IBERIABANK Corporation Announces Financial Statement Impact of Adoption of a New Accounting Standard and Other Factors Impacting

 IBERIABANK Corporation Announces Financial Statement Impact of Adoption of a
      New Accounting Standard and Other Factors Impacting Covered Loans

PR Newswire

LAFAYETTE, La., April 15, 2013

LAFAYETTE, La., April 15, 2013 /PRNewswire/ --IBERIABANK Corporation (NASDAQ:
IBKC; the "Company"), holding company of the 126-year-old IBERIABANK
(www.iberiabank.com), announced the adoption of a new accounting standard
effective in the first quarter ended March 31, 2013. The adoption results in
increased costs over the next eight quarters. Those additional costs are
anticipated to be largely offset by identified earnings enhancements.
Separately, the Company expects to recognize an impairment charge totaling $32
million on a pre-tax basis associated with its indemnification assets from
prior FDIC assisted acquisitions.

Since 2009 the Company has completed several FDIC-related acquisitions,
including: CapitalSouth Bank on August 21, 2009; Orion Bank and Century Bank,
FSB, each on November 13, 2009; and Sterling Bank, on July 23, 2010. In
conjunction with these transactions, the Company acquired approximately $1.9
billion in loans covered under FDIC loss sharing agreements, recognized
indemnification assets of approximately $1.1 billion, and recognized bargain
purchase gains of $243 million, or $7.60 per share on an after-tax basis.

Daryl G. Byrd, President and Chief Executive Officer, commented, "We have made
tremendous progress in resolving problem assets we acquired from the FDIC, and
in the process, created significant value for our shareholders. The evolving
nature of the accounting for these types of transactions and the relatively
early stage of the cycle at which we completed these acquisitions resulted in
unforeseen complexities to us. As we continue to work these assets toward
resolution and the eventual completion of the collection period, we have
gained greater clarity and insight regarding the collectability of the assets
and the timing of the associated cash flows. In fact, we currently estimate
the expected credit losses from these transactions are $310 million lower than
our estimates at the time we acquired those entities. We have also had to
address many factors beyond our control, including the evolving accounting
standards. Consistent with our culture and past practices, we are moving to
address these issues in a comprehensive and expeditious manner."

Byrd continued, "While our accounting for these transactions continues to
follow generally accepted accounting principles, the adoption of the new
accounting standard and cash flow adjustments undertaken in the first quarter
of 2013 are expected to provide reduced future earnings volatility and greater
transparency for the investment community. We believe our continued efforts
to improve the operating efficiencies of our Company will significantly
mitigate the aggregate negative financial impact of these changes in future

Byrd continued, "While we originally planned to discuss this on the first
quarter earnings conference call, the Company will announce several
initiatives to improve the overall revenues and reduce expenses on a
prospective basis. These initiatives are expected to provide annual run rate
improvements in earnings of at least $20 million on a pre-tax basis. Although
these initiatives are expected to largely negate the increased amortization in
2013, the impact of these initiatives is expected to significantly enhance
earnings in 2014 and beyond, well in excess of the earnings reduction from
these accounting changes. We will provide significant details regarding those
earnings enhancements when we release our financial results for the first
quarter of 2013."

Accounting Adoption

Accounting principles require an acquirer of assets covered under FDIC-loss
share agreements to recognize the expected reimbursements by the FDIC under
those agreements as indemnification assets. The initial value of the
indemnification asset is based on estimated cash flows to be received over the
expected life of the acquired assets, but not to exceed the term of the
indemnification asset agreements. At the time of acquisition, the
indemnification assets are estimated to be fully recoverable from the FDIC.
Subsequent to acquisition, the indemnification assets are reevaluated as
conditions and projected cash flows change. Over time, decreases in expected
losses result in portions of the indemnification assets that were previously
expected to be collectible from the FDIC to instead be considered collectible
from the customers. The portion of the indemnification assets collectible
from customers is reduced over time through an indemnification asset expense
based on the life of the indemnified asset, but not to exceed the determined
term of the associated loss share agreement.

The Company's commercial loss share agreements provide for five-year
collection periods plus subsequent three-year loss share recovery periods, or
a total of eight years from the dates of each acquisition. The single family
residential loss share agreements provide for 10-year collection periods from
the dates of purchase. Additionally, clawback provisions require the Company
to refund a portion of purchase price consideration to the FDIC if total
cumulative net losses fall below specified thresholds on the tenth anniversary
of the acquisition dates. Upon the acquisition of the indemnification
agreements and initial application of the associated accounting principles,
the Company concluded after consultation with its advisors that the
contractual life of the agreements was a weighted-average of eight years.

