IBERIABANK Corporation Reports Fourth Quarter and Year-End Results
PRNewswire-FirstCall
LAFAYETTE, La.

IBERIABANK Corporation , the holding company of the 119-year-old IBERIABANK (http://www.iberiabank.com/ ), announced earnings of $8.9 million for the quarter ended December 31, 2006, up 13% compared to the same period in 2005. The Company reported fully diluted earnings per share ("EPS") of $0.87 for the fourth quarter of 2006, up 9% compared to $0.80 in the same quarter of 2005. The reported EPS of $0.87 includes merger-related costs and the cost of carrying merger-related financing totaling $0.04 per fully diluted share. Excluding these merger-related costs, the adjusted EPS figure rounds to $0.92, which approximates the consensus analyst estimate.

  Highlights For The Quarter Ended December 31, 2006

   *  Loans.  Average loans increased $115 million, or 5%, between the third
      and fourth quarters of 2006 (a "linked quarter basis.")  On a period-
      end basis, loans climbed $61 million, or 3%, between
      September 30, 2006 and December 31, 2006.  The period-end balances
      were impacted due to the portfolio sales of $30.4 million in mortgage
      loans near the end of the fourth quarter.  Over the last year, loans
      outstanding at period end increased $315 million, or 16%.

   *  Deposits.  Average deposits climbed $54 million, or 2%, between the
      third and fourth quarters of 2006.  Period-end deposits increased
      $17 million, or 1%, between September 30, 2006 and December 31, 2006.
      Period-end deposits increased $180 million, or 8%, over the one-year
      time frame ended December 31, 2006.

   *  Asset quality.  Annualized net charge-offs equated to 0.02% of average
      loans in the fourth quarter of 2006, compared to 0.01% or 0.02% in
      each of the three preceding quarters in 2006.  Total nonperforming
      assets ("NPAs") declined to 0.16% of total assets at
      December 31, 2006, compared to 0.19% at September 30, 2006.

   *  Branches.  The Company opened a traditional branch office in the River
      Ranch neighborhood in Lafayette during the fourth quarter of 2006. In
      addition, two traditional branch offices are scheduled to open in a
      few weeks on Highland Road in Baton Rouge and in Covington, Louisiana.
      By the end of January 2007, a total of 12 new branch offices will have
      been opened under the Company's branch expansion initiative.  The
      estimated net after-tax cost of the branch expansion initiative was
      $0.06 per diluted share in the fourth quarter of 2006, compared to
      $0.05 per diluted share in the third quarter of 2006, and in line with
      prior estimates.

   *  Acquisitions.  The Company has received all regulatory approvals for
      the pending Pocahontas and Pulaski acquisitions and anticipates
      closing both transactions within the next three weeks.  Branch and
      systems conversions associated with these transactions are scheduled
      to be completed within the next three months.

   *  Other.  During the quarter just completed, the Company recorded a
      $3.9 million pre-tax negative loan loss provision as a result of
      improvements in Hurricane Katrina-related credits and the Company's
      favorable asset quality position.  Also during the fourth quarter of
      2006, the Company recorded $3.9 million in losses on the sale of
      investments ($1.8 million), sale of mortgage loans ($1.1 million), and
      the retirement of short-term and long-term Federal Home Loan Bank
      ("FHLB") debt ($1.0 million).  As discussed later in this release,
      these actions were taken in anticipation of improving future earnings
      of the Company.

  Balance Sheet And Yields

Total assets climbed to $3.2 billion, deposits were $2.4 billion and loans were $2.2 billion at December 31, 2006; increases of 3%, 1%, and 3%, respectively, compared to September 30, 2006.

Total loan growth increased $61 million, or 3%, compared to September 30, 2006. During the period, commercial loans climbed $87 million, or 8%, residential mortgage loans decreased $41 million, or 9% due to a significant loan sale, and construction loans grew $7 million, or 18%. Construction loans accounted for only 2% of total loans and only 15% of total regulatory capital at December 31, 2006. Consumer loans increased $7 million, or 1%, during the fourth quarter. The reported yield on average loans decreased 25 basis points on a linked quarter basis, and was up one basis point excluding the accelerated loan discount recorded in the third quarter.

Average investment portfolio volume decreased $11 million on a linked quarter basis to $608 million. On a period-end basis, the investment portfolio declined further to $581 million at December 31, 2006. The investment portfolio equated to 18% of total assets, down from 19% at September 30, 2006. The Company's investment portfolio shortened significantly during the quarter. At December 31, 2006, the portfolio had a modified duration of 2.6 years, compared to 3.1 years at September 30, 2006. The Company's investment portfolio has very limited extension risk. At current projected speeds, the portfolio is expected to generate approximately $252 million in cash flows, or about 43% of the portfolio, over the next 24 months. The portfolio had an unrealized loss of approximately $5 million at December 31, 2006, compared to an unrealized loss of approximately $10 million at September 30, 2006 and a loss of $20 million at June 30, 2006. The average yield on investment securities increased 6 basis points on a linked quarter basis.

The Company continued to experience good deposit growth for the sixth consecutive quarter. Average deposits grew $54 million, or 2%, on a linked quarter basis. The cost of interest bearing liabilities in the fourth quarter of 2006 was 3.48%, an increase of 23 basis points on a linked quarter basis. The primary reasons for the elevated interest expense structure were a change in the mix of deposits and competitive pricing pressures. Average noninterest bearing deposits increased $8 million, or 2%, on a linked quarter basis.

