IBERIABANK Corporation Reports Second Quarter Earnings
PRNewswire-FirstCall
LAFAYETTE, La.

IBERIABANK Corporation , the holding company of the 117-year-old IBERIABANK (http://www.iberiabank.com/ ), announced quarterly earnings for the quarter ended June 30, 2004 of $6.5 million, an 8% increase over the same period in 2003, and equal to the first quarter of 2004. The Company earned $0.88 per diluted share for the quarter, up 4% from the same period in 2003, and down 1% compared to the first quarter of 2004. The Company's results of $0.88 per diluted share matched average analyst expectations for the quarter.

Total assets climbed $81 million, or 4% compared to March 31, 2004 and $342 million, or 17% compared to June 30, 2003. Similarly, deposits grew $35 million, or 2% since March 31, 2004 and $266 million, or 17% compared to one year ago. Total shareholders' equity declined $13 million, or 6% compared to March 31, 2004 and increased $17 million, or 9% compared to one year ago. The recent decline in equity resulted from the completion of the Company's share repurchase program and the decline in market value of securities available for sale due to a general increase in interest rates during the quarter. At June 30, 2004 the Company's equity-to-assets ratio was 8.69% compared to 9.57% at March 31, 2004 and 9.30% one year ago. Book value per share at June 30, 2004 was $29.74 per share, a decline of 4% compared to March 31, 2004 and an increase of 6% compared to one year ago.

Daryl G. Byrd, President and CEO of IBERIABANK Corporation, remarked, "The second quarter of 2004 was very challenging for our Company, given the recent dramatic swings in interest rates and the near-term costs associated with investments for our future that were incurred during the quarter". Byrd continued, "We provided the investment community early guidance regarding these anticipated challenges for the quarter and our expectations for improved results in the third and fourth quarters of 2004. We remain comfortable with our guidance of 10% to 11% growth in fully diluted EPS in 2004 compared to 2003. Our franchise remains strong and we are continuing to have exceptional success in attracting clients."

   Additional Highlights For The Quarter Ended June 30, 2004

   --  The acquisition of Alliance Bank of Baton Rouge ("Alliance Bank") was
       completed on February 29, 2004 using the purchase accounting method
       under generally accepted accounting principles ("GAAP").  Under this
       method of accounting, the financial statements of the Company were
       not restated prior to February 29, 2004.  As such, balances prior to
       February 29, 2004 do not incorporate the impact of the acquisition.

   --  Tax-equivalent net interest margin was 3.53% in the second quarter of
       2004, down 22 basis points from 3.75% for the first quarter of 2004.
       The yield on average earning assets declined 19 basis points between
       the first quarter of 2004 and the second quarter of 2004 (a "linked
       quarter basis").  Average investment yield declined 23 basis points
       over the same period, as a result of additional bond premium
       amortization.  Average loan yield declined 17 basis points between
       the first and second quarters of 2004.  Interest-bearing liability
       costs increased three basis points on a linked quarter basis.

   --  For the second quarter of 2004, return on average assets ("ROA") was
       1.12%, return on average equity ("ROE") was 12.42% and return on
       average tangible equity was 18.90%.

   --  Asset quality remained outstanding during the quarter.  Annualized
       net charge-offs as a percentage of average loans were 0.11% in the
       second quarter of 2004, compared to 0.13% in the first quarter of
       2004.  Nonperforming assets ("NPAs") as a percentage of total assets,
       remained stable at 0.21% at June 30, 2004 and March 31, 2004,
       compared to 0.37% one year ago.  The allowance for loan losses was
       1.29% at June 30, 2004, compared to 1.32% at March 31, 2004 and 1.26%
       one year ago.

   --  Equity-to-assets ratio was 8.69% at June 30, 2004 compared to 9.57%
       at March 31, 2004 and 9.30% one year ago.  Tier 1 leverage ratio was
       7.12%, 7.86%, and 7.38%, respectively at the same periods.  At
       June 30, 2004, the Company's Tier 1 risk-based capital ratio was
       10.57% and total risk-based capital ratio was 11.82%.

   --  On May 25, 2004, the Company declared a quarterly cash dividend of
       $0.26 per share, an increase of 8% compared to the first quarter of
       2004 and up 18% from the same quarter last year.  The dividend payout
       ratio was 27.5% in the second quarter of 2004 compared to 25.5% in
       the first quarter of 2004 and 24.3% one year ago.

   --  On June 25, 2004, the Company announced the successful completion of
       its stock repurchase program previously announced on September 17,
       2003.  The Company acquired 216,200 shares during the second quarter
       at a weighted average cost of $57.64 per share.  In aggregate under
       this program, the Company purchased 300,000 shares at an average cost
       of $58.05 per share.  The Board of Directors authorized a new share
       repurchase program of up to 175,000 shares.

