Iberiabank (IBKC) 8-K IBERIABANK Corporation Announces Merger Agreement

IBERIABANK Corporation

Acquisition of

Pulaski Investment Corporation

August 9, 2006

Exhibit 99.2

2

Forward Looking Statements

Forward Looking Statements

Safe Harbor and 425 Language

Safe Harbor and 425 Language

Statements

contained

in

this

presentation

which

are

not

historical

facts

and

which

pertain

to

future

operating

results

of

IBERIABANK

Corporation

and

its

subsidiaries

constitute

“forward-looking

statements”

within

the

meaning

of

the

Private

Securities

Litigation

Reform

Act

of

1995.

These

forward-looking

statements

involve

significant

risks

and

uncertainties.

Actual

results

may

differ

materially

from

the

results

discussed

in

these

forward-looking

statements.

Factors

that

might

cause

such

a

difference

include,

but

are

not

limited

to,

those

discussed

in

the

Company’s

periodic

filings

with

the

SEC.

In

connection

with

the

proposed

merger,

IBERIABANK

Corporation

will

file

a

Registration

Statement

on

Form

S-4

that

will

contain

a

proxy

statement/prospectus.

INVESTORS

AND

SECURITY

HOLDERS

ARE

URGED

TO

CAREFULLY

READ

THE

PROXY

STATEMENT/PROSPECTUS

REGARDING

THE

PROPOSED

TRANSACTION

WHEN

IT

BECOMES

AVAILABLE,

BECAUSE

IT

WILL

CONTAIN

IMPORTANT

INFORMATION.

Investors

and

security

holders

may

obtain

a

free

copy

of

the

proxy

statement/prospectus

(when

it

is

available)

and

other

documents

containing

information

about

IBERIABANK

Corporation

and

Pulaski,

without

charge,

at

the

SEC's

web

site

at

HTTP://www.sec.gov.

Copies

of

the

proxy

statement/prospectus

and

the

SEC

filings

that

will

be

incorporated

by

reference

in

the

proxy

statement/prospectus

may

also

be

obtained

for

free

by

directing

a

request

to:

Investor

Relations-12

th-

Floor,

IBERIABANK

Corporation,

200

West

Congress

Street,

Lafayette,

LA,

70501,

Phone:

(337)

521-4788,

Fax:

(337)

521-4021.

This

communication

is

not

an

offer

to

purchase

shares

of

Pulaski

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.

Any

issuance

of

IBERIABANK

Corporation

common

stock

in

any

proposed

merger

with

Pulaski

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.

3

Presentation Outline

Presentation Outline

Our Stated Strategic Focus

Our Stated Strategic Focus

Pulaski Background

Pulaski Background

Arkansas

Arkansas

Pulaski Offices & Markets Served

Pulaski Offices & Markets Served

Summary Of Pulaski Businesses

Summary Of Pulaski Businesses

Merger Proposal

Merger Proposal

Strategic & Financial Implications

Strategic & Financial Implications

4

IBERIABANK Corporation

IBERIABANK Corporation

Our Stated Strategic Focus

Our Stated Strategic Focus

Organic Growth, Supplemented With Acquisitions

Organic Growth, Supplemented With Acquisitions

Focus On Markets With Competitive Advantage;

Focus On Markets With Competitive Advantage;

Primarily Louisiana, But Consider AR And MS

Primarily Louisiana, But Consider AR And MS

Basic “Blocking & Tackling”

Basic “Blocking & Tackling”

Banking

Banking

Balanced And Conservative Approach

Balanced And Conservative Approach

Operate Close To Our Clients & Hire Great People

Operate Close To Our Clients & Hire Great People

Relationships & People / Not Facilities & Products

Relationships & People / Not Facilities & Products

Partner When Fits --

Partner When Fits --

Strategic, Cultural & Financial

Strategic, Cultural & Financial

Shareholder-Focused And Opportunistic

Shareholder-Focused And Opportunistic

5

Pulaski Investment Corp.

Pulaski Investment Corp.

Background

Background

6

Pulaski

Pulaski

Background

Background

Pulaski Investment Corp. (AR Holding Company); Primary

Pulaski Investment Corp. (AR Holding Company); Primary

Sub Is Pulaski Bank & Trust (AR Bank) And 6 Bank Subs:

Sub Is Pulaski Bank & Trust (AR Bank) And 6 Bank Subs:

•

•

Pulaski Mortgage Company

Pulaski Mortgage Company

•

•

Lenders Title Company

Lenders Title Company

•

•

Pulaski Insurance Agency, Inc.

Pulaski Insurance Agency, Inc.

•

•

Three Other Small Subsidiaries

Three Other Small Subsidiaries

Commenced Operations In 1956 In Little Rock, AR

Commenced Operations In 1956 In Little Rock, AR

Started Title Business In 1987; Acquisition Expansion

Started Title Business In 1987; Acquisition Expansion

Acquired Trust Powers In 1974; New HQ Building In 1978

Acquired Trust Powers In 1974; New HQ Building In 1978

11 AR Offices: Little Rock (8), North Little Rock (2),  and

11 AR Offices: Little Rock (8), North Little Rock (2),  and

Bryant (Suburb of LR); 2 Offices Near Memphis (Cordova

Bryant (Suburb of LR); 2 Offices Near Memphis (Cordova

And Germantown-Opening In Late 2006).

And Germantown-Opening In Late 2006).

LPOs In Fayetteville, AR And Southaven, MS

LPOs In Fayetteville, AR And Southaven, MS

7

Pulaski

Pulaski

Background (Continued)

Background (Continued)

Jim East Acquired Controlling Interest In 1973

Jim East Acquired Controlling Interest In 1973

East Family Controls 92% Of Outstanding Shares $491

East Family Controls 92% Of Outstanding Shares $491

Million In Assets And $393 Million In Deposits

Million In Assets And $393 Million In Deposits

2005 Net Income Of $6.3 Million; $2.0 Million YTD 2006

2005 Net Income Of $6.3 Million; $2.0 Million YTD 2006

523 Employees

523 Employees

$6 Million Trust Preferred At Average Cost Of 10.875%

$6 Million Trust Preferred At Average Cost Of 10.875%

Exceptional Asset Quality

Exceptional Asset Quality

Generally Balanced Interest Rate Risk Position

Generally Balanced Interest Rate Risk Position

8

Pulaski Background

Pulaski Background

Financials –

Financials –

Balance Sheet

Balance Sheet

At December 31,

Assets

2001

2002

2003

2004

2005

6/30/06

Cash and deposits

14,970

$      

23,095

$   

15,610

$   

18,115

$   

28,118

$   

19,108

$   

Investment Securities

27,888

62,052

68,663

44,106

76,476

60,399

    Cash and investments

42,858

85,147

84,273

62,221

104,594

79,507

Construction and land loans

36,788

31,854

31,726

48,892

77,293

n.a.

1-4 family mortgage loans

86,790

100,123

71,247

99,935

101,924

n.a.

Multi-family mortgage loans

3,000

2,737

5,871

4,968

9,408

n.a.

Non-residential RE loans

31,039

47,138

64,252

76,241

72,500

n.a.

Commercial business loans

35,934

33,421

31,667

29,555

25,465

n.a.