Operating Results

Tax-equivalent net interest income decreased $1.4 million, and the tax- equivalent margin declined 34 basis points on a linked quarter basis, to 3.20% in the fourth quarter of 2006. As disclosed in the Company's third quarter earnings release, tax-equivalent net interest income and margin were augmented in the third quarter of 2006 by two factors. First, the Company accelerated accretion of a loan discount resulted in a $1.4 million increase in net interest income and a 20 basis point margin benefit. Second, a change in the accounting method for Statement of Financial Accounting Standards 133, Accounting for Derivative Instruments and Hedging Activities ("SFAS 133") resulted in $0.4 million decrease in net interest income and a five basis point margin detriment. Exclusive of these two factors, tax-equivalent net interest income decreased $0.4 million, or 2%, and the margin decreased 19 basis points on a linked quarter basis. The margin for the month of December 2006 was 3.22%.

                Reported And Adjusted Yields/Rates
                  1Q05   2Q05   3Q05   4Q05   1Q06   2Q06   3Q06   4Q06
  Reported Earning
   Asset Yield    5.39%  5.51%  5.61%  5.73%  5.86%  5.95%  6.35%  6.20%
  - Loan Discount
    Accretion      ---    ---    ---    ---    ---    ---  -0.19%   ---
  Adjusted Earning
   Asset Yield    5.39%  5.51%  5.61%  5.73%  5.86%  5.95%  6.16%  6.20%

  Reported Margin 3.56%  3.54%  3.47%  3.57%  3.53%  3.44%  3.54%  3.20%
  - Loan Discount
    Accretion      ---    ---    ---    ---    ---    ---  -0.20%   ---
  + Net Cash Swaps
    (SFAS 133)     ---    ---    ---    ---    ---    ---   0.05%   ---
  Adjusted Margin 3.56%  3.54%  3.47%  3.57%  3.53%  3.44%  3.39%  3.20%



Noninterest income in the fourth quarter of 2006 decreased $2.6 million, or 36%, on a linked quarter basis due to a variety of factors. These factors included the impact of SFAS 133 and losses incurred on the sale of investments and loans.

The Company recorded adjustments as a result of revising its method of accounting under SFAS 133 for interest rate swaps associated with trust preferred securities. In the third quarter of 2006, the Company recorded a gain on derivative swaps of $0.9 million and net cash settlements on swaps totaling $0.4 million, or a positive impact on noninterest income of $1.3 million due to SFAS 133. By comparison, the SFAS 133 impact on noninterest income was a positive $0.1 million in the fourth quarter of 2006.

Late in the fourth quarter of 2006, the Company sold $51.5 million in investment securities and $30.4 million in mortgage loans and prepaid FHLB debt totaling $11.4 million. In association with the investment sale, the Company recorded a $1.8 million pre-tax loss on the sale of the securities, or $0.12 per diluted share on an after-tax basis. The investment securities sold had a weighted average life of 3.6 years and a weighted average yield of 4.15%. Similar sales of investment securities were recorded in the second quarter of 2006 totaling $42 million with a reported $1.4 million loss, or $0.09 per diluted share on an after-tax basis, and in the third quarter of 2006 investment sales totaling $16 million with a reported loss of $0.9 million, or $0.06 per fully diluted share on an after-tax basis.

The company entered into an agreement to sell a $30.4 million mortgage loan portfolio and recorded a $1.1 million pre-tax loss on the sale of the loans, or $0.07 per diluted share on an after-tax basis. These loans had a weighted average life of 27.5 years and a weighted average yield of 4.57%. Exclusive of the loan portfolio sales, the Company's recurring residential mortgage loan production sale gains increased 37% on a linked quarter basis, to $0.6 million. The volume of mortgage loan originations totaled $64 million in the fourth quarter of 2006, down 10% compared to the third quarter of 2006. Under its recurring secondary market sale programs, the Company sold into the secondary market during the fourth quarter of 2006 $52 million in residential mortgage loans, up 24% on a linked quarter basis. Unlike many competitors, the Company does not originate and portfolio exotic retail mortgage products, such as negative amortization and option ARMs.

Noninterest income improved $0.6 million, or 8%, on a linked quarter basis exclusive of SFAS 133, the sale of investments and the mortgage loan portfolio sale mentioned above. During this period, service charges on deposit accounts and ATM/debit cards improved slightly, while brokerage and annuity sales increased $0.4 million, or 41%.

Noninterest expenses decreased $0.6 million, or 3% on a linked quarter basis. Occupancy and equipment expense remained flat, despite the addition of new branches. A reduction in shares tax offset higher advertising and business development costs during the fourth quarter of 2006.

During the fourth quarter, the Company incurred costs on the retirement of FHLB advances. The Company paid off $11.4 million of FHLB advances and recorded a $1.0 million associated pre-tax expense, equal to $0.06 per diluted share on an after-tax basis. The FHLB advances had a weighted average life of 4.5 years and a yield of 6.74%, compared to overnight funding costs of 5.33%. The expense incurred in the retirement of debt in the fourth quarter of 2006 is accounted for in the line item "Other Expense."

The Company incurred $0.2 million in pre-tax merger-related costs during the fourth quarter of 2006, which is accounted for in the line item "Other Expense", and approximated the level incurred in the third quarter of 2006.

