Exhibit 99.2
3Q10 Earnings Conference Call
Supplemental Materials
October 26, 2010
Forward Looking Statements
Safe Harbor
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 and other filings with the SEC.
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Introductory Comments
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Introductory Comments
Summary – Position
Favorable Balance Sheet Composition
Very Balanced; Core Funded; Low C&D Exposure Continued Good Asset Quality; Extraordinary Capital Favorable Interest Rate And Credit Risk Positioning Some of the Highest Capital Ratios of Bank Holding Companies with More Than $5 Billion in Assets Approximately $1.0 Billion in Excess Cash Future Growth Engines in Multiple Markets Strategic Recruiting Continued During The 3rd Quarter Fortunately, We Avoided What Ails The Banking Industry Remain Well Positioned For Future Opportunities
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NASDAQ Traded IBKC Headquarters Lafayette, LA Founded 1887 Market Cap $ 1.4 Billion
Locations 224 (Bank Branches 144)
FTE’s 2,165 Asset Size $ 10.6 Billion Deposits $ 8.3 Billion Loans $ 5.8 Billion Clients 216,000
Corporate Overview 3Q10
Offices
Deposit Market Share as of June 30, 2010 Source: SNL Financial Map Reflects Locations as of October 25, 2010
Arkansas
36 Branches $1.0 bil deposits #12 Rank 33 Non-bank Offices
Tennessee
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| Branches $170 mm deposits #105Rank 1 Non-bank Office |
Florida
43 Branches $3.0 bil deposits #21 Rank 8 Non-bank Offices
Alabama
10 Branches $474 mm deposits #22 Rank 4 Non-bank Offices
Louisiana
51 Branches $3.9 bil deposits #5 Rank 21 Non-bank
Texas
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| Branches $53 mm deposits #462 Rank 4 Non-bank Offices |
Subsidiaries
IBERIABANK
IBERIABANK fsb Lenders Title
Introductory Comments
Strategic Goals & Priorities
Double -Digit Annual EPS Growth ROTE Of 23%—25% Bank Tangible Efficiency < 50% Top Quartile Asset Quality
Develop Memphis, Mobile & Houston
Deepen Share In Little Rock, Baton Rouge, New Orleans, And Shreveport Expand Wealth Management/Financial Advisory Business/Capital Markets Provide Depth For Unusual Opportunities Grind Our Way Through The Credit Cycle
Strategic Goals
18-Month Priorities
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Financial Overview
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Financial Overview
Summary – 3Q10 and 9/30/10
T/E Net Interest Income Down $1mm (-1%)
Credit Quality Statistics Excluding FDIC Covered Assets:
NPA/Assets = 0.81% (0.86% in 2Q10) 30+ Days Past Due = 1.48% (1.90% in 2Q10) Loan Loss Reserve/Loans = 1.43% (1.52% in 2Q10) Net COs/Average Loans = 0.57% (0.57% in 2Q10) Provision = $3mm ($6mm in 2Q10)
$2mm or $0.05 EPS Impact In 3Q10 Related To Additional Impairment On FDIC Covered Assets ($6mm/$0.15 in 2Q10) Gain on Sale of Investments of $4.1mm And $3.5mm Debt Prepayment Penalties One-Time Merger Related Costs = $1.5mm ($3.5mm in 2Q10) EPS = $0.52, Up 58% from 2Q10
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Financial Overview
Favorable Balance Sheet Growth
$8,600 $8,200 $7,800 $7,400 $7,000 Millions) $6,600 $ $6,200 ( $5,800 $5,400 $5,000 Deposits $4,600 $4,200 And $3,800 $3,400 $3,000 Loans $2,600 $2,200 Total $1,800 $1,400 $1,000 $600
3Q10 Results
Loans +$31mm, +1% Deposits +$190mm +2% Loan/Deposits = 70% Equity = +$2mm, +0% Equity/Assets = 12.26% Tier 1 Leverage = 10.81% Div Payout = 65.5% ROA = 0.52% ROE = 4.24% ROTE = 5.64% Efficiency Ratio = 75% Tang Eff. Ratio = 73% BV/Share = $48.37 Tang BV/Share = $38.50
Annual Average Balances Quarterly Averages
9
Financial Overview
Loans At FDIC Institutions
% Change in Loan Balances Since Acquisition Date
2% -3% -8% -13% -18% -23%
Century Loans Orion Loans CapitalSouth Loans
-14% - -16%
-18%
08/21/09 08/31/09 09/10/09 09/20/09 09/30/09 10/10/09 10/20/09 10/30/09 11/09/09 11/19/09 11/29/09 12/09/09 12/19/09 12/29/09 01/08/10 01/18/10 01/28/10 02/07/10 02/17/10 02/27/10 03/09/10 03/19/10 03/29/10 04/08/10 04/18/10 04/28/10 05/08/10 05/18/10 05/28/10 06/07/10 06/17/10 06/27/10 07/07/10 07/17/10
Loans are Gross of Discounts and MVAs 10 data through July 19, 2010
Financial Overview
Core Deposits At FDIC Institutions
% Change in Core Deposits Since Acquisition Date
25% 20% 15% 10% 5% 0% -5% -10% -15% -20%
Century Core Deposits Orion Core Deposits CapitalSouth Core Deposits Sterling Core Deposits
Primarily Public Funds CDs
+19%
-1%
-2%
-9%
08/21/09 08/31/09 09/10/09 09/20/09 09/30/09 10/10/09 10/20/09 10/30/09 11/09/09 11/19/09 11/29/09 12/09/09 12/19/09 12/29/09 01/08/10 01/18/10 01/28/10 02/07/10 02/17/10 02/27/10 03/09/10 03/19/10 03/29/10 04/08/10 04/18/10 04/28/10 05/08/10 05/18/10 05/28/10 06/07/10 06/17/10 06/27/10 07/07/10 07/17/10 07/27/10 08/06/10 08/16/10 08/26/10 09/05/10 09/15/10 09/25/10 10/05/10 10/15/10
Core Deposits Exclude Qwik Rate and Brokered Deposits 11
Deposit data through October 20, 2010
Mortgage Interest Rates
Financial Overview Trends - Mortgage Interest Rate Trend
Rate (%)Weekly Average
9.00% 8.50% 8.00% 7.50% 7.00% 6.50% 6.00% 5.50% 5.00% 4.50% 4.00% 3.50% 3.00%
30-year 15-year 5/1 ARM 1-Year ARM
Conforming Rates Have Fallen Substantial Refi Activity Sales Spreads Remain Favorable Improved Competitive Dynamics In Mortgage Business
Source: Bloomberg
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Jumbo Mortgage Rates
Financial Overview Trends –
Weekly National 30-Year Mortgage Rates
Conforming Jumbo
Subprime Mtg. Market Gone & Alt-A Market Is Stalled Jumbo Spread Has Narrowed Considerably Mix Of FHA/VA & Conforming Product In September, 31% Of Our Production Was FHA/VA And 62% Was Conventional
8.85% 8.60% 8.35% 8.10% 7.85% 7.60% 7.35% 7.10% 6.85% 6.60% 6.35% 6.10% 5.85% 5.60% 5.35% 5.10% 4.85% 4.60% 4.35% 4.10%
Oct-10 Jul-10 Apr-10 Jan-10 Oct-09 Jul-09 Apr-09 Jan-09 Oct-08 Jul-08 Apr-08 Jan-08 Oct-07 Jul-07 Apr-07 Jan-07 Oct-06 Jul-06 Apr-06 Jan-06 Oct-05 Jul-05 Apr-05 Jan-05 Oct-04 Jul-04 Apr-04 Jan-04 Oct-03 Jul-03 Apr-03 Jan-03 Oct-02 Jul-02 Apr-02 Jan-02 Oct-01 Jul-01 Apr-01 Jan-01 Oct-00 Jul-00 Apr-00 Jan-00 Oct-99 Jul-99 Apr-99 Jan-99 Oct-98 Jul-98 Apr-98 Jan-98 Oct-97 Jul-97
?
