Company typically retains mortgage loans associated with private banking clients. The potential for continued production appeared strong as indicated by the pipeline at the end of 2002. The pipeline in December 2002 was the 3rd highest month in the Company’s history at nearly $43 million. External growth was also evident during 2002. Over the last few years, many acquisition opportunities have been presented to us. For various reasons, the vast majority of these opportunities did not fit the risk/return profile of our company or the cultural fit of the merger partner was not consistent with the culture of our organization. Our patience paid off with the announcement on September 23, 2002, of our intention to acquire Acadiana Bancshares,  Inc.  (“Acadiana”),  the holding company for LBA Savings Bank (“LBA”), in Lafayette, Louisiana. We believe the cultural fit of our respective organizations is outstanding. In addition, we believe the financial and strategic implications of the acquisition are compelling for the shareholders of both companies. At December 31, 2002, Acadiana had $306 million in assets, $206 million in deposits and $29 million in equity. LBA has five offices serving Lafayette and New Iberia. Our company had offices within a mile of every one of LBA’s branches. We projected cost savings totaling approximately one-half of the expense structure of Acadiana at the time of the announcement. Based on the most recent deposit market share data available, as of June 30, 2002, IBERIABANK has moved to the number one market position, in what we collectively refer to as the Acadiana region (including Lafayette, Iberia, Acadia, St. Martin and Vermilion Parishes). Based on deposits within the State of Louisiana, IBERIABANK also has the fifth largest market share of financial institutions in the state. Private banking initiatives made tremendous headway during 2002. Top private bankers were hired during 2002 and early 2003 in Lafayette and New Orleans. By the end of 2002, total private banking mortgage loans were approximately $29 million, or 3% of total loans outstanding. We anticipate additional growth in this category in 2003. The Company commenced various fee initiatives during 2002. These initiatives included new commercial and retail fee programs, waived service fees and modification of fee structures. These programs demonstrated tremendous success during the year, as service charge income increased 24% in 2002 compared to 2001. Additional fee schedule enhancements are anticipated to become effective during 2003. Between December 31, 2001 and December 31, 2002, the market price of IBERIABANK Corporation’s common stock climbed 45%, from $27.72 to $40.16 per share. By comparison over this same period, the S&P 500 Index plummeted 23%, the Dow Jones Industrial Average fell 17% and the Russell 2000 Index, of which IBERIABANK Corporation is a member, plunged 22%. This is the third straight year that our share price performance has outperformed these indices. We reported record production of mortgage loans during 2002. Mortgage originations totaled $209 million in 2002, up 18% compared to 2001. The majority of mortgage production that was originated during the year was sold into the secondary market. However, the We recognize that the value of any franchise is the right combination of clients, associates and the communities served. In keeping with this philosophy, IBERIABANK and LBA worked diligently to ensure a smooth transition in the acquisition process. Over 80% of the associates of LBA were offered comparable positions with IBERIABANK, and a comprehensive effort was made to find employment for displaced LBA associates. 7 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 $– Mortgage Loans - Closed and Average Pipeline 1Q00 $18.3 $18.2 $13.5 $12.6 $25.8 $46.7 $41.4 $62.7 $39.8 $43.7 $59.0 $66.2 ($ in Millions) 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 4Q02 Closed Pipeline