Salaries and benefit costs declined $1.9 million, or 17% on a linked quarter basis. A decreased bonus accrual for the quarter accounted for a significant portion of the lower compensation costs. Since June 1, 2005, the Company recruited 71 strategic hires, up 12 on a linked quarter basis [59 last time]. Since that time, the Company has opened, staffed, and trained associates for 12 new banking facilities and two mortgage LPOs in Shreveport and Denham Springs. Also during this period, the Company consolidated three bank branch offices [Kaliste Saloom, 19th Street, Washington Plaza] and three mortgage LPO offices [Alexandria, Mandeville, Houma}.

Net income in the fourth quarter of 2006 totaled $8.9 million, up from $7.9 million compared to one year ago and down 10% on a linked quarter basis. Return on average assets ("ROA") was 1.12% for the fourth quarter of 2006. Similarly, return on average equity ("ROE") was 11.86%, and return on average tangible equity was 18.15%.

Pending Acquisitions

On July 27, 2006, the Company announced an agreement to acquire Pocahontas Bancorp, Inc. of Jonesboro, Arkansas with total assets of $733 million on September 30, 2006. The Pocahontas transaction is a stock-for-stock exchange. Approximately two weeks later, the Company announced an agreement to acquire Pulaski Investment Corporation of Little Rock, Arkansas with total assets of $493 million on September 30, 2006.

At the times the pending acquisitions were announced, the Company anticipated aggregate one-time merger related costs of $18 million, on a pre- tax basis, in association with the two acquisitions. In the quarter ended September 30, 2006, the Company reported $225,000 in pre-tax one-time merger related costs. In addition, the Company recorded aggregate pre-tax one-time merger related costs of $168,000 ($0.01 per fully diluted share after-tax) and carrying costs associated with trust preferred and equity financing issued in advance of the Pulaski acquisition equal to $0.03 per fully diluted share (on an after-tax basis) during the quarter ended December 31, 2006. The Company anticipates the balance of projected one-time merger related costs and carrying costs of pre-acquisition financing will be incurred in the first and second quarters of 2007. A significant portion of the merger-related costs will be capitalized.

Of the aggregate $18 million in one-time merger related costs, the Company estimated $8 million in severance-related costs, personnel contract payments and employee retention payments, $1 million in miscellaneous write-offs, $5 million in legal, accounting, printing, financing and similar fees, $1 million in technology related expenditures and $3 million in other costs.

A proxy statement was distributed to Pocahontas shareholders and a special meeting of shareholders is set for February 1, 2007 in Jonesboro, Arkansas. Pending shareholder approval, the acquisition is expected to be completed at the close of business on February 1, 2007. An information statement was distributed to Pulaski shareholders and a special meeting of shareholders is set for January 29, 2007. The acquisition is expected to be completed within the next three weeks. Operating systems and branch conversions are expected to be completed over the next three months.

EPS Expectations For 2006 And 2007

On October 17, 2006, the Company stated its expectations for the full year 2006 EPS to be in the range of $3.57 to $3.62, excluding merger-related 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 (such as the change in accounting for derivative instruments in the third quarter of 2006). As indicated in the table below, the Company's results for 2006 were within the range of previously disclosed guidance.

                                                    2006
                                  1Q06     2Q06     3Q06    4Q06     Year
  Reported EPS                   $0.81    $0.89    $0.99   $0.87    $3.57
  + Merger-Related Expense         ---      ---     0.01    0.01     0.03
  + Impact of Trust Preferred      ---      ---      ---    0.01     0.01
  + Impact of Private Placement    ---      ---      ---    0.02     0.02
  + SFAS 133 Expense/(Income)      ---      ---    (0.06)   0.00    (0.05)
  + Stock Option Expense          0.00     0.00     0.00    0.01     0.02
  EPS - Guidance Basis           $0.82    $0.89    $0.95   $0.93    $3.59

Calculations for totals do not sum due to rounding and the impact of weighted

average diluted shares outstanding in the quarterly calculations.

Similarly, the Company stated at the time, a 2007 EPS comfort range of $4.00 to $4.15, excluding the impact of one-time merger-related costs and any changes in accounting treatment. The Company today reaffirmed those expectations for 2007.

The EPS comfort ranges provided today are based on management's current information, estimates and assumptions. A major assumption is the projected shape of the yield curve in 2006 and 2007 as indicated in forward interest rate curves.

Asset Quality

The Company believes that its asset quality continues to be exceptional. The Company reported net charge-offs totaling $85,000 in the fourth quarter of 2006 compared to $76,000 in the third quarter of 2006. The ratio of net charge-offs to average loans was 0.02% in the fourth quarter, compared to 0.01% or 0.02% in each the preceding three quarters of 2006, and 0.13% one year ago.

The Company believes that it uses a conservative definition of nonperforming assets ("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 $5.0 million at December 31, 2006, equal to 0.16% of total assets compared to $6.0 million, and 0.19% of total assets, at September 30, 2006. Loans past due 30 days or more (including nonaccruing loans) represented 0.37% of total loans, down compared to 0.41% at September 30, 2006. Various segments of the Company's loan portfolio demonstrated remarkably low levels of loans past due 30 days or more, including indirect automobile (0.90% of loans), consumer (0.76%), business banking (0.58%), mortgage (0.28%), and commercial (0.19%).