Mr. Byrd remarked, "We were challenged in the second quarter with a significant increase in bond premium amortization, delayed leveraging of our capital position and delayed loan growth. These three impediments appear to have since been reduced and, as a result, we remain optimistic regarding the last half of 2004. Asset quality continues to be an exceptional bright spot for our Company. Excellent credit quality levels and a strong loan pipeline demonstrate the extraordinary origination and underwriting efforts of our associates and the caliber of clients looking for a better banking solution."

Loans And Deposits

The volume of mortgage loan originations totaled $67 million in the second quarter of 2004, up 41% compared to $48 million in the first quarter of 2004 and up 19% compared to $56 million in the fourth quarter of 2003. The pipeline of mortgage loans at June 30, 2004 was $56 million, down 6% compared to $60 million at March 31, 2004. During the quarter, the Company sold into the secondary market $13 million in residential mortgage loans and mortgage loans recently released from construction that were held in the loan portfolio, down 55% compared to $29 million in the first quarter of 2004 and down 47% compared to $24 million in the fourth quarter of 2003. These loan sales were consistent with the Company's stated plans to accelerate the sale into the secondary market of long-maturity, recently originated, mortgage production, including mortgage loans coming out of construction.

Total loans grew $58 million, or 4%, between June 30, 2004 and March 31, 2004, and up 15% from one year ago. The average yield on loans declined 17 basis points between the first and second quarters of 2004 as average loan volume climbed $68 million, or 5%. During this period, average mortgage, consumer, and commercial loan yields declined by 10, 19, and 17 basis points, respectively.

Exclusive of the Alliance Bank acquisition, total deposits grew $106 million between year-end 2003 and March 31, 2004. Between March 31, 2004 and June 30, 2004, total deposits grew an additional $35 million, or 2%. Primary deposit growth during the second quarter was focused in the retail and commercial segments. The Company's cost of average interest bearing deposits increased six basis points in the second quarter of 2004 compared to the first quarter of 2004. Average interest bearing deposits climbed $85 million, or 6%, during the quarter. Average non-interest bearing deposit volume increased $18 million, or 10%, during this period.

Investment Portfolio And Funding

The investment portfolio totaled $590 million at June 30, 2004, up 8% compared to $547 million at March 31, 2004. As a percentage of assets, the investment portfolio edged up slightly from 24% at March 31, 2004 to 25% at June 30, 2004. The yield on the investment portfolio decreased 23 basis points compared to the first quarter. In the fourth quarter of 2003 and the first quarter of 2004, the investment yield improved 79 and 23 basis points, respectively. Bond premium amortization was $1.0 million in the second quarter of 2004, compared to $0.7 million in the first quarter of 2004 and $1.1 million in the fourth quarter of 2003. The increased premium amortization accounted for nearly the entire decline in the portfolio yield during the quarter. Given anticipated prepayment speeds, cash flows and reinvestment opportunities, management estimates premium amortization in the third and fourth quarters of 2004 to be at levels similar to the first quarter of 2004.

At June 30, 2004, the Company's investment portfolio had a modified duration of 4.2 years, compared to 3.1 years at March 31, 2004 and 3.4 years at year-end 2003. The Company's investment portfolio has very limited extension risk. Based on modeling at June 30, 2004, a parallel and instantaneous 300 basis point increase in interest rates would extend the portfolio by only an additional 0.6 years. At current projected speeds, the portfolio is expected to generate approximately $115 million in cash flow over the next 18 months. The portfolio had an unrealized loss of $7.2 million at June 30, 2004, compared to a gain of $7.7 million at March 31, 2004, and a gain of $3.1 million at year-end 2003.

The Company's ratio of loans to deposits edged up slightly as $58 million in loan growth exceeded $35 million in deposit growth since March 31, 2004. At June 30, 2004, the Company's loan to deposit ratio was 85%, compared to 84% at March 31, 2004 and 87% one year ago. Client repurchase agreements increased $19 million and short-term borrowings increased $47 million since March 31, 2004.

Asset Quality

The Company continued to demonstrate exceptional asset quality during the quarter relative to both historical trends and peer results. The ratio of net charge-offs to average loans improved from 0.13% during the first quarter of 2004 to 0.11% in the second quarter of 2004. This charge-off level is the lowest level in 18 consecutive quarters. The Company's provision for loan losses was $0.7 million in the second quarter, compared to $1.1 million on a linked quarter basis. The provision covered net charge-offs 1.7 times, compared to 2.2 times on a linked quarter basis. The allowance for loan losses was 1.29% at June 30, 2004, compared to 1.32% at March 31, 2004, and 1.26% one year ago. The Company believes that it uses a conservative definition of NPAs. The Company defines NPAs as non-accruing loans, accruing loans more than 90 days past due, foreclosed assets, and Other Real Estate Owned. NPAs amounted to $5.0 million at June 30, 2004, compared to $4.8 million at March 31, 2004, and $7.5 million one year ago. NPAs equated to 0.21% of total assets at each of June 30, 2004 and March 31, 2004, and 0.37% one year ago. At the same period ends, the Company's reserve coverage of NPAs was 397%, 406%, 225%, respectively. Loans past due 30 days or more, including nonaccruing loans represented 0.68% of total loans at June 30, 2004, compared to 0.73% at March 31, 2004 and 0.91% one year ago. The current level of past due loans is the second lowest the Company has experienced in last 23 consecutive quarters.