58 bps 4.85% 4.27%
Source: Bloomberg
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Financial Overview
Mortgage Quarterly Revenues
Mortgage Gains On Sale Of Loans
In 3Q10 Closed $521mm (+18% Vs. 2Q10)
In 3Q10 Sold $466mm (+17% Vs. 2Q10)
Highest Revenue Quarter in Company History
3Q10 Vs. 2Q10: 27% Increase In Mtg. Revenues
$236mm Locked Pipeline on 10/15/10
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Million) ( $ Revenues Mortgage Quarterly
$14.0 $13.0 $12.0 $11.0 $10.0 $9.0 $8.0 $7.0 $6.0 $5.0 $4.0 $3.0 $2.0 $1.0 $-
2003 2004 2005 2006 2007 2008 2009 2010
** Assumes Pulaski’s acquisition of IBERIABANK Mortgage beginning in February 2007
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Financial Overview
Title Insurance Qtrly Revenues
Title Insurance Revenues
Title & Mortgage Footprints Don’t Necessarily Overlap
3Q10: $4.9mm In Revenues (+1% Vs. 2Q10)
Impairment Recorded in 4Q09 Totaling $9.7 mm
New CEO For Title Business On 10/25/10
Million) ( $ Revenues Title Quarterly
$6.5 $6.0 $5.5 $5.0 $4.5 $4.0 $3.5 $3.0 $2.5 $2.0 $1.5 $1.0 $0.5 $-
2003 2004 2005 2006 2007 2008 2009 2010
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
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| Includes United Title in April 2007 ** Includes American Abstract in March 2008 |
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Financial Overview
Quarterly Repricing Schedule
4Q10 1Q11 2Q11 3Q11 4Q11
Cash Equivalents $ 866.6 $— $— $— $ -
1.18% 0.00% 0.00% 0.00% 0.00%
Investments $ 221.4 $ 141.6 $ 117.4 $ 100.2 $ 109.8
3.29% 4.23% 4.16% 4.13% 3.24%
Loans $ 3,205.2 $ 333.8 $ 290.5 $ 262.0 $ 160.4
3.63% 5.12% 5.17% 5.12% 6.01%
Time Deposits $ 677.8 $ 593.4 $ 509.9 $ 398.1 $ 279.6
1.75% 1.72% 1.71% 1.66% 2.31%
Borrowed Funds $ 404.7 $ 25.3 $ 2.9 $ 3.5 $ 1.7
1.01% 3.08% 3.60% 3.71% 3.66%
Includes Sterling Bank Acquisition
Excess Cash Methodically Being Deployed Favorable Repricing Opportunities
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Financial Overview
Interest Rate Simulations
Change In: -200 bp -100 bp Base Case +100 bp +200 bp Blue Chip Forward Curve
Net Interest
Income 1.1% -0.6% 0.0% 5.7% 12.2% - -0.1% 0.1%
Economic
Value of
Equity -5.7% -3.2% 0.0% 3.5% 0.8% 6.8% 3.5%
Includes FDIC Assisted Acquisitions of CapitalSouth, Orion, Century and Sterling
Source: Bancware model, as of September 30, 2010
As Rates Have Fallen And Cash Has Accumulated, Become More Asset Sensitive Degree Is A Function Of The Reaction Of Competitors To Changes In Deposit Pricing Forward Curve Has A Small Positive Impact Over 12 Months
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Financial Overview
Annual Change In Stock Price
Improvement Price Stock Annual
60% 40% 20% 0% - -20% -40% -60%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
58%
27%
45% 47%
16% 13%
-4%
IBKC S&P Banks NASDAQ Banks DJIA S&P 500 Russell 2000
-21%
12% 3%
0%
YTD 2010
Source: Bloomberg as of October 22, 2010
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Financial Overview
Last 12 Months Price Change By Index
IBERIABANK Corporation
S&P Mid-Cap S&P Small-Cap Russell 2000 NASDAQ
Small Cap Banks Russell 3000 Southwest Banks S&P 500 Banks $5B-$10B
Mid Cap Banks NYSE
TARP Participants Banks $1B-$5B
NASDAQ Finl Banks < $250M Midwest Banks NASDAQ Bank Banks < $500M
All Financial Institutions Banks $250M-$500M
KBW Bank S&P Financials S&P Bank Banks $500M-$1B
Micro Cap Banks New England Banks Mid-Atlantic Banks Western Banks Banks Banks > $10B
Large Cap Banks Southeast Banks
-30% -20% -10% 0% 10% 20%
Source: SNL Through October 22, 2010
+18%
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Financial Overview
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| Years Price Change By Index |
IBERIABANK Corporation
S&P Mid-Cap NASDAQ S&P Small-Cap Russell 2000 Russell 3000 S&P 500 NYSE Western Banks Southwest Banks NASDAQ Finl Banks $5B-$10B
NASDAQ Bank New England Banks Small Cap Banks Banks $1B-$5B
All Financial Institutions Banks $500M-$1B
Midwest Banks TARP Participants Mid-Atlantic Banks Banks $250M-$500M
Banks < $500M Banks < $250M Large Cap Banks KBW Bank Banks S&P Financials Banks > $10B
Mid Cap Banks Micro Cap Banks S&P Bank Southeast Banks
-80% -70% -60% -50% -40% -30% -20% -10% 0% 10% 20%
Source: SNL Through October 22, 2010
+13%
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Asset Quality
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Asset Quality
Loan Portfolio Mix
Orion Gross Loans = 13%, Discount = 9%
Century
Gross Loans = 6%, Discount = 3%
Sterling
Gross Loans = 2%, Discount = 1%
Residential 6%
Home Equity
8%
Credit Card 1%
Automobile 0%
Indirect Automobile 4%
Other Consumer 1%
Business 18%
Commercial RE 23%
All Other Loans 2%
CapitalSouth
Gross Loans = 4%, Discount = 1%
Transparent slices indicate loan discounts
% based on gross portfolio – excluding discounts on loans acquired in FDIC-assisted transactions
% $000s % of CRE Loans C&D-IBERIABANK fsb $ 59,401 4% 1% C&D-IBERIABANK 222,217 14% 3% CRE-Owner Occupied 548,978 35% 8% CRE-Non-Owner Occupied 717,384 46% 11% Total Commercial RE $ 1,547,980 100% 23%
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By Dollar Amount ($000) # Of Loans $ Funded % Of Line Average
Funded Committed Committed %Total Funded $ Funded
Construction & Development
Loans (1A)
Lafayette 54,162 66,800 136 24.4% 81% $ 398,248
Community Bank 3,635 3,635 115 1.6% 100% $ 31,607
Baton Rouge 18,471 34,091 48 8.3% 54% $ 384,807
New Orleans 67,782 90,870 69 30.5% 75% $ 982,345