As a result of the continued strong asset quality of the loan portfolio and improvements in outstanding credits in the Hurricane Katrina affected areas, the Company recorded a $3.9 million negative provision during the fourth quarter of 2006. By comparison, the Company incurred a $2.4 million negative provision in the third quarter of 2006. The allowance for loan losses was 1.34% at December 31, 2006, compared to 1.56% at September 30, 2006 and 1.98% one year ago. Loan loss reserve coverage of nonperforming loans and nonperforming assets at December 31, 2006 was 10 times and six times, respectively. The Company has folded all remaining loan loss reserves associated with Katrina-related credits into the Company's general loan loss reserves. On a prospective basis, the Company will no longer segregate Katrina-related credits or reserves.

Capital Position

The Company raised $15 million through a trust preferred securities offering which closed on October 31, 2006. The trust preferred securities qualify as Tier I capital for regulatory purposes and bear an interest rate equal to three-month LIBOR plus a specified percentage. The securities are redeemable by IBERIABANK Corporation in whole or in part after five years, or earlier under certain circumstances. The issuance of the trust preferred securities negatively impacted fourth quarter 2006 pre-tax earnings by $180,000, or $0.01 per fully diluted share on an after-tax basis.

In November 2006, the Company also issued and sold in a private placement to certain institutional and other accredited investors 576,923 shares of common stock, for a total purchase price of $30 million. The sale of common equity negatively impacted fourth quarter 2006 EPS by $0.02 on an after-tax basis. The purpose of the trust preferred securities offering and the private placement was to provide funding for the cash portion of the pending Pulaski acquisition. The Company considers the carrying costs associated with these financings in advance of completion of the acquisitions to be merger-related costs.

Average shareholders' equity increased $24 million, or 9%, on a linked quarter basis. At December 31, 2006, the Company's equity-to-assets ratio was 9.98%, compared to 9.00% at September 30, 2006, and 9.24% one year ago. Book value per share increased $2.17, or 7%, during the quarter to $31.07 at December 31, 2006. Similarly, tangible book value per share increased $2.81, or 15%, during the quarter to $21.43.

Tier 1 leverage ratio was 9.01% at December 31, 2006, up 138 basis points compared to 7.63% at September 30, 2006, and 7.65% one year ago. At December 31, 2006, the Company's Tier 1 risk-based capital ratio was 11.81%, and its total risk-based capital ratio was 13.06%. The elevated capital ratios were the result of receipt of a portion of the acquisition financing in advance of completion of the acquisitions. No shares were purchased by the Company during the fourth quarter of 2006. Approximately 17,000 shares remain to be purchased under the repurchase program authorized on May 4, 2005.

On December 11, 2006, the Company declared a quarterly cash dividend of $0.32 per share, an increase of 14% compared to the same quarter last year. This dividend level equated to an annualized dividend rate of $1.28 per share and an indicated dividend yield of 2.27%. The dividend payout ratio was 36.9% in the fourth quarter of 2006, up compared to 31.4% in the third quarter of 2006.

Based on a closing stock price of $55.95 per share on January 17, 2007, the Company's common stock traded at a price-to-earnings ratio of 14.0 times current consensus analyst estimates of $3.99 per fully diluted EPS for 2007 and 12.1 times the average analyst 2008 estimate of $4.62. This price also equates to 1.80 times December 31, 2006 book value per share of $31.07.

IBERIABANK Corporation is one of the oldest financial institutions with continuous operations in the State of Louisiana and the second largest Louisiana-based bank holding company. The Company operates 49 offices located in New Orleans, Baton Rouge, Shreveport, Northeast Louisiana, LaPlace, Houma, and the Acadiana and Northshore regions of Louisiana. The Company's common stock trades on the Nasdaq Global Market under the symbol "IBKC" and the Company's market capitalization is approximately $580 million.

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

   *  FIG Partners, LLC
   *  FTN Midwest Securities Corp.
   *  Keefe, Bruyette & Woods
   *  Sidoti & Company
   *  Stanford Group Company
   *  Stephens, Inc.
   *  Sterne, Agee & Leach
   *  Stifel Nicolaus & Company
   *  SunTrust Robinson-Humphrey

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, January 18, 2007, beginning at 8:00 a.m. Central Time by dialing 1-877-553-5275. The confirmation code for the call is 857714. A replay of the call will be available until midnight Central Time on January 25, 2007 by dialing 1-800-475-6701. The confirmation code for the replay is 857714.

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 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, 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. 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 January 17, 2007. 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.

In connection with each of the proposed mergers, IBERIABANK Corporation has filed a Registration Statement on Form S-4 that contains a proxy statement/prospectus. INVESTORS AND SECURITY HOLDERS ARE URGED TO CAREFULLY READ THE PROXY STATEMENT/PROSPECTUS REGARDING THE PROPOSED TRANSACTION, BECAUSE IT CONTAINS IMPORTANT INFORMATION. Investors and security holders may obtain a free copy of the proxy statement/prospectus and other documents containing information about IBERIABANK, Pulaski, and Pocahontas without charge, at the SEC's web site at http://www.sec.gov/ . Copies of the proxy statement/prospectus and the SEC filings that are incorporated by reference in the proxy statement/prospectus may also be obtained for free by directing a request to: Investor Relations-12th Floor, IBERIABANK Corporation, 200 West Congress Street, Lafayette, LA, 70501, Phone: (337) 521-4788, Fax: (337) 521- 4021 or to Dwayne Powell, President and CEO, Pocahontas Bancorp, Inc., 1700 East Highland Drive, Jonesboro, AR 72401, Phone: (870) 802-1700, Fax: (870) 802-5945 or to Robert C. Magee, President, Pulaski Investment Corporation, 5800 "R" Street, Little Rock, AR 72207, Phone: (501) 661-7729, Fax: (501) 661- 7861.