Consumer loans

74,826

45,487

51,952

61,937

39,724

n.a.

Other adjustments

1,214

1,560

1,194

2,021

6,361

n.a.

Loan loss reserves

(3,009)

(2,890)

(3,041)

(3,359)

(4,345)

n.a.

     Loans receivable, net

266,582

259,430

254,868

320,190

328,330

373,930

Premises and equipment

8,887

10,227

12,634

21,918

23,841

23,319

Real estate owned

793

1,059

979

24

323

71

Investment in subsidiaries

-

-

-

-

-

186

Mortgage servicing rights

5

3

5

71

46

46

Goodwill and intangibles

1,191

967

1,132

1,074

1,135

1,129

Other assets

12,497

11,681

13,496

13,602

13,362

14,523

    Total assets

332,813

$    

368,514

$ 

367,387

$ 

419,100

$ 

471,631

$ 

492,711

$ 

Liabilities and Equity

Deposits

281,309

$    

310,521

$ 

308,213

$ 

318,305

$ 

395,771

$ 

393,041

$ 

Other borrowed money

19,015

17,500

12,191

44,289

20,494

53,029

Other liabilities

5,187

6,256

8,830

21,124

15,345

6,007

    Total liabilities

305,511

334,277

329,234

383,718

431,610

452,077

Preferred stock

-

-

-

-

-

-

Common stock

1,009

1,009

1,009

1,309

1,309

1,309

Retained earnings

20,048

26,424

31,076

34,308

39,132

40,372

Unrealized G/(L) on securities

245

804

68

(235)

(420)

(1,047)

    Total equity

21,302

28,237

32,153

35,382

40,021

40,634

    Total liabilities and equity

332,813

$    

368,514

$ 

367,387

$ 

419,100

$ 

471,631

$ 

492,711

$ 

Memo Items

Tangible equity

20,111

27,270

31,021

34,308

38,886

39,505

Loans serviced for others

0

1,397

2,648

19,176

19,355

n.a.

9

Pulaski Background

Pulaski Background

Financials –

Financials –

Income Statement

Income Statement

Calendar Year Ended December 31,

Quarter Ended

2001

2002

2003

2004

2005

6/30/05

9/30/05

12/31/05

3/31/06

6/30/06

Interest income

25,662

$23,371

$23,542

$21,846

$27,619

$6,771

$7,384

$7,493

$7,346

$8,207

Interest expense

9,183

5,971

4,433

4,229

7,820

1,912

2,197

2,323

2,577

3,128

Net interest income

16,479

17,400

19,109

17,617

19,799

4,859

5,187

5,170

4,769

5,079

Loan loss provision

1,310

400

720

838

1,783

291

372

880

0

0

Net int income after prov

15,169

17,000

18,389

16,779

18,016

4,568

4,815

4,290

4,769

5,079

Total non-interest income

24,470

34,391

37,437

30,941

39,165

8,394

9,100

14,444

7,189

8,767

Operating expenses:

  Compensation & benefits

20,693

24,208

30,031

26,461

29,055

6,977

7,443

8,048

7,022

7,289

  Occupancy expense

4,490

4,253

4,483

4,806

5,954

1,445

1,647

1,457

1,621

1,556

  Goodwill amortization

122

166

6

3

3

1

0

1

1

1

  Other expenses

6,625

8,501

9,054

8,613

11,973

2,795

3,199

3,417

2,265

2,798

Total operating expenses

31,930

37,128

43,574

39,883

46,985

11,218

12,289

12,923

10,909

11,644

Income before taxes

7,709

14,263

12,636

7,837

10,196

1,744

1,626

5,811

1,049

2,202

  Taxes

2,758

5,217

4,515

3,101

3,867

703

628

2,122

414

846

Reported net income

$4,951

$9,046

$8,121

$4,736

$6,329

$1,041

$998

$3,689

$635

$1,356

10

Pulaski Background

Pulaski Background

Financials -

Financials -

Ratios

Ratios

Calendar Year

Quarter Ended

2001

2002

2003

2004

2005

12/31/04

3/31/05

6/30/05

9/30/05

12/31/05

Average assets

308,785

$  

345,358

$  

381,027

$ 

385,116

$

450,129

$ 

419,842

$ 

424,883

$  

441,349

$ 

465,558

$  

468,724

$  

Average equity

20,161

26,141

31,698

33,511

36,191

35,335

35,448

34,416

36,513

38,387

Return on assets (ROA)

1.60%

2.62%

2.13%

1.23%

1.41%

0.85%

0.57%

0.94%

0.86%

3.15%

Return on equity (ROE)

24.56%

34.60%

25.62%

14.13%

17.49%

10.06%

6.78%

12.10%

10.93%

38.44%

Interest-rate spread

5.27%

5.15%

5.11%

4.80%

4.74%

4.74%

4.68%

5.00%

4.51%

4.67%

Net interest margin

6.01%

5.63%

5.45%

5.12%

5.01%

5.06%

5.00%

4.94%

4.99%

5.11%

Efficiency ratio

77.7%

71.4%

77.6%

82.1%

79.7%

85.5%

89.4%

84.6%

86.0%

65.9%

Effective tax rate

35.8%

36.6%

35.7%

39.6%

37.9%

39.9%

40.8%

40.3%

38.6%

36.5%

Net charge-offs/avg. loans

0.30%

0.23%

0.22%

0.18%

0.23%

0.24%

0.17%

0.22%

0.17%

0.36%

Loans 90+ days/gross loans

0.03%

0.02%

0.03%

0.03%

0.04%

0.03%

0.03%

0.02%

0.03%

0.04%

Non-performing assets/assets

0.87%

0.39%

0.35%

0.12%

0.39%

0.12%

0.13%

0.12%

0.21%

0.39%

Loan loss reserves/loans

1.12%

1.10%

1.18%

1.04%

1.31%

1.04%

1.03%

0.99%

1.02%

1.31%

GAAP capital/total assets

6.40%

7.66%

8.75%

8.44%

8.49%

8.44%

8.29%

7.93%

7.89%

8.49%

GAAP tangible capital/assets

6.04%

7.40%

8.44%

8.19%

8.25%

8.19%

8.05%

7.70%

7.66%

8.25%

Leverage ratio

8.10%

8.72%

9.98%

9.68%

9.69%

9.68%

9.62%

9.40%

9.05%

9.69%

Total risk-based capital ratio

11.60%

14.59%

15.25%

13.91%

14.84%

13.91%

13.70%

12.96%

13.05%

14.84%

11

Pulaski Background

Pulaski Background

Financials –

Financials –

Balance Sheet Trends

Balance Sheet Trends

12

Pulaski Background

Pulaski Background

Financials –

Financials –

Income Trends

Income Trends

13

Pulaski Background

Pulaski Background

Financials –

Financials –

Yield/Margin Trends

Yield/Margin Trends

14

Pulaski Background

Pulaski Background

Financials –

Financials –

Asset Quality Trends

Asset Quality Trends

15

Pulaski Background

Pulaski Background

Financials –

Financials –

Loan Composition

Loan Composition

16

Pulaski Background

Pulaski Background

Financials –

Financials –

Funding Composition

Funding Composition

17

Pulaski Background

Pulaski Background

Leadership And Ownership

Leadership And Ownership

Ownership

Class A

Class B

Total

%Total

%Total

(Voting)