Northshore 13,231 14,320 19 6.0% 92% $ 696,346
Regional Commercial South 17,591 20,318 6 7.9% 87% $ 2,931,785
Shreveport 9,562 15,135 18 4.3% 63% $ 531,206
NE Louisiana 2,995 3,665 40 1.3% 82% $ 74,869
Regional Commercial North 26,403 34,488 8 11.9% 77% $ 3,300,332
Mobile 3,698 6,155 4 1.7% 60% $ 924,565
Mortgage—RIC 4,690 6,224 27 2.1% 75% $ 173,692
Total $ 222,217 $ 295,702 490 100.0% 75% $ 453,505
On 6/30/10 $ 243,191 $ 295,724 509 82% $ 477,782
By Dollar Amount ($000) Number
<100% Complete 100% Complete <100% Complete 100% Complete
Construction & Development
Loans (1A)
Lafayette 9,299 44,863 15 121
Community Bank — 3,635 0 115
Baton Rouge 3,679 14,791 11 37
New Orleans 19,657 48,125 14 55
Northshore 7,328 5,902 4 15
Regional Commercial South 349 17,242 4 2
Shreveport 1,118 8,443 7 11
NE Louisiana 1,080 1,915 4 36
Regional Commercial North 3,749 22,653 3 5
Mobile 843 2,855 1 3
Mortgage—RIC 1,063 3,627 10 17
Total $ 48,165 $ 174,052 73 417
On 6/30/10 $ 52,973 $ 190,217 69 440
By Dollar Amount ($000) Discounts & Reserves % Nonaccrual % Balance
Funded # Of Days Past Due Loans Discounts &
Balance Current 30-59 60-89 > 90 Nonaccrual Reserves
Construction & Development
Loans (1A)
Lafayette 54,162 54,079 12 —— 70 1,128 0.1% 2.08%
Community Bank 3,635 3,597 — 19 — 19 33 0.5% 0.90%
Baton Rouge 18,471 18,471 ———— 278 0.0% 1.51%
New Orleans 67,782 67,769 ——— 13 775 0.0% 1.14%
Northshore 13,231 8,131 ——— 5,100 89 38.5% 0.67%
Regional Commercial South 17,591 17,591 ———— 204 0.0% 1.16%
Shreveport 9,562 9,562 ———— 90 0.0% 0.94%
NE Louisiana 2,995 2,941 ——— 54 24 1.8% 0.81%
Regional Commercial North 26,403 26,403 ———— 679 0.0% 2.57%
Mobile 3,698 3,698 ———— 43
Mortgage—RIC 4,690 2,833 —— 232 1,624 23 34.6% 0.49%
Total $ 222,217 $ 215,074 $ 12 $19 $232 $ 6,880 $ 3,365 3.1% 1.51%
On 6/30/10 $ 243,191 $ 233,104 $ 93 $111 $122 $ 9,761 $ 7,116 4.0% 2.93%
Note: Excludes Covered Loans
Asset Quality
IBERIABANK Builder & Non-Builder C&D Loan Exposure
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Asset Quality
3Q10 Compared To Prior Quarters
($thousands) IBERIABANK IBERIABANK fsb IBERIABANK Corporation
1Q10 2Q10 3Q10 1Q10 2Q10 3Q10 1Q10 2Q10 3Q10
Nonaccruals $ 944,590 $ 847,617 $ 853,299 $ 24,569 $ 22,537 $ 18,054 $ 969,159 $ 870,154 $ 871,353
OREO & Foreclosed 38,706 35,666 44,623 11,436 10,177 12,872 50,142 45,843 57,495
90+ Days Past Due 59,041 111,475 39,442 1,316 2,416 4,151 60,357 113,891 43,593
Nonperforming Assets $ 1,042,337 $ 994,758 $ 937,365 $ 37,321 $ 35,130 $ 35,077 $ 1,079,658 $ 1,029,887 $ 972,441
NPAs/Assets 12.01% 11.52% 10.67% 2.27% 2.11% 2.06% 10.39% 9.93% 9.21%
NPAs/(Loans + OREO) 21.88% 20.73% 19.56% 3.64% 3.49% 3.32% 18.65% 17.74% 16.63%
LLR/Loans 0.93% 1.59% 2.33% 1.98% 2.04% 2.05% 1.11% 1.67% 2.28%
Net Charge-Offs/Loans 0.13% 0.46% 0.34% 1.41% 0.31% 0.48% 0.36% 0.44% 0.36%
Past Dues:
30-89 Days Past Due $ 111,579 $ 115,442 $ 82,059 $ 7,647 $ 3,585 $ 7,727 $ 119,226 $ 119,026 $ 89,786
90+ days Past Due 58,259 111,475 39,442 1,316 2,416 4,151 59,575 113,891 43,593
Nonaccual Loans 944,590 847,617 853,299 24,569 22,537 18,054 969,159 870,154 871,353
Total 30+ Past Dues $ 1,114,428 $ 1,074,533 $ 974,801 $ 33,533 $ 28,537 $ 29,932 $ 1,147,960 $ 1,103,071 $ 1,004,732
% Loans 23.59% 22.56% 20.54% 3.30% 2.86% 2.87% 20.00% 19.15% 17.35%
Loan Mix:
Commercial 61.9% 64.6% 65.7% 69.1% 68.5% 70.3% 63.0% 65.0% 66.2%
Consumer 11.8% 13.3% 14.9% 18.5% 18.9% 17.8% 13.0% 14.3% 15.4%
Mortgage 19.2% 14.9% 13.4% 6.4% 6.6% 6.2% 17.1% 13.6% 12.4%
Business Banking 1.6% 1.6% 1.3% 2.0% 1.9% 1.8% 1.7% 1.7% 1.4%
Indirect 5.5% 5.6% 4.7% 0.0% 0.0% 0.0% 4.5% 4.7% 4.0%
Credit Cards 0.0% 0.0% 0.0% 4.0% 4.1% 3.9% 0.7% 0.7% 0.6%
Total Loans 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Note: Includes FDIC Assisted Acquisitions
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Asset Quality
Loans Past Due + Non-Accruals
Loans Past Due
Loans Past Due 30 Days Or More And Nonaccruing Loans As % Of Loans Outstanding
By Entity: 6/30/09 9/30/09 12/31/09 3/31/10 6/30/10 9/30/10
IBERIABANK (Ex-FDIC Covered Assets)
30+ days past due 0.33% 0.32% 0.58% 0.67% 0.81% 0.32%
Non-accrual 0.47% 0.45% 0.38% 0.94% 0.78% 0.70%
Total Past Due 0.80% 0.77% 0.96% 1.61% 1.59% 1.02%
IBERIABANK fsb
30+ days past due 1.73% 1.09% 1.12% 0.88% 0.60% 1.14%
Non-accrual 1.68% 2.45% 2.78% 2.42% 2.26% 1.73%
Total Past Due 3.41% 3.54% 3.90% 3.30% 2.86% 2.87%
Consolidated (Ex-FDIC Covered Assets)
30+ days past due 0.64% 0.50% 0.72% 0.73% 0.77% 0.52%
Non-accrual 0.74% 0.92% 0.97% 1.31% 1.13% 0.96%
Total Past Due 1.38% 1.42% 1.69% 2.04% 1.90% 1.48%
CapitalSouth Only
30+ days past due 5.78% 5.69% 7.54% 7.83% 7.94%
Non-accrual 18.67% 22.25% 25.23% 23.87% 23.38%
Total Past Due 24.45% 27.94% 32.77% 31.70% 31.32%
Orion Only
30+ days past due 8.72% 4.64% 8.51% 3.59%
Non-accrual 30.37% 36.63% 34.06% 36.26%
Total Past Due 39.09% 41.27% 42.57% 39.85%
Century Only
30+ days past due 6.03% 7.04% 7.58% 3.53%
Non-accrual 30.67% 35.90% 38.31% 40.57%
Total Past Due 36.70% 42.94% 45.89% 44.10%
Sterling Only
30+ days past due 7.31%
Non-accrual 20.08%
Total Past Due 27.39%
Consolidated With FDIC Covered Assets
30+ days past due 1.06% 3.60% 3.09% 3.48% 1.98%
Non-accrual 2.79% 12.70% 14.23% 13.01% 12.95%
Total Past Due 3.85% 16.30% 17.32% 16.49% 14.93%
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Asset Quality
Trends – Entity NPAs & Past Dues
(Dollars in $000s) 3Q09 4Q09 1Q10 2Q10 3Q10 $Chg
9/30/09 12/31/09 3/31/10 6/30/10 9/30/10 Last Qtr.