This press release may be deemed to be solicitation material in respect to the proposed acquisitions by IBERIABANK Corporation of Pulaski Investment Corporation and Pocahontas Bancorp, Inc.

This communication is not an offer to purchase shares of Pulaski or Pocahontas common stock, nor is it an offer to sell shares of IBERIABANK Corporation common stock which may be issued in any proposed merger with Pulaski or Pocahontas. Any issuance of IBERIABANK Corporation common stock in any proposed merger with Pulaski or Pocahontas would have to be registered under the Securities Act of 1933, as amended and such IBERIABANK Corporation common stock would be offered only by means of a prospectus complying with the Act.

                          IBERIABANK CORPORATION
                           FINANCIAL HIGHLIGHTS

                                       For The                   For The
                                    Quarter Ended             Quarter Ended
                                     December 31,             September 30,
                              2006       2005   % Change     2006   % Change

  Income Data (in thousands):
    Net Interest Income     $22,421    $21,933       2%    $23,926      (6%)
    Net Interest Income
     (TE) (A)                23,390     22,795       3%     24,810      (6%)
    Net Income                8,915      7,913      13%      9,879     (10%)

  Per Share Data:
    Net Income - Basic        $0.93      $0.86       8%      $1.06     (12%)
    Net Income - Diluted       0.87       0.80       9%       0.99     (12%)

    Book Value                31.07      27.60      13%      28.90       7%
    Tangible Book Value (B)   21.43      17.07      26%      18.62      15%
    Cash Dividends             0.32       0.28      14%       0.32      ---

  Number of Shares Outstanding:
    Basic Shares
     (Average)            9,618,665  9,219,266       4%  9,337,060       3%
    Diluted Shares
     (Average)           10,214,019  9,857,989       4%  9,932,163       3%
    Book Value Shares
     (Period End) ©    10,286,431  9,548,812       8%  9,697,731       6%

  Key Ratios: (D)
    Return on Average
     Assets                   1.12%      1.13%               1.30%
    Return on Average
     Equity                  11.86%     12.03%              14.30%
    Return on Average
     Tangible Equity (B)     18.15%     20.07%              22.90%
    Net Interest Margin
     (TE) (A)                 3.20%      3.57%               3.54%
    Efficiency Ratio          70.0%      59.2%               62.8%
    Tangible Efficiency
     Ratio (TE) (A) (B)       66.0%      56.0%               59.7%
    Average Loans to
     Average Deposits         91.6%      87.5%               88.8%
    Nonperforming Assets
     to Total Assets (E)      0.16%      0.21%               0.19%
    Allowance for Loan
     Losses to Loans          1.34%      1.98%               1.56%
    Net Charge-offs to
     Average Loans            0.02%      0.13%               0.01%
    Average Equity to
     Average Total Assets     9.47%      9.40%               9.07%
    Tier 1 Leverage Ratio     9.01%      7.65%               7.63%
    Dividend Payout Ratio     36.9%      33.8%               31.4%

  (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.
  ©  Shares used for book value purposes exclude shares held in treasury
       at the end of the period.
  (D)  All ratios are calculated on an annualized basis for the period
       indicated.
  (E)  Nonperforming assets consist of nonaccruing loans, accruing loans
       90 days or more past due and repossessed assets.



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

  BALANCE SHEET (End of Period)
                                    December 31,             September 30,
                           2006        2005    % Change          2006
  ASSETS
  Cash and Due From
   Banks                 $51,078     $66,697    (23.4%)        $58,516
  Interest-bearing
   Deposits in Banks      33,827      60,103    (43.7%)         12,550
     Total Cash and
      Equivalents         84,905     126,800    (33.0%)         71,066
  Investment Securities
   Available for Sale    558,832     543,495      2.8%         576,634
  Investment Securities
   Held to Maturity       22,520      29,087    (22.6%)         24,023
     Total Investment
      Securities         581,352     572,582      1.5%         600,657
  Mortgage Loans Held
   for Sale               54,273      10,515    416.2%          20,055
  Loans, Net of
   Unearned Income     2,234,002   1,918,516     16.4%       2,173,484
  Allowance for Loan
   Losses                (29,922)    (38,082)   (21.4%)        (33,954)
     Loans, net        2,204,080   1,880,434     17.2%       2,139,530
  Premises and
   Equipment              71,007      55,010     29.1%          68,231
  Goodwill and
   Acquisition
   Intangibles            99,070     100,576     (1.5%)         99,727
  Mortgage Servicing
   Rights                     42          96    (55.9%)             53
  Other Assets           108,317     106,579      1.6%         112,945
     Total Assets     $3,203,046  $2,852,592     12.3%      $3,112,264