Operating Results

Total revenues increased $0.4 million, or 2% on a linked quarter basis. Tax-equivalent net interest income increased $0.2 million between the two quarters, while average earning assets increased $138 million between quarters. The growth in average earnings assets was split nearly evenly between growth in the investment portfolio and growth in loans and loans held for sale. The Company's tax-equivalent net interest margin declined 22 basis points from 3.75% in the first quarter of 2004 to 3.53% in the second quarter. The yield on earning assets declined 19 basis points on a linked quarter basis. The increase in bond premium amortization in the second quarter of 2004 negatively impacted the earning asset yield and net interest margin for the quarter by approximately six basis points and net interest income by $0.3 million. The cost of interest-bearing liabilities edged up three basis points on a linked quarter basis.

Noninterest income in the second quarter increased $0.3 million, or 5% compared to the first quarter of 2004. Mortgage loan gains totaled $0.6 million in the second quarter, down $0.3 million compared to $0.9 million in both the first quarter of 2004 and in the fourth quarter of 2003. The Company recorded $0.1 million in gains on asset sales in both the first quarter of 2004 and in the fourth quarter of 2003, and $0.4 million in gains in the second quarter of 2004. The asset sale gains in the second quarter included a gain on the sale of an interest in a check cashing business that the Company acquired in association with the Acadiana Bancshares acquisition in February 2003. Regulatory approval of the Acadiana acquisition required divestiture of this business, and the divestiture was completed in the prescribed period. The divested business reported insignificant profitability. Service charges on deposit accounts, ATM fee income, and other noninterest income each increased approximately $0.1 million on a linked quarter basis. On a percentage basis compared to the first quarter of 2004, these three income categories increased 5%, 20%, and 8%, respectively.

Total noninterest expense increased $0.8 million, or 6%, compared to the first quarter of 2004. Approximately half of the increase in noninterest expenses was associated with higher personnel-related costs. The Company's opportunistic recruiting efforts and annual seasonal compensation increases were the primary drivers for this increase. The remaining increase was attributable to loan-related expenses and legal and compliance-related costs. The Company's tax-equivalent tangible efficiency ratio (a measure of a bank's operating efficiency) increased from 53.2% in the first quarter of 2004 to 55.5% in the second quarter. The Company anticipates this ratio to improve in the second half of 2004 as bond premium amortization is reduced and other revenue sources improve.

Return on average assets was 1.12% for the second quarter of 2004, down eight basis points compared to the first quarter of 2004. Return on average equity for the second quarter of 2004 was 12.42%, down 33 basis points from 12.75% on a linked quarter basis, due primarily to a $5 million increase in average equity. Management believes traditional ROE measures penalize companies, such as IBERIABANK Corporation, that historically completed acquisitions using only purchase accounting treatment and not pooling of interests treatment. As a result, an alternative measure that the Company considers to "level the playing field" between purchase and pooling of interests accounting treatments is return on average tangible equity, which excludes the effects of intangible assets and related amortization expenses. Return on average tangible equity was 18.90% in the second quarter of 2004 compared to 19.07% in the first quarter of 2004.

Management of the Company announced today continued comfort with the 2004 EPS comfort range presented on May 25, 2004 of $3.75 to $3.80 per fully diluted share. This EPS range equates to an increase of 10% to 11% growth over 2003 fully diluted EPS of $3.42. The range of $3.75 to $3.80 compares to a current average analyst estimate for 2004 of $3.76 per fully diluted share.

Given recent movements in interest rates -- both historical and projected -- earnings expectations for the year 2005 are more difficult. Management previously stated comfort with "double-digit growth" in fully diluted EPS in 2005 over estimated 2004 guidance. To date, management has not provided any specific range or guidance regarding expectations for 2005 and periods beyond. Upon the recent completion of a comprehensive review of the Company's loan and deposit pipelines, near-term and long-term growth prospects, interest rate risk positioning, expected interest rate environment, investments for the future, and other factors, management has determined a 2005 fully diluted EPS comfort range of $4.05 to $4.15. Based on the current average analyst estimates for 2004 of $3.76 per share, this range equates to a projected increase of approximately 8% to 10%. The Company considers this level of growth consistent with other high quality bank holding companies nationwide. The assumptions on which these projections are based are subject to modification as warranted by changing conditions, growth prospects, and opportunistic investment alternatives.