Nonaccrual IBERIABANK $ 100,649 $ 865,494 $ 944,590 $ 847,617 $ 853,299 $ 5,683
IBERIABANK fsb 22,655 27,947 24,569 22,537 18,054 (4,483)
Consolidated $ 123,304 $ 893,441 $ 969,159 $ 870,153 $ 871,353 $ 1,200
OREO & Foreclosed Assets IBERIABANK $ 11,872 $ 62,811 $ 38,706 $ 35,666 $ 44,623 $ 8,957
IBERIABANK fsb 11,192 11,281 11,436 10,177 12,872 2,695
Consolidated $ 23,065 $ 74,092 $ 50,142 $ 45,843 $ 57,495 $ 11,652
Accruing 90+ Days Past Due IBERIABANK $ 2,047 $ 42,184 $ 59,041 $ 111,475 $ 39,442 $ (72,033)
IBERIABANK fsb 2,651 1,767 1,316 2,416 4,151 1,735
Consolidated $ 4,698 $ 43,952 $ 60,357 $ 113,891 $ 43,593 $ (70,298)
Total NPAs IBERIABANK $ 114,568 $ 970,489 $ 1,042,337 $ 994,758 $ 937,365 $ (57,393)
IBERIABANK fsb 36,498 40,996 37,321 35,130 35,077 (53)
Consolidated $ 151,066 $ 1,011,485 $ 1,079,658 $ 1,029,887 $ 972,441 $ (57,446)
NPAs / Total Assets IBERIABANK 2.34% 12.05% 12.01% 11.52% 10.67%
IBERIABANK fsb 2.43% 2.68% 2.27% 2.11% 2.06%
Consolidated 2.34% 10.43% 10.39% 9.93% 9.21%
30-89 Days Past Due IBERIABANK $ 34,476 $ 199,558 $ 111,579 $ 115,442 $ 82,059 $ (33,383)
IBERIABANK fsb 7,457 9,461 7,647 3,585 7,727 4,143
Consolidated $ 41,933 $ 209,019 $ 119,226 $ 119,026 $ 89,786 $ (29,240)
30-89 Days PDs / Loans IBERIABANK 1.02% 4.18% 2.36% 2.50% 1.73%
IBERIABANK fsb 0.81% 0.94% 0.75% 0.36% 0.74%
Consolidated 0.98% 3.61% 2.08% 2.07% 1.55%
Note: Includes FDIC Assisted Acquisitions
26
Asset Quality
Trends – Entity LLR & Net COs
(Dollars in $000s) 3Q09 4Q09 1Q10 2Q10 3Q10 $Chg
9/30/09 12/31/09 3/31/10 06/30/10 09/30/10 Last Qtr.
Loan Loss Reserve* IBERIABANK $ 31,629 $ 34,431 $ 43,763 $ 75,660 $ 110,578 $ 34,918
IBERIABANK fsb 17,158 21,337 20,112 20,340 21,376 1,036
Consolidated $ 48,787 $ 55,768 $ 63,875 $ 96,000 $ 131,954 $ 35,954
LLR / Total Loans IBERIABANK 0.94% 0.72% 0.93% 1.59% 2.33%
IBERIABANK fsb 1.86% 2.12% 1.98% 2.04% 2.05%
Consolidated 1.13% 0.96% 1.11% 1.67% 2.28%
Net Charge-Offs IBERIABANK $ 8,943 $ 419 $ 1,530 $ 5,351 $ 4,108 $ (1,243)
IBERIABANK fsb 14,041 1,865 3,564 760 1,222 462
Consolidated $ 22,984 $ 2,284 $ 5,094 $ 6,111 $ 5,330 $ (781)
Net COs/Avg Loans IBERIABANK 1.13% 0.04% 0.13% 0.46% 0.34%
IBERIABANK fsb 6.16% 0.78% 1.41% 0.31% 0.48%
Consolidated 2.26% 0.18% 0.36% 0.44% 0.36%
LLR Coverage Of NPAs IBERIABANK 28% 4% 4% 8% 12%
IBERIABANK fsb 47% 52% 54% 58% 61%
Consolidated 32% 6% 6% 9% 14%
* |
| Does not include loan discounts associated with acquisitions. |
Note: Includes FDIC Assisted Acquisitions
27
Asset Quality
Loan Mix And 30 Days+ Past Due
(Dollars in $000s) 3Q09 4Q09 1Q10 2Q10 3Q10 3Q10*
9/31/09 12/31/09 3/31/10 6/30/10 9/30/10 9/30/10
% of Outstandings Commercial 63.1% 62.7% 63.0% 65.0% 66.2% 66.7%
Mortgage 12.6% 17.3% 17.1% 13.6% 12.4% 9.5%
Consumer 14.8% 13.0% 13.0% 14.3% 15.4% 14.4%
Indirect 6.2% 4.5% 4.5% 4.7% 4.0% 6.2%
Business Banking 2.3% 1.7% 1.7% 1.7% 1.4% 2.2%
Credit Cards 1.0% 0.8% 0.7% 0.7% 0.6% 1.0%
Total Loans 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Past Due 30+ Days* Commercial 4.82% 24.62% 21.17% 17.08% 15.99% 1.44%
Mortgage 4.25% 17.52% 16.61% 16.54% 14.28% 1.85%
Consumer 1.82% 9.74% 8.06% 10.96% 16.22% 1.50%
Indirect 1.05% 1.19% 1.01% 0.78% 0.78% 0.78%
Business Banking 1.33% 2.17% 2.73% 2.51% 2.95% 2.95%
Credit Cards 1.20% 1.52% 2.12% 1.71% 1.50% 1.42%
Total Loans 3.95% 19.82% 17.32% 15.01% 14.93% 1.48%
IBERIABANK 4.06% 23.04% 20.21% 17.42% 17.03% 1.02%
IBERIABANK fsb 3.54% 3.90% 3.30% 2.86% 2.87% 2.87%
Consolidated 3.95% 19.82% 17.32% 15.01% 14.93% 1.48%
Includes Non-Accrual Loans
* |
| Excludes FDIC assisted acquisitions |
28
Asset Quality
Loan Loss Reserve
3Q09 4Q09 1Q10 2Q10 3Q10
Net Charge-Offs—legacy $ 22,980 $ 2,283 $ 5,094 $ 5,956 $ 6,123
Loan Growth 5,325 14,326 (501) 354 683
Change In Asset Quality (3,009) (7,350) 8,608 158 (3,548)
Loan Loss Provision—legacy $ 25,295 $ 9,260 $ 13,201 $ 6,468 $ 3,258
Loan Loss Provision—FDIC Acqs. ——— 6,431 1,870
Total Loan Loss Provision $ 25,295 $ 9,260 $ 13,201 $ 12,899 $ 5,128
Net Charge-Offs/Avg. Loans 2.25% 0.18% 0.36% 0.44% 0.36%
Loan Loss Reserve/Loans 1.14% 0.96% 1.11% 1.67% 2.28%
$6.1 Million In Legacy Net Charge -Offs In 3Q10 (0.57% Of Average Loans)
IBERIABANK Franchise
• IBERIABANK Comprises 82% Of Consolidated Loan Portfolio
• Legacy IBERIABANK Credits Performing Very Well • • Classified Assets And NPAs Remain Favorable $2.9 Million Loan Loss Provision In 3Q10 (2Q10 = $12 Million)
IBERIABANK fsb Franchise
• Construction Portfolio Continues To Compress
• Continuing To Aggressively Address Potential Problems • $2.2 Million Loan Loss Provision in 3Q10 (1Q10 = $1 Million)