  LIABILITIES AND
   SHAREHOLDERS'
   EQUITY
  Noninterest-bearing
   Deposits             $354,961    $350,065      1.4%        $348,023
  Interest-bearing
   Deposits            2,067,621   1,892,891      9.2%       2,057,814
     Total Deposits    2,422,582   2,242,956      8.0%       2,405,837
  Short-term
   Borrowings            100,000         745  13315.3%          80,500
  Securities Sold
   Under Agreements
   to Repurchase         102,605      68,104     50.7%          88,827
  Long-term Debt         236,997     250,212     (5.3%)        234,265
  Other Liabilities       21,311      27,006    (21.1%)         22,576
     Total
      Liabilities      2,883,495   2,589,023     11.4%       2,832,005
  Total Shareholders'
   Equity                319,551     263,569     21.2%         280,259
     Total
      Liabilities and
      Shareholders'
      Equity          $3,203,046  $2,852,592     12.3%      $3,112,264


                                 For The                   For The
                           Three Months Ended        Twelve Months Ended
  INCOME STATEMENT             December 31,               December 31,
                        2006      2005  % Change   2006      2005   % Change

  Interest Income     $44,266   $35,735   23.9% $165,292  $135,248    22.2%
  Interest Expense     21,845    13,802   58.3%   73,770    50,450    46.2%
    Net Interest
     Income            22,421    21,933    2.2%   91,522    84,798     7.9%
  Provision for Loan
   Losses              (3,947)      625 (731.5%)  (7,803)   17,069  (145.7%)
    Net Interest Income
     After Provision
     for Loan Losses   26,368    21,308   23.7%   99,325    67,729    46.6%
  Service Charges       3,498     3,027   15.6%   13,167    13,427    (1.9%)
  ATM / Debit Card
   Fee Income             913       776   17.6%    3,429     2,709    26.6%
  BOLI Cash Surrender
   Value Income           537       508    5.6%    2,085     1,979     5.3%
  Gain (Loss) on Sale
   of Loans, net         (460)      526 (187.5%)     745     2,497   (70.2%)
  Other Gains (Losses) (1,814)      553 (428.1%)  (3,984)      787  (606.5%)
  Derivative Gains
   (Losses) on Swaps      (75)      ---     ---      803       ---      ---
  Net Cash Settlements
   on Swaps               153       ---     ---      527       ---      ---
  Other Noninterest
   Income               1,899     1,284   47.9%    6,678     4,742    40.8%
    Total Noninterest
     Income             4,651     6,674  (30.3%)  23,450    26,141   (10.3%)
  Salaries and Employee
   Benefits             9,536     9,507    0.3%   40,023    33,973    17.8%
  Occupancy and
   Equipment            2,400     2,252    6.6%    9,445     8,319    13.5%
  Amortization of
   Acquisition
   Intangibles            269       299   (9.9%)   1,118     1,207    (7.4%)
  Other Noninterest
   Expense              6,755     4,885   38.3%   22,541    20,939     7.7%
    Total Noninterest
     Expense           18,960    16,943   11.9%   73,127    64,438    13.5%
    Income Before
     Income Taxes      12,059    11,039    9.2%   49,648    29,432    68.7%
  Income Taxes          3,144     3,126    0.6%   13,953     7,432    87.7%
    Net Income         $8,915    $7,913   12.7%  $35,695   $22,000    62.3%

  Earnings Per Share,
   diluted              $0.87     $0.80    8.7%    $3.57     $2.24    59.3%



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

                                      For The Quarter Ended
  BALANCE SHEET (Average)
                        Dec. 31,  Sept. 30,    June 30,  March 31,  Dec. 31,
                          2006       2006       2006       2006       2005
  ASSETS
  Cash and Due
   From Banks           $49,304    $49,863    $53,353    $59,721    $60,488
  Interest-bearing
   Deposits in Banks     18,661     11,415     44,704     53,684     29,371
  Investment Securities 608,489    619,057    648,391    616,041    560,583
  Mortgage Loans Held
   for Sale              22,398     17,166     11,691      9,566     12,987
  Loans, Net of Unearned
   Income             2,204,048  2,089,350  1,989,875  1,931,788  1,895,970
  Allowance for Loan
   Losses               (33,899)   (35,642)   (38,581)   (38,214)   (38,070)
  Other Assets          279,359    271,198    263,180    254,909    256,076

    Total Assets     $3,148,360 $3,022,407 $2,972,613 $2,887,495 $2,777,405


  LIABILITIES AND
   SHAREHOLDERS' EQUITY
  Noninterest-bearing
   Deposits            $342,374   $334,453   $331,272   $336,616   $334,840
  Interest-bearing
   Deposits           2,064,653  2,018,469  2,029,683  1,947,889  1,831,262
    Total Deposits    2,407,027  2,352,922  2,360,955  2,284,505  2,166,102
  Short-term Borrowings  77,978     43,101      3,399        751     16,913
  Securities Sold Under
   Agreements to
   Repurchase            98,216     96,942     76,440     66,371     59,654
  Long-term Debt        243,573    238,058    243,462    247,235    255,047
  Other Liabilities      23,296     17,240     19,117     20,543     18,624
    Total Liabilities 2,850,090  2,748,263  2,703,373  2,619,405  2,516,340
  Total Shareholders'
   Equity               298,270    274,144    269,240    268,090    261,065
    Total Liabilities
     and Shareholders'
     Equity          $3,148,360 $3,022,407  2,972,613 $2,887,495 $2,777,405



                                               2006                  2005
                                Fourth    Third   Second    First   Fourth
  INCOME STATEMENT              Quarter  Quarter  Quarter  Quarter  Quarter