Based on a closing stock price on July 21, 2004 of $57.10 per share, the Company's common stock traded at a price-to-earnings ratio of 15.2 times current average analyst estimates of $3.76 per fully diluted EPS for 2004. In addition, the Company's stock traded at 1.92 times June 30, 2004 book value per share of $29.74. On May 25, 2004, the Company declared a quarterly cash dividend of $0.26 per share, payable to shareholders of record as of June 30, 2004. This dividend level represented an 18% increase over the same period last year and equated to an annualized dividend rate of $1.04 per share and an indicated dividend yield of 1.82%.

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, July 22, 2004, beginning at 8:30 a.m. Central Daylight Time by dialing 1-888-276-0006. The confirmation code for the call is 736440. A replay of the call will be available until midnight Central Daylight Time on July 29, 2004 by dialing 1-800-475-6701. The confirmation code for the replay is 736440.

IBERIABANK Corporation is one of the oldest financial institutions with continuous operations in the State of Louisiana and the third largest Louisiana-based bank holding company. The Company operates 42 full service offices located in New Orleans, Baton Rouge, Shreveport, Monroe, and the Acadiana region of Louisiana. Information regarding the Company can be obtained by visiting the Company's website at www.iberiabank.com . The Company's common stock trades on NASDAQ under the symbol "IBKC" and the Company's market capitalization is approximately $400 million.

This press release contains financial information determined by methods other than in accordance with GAAP. The Company's management uses these non- GAAP 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, which may be presented by other companies.

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. Factors that may cause actual results to differ materially from these forward-looking statements include, but are not limited to, changes in market and economic conditions; changes in interest rates, deposit flows, loan demand and real estate values; competitive pressures; changes in accounting principles, policies or guidelines; changes in the Company's loan or investment portfolio; legislative or regulatory changes; changes in monetary or fiscal policies; military or terrorist activities; litigation costs and expenses; and other economic, competitive, governmental, regulatory and technological factors affecting the Company's business activities and prospects. Factors affecting IBERIABANK Corporation are discussed in the Company's periodic and other filings with the Securities and Exchange Commission, available at the SEC's website, www.sec.gov , and the Company's website, www.iberiabank.com .

                            IBERIABANK CORPORATION
                             FINANCIAL HIGHLIGHTS

                                                                 For The
                                  For The Quarter Ended        Quarter Ended
                                        June 30,         %   March 31,   %
                                    2004       2003   Change   2004   Change

  Income Data (in thousands):
    Net Interest Income           $18,119    $17,065    6%    $17,966    1%
    Net Interest Income (TE) (A)   18,801     17,712    6%     18,648    1%
    Net Income                      6,487      5,979    8%      6,491    0%

  Per Share Data:
    Net Income - Basic              $0.96      $0.92    4%      $0.98   -2%
    Net Income - Diluted             0.88       0.85    4%       0.90   -1%

    Book Value                      29.74      28.18    6%      31.02   -4%
    Tangible Book Value (B)         19.74      18.49    7%      21.19   -7%
    Cash Dividends                   0.26       0.22   18%       0.24    8%

  Key Ratios: ©
    Return on Average Assets        1.12%      1.21%            1.20%
    Return on Average Equity       12.42%     12.88%           12.75%
    Return on Average Tangible
     Equity (B)                    18.90%     20.22%           19.07%
    Net Interest Margin (TE) (A)    3.53%      3.90%            3.75%
    Efficiency Ratio                58.5%      55.8%            56.2%
    Tangible Efficiency Ratio
     (TE) (A) (B)                   55.5%      52.8%            53.2%
    Average Loans to Average
     Deposits                       84.5%      86.5%            85.7%
    Nonperforming Assets to
     Total Assets (D)               0.21%      0.37%            0.21%
    Allowance for Loan Losses
     to Loans                       1.29%      1.26%            1.32%
    Net Charge-Offs to Average
     Loans                          0.11%      0.25%            0.13%
    Average Equity to Average
     Total Assets                   9.01%      9.38%            9.38%
    Tier 1 Leverage Ratio           7.12%      7.38%            7.86%
    Dividend Payout Ratio           27.5%      24.3%            25.5%

  Number of Shares Outstanding:
    Basic Shares (Average)      6,784,770  6,485,180        6,645,834
    Diluted Shares (Average)    7,339,858  7,015,872        7,244,386
    Book Value Shares (Period
     End) (E)                   6,870,080  6,634,511        7,002,283


   (A)  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%.

   (B)  Tangible calculations eliminate the effect of goodwill and
        acquisition related intangible assets and the corresponding
        amortization expense on a tax-effected basis where applicable.

   ©  All ratios are calculated on an annualized basis for the period
        indicated.

   (D)  Nonperforming assets consist of nonaccruing loans, accruing loans 90
        days or more past due and repossessed assets.

