(dollars in thousands) 2002 2001 2000 Cash Flows from Operating Activities Net income $ 18,453 $ 14,508  $ 12,975  Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 3,872  6,440  6,615  Provision for loan losses 6,197 5,046  3,861  Noncash compensation expense 2,217 1,717  1,320  Gain on sale of assets (391) (256)(2,047) Loss (gain) on sale of investments 42 (119)1,759 Amortization of premium/discount on investments 2,491 722  290  Current provision for deferred income taxes (678) 107  (71) Net change in loans held for sale 7,184 (12,520)1,424 Other operating activities, net (2,651) (13,891)(2,183) Net Cash Provided by Operating Activities 36,736 1,754  23,943  Cash Flows from Investing Activities Proceeds from sales of securities available for sale 26,288  118,851  43,706  Proceeds from maturities, prepayments and calls of securities available for sale 162,094 56,601  37,155  Purchases of securities available for sale (278,370) (122,332)(43,744) Proceeds from maturities, prepayments and calls of securities held to maturity 48,096 20,212  9,013  Purchases of securities held to maturity (4,855) (46,277)– Increase in loans receivable, net (100,122) (26,875)(101,513) Proceeds from sale of premises and equipment 160 1,181  4,875  Purchases of premises and equipment (1,582) (1,256)(1,061) Proceeds from disposition of real estate owned  4,304 1,579  1,279  Cash paid in excess of cash received on branch sale (5,999) – – Other investing activities, net (4,101) 2,674  (594) Net Cash (Used in) Provided by Investing Activities (154,087) 4,358  (50,884) Cash Flows from Financing Activities Increase in deposits 16,969  94,207  43,173  Net change in short-term borrowings 84,464  (41,661)(29,000) Proceeds from long-term debt 52,000 – 16,650  Repayments of long-term debt (7,979) (29,406)(7,860) Dividends paid to shareholders (4,066) (3,981)(3,817) Proceeds from sale of treasury stock for stock options exercised 701 283  – Payments to repurchase common stock  (12,644) (8,414)(5,377) Net Cash Provided by Financing Activities 129,445  11,028  13,769  Net Increase (Decrease) In Cash and Cash Equivalents 12,094  17,140  (13,172) Cash and Cash Equivalents at Beginning of Period 51,681 34,541  47,713  Cash and Cash Equivalents at End of Period $ 63,775  $ 51,681  $ 34,541  Supplemental Schedule of Noncash Activities Acquisition of real estate in settlement of loans $ 1,550  $ 7,217  $ 1,495  Exercise of stock options with payment in company stock $ 495  $ 521  $ – Supplemental Disclosures Cash paid for: Interest on deposits and borrowings $ 29,170 $ 47,369  $ 52,634  Income taxes, net $  8,825 $ 8,350  $ 7,081  IBERIABANK CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2002, 2001 AND 2000 The accompanying Notes to Consolidated Financial Statements are an integral part of these Financial Statements. 38