  Interest Income               $44,266  $43,645  $39,893  $37,488  $35,735
  Interest Expense               21,845   19,719   17,138   15,068   13,802
     Net Interest Income         22,421   23,926   22,755   22,420   21,933
  Provision for Loan Losses      (3,947)  (2,389)  (1,902)     435      625
     Net Interest Income After
      Provision for Loan Losses  26,368   26,315   24,657   21,985   21,308
  Total Noninterest Income        4,651    7,275    5,258    6,266    6,674
  Total Noninterest Expense      18,960   19,591   17,462   17,114   16,943
     Income Before Income Taxes  12,059   13,999   12,453   11,137   11,039
  Income Taxes                    3,144    4,120    3,598    3,091    3,126
     Net Income                  $8,915   $9,879   $8,855   $8,046   $7,913

  Earnings Per Share, basic       $0.93    $1.06    $0.95    $0.87    $0.86

  Earnings Per Share, diluted     $0.87    $0.99    $0.89    $0.81    $0.80

  Book Value Per Share           $31.07   $28.90   $27.56   $27.70   $27.60

  Return on Average Assets        1.12%    1.30%    1.19%    1.13%    1.13%
  Return on Average Equity       11.86%   14.30%   13.19%   12.17%   12.03%
  Return on Average Tangible
   Equity                        18.15%   22.90%   21.44%   19.92%   20.07%



                          IBERIABANK CORPORATION
               CONDENSED CONSOLIDATED FINANCIAL INFORMATION

                          (dollars in thousands)

  LOANS RECEIVABLE                      December 31,           September 30,
                               2006         2005     % Change       2006
  Residential Mortgage Loans:
    Residential 1-4 Family  $431,585     $430,111       0.3%     $472,499
    Construction              45,285       30,611      47.9%       38,336
      Total Residential
       Mortgage Loans        476,870      460,722       3.5%      510,835
  Commercial Loans:
    Real Estate              750,051      545,868      37.4%      680,300
    Business                 461,048      376,966      22.3%      443,743
      Total Commercial
       Loans               1,211,099      922,834      31.2%    1,124,043

  Consumer Loans:
    Indirect Automobile      228,301      229,646      (0.6%)     227,315
    Home Equity              233,885      230,363       1.5%      233,304
    Automobile                24,179       23,372       3.5%       23,795
    Credit Card Loans          8,829        8,433       4.7%        8,387
    Other                     50,839       43,146      17.8%       45,805
      Total Consumer Loans   546,033      534,960       2.1%      538,606
      Total Loans
       Receivable          2,234,002    1,918,516      16.4%    2,173,484

  Allowance for Loan
   Losses                    (29,922)     (38,082)                (33,954)
    Loans Receivable, Net $2,204,080   $1,880,434              $2,139,530



  ASSET QUALITY DATA                 December 31,            September 30,
                             2006        2005     % Change        2006
  Nonaccrual Loans          $2,701      $4,773     (43.4%)       $2,904
  Foreclosed Assets              8          54     (85.6%)           24
  Other Real Estate
   Owned                     2,000         203     886.2%         1,153
  Accruing Loans More
   Than 90 Days Past Due       310       1,003     (69.1%)        1,873
  Total Nonperforming
   Assets (A)               $5,019      $6,033     (16.8%)       $5,954

  Nonperforming Assets
   to Total Assets (A)       0.16%       0.21%     (25.9%)        0.19%
  Nonperforming Assets
   to Total Loans and
   OREO (A)                  0.22%       0.31%     (28.6%)        0.27%
  Allowance for Loan
   Losses to Nonperforming
   Loans (A)                993.7%      659.3%      50.7%        710.8%
  Allowance for Loan
   Losses to Nonperforming
   Assets (A)               596.2%      631.3%      (5.6%)       570.3%
  Allowance for Loan
   Losses to Total Loans     1.34%       1.98%     (32.5%)        1.56%
  Year to Date Charge-offs  $2,621      $5,541     (52.7%)       $2,031
  Year to Date Recoveries   $2,264      $1,895      19.5%        $1,759

  (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                             December 31,            September 30,
                              2006         2005     % Change       2006
  Noninterest-bearing
   Demand Accounts         $354,961     $350,065       1.4%     $348,023
  NOW Accounts              628,541      575,379       9.2%      632,273
  Savings and Money
   Market Accounts          588,202      554,731       6.0%      613,938
  Certificates of Deposit   850,878      762,781      11.5%      811,603
    Total Deposits       $2,422,582   $2,242,956       8.0%   $2,405,837



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

                                     For The Quarter Ended
                           December 31, 2006         December 31, 2005
                           Average    Average        Average   Average
                           Balance   Yield/Rate (%)  Balance  Yield/Rate (%)
  ASSETS
  Earning Assets:
   Loans Receivable:
     Mortgage Loans       $510,751     5.69%         $453,196    5.42%
     Commercial Loans
      (TE) (A)           1,151,288     6.62%          899,754    6.03%
     Consumer and Other
      Loans                542,009     7.34%          543,020    6.95%
      Total Loans        2,204,048     6.58%        1,895,970    6.14%
  Mortgage Loans Held
   for Sale                 22,398     6.46%           12,987    5.83%
  Investment Securities
   (TE) (A) (B)            618,482     4.88%          565,195    4.48%
  Other Earning Assets      42,285     4.99%           54,402    4.17%
      Total Earning
       Assets            2,887,213     6.20%        2,528,554    5.73%
  Allowance for Loan
   Losses                  (33,899)                   (38,070)
  Nonearning Assets        295,046                    286,921
      Total Assets      $3,148,360                 $2,777,405

