EX-99.6 11 dex996.htm UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION

Exhibit 99.6

IBERIABANK Corporation

UNAUDITED PRO FORMA CONDENSED COMBINED

FINANCIAL INFORMATION

The following tables show information about the financial condition and operations of IBERIABANK Corporation after giving effect to the acquisition of Pulaski Investment Corporation and Pocahontas Bancorp, and the $30 million private placement of IBERIABANK Corporation common stock, the $15 million trust preferred securities offering and the $20 million in long-term borrowings to fund the cash portion of the Pulaski Investment Corporation acquisition. The preliminary unaudited pro forma condensed combined financial information shows the impact of the acquisitions as well as the securities offerings and borrowings on the combined balance sheets and the combined statements of income under the purchase method of accounting with IBERIABANK Corporation treated as the acquirer. Under this method of accounting, the assets and liabilities of Pulaski Investment Corporation and Pocahontas Bancorp are recorded by us at their estimated fair values as of the date the respective acquisitions are completed. The preliminary unaudited pro forma condensed combined balance sheets as of September 30, 2006 assume the acquisitions were completed on that date. The private placement of IBERIABANK Corporation common stock, the trust preferred securities offering and the long-term borrowings are included in the pro forma adjustments column for the Pulaski Investment Corporation acquisition. The preliminary unaudited pro forma income statements for the nine months ended September 30, 2006 and for the year ended December 31, 2005 were prepared assuming the acquisitions were completed on the first day of each respective period.

It is anticipated that Pulaski Investment Corporation and Pocahontas Bancorp will provide IBERIABANK Corporation with financial benefits such as expense efficiencies and revenue enhancements, among other factors, although no assurances can be given that such benefits will be fully achieved. These benefits have not been reflected in the preliminary unaudited pro forma financial information. As required, the preliminary unaudited pro forma condensed combined financial information includes adjustments, which give effect to events that are directly attributable to the transaction and factually supportable; as such, any planned adjustments affecting the balance sheet, income statement, or shares of common stock outstanding subsequent to the assumed acquisition completion date are not included. The preliminary unaudited pro forma condensed combined financial information is presented for illustrative purposes only and does not indicate the financial results of the combined companies had the companies actually been combined at the beginning of each period presented.

In addition, the allocation of the purchase price reflected in the preliminary pro forma condensed combined financial information is subject to adjustment. The preliminary purchase price allocation for the acquisitions will vary from the actual purchase price allocation that will be recorded upon the completion of the acquisitions based upon changes in the estimated fair value of the assets and liabilities acquired from Pulaski Investment Corporation and Pocahontas Bancorp. In addition, subsequent to the acquisition completion dates, there may be further refinements of the purchase price allocation as additional information becomes available.

The preliminary unaudited pro forma condensed combined financial information is derived from and should be read in conjunction with the historical consolidated financial statements and related notes, which are included elsewhere in this information statement-prospectus.

The acquisition of Pulaski Investment Corporation is not contingent upon the completion of the acquisition of Pocahontas Bancorp.


IBERIABANK CORPORATION, PULASKI INVESTMENT CORPORATION AND

POCAHONTAS BANCORP, INC.

Unaudited Pro Forma Condensed Combined Consolidated Statement of Financial Condition

As of September 30, 2006

(dollars in thousands)

 

    IBERIABANK
Corporation
   

Pulaski

Investment
Corporation

    Pro Forma
Adjustments
   

Pro Forma

Combined

Sub Total

    Pocahontas
Bancorp
    Pro Forma
Adjustments
        

Pro Forma

Combined

 

Assets

                   

Cash and cash equivalents

  $ 71,066     $ 22,623     $ (4,640 )(10)   $ 89,049     $ 23,825     $ (5,037 )(j)       $ 107,837  

Securities available for sale, at fair value

    576,634       54,741       (52,800 )(5)     578,575       93,561       —             672,136  

Securities held to maturity

    24,023       150       (3 )(5)     24,170       133,120       (2,933 )(e)         154,357  

Mortgage loans held for sale

    20,055       40,368       —         60,423       3,244       —             63,667  

Loans, net

    2,139,530       344,669       (2,383 )(2),(3),(4)     2,481,816       431,768       3,084 (b),(c),(d)         2,916,668  