   (E)  Shares used for book value purposes exclude shares held in treasury
        and unreleased shares held by the Employee Stock Ownership Plan at
        the end of the period.


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

  BALANCE SHEET
  (End of Period)                     June 30,          March 31,   Dec. 31,
                           2004        2003  % Change     2004        2003
  ASSETS
  Cash and Due
   From Banks            $46,360     $40,441  14.6%     $54,910     $48,849
  Interest-Bearing
   Deposits in Banks      15,070      15,449  (2.5)%     28,244      20,722
    Total Cash and
     Equivalents          61,430      55,890   9.9%      83,154      69,571
  Investment Securities
   Available for Sale    544,839     392,953  38.7%     498,611     426,130
  Investment Securities
   Held to Maturity       44,841      67,615 (33.7)%     48,339      53,492
    Total Investment
     Securities          589,680     460,568  28.0%     546,950     479,622
  Mortgage Loans
   Held for Sale           6,273      18,540 (66.2)%     10,991       5,781
  Loans, Net of
   Unearned Income     1,529,362   1,333,705  14.7%   1,471,747   1,412,349
  Allowance for
   Loan Losses           (19,683)    (16,772) 17.4%     (19,394)    (18,230)
    Loans, net         1,509,679   1,316,933  14.6%   1,452,353   1,394,119
  Premises and
   Equipment              36,728      28,929  27.0%      35,850      31,992
  Goodwill and
   Acquisition
   Intangibles            68,665      64,276   6.8%      68,815      62,786
  Mortgage Servicing
   Rights                    224         398 (43.7)%        251         279
  Other Assets            79,091      63,763  24.0%      72,088      71,661
    Total Assets      $2,351,770  $2,009,297  17.0%  $2,270,452  $2,115,811


  LIABILITIES AND SHAREHOLDERS' EQUITY
  Noninterest-Bearing
   Deposits             $216,111    $190,212  13.6%    $207,048    $189,786
  Interest-Bearing
   Deposits            1,576,580   1,336,032  18.0%   1,550,231   1,399,320
    Total Deposits     1,792,691   1,526,244  17.5%   1,757,279   1,589,106
  Short-Term
   Borrowings            139,000      87,000  59.8%      92,000     143,000
  Securities Sold
   Under Agreements
   to Repurchase          48,128      22,593 113.0%      29,014      19,590
  Long-Term Debt         155,500     166,041  (6.3)%    155,896     156,291
  Other Liabilities       12,142      20,471 (40.7)%     19,083      12,655
    Total Liabilities  2,147,461   1,822,349  17.8%   2,053,272   1,920,642
  Total Shareholders'
   Equity                204,309     186,948   9.3%     217,180     195,169
    Total Liabilities
     and Shareholders'
     Equity           $2,351,770  $2,009,297  17.0%  $2,270,452  $2,115,811


                        For The Three Months Ended  For The Six Months Ended
  INCOME STATEMENT                June 30,                  June 30,
                           2004     2003  % Change   2004     2003  % Change

  Interest Income        $26,192  $24,707    6.0%  $51,594  $47,319    9.0 %
  Interest Expense         8,073    7,642    5.6%   15,509   14,341    8.1 %
    Net Interest Income   18,119   17,065    6.2%   36,085   32,978    9.4 %
  Provision for Loan
   Losses                    704    1,574  (55.3)%   1,759    3,149  (44.1)%
    Net Interest Income
     After Provision for
     Loan Losses          17,415   15,491   12.4%   34,326   29,829   15.1 %
  Service Charges          3,043    2,954    3.0%    5,949    5,552    7.2 %
  ATM Fees                   519      504    3.0%      951      932    2.0 %
  Gain on Sale of Loans      605    1,132  (46.6)%   1,467    1,834  (20.0)%
  Other Gains (Losses)       361      164  120.1%      514      265   94.0 %
  Other Noninterest Income 1,297    1,242    4.4%    2,500    2,285    9.4 %
    Total Noninterest
     Income                5,825    5,996   (2.9)%  11,381   10,868    4.7 %
  Salaries and Employee
   Benefits                7,521    6,718   12.0%   14,634   12,769   14.6 %
  Occupancy and Equipment  1,713    1,627    5.3%    3,414    3,058   11.6 %
  Core Deposit Intangible
   Amortization              234      248   (5.6)%     452      332   36.1 %
  Other Noninterest
   Expense                 4,545    4,274    6.3%    8,728    8,430    3.5 %
    Total Noninterest
     Expense              14,013   12,867    8.9%   27,228   24,589   10.7 %
    Income Before Income
     Taxes                 9,227    8,620    7.0%   18,479   16,108   14.7 %
  Income Taxes             2,740    2,641    3.7%    5,501    4,911   12.0 %
    Net Income            $6,487   $5,979    8.5%  $12,978  $11,197   15.9 %

