Filed by IBERIABANK Corporation Pursuant to Rule 425 under the Securities Act of 1933, as amended and deemed filed pursuant to Rule 14a-12 under the Securities Exchange Act of 1934, as amended
| Subject Companies: | Pulaski Investment Corporation | |
| Pocahontas Bancorp, Inc. | ||
| Commission File No: | 000-25756 | |
| 000-23969 | ||
 IBERIABANK Corporation Acquisition of Pulaski Investment Corporation August 9, 2006 |
 2 Forward Looking Statements Forward Looking Statements Safe Harbor and 425 Language Safe Harbor and 425 Language Statements contained in this presentation which are not historical facts and which pertain to future operating results of IBERIABANK Corporation and its subsidiaries constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve significant risks and uncertainties. Actual results may differ materially from the results discussed in these forward-looking statements. Factors that might cause such a difference include, but are not limited to, those discussed in the Company’s periodic filings with the SEC. In connection with the proposed merger, IBERIABANK Corporation will file a Registration Statement on Form S-4 that will contain a proxy statement/prospectus. INVESTORS AND SECURITY HOLDERS ARE URGED TO CAREFULLY READ THE PROXY STATEMENT/PROSPECTUS REGARDING THE PROPOSED TRANSACTION WHEN IT BECOMES AVAILABLE, BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION. Investors and security holders may obtain a free copy of the proxy statement/prospectus (when it is available) and other documents containing information about IBERIABANK Corporation and Pulaski, without charge, at the SEC's web site at HTTP://www.sec.gov. Copies of the proxy statement/prospectus and the SEC filings that will be incorporated by reference in the proxy statement/prospectus may also be obtained for free by directing a request to: Investor Relations-12 th- Floor, IBERIABANK Corporation, 200 West Congress Street, Lafayette, LA, 70501, Phone: (337) 521-4788, Fax: (337) 521-4021. This communication is not an offer to purchase shares of Pulaski common stock, nor is it an offer to sell shares of IBERIABANK Corporation common stock which may be issued in any proposed merger with Pulaski. Any issuance of IBERIABANK Corporation common stock in any proposed merger with Pulaski would have to be registered under the Securities Act of 1933, as amended, and such IBERIABANK Corporation common stock would be offered only by means of a prospectus complying with the Act. |
 3 Presentation Outline Presentation Outline Our Stated Strategic Focus Our Stated Strategic Focus Pulaski Background Pulaski Background Arkansas Arkansas Pulaski Offices & Markets Served Pulaski Offices & Markets Served Summary Of Pulaski Businesses Summary Of Pulaski Businesses Merger Proposal Merger Proposal Strategic & Financial Implications Strategic & Financial Implications |
 4 IBERIABANK Corporation IBERIABANK Corporation Our Stated Strategic Focus Our Stated Strategic Focus Organic Growth, Supplemented With Acquisitions Organic Growth, Supplemented With Acquisitions Focus On Markets With Competitive Advantage; Focus On Markets With Competitive Advantage; Primarily Louisiana, But Consider AR And MS Primarily Louisiana, But Consider AR And MS Basic “Blocking & Tackling” Basic “Blocking & Tackling” Banking Banking Balanced And Conservative Approach Balanced And Conservative Approach Operate Close To Our Clients & Hire Great People Operate Close To Our Clients & Hire Great People Relationships & People / Not Facilities & Products Relationships & People / Not Facilities & Products Partner When Fits -- Partner When Fits -- Strategic, Cultural & Financial Strategic, Cultural & Financial Shareholder-Focused And Opportunistic Shareholder-Focused And Opportunistic |
 5 Pulaski Investment Corp. Pulaski Investment Corp. Background Background |
 6 Pulaski Pulaski Background Background Pulaski Investment Corp. (AR Holding Company); Primary Pulaski Investment Corp. (AR Holding Company); Primary Sub Is Pulaski Bank & Trust (AR Bank) And 6 Bank Subs: Sub Is Pulaski Bank & Trust (AR Bank) And 6 Bank Subs: • • Pulaski Mortgage Company Pulaski Mortgage Company • • Lenders Title Company Lenders Title Company • • Pulaski Insurance Agency, Inc. Pulaski Insurance Agency, Inc. • • Three Other Small Subsidiaries Three Other Small Subsidiaries Commenced Operations In 1956 In Little Rock, AR Commenced Operations In 1956 In Little Rock, AR Started Title Business In 1987; Acquisition Expansion Started Title Business In 1987; Acquisition Expansion Acquired Trust Powers In 1974; New HQ Building In 1978 Acquired Trust Powers In 1974; New HQ Building In 1978 11 AR Offices: Little Rock (8), North Little Rock (2), and 11 AR Offices: Little Rock (8), North Little Rock (2), and Bryant (Suburb of LR); 2 Offices Near Memphis (Cordova Bryant (Suburb of LR); 2 Offices Near Memphis (Cordova And Germantown-Opening In Late 2006). And Germantown-Opening In Late 2006). LPOs In Fayetteville, AR And Southaven, MS LPOs In Fayetteville, AR And Southaven, MS |