  LIABILITIES AND
   SHAREHOLDERS' EQUITY
  Interest-bearing
   Liabilities:
    Deposits:
      NOW Accounts        $616,664     2.65%         $557,462    1.81%
      Savings and Money
       Market Accounts     611,171     2.52%          525,439    1.50%
      Certificates of
       Deposit             836,818     4.22%          748,361    3.22%
        Total
         Interest-bearing
         Deposits        2,064,653     3.25%        1,831,262    2.29%
    Short-term Borrowings  176,194     4.03%           76,567    2.13%
    Long-term Debt         243,573     5.04%          255,047    4.28%
        Total
         Interest-bearing
         Liabilities     2,484,420     3.48%        2,162,876    2.52%
  Noninterest-bearing
   Demand Deposits         342,374                    334,840
  Noninterest-bearing
   Liabilities              23,296                     18,624
        Total
         Liabilities     2,850,090                  2,516,340
  Shareholders' Equity     298,270                    261,065
        Total Liabilities
         and Shareholders'
         Equity         $3,148,360                 $2,777,405


  Net Interest Spread      $22,421     2.72%          $21,933    3.21%
  Tax-equivalent Benefit       969     0.13%              862    0.13%
  Net Interest Income
   (TE) / Net Interest
   Margin (TE) (A)         $23,390     3.20%          $22,795    3.57%


  (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 Twelve Months Ended
                                    December 31, 2006    December 31, 2005
                           Average    Average        Average   Average
                           Balance   Yield/Rate (%)  Balance  Yield/Rate (%)
  ASSETS
  Earning Assets:
   Loans Receivable:
    Mortgage Loans        $485,642      5.56%       $438,515     5.37%
    Commercial Loans
     (TE) (A)            1,034,492      6.65%        862,799     5.74%
    Consumer and
     Other Loans           534,475      7.19%        538,761     6.81%
      Total Loans        2,054,609      6.53%      1,840,075     5.96%
   Mortgage Loans Held
    for Sale                15,246      6.51%         12,866     5.51%
   Investment Securities
    (TE) (A) (B)           633,270      4.75%        574,832     4.44%
   Other Earning Assets     53,268      4.83%         49,773     3.73%
      Total Earning
       Assets            2,756,393      6.09%      2,477,546     5.56%
  Allowance for Loan
   Losses                  (36,570)                  (27,908)
  Nonearning Assets        288,651                   267,425
      Total Assets      $3,008,474                $2,717,063

  LIABILITIES AND
   SHAREHOLDERS' EQUITY
  Interest-bearing Liabilities:
   Deposits:
     NOW Accounts         $623,211      2.48%       $558,705     1.65%
     Savings and Money Market
      Accounts             589,137      2.05%        480,836     1.28%
     Certificates of
      Deposit              803,154      3.81%        727,666     2.91%
       Total Interest-bearing
        Deposits         2,015,502      2.88%      1,767,207     2.07%
   Short-term Borrowings   116,165      3.32%        143,100     2.34%
   Long-term Debt          243,058      4.77%        245,561     4.20%
       Total Interest-bearing
        Liabilities      2,374,725      3.10%      2,155,868     2.33%
  Noninterest-bearing
   Demand Deposits         336,190                   283,396
  Noninterest-bearing
   Liabilities              20,049                    16,170
       Total Liabilities 2,730,964                 2,455,434
  Shareholders' Equity     277,510                   261,629
       Total Liabilities
        and Shareholders'
        Equity          $3,008,474                $2,717,063

  Net Interest Spread      $91,522      2.99%        $84,798     3.23%
  Tax-equivalent Benefit     3,544      0.13%          3,283     0.13%
  Net Interest Income
   (TE) / Net Interest
   Margin (TE) (A)         $95,066      3.42%        $88,081     3.54%


  (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)

                                           For The Three Months Ended
                                       12/31/2006   9/30/2006  12/31/2005

  Net Interest Income                    $22,421     $23,926     $21,933
  Effect of Tax Benefit on Interest
   Income                                    969         884         862
    Net Interest Income (TE) (A)          23,390      24,810      22,795
  Noninterest Income                       4,651       7,275       6,674
  Effect of Tax Benefit on Noninterest
   Income                                    289         282         274
    Noninterest Income (TE) (A)            4,940       7,557       6,948
     Total Revenues (TE) (A)             $28,330     $32,367     $29,743

  Total Noninterest Expense              $18,960     $19,591     $16,943
  Less Intangible Amortization Expense      (269)       (276)       (299)
    Tangible Operating Expense (B)       $18,691     $19,315     $16,644

  Return on Average Equity                11.86%      14.30%      12.03%
  Effect of Intangibles (B)                6.29%       8.60%       8.04%
  Return on Average Tangible Equity (B)   18.15%      22.90%      20.07%

  Efficiency Ratio                         70.0%       62.8%       59.2%
  Effect of Tax Benefit Related to Tax
   Exempt Income                           (3.1%)      (2.3%)      (2.2%)
  Efficiency Ratio (TE) (A)                66.9%       60.5%       57.0%
  Effect of Amortization of Intangibles    (0.9%)      (0.8%)      (1.0%)
  Tangible Efficiency Ratio
   (TE) (A) (B)                            66.0%       59.7%       56.0%

  (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