Premises and equipment, net

    68,231       24,398       12,867 (1)     105,496       15,876       2,789 (a)         124,161  

Goodwill

    93,167       613       78,037 (13)     171,817       8,848       19,157 (m)         199,822  

Other assets

    119,558       15,851       12,643 (7)     148,052       28,212       8,020 (g),(l)         184,284  
                                                           

Total Assets

  $ 3,112,264     $ 503,413     $ 43,721     $ 3,659,398     $ 738,454     $ 25,080         $ 4,422,932  
                                                           

Liabilities

                   

Deposits

  $ 2,405,837     $ 406,611     $ (530 )(6)   $ 2,811,918     $ 557,788     $ (1,504 )(f)       $ 3,368,202  

Short-term borrowings

    169,327       26,000       —         195,327       12,000       —             207,327  

Long-term debt

    234,265       23,439       (17,195 )(8),(12)     240,509       109,381       215 (h)         350,105  

Other liabilities

    22,576       5,905       8,067 (11)     36,548       6,329       3,745 (k)         46,622  
                                                           

Total Liabilities

    2,832,005       461,955       (9,658 )     3,284,302       685,498       2,456           3,972,256  
                                                           

Shareholders’ Equity

                   

Common stock

    11,802       610       1,054       13,466       76       1,215           14,757  

Additional paid-in-capital

    198,533       699       92,474       291,706       57,135       17,154           365,995  

Retained earnings

    168,169       40,569       (40,569 )     168,169       24,784       (24,784 )         168,169  

Unearned compensation

    (13,928 )     —         —         (13,928 )     (1,799 )     1,799           (13,928 )

Accumulated other comprehensive income

    (6,335 )     (420 )     420       (6,335 )     (2,837 )     2,837           (6,335 )

Treasury stock at cost

    (77,982 )     —         —         (77,982 )     (24,403 )     24,403           (77,982 )
                                                           

Total Shareholders’ Equity

    280,259       41,458       53,379 (9)     375,096       52,956       22,624 (i)         450,676  
                                                           

Total Liabilities and Shareholders’ Equity

  $ 3,112,264     $ 503,413     $ 43,721     $ 3,659,398     $ 738,454     $ 25,080         $ 4,422,932  
                                                           

 

2


IBERIABANK CORPORATION, PULASKI INVESTMENT CORPORATION AND

POCAHONTAS BANCORP, INC.

Unaudited Pro Forma Condensed Combined Consolidated Statement of Income

For the Nine Months ended September 30, 2006

(in thousands, except per share data)

 

    IBERIABANK
Corporation
   

Pulaski

Investment
Corporation

  Pro Forma
Adjustments
   

Pro Forma

Combined

Sub Total

    Pocahontas
Bancorp
    Pro Forma
Adjustments
         Pro Forma
Combined
 

Interest and Dividend Income

                   

Loans, including fees

  $ 97,319     $ 21,765   $ 491 (2)   $ 119,575     $ 21,871     $ (1,376 )(b)       $ 140,070  

Investment securities

    21,663       2,117     (2,126 )(5)     21,654       7,859       341 (e)         29,854  

Other

    2,044       442     —         2,486       —         —             2,486  
                                                         

Total interest and dividend income

    121,026       24,324     (1,635 )     143,715       29,730       (1,035 )         172,410  
                                                         

Interest Expense

                   

Deposits

    41,218       7,543     530 (6)     49,291       13,276       735 (f),(g)         63,302  

Borrowings

    10,706       1,836     (61 )(8),(10),(12)     12,481       5,357       542 (h),(j)         18,380  
                                                         

Total interest expense

    51,924       9,379     469       61,772       18,633       1,277           81,682  
                                                         

Net interest income

    69,102       14,945     (2,104 )     81,943       11,097       (2,312 )         90,728  

Provision for loan losses

    (3,856 )     299     —         (3,557 )       845       —             (2,712 )
                                                         

Net interest income after provision for loan losses

    72,958       14,646     (2,104 )     85,500       10,252       (2,312 )         93,440  
                                                         

Noninterest income

    18,800       23,833     —         42,633       3,567       —             46,200  

Noninterest expense

    54,169       34,205     1,173 (1),(7)     89,547       12,787       892 (a),(g)         103,226  
                                                         