  Earnings Per Share,
   diluted                 $0.88    $0.85    3.7%    $1.78    $1.68    6.0 %


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

  BALANCE SHEET                      For The Quarter Ended
  (Average)         June 30,    March 31,   Dec. 31,    Sept. 30,   June 30,
                      2004        2004        2003        2003        2003
  ASSETS
  Cash and Due
   From Banks       $59,721     $55,939     $49,586     $43,453     $37,631
  Interest-Bearing
   Deposits in Banks 16,295      19,348      14,949      18,545      29,228
  Investment
   Securities       586,466     515,131     476,966     453,977     446,945
  Mortgage Loans
   Held for Sale      9,375      11,493       6,479      23,034      18,796
  Loans, Net of
   Unearned
   Income         1,496,990   1,429,152   1,407,634   1,369,468   1,313,405
  Allowance for
   Loan Losses      (19,509)    (18,721)    (17,727)    (17,097)    (16,629)
  Other Assets      180,308     169,056     163,471     158,708     155,382
    Total Assets $2,329,646  $2,181,398  $2,101,358  $2,050,088  $1,984,758


  LIABILITIES AND SHAREHOLDERS' EQUITY
  Noninterest-Bearing
   Deposits        $208,417    $190,067    $190,407    $193,449    $183,952
  Interest-Bearing
   Deposits       1,563,058   1,477,782   1,390,367   1,380,762   1,335,278
    Total
     Deposits     1,771,475   1,667,849   1,580,774   1,574,211   1,519,230
  Short-Term
   Borrowings       127,380     108,698     124,375      78,321      75,918
  Securities Sold
   Under Agreements
   to Repurchase     42,271      24,894      19,925      20,942      20,828
  Long-Term Debt    155,710     156,104     165,675     165,840     157,807
  Other Liabilities  22,793      19,142      18,302      23,158      24,744
    Total
     Liabilities  2,119,629   1,976,687   1,909,051   1,862,472   1,798,527
  Total Shareholders'
   Equity           210,017     204,711     192,307     187,616     186,231
    Total
     Liabilities and
     Shareholders'
     Equity      $2,329,646  $2,181,398  $2,101,358  $2,050,088  $1,984,758


                                      2004                  2003
                                Second    First   Fourth    Third   Second
  INCOME STATEMENT              Quarter  Quarter  Quarter  Quarter  Quarter

  Interest Income               $26,192  $25,402  $25,161  $24,082  $24,707
  Interest Expense                8,073    7,436    7,205    7,383    7,642
    Net Interest Income          18,119   17,966   17,956   16,699   17,065
  Provision for Loan Losses         704    1,055    1,552    1,599    1,574
    Net Interest Income After
     Provision for Loan Losses   17,415   16,911   16,404   15,100   15,491
  Total Noninterest Income        5,825    5,556    5,682    6,514    5,996
  Total Noninterest Expense      14,013   13,215   13,117   12,923   12,867
    Income Before Income Taxes    9,227    9,252    8,969    8,691    8,620
  Income Taxes                    2,740    2,761    2,691    2,614    2,641
    Net Income                   $6,487   $6,491   $6,278   $6,077   $5,979

  Earnings Per Share, basic       $0.96    $0.98    $0.96    $0.93    $0.92
  Earnings Per Share, diluted     $0.88    $0.90    $0.88    $0.86    $0.85
  Book Value Per Share           $29.74   $31.02   $29.28   $28.35   $28.18

  Return on Average Assets        1.12%    1.20%    1.19%    1.18%    1.21%
  Return on Average Equity       12.42%   12.75%   12.95%   12.85%   12.88%
  Return on Average Tangible
   Equity                        18.90%   19.07%   19.86%   20.01%   20.22%


                            IBERIABANK CORPORATION
                 CONDENSED CONSOLIDATED FINANCIAL INFORMATION
                            (dollars in thousands)

  LOANS RECEIVABLE                   June 30,          March 31,   Dec. 31,
                           2004       2003   % Change    2004        2003
  Residential Mortgage
   Loans:
    Residential 1-4
     Family             $357,618    $311,036   15.0%   $329,900    $338,965
    Construction          39,612      33,119   19.6%     50,459      50,295
      Total Residential
       Mortgage Loans    397,230     344,155   15.4%    380,359     389,260
  Commercial Loans:
    Real Estate          372,084     322,450   15.4%    362,136     352,031
    Business             256,987     194,764   31.9%    234,929     199,275
    Commercial Leases      1,586       1,900  (16.5)%     1,666       1,745
      Total Commercial
       Loans and Leases  630,657     519,114   21.5%    598,731     553,051
  Consumer Loans:
    Indirect Automobile  228,183     234,189   (2.6)%   226,020     229,636
    Home Equity          205,032     165,100   24.2%    197,092     174,740
    Automobile            22,673      27,216  (16.7)%    23,533      24,795
    Credit Card Loans      8,321       8,984   (7.4)%     8,207       9,007
    Other                 37,266      34,947    6.6%     37,805      31,860
      Total Consumer
       Loans             501,475     470,436    6.6%    492,657     470,038
      Total Loans
       Receivable      1,529,362   1,333,705   14.7%  1,471,747   1,412,349
  Allowance for Loan
   Losses                (19,683)    (16,772)           (19,394)    (18,230)
    Loans Receivable,
     Net              $1,509,679  $1,316,933         $1,452,353  $1,394,119