(Nonvoting)

(Combined)

(Voting)

(Combined)

Jim East & FLP

107,388

1,724,794

1,832,182

88.4%

75.1%

Hunter East

-

315,577

315,577

0.0%

12.9%

Mark Williamson & FL

6,530

124,070

130,600

5.4%

5.4%

East Family Trust

4,556

86,565

91,121

3.8%

3.7%

All Others

2,940

66,936

69,876

2.4%

2.9%

Total Shares

121,414

2,317,942

2,439,356

100.0%

100.0%

Officers

Current

Officer

Age

Title

Started

Role

Jim East

67

Chairman

1962

1973

Hunter East

42

CEO

1986

2000

Bob Magee

55

President & CFO

1976

2000

Charles Quick

55

Mtg President

1971

1996

Michael Pryor

52

Title Pres. & CEO

1995

1999

18

Arkansas

19

A

Little Rock

B

NW Arkansas

C

Jonesboro

D

Ft. Smith

E

Texarkana

F

Pine Bluff

G

Hot Springs

F

E

D

C

B

A

G

Searcy

W. Memphis

Batesville

Mountain Home

Arkadelphia

El Dorado

Conway

Russellville

Helena

20

AR Metropolitan Markets

21

AR & LA Markets -

Deposits

$17.4

$10.9

$9.3

$6.3

$4.4

$4.0

$3.8

$3.7

$2.5

$2.1

$2.1

$2.0

$1.6

$-

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

$16.0

$18.0

$ Billion Deposits

New Orleans

Little Rock, AR

Baton Rouge

NW Arkansas

Lafayette

Shreveport

Northshore

Ft. Smith, AR

Houma-Thibodaux

Lake Charles

Monroe

Jonesboro, AR

Alexandria

22

AR MSA Population

MSA Population

1.3%

-0.2%

0.9%

0.6%

0.6%

3.1%

1.1%

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

550,000

600,000

650,000

700,000

Little Rock

NW Ark

Ft. Smith

Texarkana

Jonesboro

Pine Bluff

Hot Springs

2002

2003

23

AR Metro Market Comparison

Summary Demographic Data

MSAs With Populations Greater

Than 100,000

State

Total

Population

2005

Pop.

Change

2000-05 (%)

Proj.

Change

2005-10 (%)

Median

HH Income

2005

HH Inc.

Chg 2000-05

(%)

Proj. HH

Inc. Change

2005-10 (%)

1

New Orleans, LA

LA

1,346,180

              2.3

              2.7

$         40,716

              15.3

                15.4

2

Memphis, TN-MS-AR

MS

     1,285,063

              6.6

              7.0

            45,866

              15.8

                15.8

3

Oklahoma City, OK

OK

1,156,464

              5.6

              5.4

            43,940

              19.4

                 18.1

4

Tulsa, OK

OK

901,400

              4.9

              4.3

            45,008

              19.7

                18.2

5

Baton Rouge, LA

LA

745,951

              5.7

              6.1

            42,812

              14.4

                15.1

6

Little Rock-North Little Rock, AR

AR

653,153

              7.0

              7.5

            47,104

              21.0

                22.6

7

Jackson, MS

MS

521,356

              4.9

              5.3

            42,500

              13.8

                 14.7

8

Fayetteville-Springdale-Rogers, AR

AR

402,550

            16.0

            15.7

            43,503

              20.0

                20.8

9

Shreveport-Bossier City, LA

LA

385,145

              2.4

              2.5

            37,838

              14.0

                13.7

10

Fort Smith, AR-OK

AR

282,362

              3.4

              2.4

            37,557

              19.1

                 19.0

11

Gulfport-Biloxi, MS

MS

259,348

              5.3

              5.0

            39,168

              10.8

                 11.3

12

Lafayette, LA

LA

250,607

              4.8

              5.0

            40,338

              13.7

                13.5

13

Lake Charles, LA

LA

200,064

              3.4

              3.4

            40,132

              13.7

                 12.9

14

Houma-Thibodaux, LA

LA

199,943

              2.8

              2.1

            39,588

              12.8

                11.5

15

Monroe, LA

LA

172,452

              1.4

              1.7

            36,036

              13.6

                14.0

16

Pascagoula, MS

MS

158,977

              5.6

              5.0

            42,790

              11.3

                 11.2

17

Alexandria, LA

LA

147,988

              2.0

              0.5

            33,511

              12.4

                 13.0

18

Texarkana, TX-Texarkana, AR

AR

133,498

              2.9

              1.7

            38,691

              19.8

                 19.2

19

Hattiesburg, MS

MS

129,129

              4.3

              4.3

            34,416

              12.1

                 12.6

20

Tupelo, MS

MS

128,479

              2.6

              1.8

            38,292

              11.4

                 11.2

21

Lawton, OK

OK

113,783

             (1.1)

             (0.9)

            39,464

16.2

16.6

22

Jonesboro, AR

AR

113,249

              5.1

              5.4

            37,884

              21.8

                22.3

23

Pine Bluff, AR

AR

106,804

             (0.5)

             (1.1)

            38,099

              21.7

                 22.2

24

Meridian, MS

MS

105,940

             (0.6)

             (0.5)

            32,713

              10.8

                 12.4

25

Hammond, LA

LA

105,107

              4.5

              3.5

            32,939

              12.3

                 12.9

Source: ESRI

24

Arkansas

Arkansas

Large Construction Projects

Large Construction Projects

20 Largest Commercial Projects In Arkansas

Source: Arkansas Business, February 13, 2006

Rank

Project

Location

Region

Valuation

1.

St. Mary's Health of NW Arkansas

Rogers

NW

89.0

$      

2.

Tyson Food Discovery Center

Springdale

NW

50.0

3.

Richard Sheppard Arnold US Courthouse

Little Rock

Central

49.1

4.

Pinnacle Hills Promenade

Rogers

NW

42.0

5.

Mount Magazine Lodge

Logan County

West

32.0

6.

Turtle Creek Mall

Jonesboro

NE

30.5

7.

Aviation Support Facility, AR Nat Guard

N. Little Rock

Central

30.0

8.

ASU Student Union Building

Jonesboro

NE

29.0

9.

300 Third Condominium

Little Rock

Central

29.0

10.

Church at Pinnacle Hills

Rogers

NW

26.0

11.

Medium Security Prison Phase 3

Malvern

Central

26.0

12.

North AR Regional Medical Center Patient Tower

Harrison

NW

25.0

13.

U of A Center For Academic Excellence

Fayetteville

NW

25.0

14.

Van Buren School Addition

Van Buren

West

24.3

15.

Dickey-Stephens Field

N. Little Rock

Central

23.0

16.

Alcoa Exchange Shopping Center

Bryant

Central

22.0

17.

ASU Residential Housing

Jonesboro

NE

20.5

18.

Bentonville High School Phase 2

Bentonville

NW

20.0

19.

NW AR Community College Student Center

Rogers

NW

20.0

20.

Pleasant Grove Apartments

Rogers

NW

20.0

Pulaski Investment Corp.

Pulaski Investment Corp.

