IMPORTANT ANNOUNCEMENT

Regarding The Extension of the Transaction Account Guarantee Program

Beginning July 1, 2010, IBERIABANK will no longer participate in the FDIC's Transaction Account Guarantee Program. Under that program, through June 30, 2010, all noninterest-bearing transaction accounts are fully guaranteed by the FDIC for the entire amount in the account. After June 30, 2010, funds held in noninterest-bearing transaction accounts will no longer be guaranteed in full under the Transaction Account Guarantee Program, but will be insured up to $250,000 under the FDIC’s general deposit insurance rules.

Please find answers to questions you may have regarding this change.

What is the Transaction Account Guarantee Program?
In 2008, the FDIC announced its temporary Transaction Account Guarantee Program, which provides full coverage for noninterest-bearing transaction deposit accounts at FDIC-insured institutions that agree to participate in the program. The transaction account guarantee applies to all personal and business checking deposit accounts that do not earn interest, low-interest NOW accounts (NOW accounts that cannot earn more than 0.5% interest), Official Items, and IOLTA accounts. This program was to expire December 31, 2009, but has been extended. Participation in the program is at the cost of the participating financial institution.

What does the extension of the program mean?
On April 13, 2010, the FDIC extended the TAG Program through at least December 31, 2010 and reduced the maximum interest rate limit for NOW accounts guaranteed under the TAG Program to 0.25 percent, effective July 1, 2010. The Interim Rule also gives the FDIC's Board of Directors the authority to grant an additional 12-month extension of the Program, through December 31, 2011, without further rulemaking.

Institutions currently participating in the TAG Program that wished to opt out of the TAG extension period had until Friday, April 30, 2010, to do so. Any election to opt out will be effective on July 1, 2010. Any institution currently participating in the TAG Program that opted out will continue in the TAG program through June 30, 2010.

Did IBERIABANK opt-out of the TAG Program and why? Yes, IBERIABANK opted out of the program based on a number of reasons that should provide clients assurance they are with a stable and secure financial institution.

• Recent changes made to the program influenced our decision to opt out, namely the reduction of the maximum interest rate limit for NOW accounts guaranteed under the TAG Program to 0.25 percent, (effective July 1, 2010) and the potential extension of the program for another 12 months.


• Years of Proven Financial Performance, established in Louisiana in 1887


• First Bank in the Country to Return TARP


• Second Bank in the Country to Pay Back the Warrants Associated With TARP


• Strong Balance Sheet


• Well-capitalized


• Excess Liquidity Position ($1.1 Billion at March 31, 2010)


• Large Core Funding Base


• Strong Asset Quality


• Minimal Real Estate Construction and Development Exposure


• Operate in Countercyclical And Diverse Markets That Have Performed Well


• Operate Diverse Fee Based Businesses, including Mortgage and Title

Opting out of the TAGP does not affect your deposits that are insured under the FDIC’s general deposit insurance rules.

As required by the Final Rule implementing the Temporary Liquidity Guarantee Program, the FDIC has published a list on its website of the eligible insured depository institutions that have opted out of the Transaction Account Guarantee Program. To view the list or for more information about FDIC deposit insurance and the Temporary Liquidity Guarantee Program, visit www.fdic.gov.

As the FDIC states, “Please note that there are many valid reasons why an entity may have chosen to opt out of the TLG Program. Entities must make individual decisions based upon their business needs, including the costs of the Program as well as the benefits of participation. The decision to opt out in no way signals anything, either positively or negatively, about the financial health of the entity.”