  ASSET QUALITY DATA                      June 30,        March 31, Dec. 31,
                                    2004    2003  % Change   2004     2003

  Nonaccrual Loans                 $3,284  $3,813  (13.9)%  $3,844   $3,902
  Foreclosed Assets                    21      88  (76.1)%      36       67
  Other Real Estate Owned             317   2,021  (84.3)%      39    2,067
  Accruing Loans More Than 90 Days
   Past Due                         1,336   1,546  (13.6)%     862    1,220
  Total Nonperforming Assets (A)   $4,958  $7,468  (33.6)%  $4,781   $7,256

  Nonperforming Assets to Total
   Assets (A)                       0.21%   0.37%  (43.3)%   0.21%    0.34%
  Nonperforming Assets to Total
   Loans + OREO (A)                 0.32%   0.56%  (42.0)%   0.32%    0.51%
  Allowance for Loan Losses to
   Nonperforming Loans (A)         426.0%  313.0%   36.1 %  412.2%   355.9%
  Allowance for Loan Losses to
   Nonperforming Assets (A)        397.0%  224.6%   76.8 %  405.7%   251.2%
  Allowance for Loan Losses to Total
   Loans                            1.29%   1.26%    2.3 %   1.32%    1.29%
  Year to Date Charge-offs         $1,330  $2,509  (47.0)%    $666   $4,782
  Year to Date Recoveries            $438    $592  (26.1)%    $189   $1,172

  (A)  Nonperforming loans consist of nonaccruing loans and accruing loans
       90 days or more past due.  Nonperforming assets consist of
       nonperforming loans and repossessed assets.


  DEPOSITS                           June 30,           March 31,   Dec. 31,
                           2004        2003  % Change     2004        2003

  Noninterest-Bearing
   DDA                  $216,111    $190,212   13.6%    $207,048    $189,786
  NOW Accounts           535,615     336,951   59.0%     537,898     449,938
  Savings and Money
   Market Accounts       410,427     357,103   14.9%     380,804     350,295
  Certificates of
   Deposit               630,538     641,978   (1.8)%    631,529     599,087
    Total Deposits    $1,792,691  $1,526,244   17.5%  $1,757,279  $1,589,106


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

                                            For The Quarter Ended
                                      June 30, 2004         June 30, 2003
                                             Average               Average
                                     Average  Yield/      Average   Yield/
                                     Balance  Rate(%)     Balance   Rate(%)
  ASSETS
  Earning Assets:
    Loans Receivable:
      Mortgage Loans                $388,565   5.49%     $340,971   6.28%
      Commercial Loans (TE) (A)      613,304   4.68%      509,201   5.39%
      Consumer and Other Loans       493,491   6.52%      461,292   7.25%
      Lease Financing Receivables      1,630   5.34%        1,941   5.50%
        Total Loans                1,496,990   5.50%    1,313,405   6.28%
    Mortgage Loans Held for Sale       9,375   5.50%       18,796   5.38%
    Investment Securities (TE)(A)(B) 579,011   4.12%      432,070   3.91%
    Other Earning Assets              37,250   1.90%       46,145   1.94%
        Total Earning Assets       2,122,626   5.06%    1,810,416   5.59%
  Allowance for Loan Losses          (19,509)             (16,629)
  Nonearning Assets                  226,529              190,971
        Total Assets              $2,329,646           $1,984,758


  LIABILITIES AND SHAREHOLDERS'
   EQUITY
  Interest-Bearing Liabilities:
    Deposits:
      NOW Accounts                  $524,380   1.01%     $323,089   0.91%
      Savings and Money Market
       Accounts                      406,582   0.80%      363,754   0.89%
      Certificates of Deposit        632,096   2.40%      648,435   2.55%
        Total Interest-Bearing
         Deposits                  1,563,058   1.52%    1,335,278   1.70%
    Short-Term Borrowings            169,651   1.14%       96,746   1.33%
    Long-Term Debt                   155,710   4.30%      157,807   4.13%
        Total Interest-Bearing
         Liabilities               1,888,419   1.71%    1,589,831   1.92%
  Noninterest-Bearing Demand
   Deposits                          208,417              183,952
  Noninterest-Bearing Liabilities     22,793               24,744
        Total Liabilities          2,119,629            1,798,527
  Shareholders' Equity               210,017              186,231
        Total Liabilities and
         Shareholders' Equity     $2,329,646           $1,984,758