In October 2012, the Financial Accounting Standards Board issued Accounting
Standards Update ("ASU") 2012-06, Business Combinations (Topic 805):
"Subsequent Accounting for an Indemnification Asset Recognized at the
Acquisition Date as a Result of a Government-Assisted Acquisition of a
Financial Institution" (ASU No. 2012-06), which clarifies guidance regarding
the measurement period for the expense amortization of indemnification
assets. The ASU clarifies that the amortization periods of indemnification
assets should be limited to the lesser of the life of the indemnified asset or
the contractual term of the collection period in the FDIC loss share
agreements. The Company adopted this ASU effective in the Company's first
quarter ended March 31, 2013, and applied these provisions on a disaggregated
basis, which had the effect of reducing the remaining period over which the
indemnification assets will be amortized. Adoption of this ASU is prospective
in nature and will therefore impact future earnings of the Company for periods
through the expiration of the collection periods in the FDIC loss share
agreements, the majority of which end in, or shortly after, the third quarter
of 2014. As a result of the shortened amortization period, the Company's
indemnification asset amortization is expected to increase, in aggregate, by
approximately $24 million over the next eight quarters, based on current cash
flow expectations and other assumptions.

Based on current estimated cash flows, interest rates, and other factors, the
Company expects to experience accelerated asset amortization expense relative
to prior periods associated with the indemnification assets between January 1,
2013, and the expiration of the collection periods of the respective FDIC loss
share agreements. Subject to changes in expected cash flows and other
factors, the Company currently estimates the yield on the FDIC covered loan
portfolio, net of indemnification asset amortization, will decline from
approximately 7.45% in the fourth quarter of 2012 to approximately 5.40% for
the first quarter of 2013 through the third quarter of 2014. After that time,
the Company expects the net loan yield on the covered loan portfolio will
revert back to levels experienced in 2012 based on current estimates.

Expected Cash Flows

The Company continues to experience longer periods to resolve FDIC covered
assets than previously expected due to the following factors.

  oThe U.S. economy exhibited a lack of clear direction in 2012, which, in
    the Company's opinion, was driven by uncertainty resulting from the
    "fiscal cliff", lackluster housing markets, and an overall lack of clear
    motivation on the part of equity investors to invest capital in new
    projects. In the first quarter of 2013, the Company noted signs
    indicating the regional economies in which the Company operates were
    beginning to shift toward a clearer, more positive direction as compared
    to 2012.
  oUnexpected timely payments of principal and/or interest from FDIC-related
    commercial and residential mortgage customers have impacted the timing and
    amount of potential claims, and, as a result, the FDIC reimbursements to
    the Company were less than originally expected. Simply stated, cash
    inflows from performing loans have exhibited better performance over a
    longer period of time than originally expected, which has impacted the
    source and timing of our overall anticipated cash flows. In situations
    where principal and interest payments are from borrowers, current
    accounting guidance requires such cash flow improvements to be accreted
    over the life of the loan.
  oThe Company projects that expected cash flow recoveries will lengthen due
    to the limited ability to entertain bulk sale and note sale opportunities
    during the collection period.
  oThe judicial court systems in certain states in which certain troubled
    assets covered under the FDIC loss share agreements reside have
    experienced continued delay in asset resolution. The impact of these
    delays is to lengthen the estimated time to resolution and, therefore,
    extend the timing of, and reduce the present value of, estimated cash
    flows to the Company.

The current improving economic conditions coupled with the Company's
observations of reduced economic uncertainty caused the Company to complete a
comprehensive review of larger FDIC-covered loans. While the vast majority of
loans exhibited improvement in asset quality in that review, the Company
determined that certain assets currently covered under FDIC loss share
agreements may result in resolution after the prescribed collection periods in
the loss share agreements.

As a result of the above cash flow-related factors and the Company's recently
completed review of the covered portfolio, the Company expects to record a
pre-tax impairment charge totaling $32 million for the three months ended
March 31, 2013, or on an after-tax basis approximately $0.70 per share. On an
after-tax basis, this impairment charge is expected to equate to approximately
1.4% of total equity and 0.2% of total assets at year-end 2012, and 1.4% of
market capitalization on the date of this release. After the aforementioned
adjustments, the balance of the indemnification asset is estimated to be
approximately $285 million, of which $127 million is expected to be collected
from the FDIC, $126 million is expected to be collected from customers or
amortized over time, and $31 million is expected to be collected from other
real estate owned ("OREO"). Additionally, the Company will be performing
quarterly assessments of its covered portfolio beginning with the first
quarter of 2013 given the proximity to the end of the collection period.

Cash flow estimates, and, therefore, future income levels are subject to
change over time. The Company believes it continues to take an appropriate
approach to the estimated cash flows, measurement periods, and loss
assumptions on FDIC covered loans and OREO. The Company will continue to
reassess the collectability of its indemnification assets from the FDIC as the
contractual term of the collection period draws to a close. The
collectability of these assets largely depends upon the Company's ability to
reach timely resolution of certain covered assets and the amount of cash
ultimately expected to be collected from the borrowers and/or the FDIC.