Markets & Office Locations

Markets & Office Locations

26

DALLAS

FAYETTEVILLE

ST LOUIS

JONESBORO

LITTLE ROCK

SHREVEPORT

ACADIANA

NEW ORLEANS

BATON ROUGE

MEMPHIS

MONROE

PULASKI

MARKETS

AND OFFICES

Legend

Pulaski Branches

PMC Branches

Lenders Title Branches

First Community Branches

IBERIABANK Branches Under Construction

IBERIABANK Branches

IBERIABANK LPO

27

Saint Louis Metro Area

Kansas City

Memphis

Memphis

Tulsa

Tulsa

Little Rock

Little Rock

Fort Smith

Fort Smith

Springfield

Springfield

Legend

Pulaski Branches

PMC Branches

Lenders Title Branches

First Community Branches

Pocahontas

PULASKI AND POCAHONTAS MARKETS

Little Rock, AR

29

Little Rock, Arkansas

Little Rock, Arkansas

•

Population: 650,000

•

Median HH Income: $47,000

•

MSA Population Grew 7% From

2000 To 2005 And Expected To

Grow 7.5% Through 2010

•

2

nd

Most Diverse Economy In U.S.

(Moody’s)

•

22

nd

Of 200 Best Places in

America for Business and Careers

(Forbes)

•

One Of

50 Hottest Cities Of 2005

For Business Expansion

(Expansion Magazine)

•

MSA Counties:

–

Pulaski

–

Faulkner

–

Grant

–

Lonoke

–

Perry

–

Saline

•

HQs: Alltel, Acxiom,

Dillard's, Stephens, Nuvell

Financial Services

•

University Of Arkansas

Medical School And

Affiliates Have Annual

Economic Impact Of $4.1

Billion

•

Little Rock National Airport

(LIT) -

Arkansas' Largest

Airport, Serving 2.1 million

Passengers Annually.

30

Little Rock Largest Employers

Employer

Product

Employees

1.

State of Arkansas

Government

28,100

2.

Federal Government

Government

9,400

3.

University of Arkansas for Medical Sciences

Education/Medical Services

8,500

4.

Pulaski County Public School Districts

Education

7,868

5.

Baptist Health

Medical Services

7,571

6.

Little Rock Air Force Base

Government

4,500

7.

Acxiom

Data Processing

4,388

8.

St. Vincent Infirmary Medical Center

Medical Services

3,500

9.

Entergy Arkansas

Utility (Electric)

2,881

10.

Central Arkansas Veterans Healthcare System

Medical Services

2,785

11.

Alltel Corp.

Telecommunications

2,734

12.

Arkansas Children’s Hospital

Medical Services

2,503

13.

Dillard’s

Department Store

2,400

14.

Arkansas Blue Cross Blue Shield

Insurance

2,163

15.

University of Arkansas at Little Rock

Education

2,150

16.

AT&T

Utility (Telephone)

1,600

17.

Union Pacific Railroad

Transportation

1,227

18.

Fidelity Information Services

Data Processing

1,000

31

Conway

Conway

Russellville

Russellville

Ward

Ward

Beebe

Beebe

Maumelle

Maumelle

Morrilton

Morrilton

Hot Springs Village

Hot Springs Village

Lonoke

Lonoke

England

England

Hot Springs

Little Rock

Legend

Pulaski Branches

PMC Branches

Lenders Title Branches

LITTLE ROCK: PULASKI OFFICES

32

LITTLE ROCK (2004 MEDIAN HOUSEHOLD INCOME)

33

Little Rock

Little Rock

Area

Area

Deposit

Deposit

Market Share

Market Share

Source: FDIC Data at June 30, 2005

Source: FDIC Data at June 30, 2005

Rank

Institution

Type

Offices

2005 Deps

($000)

2005 Mkt

Share

2004 Deps

($000)

2004 Mkt

Share

Pulaski, AR

1

Bank of America Corp. (NC)

Bank

17

1,358,812

19.7

1,300,958

20.0

2

Regions Financial Corp. (AL)

Bank

21

1,225,131

17.8

1,185,752

18.3

3

Rogers Bancshares Inc. (AR)

Bank

28

828,628

12.0

733,181

11.3

4

Bank of the Ozarks Inc. (AR)

Bank

14

562,598

8.2

508,677

7.8

5

Home Bancshares Inc. (AR)

Bank

19

534,525

7.8

403,411

6.2

6

U.S. Bancorp (MN)

Bank

18

412,019

6.0

464,427

7.2

7

Arvest Bank Group Inc. (AR)

Bank

17

376,963

5.5

408,976

6.3

8

Pulaski Investment Corp. (AR)

Bank

10

328,404

4.8

305,939

4.7

9

OneFinancial Corporation (AR)

Bank

9

251,606

3.7

221,985

3.4

10

First Arkansas Bancshares Inc. (AR)

Bank

8

149,941

2.2

145,567

2.2

11

Arkansas Bankers' Bancorp (AR)

Bank

1

123,507

1.8

177,845

2.7

12

Little Rock Bankshares Inc. (AR)

Bank

4

114,948

1.7

88,846

1.4

13

National Banking Corp. (AR)

Bank

6

106,217

1.5

106,401

1.6

14

Capital Bancshares Inc. (AR)

Bank

2

98,147

1.4

90,192

1.4

15

BancorpSouth Inc. (MS)

Bank

3

96,879

1.4

105,713

1.6

16

Delta Trust and Banking Corp (AR)

Bank

3

81,586

1.2

80,899

1.3

17

State Holding Company (AR)

Bank

7

80,853

1.2

71,594

1.1

18

Simmons First National Corp. (AR)

Bank

7

76,289

1.1

77,024

1.2

19

Centennial Bancshares Inc (AR)

Bank

2

46,576

0.7

-

-

20

First Security Bancorp (AR)

Bank

4

25,280

0.4

NA

NA

21

Acme Holding Company Inc. (AR)

Bank

2

12,646

0.2

13,958

0.2

22

MHBC Investments Lmtd (AR)

Bank

1

7,179

0.1

3,251

0.1

23

Summit Bancorp Inc. (AR)

Bank

2

2,669

0.0

-

-

24

Peoples Home Holding Inc (AR)

Bank

1

-

-

NA

NA

Total For Institutions In Market

206

6,901,403

100.0

6,496,114

100.0

Saline, AR

1

Regions Financial Corp. (AL)

Bank

4

214,175

29.9

232,089

32.6

2

Union Bcshs of Benton Inc. (AR)

Bank

6

171,508

24.0

179,068

25.2

3

Rogers Bancshares Inc. (AR)

Bank

3

73,424

10.3

63,340

8.9

4

Arvest Bank Group Inc. (AR)

Bank

2

69,808

9.8

71,310

10.0

5

MNB Bancshares Inc. (AR)

Bank

3

64,350

9.0

69,223

9.7

6

Bank of the Ozarks Inc. (AR)

Bank

3

46,592

6.5

30,584

4.3

7

Summit Bancorp Inc. (AR)

Bank

2

41,927

5.9

38,456

5.4

8

Rock Bancshares Inc. (AR)

Thrift

1

11,562

1.6

12,465

1.8

9

U.S. Bancorp (MN)

Bank

1

10,201

1.4

8,309

1.2

10

Pulaski Investment Corp. (AR)

Bank

1

9,124

1.3

6,189

0.9

11

Southern State Bancshares Inc (AR)

Bank

1

3,075

0.4

-

-

12

OneFinancial Corporation (AR)

Bank

1

310

0.0

580

0.1

Total For Institutions In Market

28

716,056

100.0

711,613

100.0

34

Northwest, AR

(Fayetteville-Springdale-Rogers)

35

Northwest Arkansas

•

Population: Over 350,000

•

The 6th Fastest Growing

Region In U.S.