  Net Earning Assets                $234,207             $220,585
  Net Interest Spread                $18,119   3.35%      $17,065   3.67%
  Tax-Equivalent Benefit                $682   0.12%         $647   0.14%
  Net Interest Income (TE) / Net
   Interest Margin (TE) (A)          $18,801   3.53%      $17,712   3.90%

   (A)  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%.
   (B)  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 Six Months Ended
                                           June 30, 2004      June 30, 2003
                                                  Average           Average
                                          Average  Yield/   Average  Yield/
                                          Balance  Rate(%)  Balance  Rate(%)
  ASSETS
  Earning Assets:
    Loans Receivable:
      Mortgage Loans                     $387,211  5.54%    $303,615  6.42%
      Commercial Loans (TE) (A)           590,756  4.75%     480,669  5.49%
      Consumer and Other Loans            483,435  6.63%     442,386  7.43%
      Lease Financing Receivables           1,669  5.45%       1,979  5.53%
        Total Loans                     1,463,071  5.58%   1,228,649  6.42%
    Mortgage Loans Held for Sale           10,434  4.98%      13,579  5.46%
    Investment Securities (TE) (A)(B)     541,370  4.23%     409,535  4.11%
    Other Earning Assets                   38,320  1.86%      42,758  1.90%
        Total Earning Assets            2,053,195  5.15%   1,694,521  5.74%
  Allowance for Loan Losses               (19,115)           (15,555)
  Nonearning Assets                       221,449            170,538
        Total Assets                   $2,255,529         $1,849,504


  LIABILITIES AND SHAREHOLDERS' EQUITY
  Interest-Bearing Liabilities:
    Deposits:
      NOW Accounts                       $500,915  0.98%    $307,334  0.94%
      Savings and Money Market Accounts   396,037  0.76%     348,620  0.94%
      Certificates of Deposit             623,467  2.35%     586,633  2.65%
        Total Interest-Bearing Deposits 1,520,419  1.49%   1,242,587  1.75%
    Short-Term Borrowings                 151,622  1.14%     108,133  1.36%
    Long-Term Debt                        155,907  4.30%     130,464  4.33%
        Total Interest-Bearing
         Liabilities                    1,827,948  1.70%   1,481,184  1.95%
  Noninterest-Bearing Demand Deposits     199,243            175,200
  Noninterest-Bearing Liabilities          20,974             21,914
        Total Liabilities               2,048,165          1,678,298
  Shareholders' Equity                    207,364            171,206
        Total Liabilities and
         Shareholders' Equity          $2,255,529         $1,849,504

  Net Earning Assets                     $225,247           $213,337
  Net Interest Spread                     $36,085  3.45%     $32,978  3.79%
  Tax-Equivalent Benefit                   $1,364  0.13%      $1,229  0.15%
  Net Interest Income (TE) / Net
   Interest Margin (TE) (A)               $37,449  3.64%     $34,207  4.04%

   (A)  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%.
   (B)  Balances exclude unrealized gain or loss on securities available for
        sale and impact of trade date accounting.


                           IBERIABANK CORPORATION
                            RECONCILIATION TABLE
                (dollars in thousands, except per share data)

                                           For The Three Months Ended
                                       06/30/2004  03/31/2004  06/30/2003

  Net Interest Income                    $18,119     $17,966     $17,065
  Effect of Tax Benefit on Interest
   Income                                    682         682         647
    Net Interest Income (TE) (A)          18,801      18,648      17,712
  Noninterest Income                       5,825       5,556       5,996
  Effect of Tax Benefit on Noninterest
   Income                                    209         203         211
    Noninterest Income (TE) (A)            6,034       5,759       6,207
         Total Revenues (TE) (A)         $24,835     $24,407     $23,919

  Total Noninterest Expense              $14,013     $13,215     $12,867
  Less Intangible Amortization Expense      (234)       (218)       (248)
    Tangible Operating Expense (B)       $13,779     $12,997     $12,619

  Return on Average Equity                 12.42 %     12.75 %     12.88 %
    Effect of Intangibles (B)               6.48        6.32        7.34
  Return on Average Tangible Equity (B)    18.90 %     19.07 %     20.22 %

  Efficiency Ratio                          58.5 %      56.2 %      55.8 %
  Effect of Tax Benefit Related to Tax
   Exempt Income                            (2.1)       (2.1)       (2.0)
    Efficiency Ratio (TE) (A)               56.4 %      54.1 %      53.8 %
  Effect of Amortization of Intangibles     (0.9)       (0.9)       (1.0)
    Tangible Efficiency Ratio (TE) (A)(B)   55.5 %      53.2 %      52.8 %

   (A)  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%.

   (B)  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

CONTACT: 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