29
OZRK UCBI WTNY PRSP
BXS CCBG PNFP TRMK HBHC SFNC SBCF
IBKC
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%
4.0%
C&D Loans / Total Loans
SBCF UCBI CCBG WTNY PNFP TRMK
BXS OZRK SFNC HBHC IBKC PRSP
0.00% 2.00% 4.00% 6.00% 8.00% 10.00%
IBKC Including Acquisitions
0.81% 9.21%
NPAs / Total Assets
Asset Quality
C&D Loans And NPAs Compared To Peers
The Lowest Level Of C&D Loan Exposure Compared To Peers
One Of The Lowest Levels Of NPAs Compared To Peers
Source: SNL, using most recent quarterly information
30
Asset Quality
Commercial Real Estate Loan Portfolio
Non-Builder Portfolio CRE
Balance Outstanding
10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000
1 |
| 101 201 301 401 501 601 701 801 901 1001 1101 1201 1301 1401 1501 1601 1701 1801 1901 2001 2101 2201 2301 2401 |
Average = $642,761
CRE Loans Outstanding At September 30, 2010
Excludes covered loans related to FDIC-Assisted Acquisitions
31
Asset Quality
Commercial Real Estate Loan Portfolio
IBERIABANK IBERIABANK TOTAL
fsb
Non-Owner Occupied
Current $ 734.9 $ 175.6 $ 910.5
Past Due 0.5 1.0 1.5
Nonaccrual 7.9 10.6 18.4
Total $ 743.3 $ 187.2 $ 930.5
% Nonaccrual 1.06% 5.64% 1.98%
Owner Occupied
Current $ 482.6 $ 122.6 $ 605.2
Past Due 2.4 4.9 7.3
Nonaccrual 3.4 1.6 5.0
Total $ 488.4 $ 129.1 $ 617.5
% Nonaccrual 0.70% 1.24% 0.81%
Total CRE $ 1,231.7 $ 316.3 $ 1,548.0
% Nonaccrual 0.92% 3.85% 1.52%
Last Qtr (6/30/10) 1.10% 5.10% 1.91%
Non-Owner Occup/Tier 1 Cap. 103% 112% 78%
Note: Includes commercial construction and land development loans
Excludes covered loans related to FDIC-Assisted Acquisitions
32
Asset Quality
Commercial Loan Composition
Groups) Code NACIS (By Classification Industry
RE-Non-Owner Occupied Medical Other RE-Owner Occupied Energy Financial/Insurance Manufacturing Governmental Hospitality Real Estate-Other Heavy/Civil Construction Wholesalers Retail Construction Agriculture Education Households Transport Religious Storage Communications
0% 5% 10% 15% 20%
19% 11% 8% 6% 6% 5% 5% 5% 5% 5% 4% 4% 3% 3% 3% 2% 2% 2% 1% 0% 0%
% Of Commercial Loan Portfolio At 9/30/10
Note: At September 30, 2010; Includes commercial construction and land development loans – excludes Covered Assets
33
Consumer Loan Portfolio
34
Consumer Loan Portfolio
By Product – Score Distribution
Consumer Portfolio—Product Type And Average Score
IBERIABANK IBERIABANK fsb IBERIABANK Corp
Volume Score Volume Score Volume Score
HELOC $ 158 741 $ 33 742 $ 191 741
Home Equity Loans 199 726 125 728 324 727
Unsecured Lines 15 733 2 724 17 733
Unsecured 18 703 10 703 27 703
Other Secured 42 702 13 700 55 702
Indirect Auto 257 720 —— 257 718
Total $ 689 722 $ 183 720 $ 872 722
Consumer Portfolio—Score Distribution By Product
Score Intervals HELOC Equity Loans Unsecured Lines Home Unsecured Secured Other Auto Indirect
800 + 11% 13% 4% 7% 14% 14%
750 — 799 39% 35% 21% 28% 26% 31%
700 — 749 26% 23% 28% 26% 21% 22%
650 — 699 12% 13% 19% 18% 16% 17%
600 — 649 5% 6% 12% 7% 10% 7%
550 — 599 3% 4% 7% 5% 6% 4%
500 — 549 2% 3% 4% 4% 3% 3%
450 — 499 1% 1% 2% 1% 1% 1%
400 — 449 0% 0% 0% 0% 0% 0%
Other 1% 2% 3% 2% 3% 2%
Total 100% 100% 100% 100% 100% 100%
Avg. Score 741 727 733 703 702 720
Excludes Covered Loans from FDIC Acquisitions Note: Excludes Credit Cards
35
Consumer Loan Portfolio—Quarterly Credit Statistics
Loans Past Due As A % of Product Loans
6/30/09 9/30/09 12/31/09 3/31/10 6/30/10 9/30/10
Home Equity Lines of Credit
30 to 59 Days Past Due 0.19% 0.32% 0.57% 0.86% 0.47% 0.24%
60 to 89 Days Past Due 0.14% 0.07% 0.33% 0.14% 0.05% 0.03%
Over 90 Days Past Due 0.19% 0.13% 0.07% 0.14% 0.29% 0.15%
Total 30+ Days Past Due 0.52% 0.51% 0.98% 1.14% 0.80% 0.42%
Net Charge-Offs 0.07% 1.25% 0.35% 0.47% 0.58% 0.87%
Home Equity Term Loans
30 to 59 Days Past Due 0.46% 0.57% 0.85% 1.08% 0.45% 0.28%
60 to 89 Days Past Due 0.17% 0.20% 0.22% 0.18% 0.24% 0.16%
Over 90 Days Past Due 0.28% 0.21% 0.32% 0.19% 0.13% 0.31%
Total 30+ Days Past Due 0.91% 0.98% 1.38% 1.45% 0.82% 0.75%
Net Charge-Offs 0.18% 0.81% 0.08% 0.46% 0.93% 0.21%
Indirect Loans
30 to 59 Days Past Due 0.49% 0.51% 0.64% 0.49% 0.30% 0.34%
60 to 89 Days Past Due 0.19% 0.16% 0.10% 0.07% 0.08% 0.09%
Over 90 Days Past Due 0.07% 0.06% 0.09% 0.07% 0.03% 0.03%
Non Accrual 0.32% 0.36% 0.39% 0.40% 0.39% 0.35%
Total 30+ Days Past Due 1.08% 1.08% 1.23% 1.04% 0.80% 0.81%
Net Charge-Offs 0.42% 0.54% 0.43% 0.31% 0.39% 0.13%
Credit Card Loans
30 to 59 Days Past Due 0.42% 0.32% 0.40% 0.37% 0.37% 0.35%
60 to 89 Days Past Due 0.18% 0.24% 0.30% 0.48% 0.21% 0.21%
Over 90 Days Past Due 0.72% 0.64% 0.54% 0.00% 0.00% 0.00%