Income (loss) before income tax expense

    37,589       4,274     (3,277 )     38,586       1,032       (3,204 )         36,414  

Income tax expense (benefit)

    10,809       1,710     (1,147 )(11)     11,372       (325 )     (1,121 )(k)         9,926  
                                                         

Net Income (Loss)

  $ 26,780     $ 2,564   $ (2,130 )   $ 27,214     $ 1,357     $ (2,083 )       $ 26,488  
                                                         

Earnings (loss) per share—basic

  $ 2.87     $ 1.05     $ 2.48     $ 0.30           $ 2.16  
                                             

Earnings (loss) per share—diluted

  $ 2.70     $ 1.05     $ 2.35     $ 0.29           $ 2.06  
                                             

Average shares outstanding

    9,328       2,439     (775 )(14)     10,992       4,529       (3,238 )(n)         12,283  

Average shares outstanding—diluted

    9,919       2,439     (775 )(14)     11,583       4,598       (3,307 )(n)         12,874  

 

3


IBERIABANK CORPORATION, PULASKI INVESTMENT CORPORATION AND

POCAHONTAS BANCORP, INC.

Unaudited Pro Forma Condensed Combined Consolidated Statement of Income

For the Year ended December 31, 2005, except as noted below (A)

(in thousands, except per share data)

 

    IBERIABANK
Corporation
 

Pulaski

Investment
Corporation

  Pro Forma
Adjustments
   

Pro Forma

Combined
Sub Total

    Pocahontas
Bancorp (A)
  Pro Forma
Adjustments
         Pro Forma
Combined

Interest and Dividend Income

                   

Loans, including fees

  $ 109,201   $ 25,854   $ 655 (2)   $ 135,710      $ 23,805   $ (1,835 )(b)       $ 157,680

Investment securities

    24,192     1,243     (2,834 )(5)     22,601       11,827     454 (e)         34,882

Other

    1,856     521     —         2,377       —       —             2,377
                                                   

Total interest and dividend income

    135,249     27,618     (2,179 )     160,688       35,632     (1,381 )         194,939
                                                   

Interest Expense

                   

Deposits

    36,597     6,058     530 (6)     43,185       12,232     531 (f),(g)         55,948

Borrowings

    13,854     1,762     (82 )(8),(10),(12)     15,534       6,710     759 (h),(j)         23,003
                                                   

Total interest expense

    50,451     7,820     448       58,719       18,942     1,290           78,951
                                                   

Net interest income

    84,798     19,798     (2,627 )     101,969       16,690     (2,671 )         115,988

Provision for loan losses

    17,069     1,783     —         18,852       525     —             19,377
                                                   

Net interest income after provision for loan losses

    67,729     18,015     (2,627 )     83,117       16,165     (2,671 )         96,611
                                                   

Noninterest income

    26,141     39,166     —         65,307       5,676     —             70,983

Noninterest expense

    64,438     46,985     1,564 (1),(7)     112,987       17,505     1,189 (a),(g)         131,681
                                                   

Income (loss) before income tax expense

    29,432     10,196     (4,191 )     35,437       4,336     (3,860 )         35,913

Income tax expense (benefit)

    7,432     3,867     (1,467 )(11)     9,832       1,097     (1,351 )(k)         9,578
                                                   

Net Income (Loss)

  $ 22,000   $ 6,329   $ (2,724 )   $ 25,605     $ 3,239   $ (2,509 )       $ 26,335
                                                   

Earnings (loss) per share—basic

  $ 2.40   $ 2.59     $ 2.37     $ 0.72         $ 2.17
                                       

Earnings (loss) per share—diluted

  $ 2.24   $ 2.59     $ 2.23     $ 0.71         $ 2.06
                                       

Average shares outstanding

    9,155     2,444     (780 )(14)     10,819       4,492     (3,201 )(n)         12,110

Average shares outstanding—diluted

    9,813     2,444     (780 )(14)     11,477       4,571     (3,280 )(n)         12,768

(A) The Pocahontas Bancorp, Inc. historical numbers are for its fiscal year ended September 30, 2005.