•

47% Population Increase

In The 1990s

•

60% Employment Growth

In The Last Decade

•

Unemployment Rate

Among Lowest In U.S.

•

Cities Include:

–

Bentonville

–

Fayetteville

–

Rogers-Lowell

–

Siloam Springs

–

Springdale

www.nwark.org

•

Medium HH Inc: $41,037

•

Unemployment Rate 2.6%

•

Home of University of Arkansas

•

The Presence Of Major

Corporate Leaders Like Wal-

Mart, Tyson Foods, And J.B.

Hunt Attracts Satellite Offices

For Other Large Corporations,

Including IBM And Proctor &

Gamble

36

•

Best Places For Business &

Careers #9 (Forbes, 2006)

•

#8 Hottest Places For Job

Creation (Milken’s, 2005)

•

Featured In "Lifestyle

Magazine", "Southern

Living" and "The Best Towns

in America" -

A Where-To-Go

Guide For A Better Life

•

The Presence Of Major

Corporate Leaders Like Wal-

Mart, Tyson Foods, And J.B.

Hunt Attracts Satellite

Offices For Other Large

Corporations, Including IBM

And Proctor & Gamble

•

Best Places 2005 (Ranked

7th)

•

Top MSA In Income Growth

•

4th

Fastest Job Growth

(Forbes)

•

CNN/Money Magazine

Ranked Best Places To Live

in 2006

•

#3 Best Cities for Doing

Business (Inc. Magazine,

2006)

•

#9 Best Places for Business

(Forbes Magazine, 2006)

Northwest Arkansas

(Continued)

37

Rogers

Harrison

Yellville

Springdale

Greenbrier

Prairie Grove

Mountain Home

Conway

Bentonville

Russellville

Fayetteville

Legend

PMC Branches

Lenders Title Branches

NW ARKANSAS: PULASKI OFFICES

38

§

¨

¦

540

§

¨

¦

540

§

¨

¦

540

Fayetteville

Rogers

Springdale

Bentonville

Bella Vista

NW ARKANSAS (2004 MEDIAN HOUSEHOLD INCOME)

Legend

Pulaski Branches

PMC Branches

Lenders Title Branches

2004 Median Household Income

$80,001 - $250,000

$60,001 - $80,000

$40,001 - $60,000

$25,001 - $40,000

$0 - $25,000

39

Memphis, TN

(Memphis-Germantown-Cordova, TN;

Southaven-Olive Branch-Hernando, MS;

W. Memphis, AR)

40

Memphis, Tennessee

•

County Seat Of Shelby County

•

Population: 680,000

•

Largest City In The State

•

17th

Largest City In The Nation

•

2nd

Largest City In The Southeast

•

$2.3 Billion Tourism Industry

•

3rd

Largest Casino Cluster In U.S.

•

HQs: FedEx, AutoZone, Fred’s Stores

•

153 Major Projects Announced In

2005 Adding 9,500 New Jobs

•

Ranked 16th

Of “50 Hottest Cities”

In

2005 For Relocating Or Expanding

Companies

•

Memphis MSA Population 1,230,000

•

2nd

Largest MSA In Tenn. (41st

In US)

•

Median HH Income: $32,385

•

Tennessee Counties:

–

Shelby

–

Tipton

–

Fayette

•

Mississippi Counties:

–

DeSoto

–

Marshall

–

Tate

–

Tunica

•

Arkansas County:

–

Crittendon

41

Hernando

Hernando

Memphis

Cordova

Germantown

Memphis

Cordova

Hernando

Southhaven

Olive Branch

West Memphis

Legend

Pulaski Branches

PMC Branches

Lenders Title Branches

MEMPHIS: PULASKI OFFICES

42

Memphis

Olive Branch

Southaven

Bartlett

Germantown

Horn Lake

Collierville

§

¨

¦

40

§

¨

¦

55

§

¨

¦

240

§

¨

¦

55

§

¨

¦

40

Legend

Pulaski Branches

PMC Branches

Lenders Title Branches

2004 Median Household Income

$80,001 - $250,000

$60,001 - $80,000

$40,001 - $60,000

$25,001 - $40,000

$0 - $25,000

MEMPHIS (2004 MEDIAN HOUSEHOLD INCOME)

43

Memphis

Memphis

Area

Area

Deposit

Deposit

Market

Market

Share

Share

Source: FDIC Data at June 30, 2005

Source: FDIC Data at June 30, 2005

Rank

Institution

Type

Offices

2005 Deps

($000)

2005 Mkt

Share

2004 Deps

($000)

2004 Mkt

Share

Shelby, TN

1

First Horizon National Corp. (TN)

Bank

50

14,826,455

63.8

9,650,893

42.2

2

Regions Financial Corp. (AL)

Bank

62

3,103,742

13.4

4,622,745

20.2

3

SunTrust Banks Inc. (GA)

Bank

37

1,035,162

4.5

4,611,223

20.2

4

Bank of America Corp. (NC)

Bank

17

762,375

3.3

603,007

2.6

5

Independent Holdings Inc (TN)

Bank

5

400,044

1.7

374,188

1.6

6

West Tennessee Bancshares (TN)

Bank

8

367,595

1.6

339,836

1.5

7

Synovus Financial Corp. (GA)

Bank

7

351,081

1.5

334,533

1.5

8

Trustmark Corp. (MS)

Bank

12

270,316

1.2

267,450

1.2

9

BancorpSouth Inc. (MS)

Bank

8

268,923

1.2

283,743

1.2

10

Cadence Financial Corp. (MS)

Bank

4

220,877

1.0

238,840

1.0

11

Renasant Corp. (MS)

Bank

4

213,732

0.9

185,493

0.8

12

Financial Fedcorp Inc. (TN)

Thrift

1

204,982

0.9

213,669

0.9

13

First Trust Bk for Svgs FSB (TN)

Thrift

2

159,985

0.7

128,259

0.6

14

CIVITAS BankGroup (TN)

Bank

4

136,634

0.6

136,843

0.6

15

Wachovia Corp. (NC)

Bank

6

112,265

0.5

239,346

1.1

16

Tri State Bank of Memphis (TN)

Bank

5

105,083

0.5

118,216

0.5

17

Commercial Holding Co. (TN)

Bank

3

100,833

0.4

109,909

0.5

18

Independent Southern (TN)

Bank

3

98,768

0.4

110,898

0.5

19

First Citizens Bancshares Inc. (TN)

Bank

4

96,129

0.4

72,166

0.3

20

First Alliance Bank (TN)

Bank

2

82,142

0.4

66,458

0.3

21

Security Bncp of TN Inc. (TN)

Bank

2

78,711

0.3

67,477

0.3

22

First Capital Bank (TN)

