GROWTH pathways to PATIENCE needs and risk profiles. Our portfolio management process highlights opportunities where industry or company-specific dynamics may change the risk profile, such that additional credit opportunities exist or the client no longer fits our risk profile guidelines. This process entails a constant review of our credit relationships to ensure those relationships are consistent with our operating philosophies, and when those relationships are not consistent with our philosophies, we migrate those relationships to other banks. This proactive approach is an example of how we differ from other banking organizations and how patience and discipline benefit our shareholders. We experienced an exceptional improvement in asset quality during the year. As we entered 2002, we had three relatively large nonperforming assets (“NPAs”). While a rapid resolution of these NPAs could have been accomplished at a significant cost to our shareholders, we exhibited conservativeness and patience in addressing these issues. By year-end 2002, we resolved two of the three NPAs and reduced our NPA level by almost half. During 2002, we also increased our reserve for loan losses by 18% to $13.1 million at December 31, 2002. Beginning around the middle of the year 2000, we began a process of methodically cleansing our portfolio of securities that were not consistent with our investment philosophy. We believe these bonds did not compensate us for the risks we were taking, and therefore, were considered for liquidation. This cleansing process was completed during 2002 as many of  these  less  desirable instruments were sold or “cash flowed out” over time. These  poorly  structured instruments were replaced with well-structured, shorter instruments that were also lower yielding. Just as an oak tree can take many years to produce its first crop of acorns, IBERIABANK is a patient, methodical organization. In a nutshell, our approach to business is simply undertaking sound, conservative underwriting practices, focusing on client needs, and making disciplined investments in our franchise that are in the best long-term interest of our shareholders. Our approach is simple and exhibited in many different ways at our company. We instituted a “portfolio management” process that began to bear fruit in early 2002. Industries and specific companies evolve over time and have different credit Many a genius has been slow of growth. Oaks that flourish for a thousand years do not spring up into beauty like a reed. - George H. Lewis, 1817 - 1878  During the 17th and 18th centuries, in what is now present-day Istanbul, Turkey, floral gifts such as flowers, plants, spices and trees were used to convey messages between people in a clandestine manner. This floral code was eventually taken up by the French and English during the period. Flowers were selected by the sender to convey a specific message to the recipient. As an example, over 800 flowers alone have special meanings associated with them. The oak tree conveys messages as well. Appropriately, the floral code gives the oak tree the meaning of “hospitality” and the White Oak in particular, implies “independence.” Similarly, leaves of the oak tree mean “bravery.” The traits associated with oak trees symbolized in this floral code are metaphorical examples of just a few traits consistent with the culture we have developed at IBERIABANK. Much like the oak tree, we are patient, have enjoyed significant growth, exude strength and exhibit rejuvenation. We continue to grow and to offer shareholders stability from the solid foundation we have built. 5 Oak Alley, Vacherie