Total 30+ Days Past Due 1.32% 1.20% 1.24% 0.85% 0.58% 0.56%
Net Charge-Offs 4.31% 2.48% 2.63% 3.03% 3.03% 2.16%
Other Consumer Loans
30 to 59 Days Past Due 0.70% 0.47% 0.83% 0.58% 0.42% 0.48%
60 to 89 Days Past Due 0.13% 0.33% 0.75% 0.25% 0.21% 0.10%
Over 90 Days Past Due 0.23% 0.36% 0.35% 0.45% 0.10% 0.04%
Total 30+ Days Past Due 1.07% 1.15% 1.94% 1.28% 0.73% 0.62%
Net Charge-Offs 1.40% 3.35% 1.54% 2.57% 1.45% 2.11%
Consumer Loan Portfolio
Past Dues By Product
Generally Good And Stable Asset Quality Across Consumer Products
Excludes Covered Loans from FDIC Acquisitions
36
Consumer Loan Portfolio
By Product – Origination Mix
Originations—Product Total %
Production Quarterly Of %
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
1Q07 3Q07 1Q08 3Q08 1Q09 3Q09 1Q10 3Q10
9%
18%
44%
28%
Quarter
Home Equity 2nd Home Equity 1st HELOC 2nd HELOC 1st
37
Consumer Loan Portfolio
By Product – Loan -To-Values
Loan-to-Values At Time Of Origination
- Value—to Loan % Production
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
77% 76%
56%
48%
HELOC 1st HELOC 2nd Home Equity 1st Home Equity 2nd
Quarter
38
Consumer Loan Portfolio
Indirect – 30+ Days Past Dues
Indirect Lending Portfolio
Loans Past Due 30 Days Or More
More Or Days 30 Due Past Loans %
2.40% 2.20% 2.00% 1.80% 1.60% 1.40% 1.20% 1.00% 0.80% 0.60% 0.40% 0.20% 0.00%
Month
.44%
39
Consumer Loan Portfolio
Indirect – Net Charge -Offs
Indirect Lending Portfolio
Annualized Net Chargeoffs Per Month
Chargeoffs Net Annualized %
1.40% 1.20% 1.00% 0.80% 0.60% 0.40% 0.20% 0.00%
.11%
Month
40
STERLING BANK ACQUISITION July 23, 2010
STERLING BANK Southeast Florida
Six branches in the Miami-Ft. Lauderdale -Pompano Beach-Homestead MSA in Florida. Total Deposits at June 30, 2009 were $316 million with the 50th highest ranking and a 0.21% deposit market share in the state.
IBERIABANK holds the 52nd ranking with 4 branches, $280 million and a 0.18% market share in the MSA. A Pro Forma combination results in IBERIABANK having the 20th deposit rank with 42 branches and $3.0 billion deposits on a pro forma basis.
42
Florida State Chartered Bank Headquartered In Lantana, Florida.
Established In 1987.
Franchise With Six Full-Service Offices Serving The Miami-Ft. Lauderdale -Pompano Beach-Homestead MSA.
At June 30, 2010—$354 Million In Assets, $225 Million In Loans And $330 Million In Deposits.
NPA/Assets = 10.84%, Texas Ratio = 690%.
64 FTE Employees.
June 10, 2010 – Issued Prompt Corrective Action Agreement With Federal Reserve.
STERLING BANK Transaction
?Assumed $151 Million of Loans After Discounts.
?Loans And OREO Covered By FDIC Loss Share Agreements. ?Investment Securities of $54 Million. ?$287 Million Of Deposits Assumed. ?FDIC Has Granted IBKC A 90-Day Option To Purchase At Fair Market Value Premises, Furniture, Fixtures and Equipment and Assume Leases Associated with 6 Office Locations.
?Successful Operating System Conversion—October 17, 2010.
43
STERLING BANK Financial History
(Dollars in Thousands) 12/31/05 12/31/06 12/31/07 12/31/08 12/31/09 3/31/10
Total Assets 317,421 372,230 390,287 399,781 385,307 406,543
Total Securities 18,262 32,186 36,590 50,489 53,267 71,374
Total Loans & Leases 281,670 317,888 325,235 289,294 257,004 245,625
Total Deposits 262,660 291,120 313,112 339,891 344,267 372,428
Total Equity 25,890 33,035 34,394 28,922 10,459 3,770
Loans/ Assets (%) 88.74 85.40 83.33 72.36 66.70 60.42
Loans/Deposits (%) 107.24 109.19 103.87 85.11 74.65 65.95
Equity Cap/ Total Assets (%) 8.16 8.87 8.81 7.23 2.71 0.93
Tang Common Eq/ Tang Assets (%) 8.15 8.87 8.80 7.23 2.71 0.92
Leverage Ratio (%) 8.47 9.16 8.65 7.40 3.78 1.77
Interest Income 20,065 29,567 30,316 24,030 17,506 3,852
Interest Expense 6,523 11,957 14,422 12,762 10,250 2,119
Net Interest Income (FTE) 13,542 17,610 15,894 11,268 7,256 1,733
Loan Loss Provisions 866 540 1,900 12,831 14,266 4,487
Total Noninterest Income 1,790 1,808 1,455 1,091 631 568
Realized Sec Gns/(Loss) (41) - 87 595 (2,216) (704)
Total Noninterest Expense 6,984 8,138 8,206 10,004 10,333 2,587
Net Income - Pre Tax 7,441 10,740 7,330 (9,881) (18,928) (5,477)
Net Income - After Tax 7,441 10,740 7,330 (9,881) (18,928) (5,477)
44
Source: SNL Financial
STERLING BANK Branches
1189 Hypoloxo Rd – Lantana
2764 So Congress Ave –Palm Springs
900 SE 6th Ave – Delray Beach
119 South State Rd 7 – Royal Palm Beach
45
STERLING BANK Branches
1201 S. Andrews Ave – Ft. Lauderdale
2465 Wilton Dr – Wilton Manors
1101 N Congress Ave -Boynton Beach FL 33426
• Current Sterling Bank Lantana Location Will Be Relocated To This Boynton Beach, Florida Branch in January, 2011.