Pulaski Investment Corporation

 

1) Adjustment to fair value Pulaski Investment Corporation’s fixed assets. The adjustment reflected, which totals $12.9 million, is based upon currently available fair value information. The adjustment will be depreciated over the estimated remaining life of the adjusted fixed assets using the straight-line method. The preliminary pro forma combined income statement impact of the adjustment resulted in pre-tax increases to depreciation expense of $0.2 million and $0.3 million for the nine months ended September 30, 2006 and the year ended December 31, 2005, respectively. The final adjustment may be significantly different.
2) Adjustment to fair value Pulaski Investment Corporation’s loan portfolio. The adjustment reflected, which totals $1.3 million, is based upon currently available fair value information. The adjustment will be recognized over the estimated remaining life of the loan portfolio using the effective yield method. The preliminary pro forma combined income statement impact of the adjustment resulted in pre-tax increases to interest income of $0.5 million and $0.7 million for the nine months ended September 30, 2006 and the year ended December 31, 2005, respectively. The final adjustment may be significantly different.
3) Adjustment to the allowance for loan losses for certain loans for which IBERIABANK Corporation’s plans for ultimate recovery differ from those of Pulaski Investment Corporation. IBERIABANK Corporation intends to dispose of these loans through sales or other means. The adjustment, which totals $0.5 million, is based upon a partial review of the Pulaski Investment Corporation loan portfolio. As IBERIABANK Corporation obtains additional information on the Pulaski Investment Corporation loan portfolio, the final adjustment may be significantly different from the adjustment reflected herein.

 

4


4) Adjustment to reflect the estimated discount on impaired loans of $0.7 million in accordance with AICPA Statement of Position 03-3. The final adjustment may be significantly different.
5) Adjustment to recognize securities classified as held to maturity by Pulaski Investment Corporation at fair value. The adjustment, which totals $3.0 thousand, is based upon currently available fair value information. Adjustments to securities also include the sale of $52.8 million of available for sale securities subsequent to the acquisition of Pocahontas Bancorp. The preliminary pro forma combined income statement impact of the sale of securities is a decrease in interest income of $2.1 million and $2.8 million for the nine months ended September 30, 2006 and the year ended December 31, 2005, respectively. The proceeds from the securities sale will be used to pay down Pocahontas Bancorp long-term debt. The final adjustment may be significantly different.
6) Adjustment to fair value Pulaski Investment Corporation’s interest-bearing deposits. The adjustment of $0.5 million will be recognized over the estimated remaining life of the respective deposits using the effective yield method. The preliminary pro forma combined income statement impact for the adjustment resulted in increases to interest expense of $0.5 million for both the nine months ended September 30, 2006 and the year ended December 31, 2005. The final adjustments may be significantly different.
7) Adjustment to recognize core deposit intangibles of $12.6 million associated with the acquisition, and the related preliminary pro forma combined income statement impact resulting from the acquisition. Core deposit intangibles will be amortized over a ten-year period using the straight-line method. The preliminary pro forma combined income statement impact for the adjustment resulted in increases to other non-interest expense of $0.9 million and $1.3 million for the core deposit intangibles amortization for the nine months ended September 30, 2006 and the year ended December 31, 2005, respectively. The final adjustment may be significantly different.
8) Adjustment to fair value Pulaski Investment Corporation’s borrowings. The adjustment of $0.6 million will be recognized over the estimated remaining life of the respective borrowings using the effective yield method. The preliminary pro forma combined income statement impact for the adjustments resulted in increases to interest expense of $0.2 million for both the nine months ended September 30, 2006 and the year ended December 31, 2005. The final adjustments may be significantly different.
9) Adjustment to eliminate Pulaski Investment Corporation’s historical stockholders’ equity. In addition to the cash consideration, the acquisition will result in the issuance of approximately 1.7 million shares of IBERIABANK Corporation common stock of which 0.6 million will be issued in the private placement. The issuance of IBERIABANK Corporation common stock in the acquisition is recognized in the preliminary pro forma balance sheets at a value of $61.00 per share, which was the closing price of IBERIABANK Corporation common stock on September 30, 2006. The issuance of IBERIABANK Corporation common stock under the private placement is recognized in the preliminary pro forma balance sheets at a value of $52.00. Of the assumed purchase price of $131.0 million, $30.0 million will be raised from the private placement. The final adjustment may be significantly different.
10) Adjustment to cash consists of cash consideration of $65.0 million paid to complete the acquisition, cash received of $30.0 million in the private placement, cash received from the $15.0 million in trust preferred borrowing, cash received from $20.0 million of long-term borrowings, acquisition related costs of $0.5 million in costs related to investment banking, legal, and consulting fees to be incurred directly in connection with the acquisition, an estimated $2.7 million in after tax costs related to change-in-control and other agreements that exist prior to the acquisition consummation date and $1.5 million for private placement underwriting fees. The preliminary pro forma combined income statement impact of the reduction in cash resulted in pre-tax increases to interest expense of $0.1 million and $0.2 million for the nine months ended September 30, 2006 and the year ended December 31, 2005, respectively, due to additional borrowings needed as a result of the cash payments.
11) Adjustment to recognize deferred tax liabilities at 35% resulting from the fair value adjustments in accordance with Statement of Financial Accounting Standard No. 109, “Accounting for Income Taxes,” (“SFAS 109”).
12) Adjustment to recognize the $15.0 million trust preferred borrowings and $20.0 million of long-term borrowings undertaken to complete the acquisition as well as the reduction of $52.8 million in long-term debt resulting in the above-mentioned Pocahontas Bancorp available for sale securities sale. The adjustments resulted in pre-tax decreases to interest expense of $0.3 million and $0.5 million for the nine months ended September 30, 2006 and the year ended December 31, 2005, respectively.
13) Adjustment to eliminate Pulaski Investment Corporation’s historical goodwill and recognize goodwill resulting from the acquisition of $79.0 million. See purchase price allocation table in Note 3 for more information.
14) The pro forma basic and diluted potential common shares for the incremental shares issued in connection with the Pulaski Investment Corporation acquisition, assuming the transaction occurred at the beginning of the periods presented.

