7.26% Total Loans 2,089,350 6.83% Mortgage Loans Held for Sale 17,166 6.94% Investment Securities (TE) (1)(2) 634,941 4.83% Other Earning Assets 32,093 5.10% Total Earning Assets 2,773,550 6.35% Allowance for Loan Losses (35,642) Nonearning Assets 284,499 Total Assets $3,022,407 LIABILITIES AND SHAREHOLDERS' EQUITY Interest-bearing Liabilities: Deposits: NOW Accounts $626,580 2.66% Savings and Money Market Accounts 590,385 2.14% Certificates of Deposit 801,504 3.89% Total Interest-bearing Deposits 2,018,469 2.99% Short-term Borrowings 140,043 3.66% Long-term Debt 238,058 5.22% Total Interest-bearing Liabilities 2,396,570 3.25% Noninterest-bearing Demand Deposits 334,453 Noninterest-bearing Liabilities 17,240 Total Liabilities 2,748,263 Shareholders' Equity 274,144 Total Liabilities and Shareholders' Equity $3,022,407 Net Interest Spread $23,926 3.10% Tax-equivalent Benefit 884 0.13% Net Interest Income (TE) / Net Interest Margin (TE) (1) $24,810 3.54% For The Nine Months Ended September 30, 2007 September 30, 2006 Average Average Average Yield/ Average Yield/ Balance Rate (%) Balance Rate (%) ASSETS Earning Assets: Loans Receivable: Mortgage Loans $559,945 5.85% $477,181 5.52% Commercial Loans (TE) (1) 1,704,818 6.91% 995,131 6.67% Consumer and Other Loans 769,773 7.61% 531,936 7.13% Total Loans 3,034,536 6.89% 2,004,248 6.52% Mortgage Loans Held for Sale 76,487 5.91% 12,836 6.55% Investment Securities (TE) (1)(2) 807,274 5.23% 638,253 4.70% Other Earning Assets 67,899 5.99% 56,970 4.80% Total Earning Assets 3,986,196 6.52% 2,712,307 6.05% Allowance for Loan Losses (37,117) (37,470) Nonearning Assets 536,913 286,495 Total Assets $4,485,992 $2,961,332 LIABILITIES AND SHAREHOLDERS' EQUITY Interest-bearing Liabilities: Deposits: NOW Accounts $819,431 2.63% $625,418 2.42% Savings and Money Market Accounts 754,565 2.76% 581,712 1.88% Certificates of Deposit 1,317,890 4.64% 791,809 3.67% Total Interest-bearing Deposits 2,891,886 3.58% 1,998,939 2.76% Short-term Borrowings 342,201 4.48% 95,935 2.88% Long-term Debt 327,084 5.22% 242,884 4.67% Total Interest-bearing Liabilities 3,561,171 3.82% 2,337,758 2.96% Noninterest-bearing Demand Deposits 434,143 334,106 Noninterest-bearing Liabilities 33,544 18,955 Total Liabilities 4,028,858 2,690,819 Shareholders' Equity 457,134 270,513 Total Liabilities and Shareholders' Equity $4,485,992 $2,961,332 Net Interest Spread $90,227 2.70% $69,102 3.09% Tax-equivalent Benefit 3,541 0.12% 2,575 0.13% Net Interest Income (TE) / Net Interest Margin (TE) (1) $93,768 3.11% $71,677 3.50% (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 9/30/2007 6/30/2007 9/30/2006 Net Interest Income $32,073 $30,664 $23,926 Effect of Tax Benefit on Interest Income 1,213 1,219 884 Net Interest Income (TE) (1) 33,286 31,883 24,810 Noninterest Income 20,327 21,811 7,275 Effect of Tax Benefit on Noninterest Income 370 319 282 Noninterest Income (TE) (1) 20,697 22,130 7,557 Total Revenues (TE) (1) $53,983 $54,013 $32,367 Total Noninterest Expense $36,526 $38,911 $19,591 Less Intangible Amortization Expense (496) (673) (276) Tangible Operating Expense (2) $36,030 $38,238 $19,315 Return on Average Equity 10.03% 8.45% 14.30% Effect of Intangibles (2) 12.14% 10.89% 8.60% Return on Average Tangible Equity (2) 22.17% 19.34% 22.90% Efficiency Ratio 69.7% 74.2% 62.8% Effect of Tax Benefit Related to Tax Exempt Income (2.0%) (2.2%) (2.3%) Efficiency Ratio (TE) (1) 67.7% 72.0% 60.5% Effect of Amortization of Intangibles (1.0%) (1.2%) (0.8%) Tangible Efficiency Ratio (TE) (1) (2) 66.7% 70.8% 59.7% (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.