46
Markets
47
Markets – Local Economies
Unemployment – vs. U.S. MSAs
Ranking 372 U.S. MSAs August 2010 Unemployment Rates (Red)
Dashed: Feb 2010, Dec-2009
Consistently Low Rates Of Unemploy -ment In Our Legacy MSAs
Many Of Our Legacy Markets Not Dependent On Housing For Growth
Assets In FDIC-Assisted Acquisition Markets Are Protected Under Loss-Share Agreements
Source: U.S. Department of Labor, Bureau of Labor Statistics
#350 Cape Coral, FL 13.7% #349 Naples, FL 13.6% #340 Punta Gorda, FL 13.0% #336 Miami, FL 12.8% #331 Tampa, FL 12.6% #330 Bradenton, FL 12.5% #314 Jacksonville, FL 11.9% #263 Mobile, AL 10.2% #234 Memphis, TN 9.6% #200 Montgomery, AL 9.1% #187 Birmingham, AL 8.9% #170 Houston, TX 8.2%
#164 Monroe, LA 8.2%
U.S. Avg = 9.5%
Aug - 2010 Feb - 2010 Dec - 2009
#145 Baton Rouge, LA 8.2% #136 New Orleans, LA 8.1% #109 Alexandria,LA 7.8% #105 Shreveport, LA 7.7% #92 Lake Charles, LA 7.6% #74 Jonesboro, AR 7.3% #68 Huntsville, AL 7.2% #65 Little Rock, AR 7.1% #45 Lafayette, LA 6.6% #39 NW AR 6.5% #21 Houma, LA 5.6%
Markets – Local Economies
Freddie Mac – Regional Prices
FHLMC, “Home Values Rise in Second Quarter” August 30, 2010
Last 5-Year
Housing
Price Last 12 2Q10 vs.
Region States Included Change Months 1Q10
Pacific CA, OR, WA, HI, AK -14.7% 4.2% 13.1%
West South Central LA, AR, TX, OK 16.6% 1.2% 11.4%
Middle Atlantic NY, NJ, PA 7.1% 1.0% 2.6%
West North Central IA, KS, MN, MO, ND, NE, SD 0.7% 0.0% 17.9%
East South Central TN, AL, MS, KY 8.8% -1.0% 11.8%
New England CT, MA, ME, NH, RI, VT -9.0% -1.6% 5.3%
East North Central IL, IN, MI, OH, WI -7.4% -1.7% 21.2%
South Atlantic NC, SC, FL, GA, VA, MD, WV, DC, DE -5.8% -2.6% 15.1%
Mountain AZ, CO, ID, MT, NM, NV, UT, WY -5.2% -3.8% 15.9%
United States -3.3% -0.2% -13.2%
Source: Freddie Mac
49
Markets – Local Economies
Housing Price Change Vs. U.S. MSAs
15.0% 10.0% 5.0%
0.0%
-4.4%
-5.0% -10.0% -15.0% -20.0% -25.0% -30.0% -35.0% -40.0%
#3 Jonesboro +4.1%% #8 Houma +2.4%
#26 Houston +0.9% #90 Baton Rouge -1.1% #29 Huntsville +0.2% #91 Lafayette -2.2% #30 Little Rock +0.7% #121 Shreveport -2.0% # 49 Monroe +0.0% #132 Lake Charles -2.4% #186 Alexandria -3.5%
#217 Montgomery -4.6%
#235#241 NewMemphis Orleans -5.0% -5.2% #262 Birmingham -5.9% #295 W. Palm Beach -7.0% #321 Mobile -8.2% #324 NW Arkansas -8.3% #344 Bradenton -Sarasota -10.2% #353 Tampa -11.5% #357 Jacksonville -11.6%
#361 Naples-Marco Island -15.0% #364 Fort Myers -13.7%
2Q10 1Q10 4Q09 3Q09
Source: Freddie Mac, 2Q10 Data
50
Markets – Local Economies
House Price Decline Probability
2 |
| Next Over Decline Price Housing Years Of Probablity % |
Local Housing Prices Did Not Escalate Rapidly, So Little House Price “Snap-Back”
According To PMI, Our Legacy Markets Have Some Of The Lowest Probabilities To Exhibit Housing Price Declines Over Next 2 Years
Little Rock, AR 1.7% Jonesboro, AR 1.7%
Lake Charles, LA 11.% Huntsville, AL 11.3% Monroe, LA 14.3% Shreveport, LA 15.9% Lafayette, LA 16.3% Tulsa, OK 16.7% Memphis, TN 17.5%
Alexandria, LA 32.3% Houston, TX 41.3% Baton Rouge, LA 41.6% Mobile, AL 43.6%
Jacksonville, FL 99.9% Bradenton, FL 99.9% Cape Coral, FL 99.9% Naples, FL 99.9% Tampa, FL 99.9% W. Palm Beach, FL 99.9%
New Orleans, LA 20.8% NW Arkansas, 21.9% Birmingham, AL 23.2%
1Q10 4Q09 3Q09 2Q09
Source: PMI Economic Real Estate Trends
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
1 |
| 13 25 37 49 61 73 85 97 109 121 133 145 157 169 181 193 205 217 229 241 253 265 277 289 301 313 325 337 349 361 373 |
51
Markets -Local Economies
IBKC Market Demographics
MSA
IBKC
Market
Rank
IBKC Offices
IBKC
Deposits
IBKC Dep
Mkt. Share
(% )
Percent of
IBKC
Franchise
Market
Population
Population
Change
2000-09
(% )
Projected Population Change 2009-14
(% )
Median
HH
Income
2009
($)
HH Income Change 2000-09
(% )
Projected
HH Income
Change
2009-14
(% )
FLORIDA
North Port-Bradenton-Sarasota, FL 4 13 942,036 5.55 10.85 712,761 20.82 4.06 51,943 27.68 10.66
Naples-Marco Island, FL 4 7 824,574 7.46 9.50 332,156 32.13 5.99 62,368 28.82 11.33
Miami-Fort Lauderdale-Pompano Beach-Hom 30 10 758,759 0.48 8.74 5,513,060 10.09 1.37 51,835 28.66 13.46
Key West, FL 5 5 197,375 8.74 2.27 73,868 (7.19) (4.68) 53,763 25.83 10.94
Cape Coral-Fort Myers, FL 15 4 197,292 1.69 2.27 628,829 42.63 8.17 51,699 28.21 10.86
Jacksonville, FL 30 3 80,159 0.18 0.92 1,389,042 23.72 7.08 54,392 27.54 11.94
LOUISIANA
Lafayette, LA 1 13 1,294,043 24.87 14.90 263,368 10.16 4.27 40,904 15.26 8.20
New Iberia, LA 1 4 825,934 48.14 9.51 75,402 2.92 0.17 35,185 13.27 7.36
New Orleans-Metairie-Kenner, LA 8 12 706,559 2.53 8.14 1,187,772 (9.78) 8.77 42,621 20.67 6.36
Baton Rouge, LA 6 4 344,194 2.24 3.96 789,682 11.86 4.80 42,872 14.54 7.08