Pocahontas Bancorp, Inc.

 

a) Adjustment to fair value Pocahontas Bancorp’s fixed assets. The adjustment reflected, which totals $2.8 million, is based upon currently available fair value information. The adjustment will be depreciated over the estimated remaining life of the adjusted fixed assets using the straight-line method. The preliminary pro forma combined income statement impact of the adjustment resulted in pre-tax increases to depreciation expense of $0.1 million for both the nine months ended September 30, 2006 and the year ended December 31, 2005. The final adjustment may be significantly different.
b) Adjustment to fair value Pocahontas Bancorp’s loan portfolio. The adjustment reflected, which totals $4.9 million, is based upon currently available fair value information. The adjustment will be recognized over the estimated remaining life of the loan portfolio using the effective yield method. The preliminary pro forma combined income statement impact of the adjustment resulted in pre-tax decreases to interest income of $1.4 million and $1.8 million for the nine months ended September 30, 2006 and the year ended December 31, 2005, respectively. The final adjustment may be significantly different.

 

5


c) Adjustment to the allowance for loan losses for certain loans for which the Company’s plans for ultimate recovery differ from those of Pocahontas Bancorp. IBERIABANK Corporation intends to dispose of these loans through sales or other means. The adjustment, which totals $1.0 million, is based upon a partial review of the Pocahontas Bancorp loan portfolio. As IBERIABANK Corporation obtains additional information on the Pocahontas Bancorp loan portfolio, the final adjustment may be significantly different from the adjustment reflected herein.
d) Adjustment to reflect the estimated discount on impaired loans of $0.8 million in accordance with AICPA Statement of Position 03-3. The final adjustment may be significantly different.
e) Adjustment to recognize securities classified as held to maturity by Pocahontas Bancorp at fair value. The adjustment reflected which totals $2.9 million, is based upon currently available fair value information. The preliminary pro forma combined income statement impact of the adjustment resulted in pre-tax increases to interest income of $0.3 million and $0.5 million for the nine months ended September 30, 2006 and the year ended December 31, 2005, respectively. The final adjustment may be significantly different.
f) Adjustment to fair value Pocahontas Bancorp’s interest-bearing deposits. The adjustment of $1.5 million will be recognized over the estimated remaining life of the respective deposits using the effective yield method. The preliminary pro forma combined income statement impact for the adjustment resulted in increases to interest expense of $1.5 million for both the nine months ended September 30, 2006 and the year ended December 31, 2005. The final adjustments may be significantly different.
g) Adjustment to eliminate Pocahontas Bancorp’s historical core deposit intangibles and recognize core deposit intangibles of $10.8 million associated with the acquisition, and the related preliminary pro forma combined income statement impact resulting from the acquisition. Core deposit intangibles will be amortized over a ten-year period using the straight-line method. The preliminary pro forma combined income statement impact for the adjustment resulted in increases to other non-interest expense of $0.8 million and $1.1 million for the core deposit intangibles amortization for the nine months ended September 30, 2006 and the year ended December 31, 2005, respectively. The preliminary pro forma combined income statement impact for the adjustment also resulted in decreases to interest expense of $0.7 million and $1.0 million to eliminate the historical core deposit intangibles amortization for the nine months ended September 30, 2006 and the year ended December 31, 2005, respectively. The final adjustment may be significantly different.