Efforts to Improve Operational Efficiencies

Consistent with the Company's continued efforts to improve its operating
efficiencies, the Company intends to announce during the first quarter
earnings conference call significant initiatives to improve the overall
profitability of the Company. These initiatives include efforts to both
increase revenues and reduce expenses. These current earnings enhancements
are anticipated to provide at least $20 million in additional pre-tax earnings
on an annual basis, well in excess of negative financial impact of the
recently adopted accounting. The Company will provide significant details
regarding those earnings enhancements in conjunction with the financial
results for the first quarter of 2013.

Conference Call To Discuss These Matters

In association with this release, the Company will host a live conference call
to discuss the impact of the accounting change. The telephone conference call
will be held on Monday, April 15, 2013, beginning at 8:00 a.m. Central Time by
dialing 1-877-209-9919. The confirmation code for the call is 290960. A
replay of the call will be available until midnight Central Time on April 22,
2013 by dialing 1-800-475-6701. The confirmation code for the replay is
290960. The Company has prepared a PowerPoint presentation that supplements
information contained in this press release. The PowerPoint presentation may
be accessed on the Company's web site, www.iberiabank.com, under "Investor
Relations" and then "Presentations."

The Company anticipates releasing financial results for the quarter ended
March 31, 2013, after the close of business on April 25, 2013.

IBERIABANK Corporation

IBERIABANK Corporation is a financial holding company with 278 combined
offices, including 184 bank branch offices and one LPO in Louisiana, Arkansas,
Tennessee, Alabama, Texas, and Florida, 21 title insurance offices in Arkansas
and Louisiana, mortgage representatives in 62 locations in 12 states, nine
locations with representatives of IBERIA Wealth Advisors in four states, and
one IBERIA Capital Partners, LLC office in New Orleans.

The Company's common stock trades on the NASDAQ Global Select Market under the
symbol "IBKC." The Company's market capitalization was approximately $1.5
billion, based on the NASDAQ closing stock price on April 12, 2013.

The following 10 investment firms currently provide equity research coverage
on IBERIABANK Corporation:

  oFIG Partners, LLC
  oJefferies & Co., Inc.
  oKeefe, Bruyette & Woods
  oOppenheimer & Co., Inc.
  oRaymond James & Associates, Inc.
  oRobert W. Baird & Company
  oStephens, Inc.
  oSterne, Agee & Leach
  oSunTrust Robinson-Humphrey
  oWunderlich Securities

Forward Looking Statements

To the extent that statements in this press release and the accompanying
PowerPoint presentation relate to future plans, objectives, financial results
or performance of IBERIABANK Corporation, these statements are deemed to be
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Such statements, which are based on
management's current information, estimates and assumptions and the current
economic environment, are generally identified by the use of the words "plan",
"believe", "expect", "intend", "anticipate", "estimate", "project" or similar
expressions. IBERIABANK Corporation's actual strategies and results in future
periods may differ materially from those currently expected due to various
risks and uncertainties.

Actual results could differ materially because of factors such as the level of
market volatility, our ability to execute our growth strategy, including the
availability of future acquisition opportunities, unanticipated losses related
to the integration of, and refinements to purchase accounting adjustments for,
acquired businesses and assets and assumed liabilities in these transactions,
adjustments of fair values of acquired assets and assumed liabilities and of
deferred taxes in acquisitions, actual results deviating from the Company's
current estimates and assumptions of timing and amounts of cash flows, credit
risk of our customers, effects of the on-going correction in residential real
estate prices and reduced levels of home sales, sufficiency of our allowance
for loan losses, changes in interest rates, access to funding sources,
reliance on the services of executive management, competition for loans,
deposits and investment dollars, reputational risk and social factors, changes
in government regulations and legislation, increases in FDIC insurance
assessments, geographic concentration of our markets and economic conditions
in these markets, rapid changes in the financial services industry, dependence
on our operational, technological, and organizational systems or
infrastructure and those of third-party providers of those services,
hurricanes and other adverse weather events, the modest trading volume of our
common stock, and valuation of intangible assets. These and other factors
that may cause actual results to differ materially from these forward-looking
statements are discussed in the Company's Annual Report on Form 10-K and other
filings with the Securities and Exchange Commission (the "SEC"), available at
the SEC's website, http://www.sec.gov, and the Company's website,
http://www.iberiabank.com, under the heading "Investor Information." All
information in this release and the accompanying PowerPoint presentation is as
of the date of this release. The Company undertakes no duty to update any
forward-looking statement to conform the statement to actual results or
changes in the Company's expectations. Certain tabular presentations may not
reconcile because of rounding.


Website: http://www.iberiabank.com
Contact: Anthony J. Restel, Senior Executive Vice President (504) 310-7317; or
John R. Davis, Senior Executive Vice President (337) 521-4005
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