Bank

1

62,847

0.3

35,123

0.2

23

Paragon National Bank (TN)

Bank

3

51,863

0.2

NA

NA

24

Pulaski Investment Corp. (AR)

Bank

1

44,395

0.2

109

-

25

MemphisFirst Corporation (TN)

Bank

1

23,572

0.1

23,292

0.1

26

Oakland Fincl Services Inc. (TN)

Bank

1

19,902

0.1

19,368

0.1

27

Community Bancshares of MS (MS)

Bank

1

16,619

0.1

NA

NA

28

First South Bancorp Inc. (TN)

Bank

2

14,231

0.1

14,560

0.1

29

Brighton Bancorp Inc. (TN)

Bank

1

12,376

0.1

10,649

0.1

30

Community First Bshrs Inc. (TN)

Bank

1

5,537

0.0

0

-

31

First M & F Corp. (MS)

Bank

3

0

-

NA

NA

Total For Institutions In Market

261

23,247,176

100.0

22,878,293

100.0

44

Dallas, TX

45

Dallas,

Texas

•

2004 Population: 1,210,390

•

9th

Largest City In U.S.

•

3rd

Largest City In Texas

•

Among Nation's 100 Most

Ethnically Diverse

Communities

•

10   Largest Municipalities In

The Nation

•

Least Densely Populated

Major Metropolitan Area In

The World.

•

Ranked Among the 7   Most

Livable Urban Complexes In

The World

•

Fastest Growing Of The Top

36 “Most Livable”

•

Named the “Best City For

Business”

By Fortune

Magazine In 1999

•

Pulaski Mortgage Offices In

Dallas Metro Area:

–

Dallas, Texas

–

Argyle, Texas

•

Median HH Income:

$91,161

–

Bedford, Texas

–

Ardmore, Oklahoma

th

th

th

46

Dallas

Argyle

Bedford

Ardmore

DALLAS, TX

Legend

PMC Branches

OKLAHOMA

47

St. Louis, MO

48

St. Louis, Missouri

•

Total Population: More Than 2.7 Million In Greater St. Louis

–

St. Charles Population: 320,734, 2nd Largest County

•

Nation’s 18th Largest Metropolitan Area With Annual

Household Income Of $47,370

•

Largest Employment Sector Is Manufacturing With Nearly

12% Of Population, Following Retail Trades

•

Forbes

Magazine Ranked St. Louis 27th Out Of 200 Best

Metropolitan Areas For Cost Of Doing Business In 2006

•

Eight St. Louis Companies Are Listed On The Fortune 500,

21 Are Listed On The Fortune 1000

•

Home To Many Of The Nation’s Largest Privately Held

Companies, Including Enterprise Rent –

A –

Car, Edward

Jones And UniGroup

Pulaski has locations in Swansea,

Illinois And St. Charles, Missouri

49

Alton

St. Louis

Swansea

Saint Charles

ST. LOUIS AREA

Legend

PMC Branches

50

Pulaski Businesses

51

Pulaski Businesses

Pulaski Businesses

Pulaski Bank

Pulaski Bank

Subsidiary Of Holding Company

Subsidiary Of Holding Company

11 Offices In Little Rock (8), North Little Rock (2),

11 Offices In Little Rock (8), North Little Rock (2),

And Bryant, AR.  Additionally, Offices In Cordova,

And Bryant, AR.  Additionally, Offices In Cordova,

TN And Germantown (Opening in Late 2006); 5

TN And Germantown (Opening in Late 2006); 5

Offices Leased

Offices Leased

LPOs In Fayetteville, AR And Southaven, MS

LPOs In Fayetteville, AR And Southaven, MS

$85 Million In Construction Loans Outstanding (42%

$85 Million In Construction Loans Outstanding (42%

NW AR, 26% Memphis, 23% Little Rock, And 8%

NW AR, 26% Memphis, 23% Little Rock, And 8%

MS); Total Commitments Of $125 Million

MS); Total Commitments Of $125 Million

Approximately 180 Employees

Approximately 180 Employees

52

Pulaski Businesses

Pulaski Businesses

Pulaski Mortgage Company

Pulaski Mortgage Company

Subsidiary Of Pulaski Bank & Trust

Subsidiary Of Pulaski Bank & Trust

PMC Has One Subsidiary—Bankers Home Lending

PMC Has One Subsidiary—Bankers Home Lending

Operates In The St. Louis Area (Name Conflict)

Operates In The St. Louis Area (Name Conflict)

22 Offices In Arkansas (12), Mississippi (3), Texas

22 Offices In Arkansas (12), Mississippi (3), Texas

(3), Tennessee (2), Missouri, Illinois, And Oklahoma

(3), Tennessee (2), Missouri, Illinois, And Oklahoma

Founded By Jim East’s Father in 1944

Founded By Jim East’s Father in 1944

Approximately 135 Employees

Approximately 135 Employees

Production Of $685 Million And Revenues Of $16

Production Of $685 Million And Revenues Of $16

Million In 2005

Million In 2005

Sell Nearly All Production Into Secondary Market

Sell Nearly All Production Into Secondary Market

2005 Efficiency Ratio Of 83%

2005 Efficiency Ratio Of 83%

53

Pulaski Businesses

Pulaski Businesses

Lenders Title Company

Lenders Title Company

Subsidiary Of Pulaski Bank & Trust

Subsidiary Of Pulaski Bank & Trust

Lenders Has One Subsidiary—Asset Exchange, Inc.

Lenders Has One Subsidiary—Asset Exchange, Inc.

20 Offices, Including 10 In Central Arkansas

20 Offices, Including 10 In Central Arkansas

Founded in 1987

Founded in 1987

Approximately 200 Employees

Approximately 200 Employees

In 2005, Closed 16,400 With Revenues Of $16 Million

In 2005, Closed 16,400 With Revenues Of $16 Million

2005 Efficiency Ratio Of 86%

2005 Efficiency Ratio Of 86%

54

Pulaski Businesses

Pulaski Businesses

Credit Card Business

Credit Card Business

Division Within Pulaski Bank & Trust

Division Within Pulaski Bank & Trust

Entered Credit Card Business In 1994

Entered Credit Card Business In 1994

High Quality National Credit Card Focus;

High Quality National Credit Card Focus;

Processing Nearly 40,000 Applications Annually

Processing Nearly 40,000 Applications Annually

Three Portfolio Sales in 1997 ($19 Million At 20%

Three Portfolio Sales in 1997 ($19 Million At 20%

Premium), 2002 ($34 Million At 19% Premium), And

Premium), 2002 ($34 Million At 19% Premium), And

4Q05 ($34 Million At 17% Premium)

4Q05 ($34 Million At 17% Premium)