h) Adjustment to fair value Pocahontas Bancorp’s borrowings. The adjustment of $0.2 million will be recognized over the estimated remaining life of the respective borrowings using the effective yield method. The preliminary pro forma combined income statement impact for the adjustments resulted in increases to interest expense of $0.3 million and $0.5 million for the nine months ended September 30, 2006 and the year ended December 31, 2005, respectively. The final adjustment may be significantly different.
i) Adjustment to eliminate Pocahontas Bancorp’s historical stockholders’ equity. The acquisition will result in the issuance of approximately 1.3 million shares of IBERIABANK Corporation common stock. The issuance of IBERIABANK Corporation common stock is recognized in the preliminary pro forma balance sheet at a value of $58.55 per share, which was the average closing price per share of IBERIABANK Corporation common stock for the five-day period surrounding the date the acquisition was announced.
j) Adjustment to cash for acquisition related costs. Adjustment includes an estimated $1.3 million in costs related to investment banking, legal, and consulting fees to be incurred directly in connection with the acquisition and an estimated $3.7 million in costs related to change-in-control, stock option exercises and other agreements that existed prior to the acquisition consummation date. The preliminary pro forma combined income statement impact of the reduction in cash resulted in pre-tax increases to interest expense of $0.2 million and $0.3 million for the nine months ended September 30, 2006 and the year ended December 31, 2005, respectively, due to additional borrowings needed as a result of the cash payments. The final adjustments may be significantly different.
k) Adjustment to recognize deferred tax liabilities at 35% resulting from the fair value adjustments in accordance with Statement of Financial Accounting Standard No. 109, “Accounting for Income Taxes,” (“SFAS 109”).
l) Adjustment to recognize the cancellation of Pocahontas Bancorp’s ESOP. The adjustment reflected, which totals $1.5 million, is based upon currently available fair value information. The final adjustment may be significantly different.
m) Adjustment to eliminate historical Pocahontas Bancorp’s goodwill and recognize goodwill resulting from the acquisition of $28.0 million. See purchase price allocation table in Note 3 for more information.
n) The pro forma basic and diluted potential common shares for the incremental shares issued in connection with the Pocahontas Bancorp acquisition, assuming the transaction occurred at the beginning of the periods presented.

 

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IBERIABANK CORPORATION, PULASKI INVESTMENT CORPORATION AND

POCAHONTAS BANCORP, INC.

NOTES TO PRELIMINARY UNAUDITED PRO FORMA

CONDENSED COMBINED FINANCIAL STATEMENTS

NOTE 1—BASIS OF PRELIMINARY PRO FORMA PRESENTATION

The acquisitions will be accounted for as acquisitions by IBERIABANK Corporation of Pulaski Investment Corporation and Pocahontas Bancorp, Inc. using the purchase method of accounting. Accordingly, the assets and liabilities of Pulaski Investment Corporation and Pocahontas Bancorp will be recorded at their respective fair values on the date the acquisitions are completed. The pro forma adjustments included herein are subject to change as additional information becomes available and as additional analyses are performed.