Monroe, LA 3 7 318,375 11.65 3.67 174,353 2.53 1.13 35,606 12.22 10.11
Shreveport-Bossier City, LA 7 2 202,919 3.42 2.34 394,961 5.05 1.61 37,988 14.48 8.83
Ruston, LA 3 2 99,879 9.35 1.15 57,874 (0.06) (0.30) 30,621 11.16 4.98
Crowley, LA 4 2 55,324 7.29 0.64 60,988 3.61 0.49 29,921 12.20 4.42
Abbeville, LA 9 2 47,411 5.48 0.55 56,867 5.69 1.46 31,930 8.45 6.64
Bastrop, LA 6 2 18,964 7.19 0.22 28,799 (7.16) (3.98) 27,955 11.26 5.29
Houma-Bayou Cane-Thibodaux, LA 14 1 14,864 0.37 0.17 204,128 4.96 0.46 39,560 12.74 9.36
ARKANSAS
Little Rock-North Little Rock-Conway, AR 9 11 439,589 3.25 5.06 694,164 13.70 5.87 51,146 31.38 13.27
Jonesboro, AR 3 6 215,850 8.60 2.49 119,895 11.26 6.02 39,890 28.23 16.63
Fayetteville-Springdale-Rogers, AR-MO 18 8 121,448 1.62 1.40 461,723 33.04 10.17 48,929 35.01 9.83
Paragould, AR 9 1 8,933 1.25 0.10 41,398 10.89 4.05 39,063 26.62 15.16
TENNESSEE
Memphis, TN-MS-AR 25 2 170,942 0.77 1.97 1,325,833 10.01 4.28 51,618 30.32 11.85
TEXAS
Houston-Sugar Land-Baytown, TX 85 2 52,825 0.04 0.61 6,017,013 27.60 10.46 58,086 30.07 14.35
ALABAMA
Birmingham-Hoover, AL 13 3 249,344 0.90 2.87 1,133,874 7.76 3.39 45,636 20.09 6.12
Montgomery, AL 13 2 86,103 1.47 0.99 372,902 7.61 3.06 44,338 19.12 8.45
Mobile, AL 11 1 70,134 1.18 0.81 410,234 2.60 1.01 39,492 17.15 9.17
Huntsville, AL 17 2 67,999 0.94 0.78 407,958 19.15 9.36 51,241 18.68 7.69
Aggregate: National 96.88 311,212,863 10.59 3.85 54,442 29.12 12.39
Source: SNL Financial
52
Markets – Local Economies
IBKC Office Optimization
1999 Through 2005
Entered 3 New Markets Acquired 12 Offices (All) Closed/Consolidated 18 Offices (All Types) Opened 10 New Bank Offices Opened 7 Mortgage Offices Divested/Sold 1 Office 5 Office Realignments
Since 2005
Entered 26 New Markets Acquired 138 Offices (All) Closed/Consolidated 29 Offices (All Types) Opened 19 New Bank Offices Opened 22 Mortgage Offices Opened 1 Title Office 11 Office Realignments
53
Markets – Local Economies
Oil & Gas Impact
$ mcf) Hub, (Henry Gas Natural
Natural Gas $16.00
$14.00 $12.00 $10.00 $8.00 $6.00 $4.00 $2.00 $-
Natural Gas (Left Scale) Crude Oil (Right Scale)
Crude Oil
$160.00
$140.00
$120.00
$100.00
$82.62
$80.00
$60.00
$40.00
$3.40
$20.00
$-
91 - 91 - 92 92 - 93 - 94 - 94 - 95 - 96 - 96 97 - 98 - 98 99 - 99 - 00 01 - - 01 02 - 03 - 03 - 04 04 - 05 - - 06 06 - 07 - - 08 - 08 - 09 10 10 -
- - - - -Jan p y g Oct y Jan g pr Jul Oct p y g Jul Oct y Jan p Se Ma Dec Au Mar Nov Jun Feb Ma Au A Dec Mar Jun Jan Se Ma Dec Au Mar Nov Feb Ma Se
Crude Oil Average = $37.77
Natural Gas Average = $4.04
Barrel) Per $ (WTI, Oil Crude
Source: Bloomberg
54
Summary Of IBKC
Industry Operating Environment - Challenging
Housing
Credit Risk Interest Rate Risk Operations Risk
We Tend To Move “Ahead Of The Curve” Focus On Long-Term Investments & Payback Organic And External Growth Expense Controls And Revenue Growth EPS/Stock Price Linkage - Shareholder Focus Favorable Risk/Return Compared To Peers
55
Loss Share Accounting Example
56
Loss Share Example
Pool Assumptions
$20 Million Loan Portfolio Split Into 5 Pools
Original Discounts - $8 Million (Estimated Losses = 40%)
Original Loan Balance Discount
Pool 1 Pool 2 Pool 3 Pool 4 Pool 5
$2,500,000 $2,500,000 $5,000,000 $9,000,000 $1,000,000 $500,000 $1,000,000 $3,500,000 $2,700,000 $300,000
57
Loss Share Example
Loss Within A Pool
Impairment in Pool 5
• New Estimated Loss is $500,000
• Original Assigned Discount in Pool is $300,000
• Results in $200,000 of Additional Impairment
Accounting Entries:
• Increase Provision Expense = $40,000
• Increase Indemnification Asset = $160,000
• Increase Loan Loss Reserve = $200,000
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Loss Share Example
Loan Improvement
Improvement in Pool 1
• New Estimated Loss is $300,000
• Original Assigned Discount in Pool is $500,000
• Results in $200,000 of Future Interest Income.
• The $200,000 of Future Interest Income will be Recognized Over the Remaining Life of the Pool Using the Discounted Cash Flow Method.
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Loss Share Example
Consolidated Impact
Quarterly Credit Adjustments
Additional Impairment on Pool 5 $ (200,000) Improvement - Less Losses on Pool 1 $200,000 Net Change in Credit Expectations $0 Quarterly Accounting - Income Statement Provision Expense $ (40,000) Income Reclass 1 $ -Net Impact $ (40,000)
Quarterly Accounting - Balance Sheet
Loan Loss Reserve $200,000 Indemnification Asset $ 160,000
1) Under an 80/20 loss share with the FDIC, the $200,000 in improvement will result in approximately $40,000 in additional interest income recognized over the life of the pool and starting in the following quarter.
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