2005 Net Charge-Offs/Avg. Receivables Of 1.39%

2005 Net Charge-Offs/Avg. Receivables Of 1.39%

At June 30, 2006, $31 Million In Outstanding

At June 30, 2006, $31 Million In Outstanding

Receivables And 0.39% Delinquencies

Receivables And 0.39% Delinquencies

Approximately 13 Employees

Approximately 13 Employees

55

Pulaski Businesses

Pulaski Businesses

Trust/Investment/Insurance

Trust/Investment/Insurance

Division Within Pulaski Bank & Trust

Division Within Pulaski Bank & Trust

Granted Trust Powers In 1974

Granted Trust Powers In 1974

Affiliation With Raymond James

Affiliation With Raymond James

Offer Clients Annuities, Life Insurance, Mutual

Offer Clients Annuities, Life Insurance, Mutual

Funds, Brokerage, Retirement Planning, And Tax

Funds, Brokerage, Retirement Planning, And Tax

Management

Management

$126 Million In Trust Assets Under Management

$126 Million In Trust Assets Under Management

$69 Million In Brokerage Accounts

$69 Million In Brokerage Accounts

Approximately 8 Employees

Approximately 8 Employees

56

Merger Proposal

Merger Proposal

For

For

Pulaski Investment

Pulaski Investment

Corporation

Corporation

57

Merger Proposal

Merger Proposal

Deal Overview

Deal Overview

Estimated Value Of $130 Million (Assuming $58.60 IBKC Price)

Estimated Value Of $130 Million (Assuming $58.60 IBKC Price)

Consideration:

Consideration:

•

•

50% Stock And 50% Cash Paid To Shareholders

50% Stock And 50% Cash Paid To Shareholders

•

•

Stock Portion Is Half Fixed Exchange (0.2274 Shares), And Half

Stock Portion Is Half Fixed Exchange (0.2274 Shares), And Half

Floating ($13.323 Value Per Share, The Shares Of Which Will Be

Floating ($13.323 Value Per Share, The Shares Of Which Will Be

Based On Future Period 15-Day Trading Average)

Based On Future Period 15-Day Trading Average)

•

•

Anticipate Issuing Combination Of $15 Million Trust Preferred And

Anticipate Issuing Combination Of $15 Million Trust Preferred And

$50-55 Million Equity Raise

$50-55 Million Equity Raise

No Pricing Collars

No Pricing Collars

Customary Walk-Away Provisions (12-Month, Mutual, MAC, Etc.)

Customary Walk-Away Provisions (12-Month, Mutual, MAC, Etc.)

Insiders Sign Support And Affiliate Agreements

Insiders Sign Support And Affiliate Agreements

Five Management Employment Contracts

Five Management Employment Contracts

Board Members Form Little Rock Advisory Board

Board Members Form Little Rock Advisory Board

Lock-Up Fee Of $6.4 Million

Lock-Up Fee Of $6.4 Million

58

Merger Proposal

Merger Proposal

Arkansas Leadership Team

Arkansas Leadership Team

Jim East (Pulaski Chairman) And Hunter East (Pulaski

Jim East (Pulaski Chairman) And Hunter East (Pulaski

CEO) –

CEO) –

3-Year Employment/Consulting Agreements;

3-Year Employment/Consulting Agreements;

Serve In Active Advisory Capacity

Serve In Active Advisory Capacity

Robert Head (IBKC) –

Robert Head (IBKC) –

Arkansas CEO

Arkansas CEO

Bob Magee (Pulaski) –

Bob Magee (Pulaski) –

Arkansas Chief Admin. Officer

Arkansas Chief Admin. Officer

Mike Pryor (Pulaski) –

Mike Pryor (Pulaski) –

CEO-Lenders Title Co.; Teana

CEO-Lenders Title Co.; Teana

Bradford (Pulaski) As Chief Operating Officer-Lenders

Bradford (Pulaski) As Chief Operating Officer-Lenders

Title Company

Title Company

Chuck Quick (Pulaski) –

Chuck Quick (Pulaski) –

CEO-Pulaski Mortgage Co;

CEO-Pulaski Mortgage Co;

David Bryles

David Bryles

(Pulaski) As Chief Operating Officer-

(Pulaski) As Chief Operating Officer-

Pulaski Mortgage Company

Pulaski Mortgage Company

David Doherty (IBKC) –

David Doherty (IBKC) –

Northeast AR Regional President

Northeast AR Regional President

59

Merger Proposal

Merger Proposal

Significant Assumptions

Significant Assumptions

We Estimate Pulaski Will Earn Base Net Income Of

We Estimate Pulaski Will Earn Base Net Income Of

Approximately $5.0 Million In 2007

Approximately $5.0 Million In 2007

Anticipate Minimal Loan And Deposit Run-Off To

Anticipate Minimal Loan And Deposit Run-Off To

Occur Within The First Year, Due To Similar Clients

Occur Within The First Year, Due To Similar Clients

And Underwriting Approach

And Underwriting Approach

Cost Savings Phased In Over 1 Year; Expect

Cost Savings Phased In Over 1 Year; Expect

Combined Cost Savings And Revenue Enhancements

Combined Cost Savings And Revenue Enhancements

Of $7.8 Million (Pre-Tax) Equate To 20% Of Current

Of $7.8 Million (Pre-Tax) Equate To 20% Of Current

Operating Expense

Operating Expense

One-Time Costs Of $12 Million (Some Capitalized)

One-Time Costs Of $12 Million (Some Capitalized)

CDI Assumed To Be $14 Million; 10 Years, SL Basis

CDI Assumed To Be $14 Million; 10 Years, SL Basis

60

Merger Proposal

Merger Proposal

Pulaski Financial Impact

Pulaski Financial Impact

Excluding One-Time Merger-Related Charges, And

Excluding One-Time Merger-Related Charges, And

Assuming Capital Raise At 5% Discount, Project An

Assuming Capital Raise At 5% Discount, Project An

Immaterial Impact On GAAP EPS In 2006; Breakeven Or

Immaterial Impact On GAAP EPS In 2006; Breakeven Or

Slightly Dilutive To 2007 GAAP EPS And Slightly

Slightly Dilutive To 2007 GAAP EPS And Slightly

Accretive To 2007 Cash EPS

Accretive To 2007 Cash EPS

18% Accretive to BVS; 9% Dilutive To Tangible BVS

18% Accretive to BVS; 9% Dilutive To Tangible BVS

Approximately $96 Million Of Net Goodwill Created,

Approximately $96 Million Of Net Goodwill Created,

After Impact Of Estimated Marks

After Impact Of Estimated Marks

No Material Change In Tier 1 Leverage Ratio

No Material Change In Tier 1 Leverage Ratio

Internal Rate Of Return In “Mid-Teens”

Internal Rate Of Return In “Mid-Teens”

Pulaski Shareholders Will Own 8.5% Of Pro Forma

Pulaski Shareholders Will Own 8.5% Of Pro Forma

Combined Shares; Offering Equal To 6.5% Of Shares

Combined Shares; Offering Equal To 6.5% Of Shares

61

Merger Proposal

Merger Proposal

Combined Financial Statements

Combined Financial Statements

IBKC Corp

Pocahontas

Pulaski

Adjustments

IBKC

6/30/2006

6/30/2006

6/30/2006

Pro Forma

Cash

63,295

$          

16,172

$          

19,108

$          

(13,259)

$           

85,316

$          

Securities

619,855

233,264

60,399

(2,250)

911,268

Fed Funds & Rev REPOS

15,550

-

-

-

15,550

Loans & Held for Sale

13,459

3,537

-

-

16,996

Net Loans

1,996,717

425,682

373,930

(5,139)