The final allocation of the purchase price will be determined after the acquisitions are completed and additional analyses are performed to determine the fair values of Pulaski Investment Corporation’s and Pocahontas Bancorp’s tangible and identifiable intangible assets and liabilities as of the dates the acquisitions are completed. Changes in the fair value of the net assets of Pulaski Investment Corporation and Pocahontas Bancorp as of the dates of the acquisitions will change the amount of purchase price allocable to excess purchase price. The further refinement of transaction costs will change the amount of excess purchase price recorded. The final adjustments may be materially different from the unaudited pro forma adjustments presented herein.

The pro forma financial information for the acquisitions is included only as of and for the nine months ended September 30, 2006, and for the year ended December 31, 2005. The unaudited pro forma information is not necessarily indicative of the results of operations or the combined financial position that would have resulted had the acquisitions been completed at the beginning of the applicable periods presented, nor is it necessarily indicative of the results of operations in future periods or the future financial position of the combined company. The historical data presented for Pocahontas Bancorp are for its fiscal year ended September 30, 2005 and for the nine months ended September 30, 2006.

NOTE 2—PURCHASE PRICES

The purchase price of Pulaski Investment Corporation is based on exchanging 0.2274 shares (fixed portion) of IBERIABANK Corporation common stock for each outstanding Pulaski Investment Corporation share at the closing price per share of IBERIABANK Corporation common stock on September 30, 2006, the date of the pro forma balance sheet, as well as issuing shares of IBERIABANK Corporation common stock determined by the quotient obtained by dividing $13.323 by the average trading price of the IBERIABANK Corporation common stock on the 15 trading days ending one business day prior to the effective date of the merger (variable portion) for each outstanding share of Pulaski Investment Corporation common stock.

Based upon values as of September 30, 2006, the total market value of the IBERIABANK Corporation common stock to be issued in connection with the Pulaski Investment Corporation acquisition is calculated as follows:

 

Pulaski Investment Corporation common shares outstanding on September 30, 2006

     2,439,356

Exchange ratio (fixed portion)

     0.2274

Exchange ratio (variable portion)

     0.2184
      

IBKC common stock to be issued

     1,087,489

Market price per share of IBKC common stock at September 30, 2006

   $ 61.00
      

Total market value of IBKC common stock to be issued

   $ 66,336,829
      

The actual value per share of IBERIABANK Corporation common stock cannot be determined until the date that the number of shares to be issued under the variable portion is fixed. In addition to the IBERIABANK Corporation common stock issued in connection with the Pulaski Investment Corporation acquisition, $65.0 million in cash will be paid to complete the acquisition.

 

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The purchase price of Pocahontas Bancorp is based on exchanging 0.2781 shares of IBERIABANK Corporation common stock for each outstanding Pocahontas Bancorp share at the average closing price per share of IBERIABANK Corporation common stock for the five- day period surrounding the date the acquisition was announced.

The total market value of the IBERIABANK Corporation common stock to be issued in connection with the Pocahontas Bancorp acquisition is calculated as follows:

 

Pocahontas Bancorp, Inc. common shares outstanding on September 30, 2006

     4,641,717

Exchange ratio

     0.2781
      

IBKC common stock to be issued

     1,290,861

Value of IBKC common stock

   $ 58.55
      

Total market value of IBKC common stock to be issued

   $ 75,579,912
      

In addition to the above market value of the IBERIABANK Corporation common stock to be issued in both acquisitions, the total purchase prices will include other direct acquisition costs of IBERIABANK Corporation, such as legal, investment banking and other professional fees.

NOTE 3—PRIVATE PLACEMENT

We intend to use the proceeds of $30 million we have received from the private placement (together with the proceeds from the sale of $15 million of trust preferred securities and $20 million of to-be-financed long-term debt) to fund the cash portion of our acquisition of Pulaski Investment Corporation. Pending this use, we may invest all or a portion of the net proceeds in short-term financial instruments. The proceeds are based on a sale price of $52.00 per share and 576,923 shares.