2,791,190

Premises and Equipment

64,511

16,138

23,319

6,930

110,898

Intangible Assets

100,068

13,441

1,129

134,272

248,910

BOLI

45,644

8,343

-

-

53,987

Other Assets

58,510

16,367

14,826

3,200

92,903

Total Assets

2,977,609

$      

732,944

$        

492,711

$        

123,754

$          

4,327,018

$      

-

$               

Total Deposits

2,368,893

$      

534,755

$        

393,041

$        

818

$                 

3,297,507

$      

Fed Funds & REPOS

82,033

$          

-

$               

4,000

$            

-

$                  

86,033

$          

Debt

206,597

$        

125,077

$        

42,843

$          

2,551

$             

377,068

$        

Trust preferred

37,281

$          

16,978

$          

6,186

$            

16,983

$            

77,428

$          

Other Liabilities

16,423

$          

4,667

$            

6,007

$            

11,486

$            

38,583

$          

Total Liabilities

2,711,227

$      

681,477

$        

452,077

$        

29,088

$            

3,873,869

$      

Total Equity

266,382

$        

51,467

$          

40,634

$          

94,666

$            

453,149

$        

Total Liab & Equity

2,977,609

$      

732,944

$        

492,711

$        

123,754

$          

4,327,018

$      

Leverage Ratio

7.48%

7.37%

9.87%

-0.60%

7.15%

Tier 1 Risk Weighted Ratio

10.23%

11.26%

13.85%

-0.84%

10.53%

Total Risk Weighted Ratio

11.48%

12.51%

13.85%

-0.56%

11.78%

62

Merger Proposal

Merger Proposal

Strategic Impact W/ Pocahontas

Strategic Impact W/ Pocahontas

Enter Arkansas With $1.3 Billion In Assets (Up 45%),

Enter Arkansas With $1.3 Billion In Assets (Up 45%),

$0.9 Billion In Deposits, And $0.8 Billion In Loans

$0.9 Billion In Deposits, And $0.8 Billion In Loans

85 Bank Offices & LPOs In Louisiana (49), Arkansas (32),

85 Bank Offices & LPOs In Louisiana (49), Arkansas (32),

Tennessee (2), Oklahoma (1), And Miss. (1) –

Tennessee (2), Oklahoma (1), And Miss. (1) –

Up 73%

Up 73%

27 Mortgage Offices In Arkansas (11), Louisiana (4),

27 Mortgage Offices In Arkansas (11), Louisiana (4),

Mississippi (3), Texas (3), Tennessee (2), Oklahoma (2),

Mississippi (3), Texas (3), Tennessee (2), Oklahoma (2),

Missouri (1), Illinois (1) –

Missouri (1), Illinois (1) –

A 5-Fold Increase

A 5-Fold Increase

Total 132 Offices In 8 States; Over 1,400 Employees

Total 132 Offices In 8 States; Over 1,400 Employees

Significant Presence Added In Targeted Metropolitan

Significant Presence Added In Targeted Metropolitan

Markets Of Little Rock, Jonesboro, NW Arkansas, And

Markets Of Little Rock, Jonesboro, NW Arkansas, And

Memphis.  Also Added In Growth Markets Of Dallas,

Memphis.  Also Added In Growth Markets Of Dallas,

Tulsa, St. Louis.

Tulsa, St. Louis.

63

Merger Proposal

Merger Proposal

Combined Strategic Impact (Cont.)

Combined Strategic Impact (Cont.)

Combined Mortgage Production of Nearly $1 Billion

Combined Mortgage Production of Nearly $1 Billion

20 Title Insurance Offices –

20 Title Insurance Offices –

AR’s Largest Title Agency

AR’s Largest Title Agency

National Credit Card Operations With $38 Million O/S

National Credit Card Operations With $38 Million O/S

Enter Trust Business With $126 Million AUM; Also Add

Enter Trust Business With $126 Million AUM; Also Add

$69 Million In  Brokerage Accounts

$69 Million In  Brokerage Accounts

No Change From Current Exceptional Asset Quality

No Change From Current Exceptional Asset Quality

Geographic Diversification Into Strong Markets

Geographic Diversification Into Strong Markets

Greater Sources Of Fee Income

Greater Sources Of Fee Income

Pro Forma Market Capitalization Of Nearly $750 Million

Pro Forma Market Capitalization Of Nearly $750 Million

64

Merger Proposal

Merger Proposal

Financial Impact W/ Pocahontas

Financial Impact W/ Pocahontas

Immaterial Impact On GAAP EPS In 2006, Excluding

Immaterial Impact On GAAP EPS In 2006, Excluding

One-Time Merger-Related Costs

One-Time Merger-Related Costs

$0.02 Accretive To 2007 GAAP EPS (+0%)

$0.02 Accretive To 2007 GAAP EPS (+0%)

$0.07 Accretive To 2007 Cash EPS (+2%)

$0.07 Accretive To 2007 Cash EPS (+2%)

$7.44 Accretive to BVS (+27%)

$7.44 Accretive to BVS (+27%)

$1.43 Dilutive To Tangible BVS (-8%)

$1.43 Dilutive To Tangible BVS (-8%)

Tier 1 Leverage Ratio Declines Approximately 31 Bps

Tier 1 Leverage Ratio Declines Approximately 31 Bps

Internal Rate Of Return In “Mid-Teens”

Internal Rate Of Return In “Mid-Teens”

65

Merger Proposal

Merger Proposal

Market Multiples

Market Multiples

Comparative

Comparative

Bank M&A

Bank M&A

Multiples

Multiples

Source: Stifel Nicolaus

Source: Stifel Nicolaus

Nicolaus

Through August 4, 2006

Through August 4, 2006

Market-To-Book = 3.20x

Market-To-Book = 3.20x

Market-To-Tang. Book = 3.29x

Market-To-Tang. Book = 3.29x

Price-To-Earnings = 19.5x

Price-To-Earnings = 19.5x

Core Dep. Premium = 25.8%

Core Dep. Premium = 25.8%

Pulaski

Pulaski

Only

Only

Pulaski &

Pulaski &

Pocahontas

Pocahontas

Market-To-Book = 2.26x

Market-To-Book = 2.26x

Market-To-Tang. Book = 2.68x

Market-To-Tang. Book = 2.68x

Price-To-Earnings = 21.5x

Price-To-Earnings = 21.5x

Core Dep. Premium = 17.0%

Core Dep. Premium = 17.0%

66

Merger Proposal

Merger Proposal

Summary Of Merger

Summary Of Merger

Opportunistic; We Bring Something To The Table

Opportunistic; We Bring Something To The Table

Solid Strategic, Cultural, And Financial Fit

Solid Strategic, Cultural, And Financial Fit

Excellent Returns For Shareholders Of Both

Excellent Returns For Shareholders Of Both

Companies

Companies

Substantial Arkansas Presence

Substantial Arkansas Presence

Excellent Platform For Growth (Over 5 Years)

Excellent Platform For Growth (Over 5 Years)

Some Risk Associated With Mortgage Cycle

Some Risk Associated With Mortgage Cycle

Complementary To Pocahontas Acquisition

Complementary To Pocahontas Acquisition

Our View: Fills In Pieces Of the Puzzle

Our View: Fills In Pieces Of the Puzzle

67