NOTE 4—PURCHASE PRICE ALLOCATIONS

The preliminary unaudited pro forma condensed combined financial statements reflect the following purchase price allocations for Pulaski Investment Corporation and Pocahontas Bancorp (in thousands):

 

Pulaski Investment Corporation

            

Historical net assets applicable to Pulaski Investment Corporation’s common stock at September 30, 2006

     $ 41,458  

After tax merger related charges, severance payments and contract termination cost

       (3,140 )

Increase (decrease) to Pulaski Investment Corporation’s net asset value at September 30, 2006 as a result of estimated fair value adjustments:

    

Investment securities

   $ (3 )  

Loans

     (2,383 )  

Fixed assets

     12,867    

Core deposit intangibles

     12,643    

Other assets

     —      

Deposits

     530    

Borrowings

     (605 )  

Deferred taxes on fair value adjustments

     (8,067 )  
          

Net estimated fair value adjustments

       14,982  

Elimination of Pulaski Investment Corporation’s existing intangibles

       (613 )
          

Total preliminary allocation of purchase price

       52,687  

Goodwill due to the merger

       78,650  
          

Total purchase price, including cash

     $ 131,337  
          

 

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Pocahontas Bancorp, Inc.

            

Historical net assets applicable to Pocahontas Bancorp Inc.’s common stock at September 30, 2006

     $ 52,956  

After tax merger related charges, severance payments and contract termination cost

       (5,037 )

Increase (decrease) to Pocahontas Bancorp Inc.’s net asset value at September 30, 2006 as a result of estimated fair value adjustments:

    

Investment securities

   $ (2,933 )  

Loans

     3,084    

Fixed assets

     2,789    

Core deposit intangibles

     10,824    

Other assets

     1,546    

Deposits

     1,504    

Borrowings

     (215 )  

Deferred taxes on fair value adjustments

     (3,745 )  
          

Net estimated fair value adjustments

       12,854  

Elimination of Pocahontas Bancorp Inc.’s existing intangibles

       (13,198 )
          

Total preliminary allocation of purchase price

       47,575  

Goodwill due to the merger

       28,005  
          

Total purchase price

     $ 75,580  
          

Comparative Pro Forma Per Share Data

The table below summarizes selected per share information about IBERIABANK Corporation, Pulaski Investment Corporation and Pocahontas Bancorp. The IBERIABANK Corporation per share information is presented on a pro forma basis to reflect the mergers with Pulaski Investment Corporation and Pocahontas Bancorp. The Pulaski Investment Corporation per share information is presented both historically, and on a pro forma basis to reflect the merger.

The data in the table should be read together with the financial information and the financial statements of IBERIABANK Corporation, Pulaski Investment Corporation and Pocahontas Bancorp included elsewhere in this information statement-prospectus. The pro forma per common stock data is presented as an illustration only. The data do not necessarily indicate the combined financial position per share or combined results of operations per share that would have been reported if the merger had occurred when indicated, nor are the data a forecast of the combined financial position or combined results of operations for any future period. No pro forma adjustments have been included herein which reflect the potential effects of cost savings or synergies which may be obtained by combining the operations of IBERIABANK Corporation, Pulaski Investment Corporation and Pocahontas Bancorp or the costs of combining the companies and their operations.

As noted above, the acquisition of Pulaski Investment Corporation is not contingent upon the completion of the acquisition of Pocahontas Bancorp.

 

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    Historical   Pro Forma

Per Share Data

  IBERIABANK
Corporation
  Pulaski Investment
Corporation
  Pocahontas
Bancorp
  Pro Forma
Combined
  Pro Forma Per
Equivalent
Pulaski
Investment
Corporation
Share
(0.4458 shares)

Net Income

         

Nine Months Ended September 30, 2006

         

Basic

  $ 2.87   $ 1.05   $ 0.30   $ 2.16   $ 0.96

Diluted

    2.70     1.05     0.29     2.06     0.92

Year Ended December 31, 2005 (1)

         

Basic

    2.40     2.59     0.72     2.17     0.97

Diluted

    2.24     2.59     0.71     2.06     0.92

Cash Dividends

         

Nine Months Ended September 30, 2006

    0.90     0.46     0.24     0.90     0.40

Year Ended December 31, 2005 (1)

    1.00     0.62     0.32     1.00     0.45

Shareholders’ Equity

         

Nine Months Ended September 30, 2006

    28.90     17.00     11.41     35.62     15.88

Year Ended December 31, 2005 (1)

    27.60     16.41     11.28     N/A     N/A

(1) Pocahontas Bancorp historical data are for the year ended September 30, 2005.

 

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