 7 Pulaski Pulaski Background (Continued) Background (Continued) Jim East Acquired Controlling Interest In 1973 Jim East Acquired Controlling Interest In 1973 East Family Controls 92% Of Outstanding Shares $491 East Family Controls 92% Of Outstanding Shares $491 Million In Assets And $393 Million In Deposits Million In Assets And $393 Million In Deposits 2005 Net Income Of $6.3 Million; $2.0 Million YTD 2006 2005 Net Income Of $6.3 Million; $2.0 Million YTD 2006 523 Employees 523 Employees $6 Million Trust Preferred At Average Cost Of 10.875% $6 Million Trust Preferred At Average Cost Of 10.875% Exceptional Asset Quality Exceptional Asset Quality Generally Balanced Interest Rate Risk Position Generally Balanced Interest Rate Risk Position |
 8 Pulaski Background Pulaski Background Financials – Financials – Balance Sheet Balance Sheet At December 31, Assets 2001 2002 2003 2004 2005 6/30/06 Cash and deposits 14,970 $ 23,095 $ 15,610 $ 18,115 $ 28,118 $ 19,108 $ Investment Securities 27,888 62,052 68,663 44,106 76,476 60,399 Cash and investments 42,858 85,147 84,273 62,221 104,594 79,507 Construction and land loans 36,788 31,854 31,726 48,892 77,293 n.a. 1-4 family mortgage loans 86,790 100,123 71,247 99,935 101,924 n.a. Multi-family mortgage loans 3,000 2,737 5,871 4,968 9,408 n.a. Non-residential RE loans 31,039 47,138 64,252 76,241 72,500 n.a. Commercial business loans 35,934 33,421 31,667 29,555 25,465 n.a. Consumer loans 74,826 45,487 51,952 61,937 39,724 n.a. Other adjustments 1,214 1,560 1,194 2,021 6,361 n.a. Loan loss reserves (3,009) (2,890) (3,041) (3,359) (4,345) n.a. Loans receivable, net 266,582 259,430 254,868 320,190 328,330 373,930 Premises and equipment 8,887 10,227 12,634 21,918 23,841 23,319 Real estate owned 793 1,059 979 24 323 71 Investment in subsidiaries - - - - - 186 Mortgage servicing rights 5 3 5 71 46 46 Goodwill and intangibles 1,191 967 1,132 1,074 1,135 1,129 Other assets 12,497 11,681 13,496 13,602 13,362 14,523 Total assets 332,813 $ 368,514 $ 367,387 $ 419,100 $ 471,631 $ 492,711 $ Liabilities and Equity Deposits 281,309 $ 310,521 $ 308,213 $ 318,305 $ 395,771 $ 393,041 $ Other borrowed money 19,015 17,500 12,191 44,289 20,494 53,029 Other liabilities 5,187 6,256 8,830 21,124 15,345 6,007 Total liabilities 305,511 334,277 329,234 383,718 431,610 452,077 Preferred stock - - - - - - Common stock 1,009 1,009 1,009 1,309 1,309 1,309 Retained earnings 20,048 26,424 31,076 34,308 39,132 40,372 Unrealized G/(L) on securities 245 804 68 (235) (420) (1,047) Total equity 21,302 28,237 32,153 35,382 40,021 40,634 Total liabilities and equity 332,813 $ 368,514 $ 367,387 $ 419,100 $ 471,631 $ 492,711 $ Memo Items Tangible equity 20,111 27,270 31,021 34,308 38,886 39,505 Loans serviced for others 0 1,397 2,648 19,176 19,355 n.a. |
 9 Pulaski Background Pulaski Background Financials – Financials – Income Statement Income Statement Calendar Year Ended December 31, Quarter Ended 2001 2002 2003 2004 2005 6/30/05 9/30/05 12/31/05 3/31/06 6/30/06 Interest income 25,662 $23,371 $23,542 $21,846 $27,619 $6,771 $7,384 $7,493 $7,346 $8,207 Interest expense 9,183 5,971 4,433 4,229 7,820 1,912 2,197 2,323 2,577 3,128 Net interest income 16,479 17,400 19,109 17,617 19,799 4,859 5,187 5,170 4,769 5,079 Loan loss provision 1,310 400 720 838 1,783 291 372 880 0 0 Net int income after prov 15,169 17,000 18,389 16,779 18,016 4,568 4,815 4,290 4,769 5,079 Total non-interest income 24,470 34,391 37,437 30,941 39,165 8,394 9,100 14,444 7,189 8,767 Operating expenses: Compensation & benefits 20,693 24,208 30,031 26,461 29,055 6,977 7,443 8,048 7,022 7,289 Occupancy expense 4,490 4,253 4,483 4,806 5,954 1,445 1,647 1,457 1,621 1,556 Goodwill amortization 122 166 6 3 3 1 0 1 1 1 Other expenses 6,625 8,501 9,054 8,613 11,973 2,795 3,199 3,417 2,265 2,798 Total operating expenses 31,930 37,128 43,574 39,883 46,985 11,218 12,289 12,923 10,909 11,644 Income before taxes 7,709 14,263 12,636 7,837 10,196 1,744 1,626 5,811 1,049 2,202 Taxes 2,758 5,217 4,515 3,101 3,867 703 628 2,122 414 846 Reported net income $4,951 $9,046 $8,121 $4,736 $6,329 $1,041 $998 $3,689 $635 $1,356 |
 10 Pulaski Background Pulaski Background Financials - Financials - Ratios Ratios Calendar Year Quarter Ended 2001 2002 2003 2004 2005 12/31/04 3/31/05 6/30/05 9/30/05 12/31/05 Average assets 308,785 $ 345,358 $ 381,027 $ 385,116 $ 450,129 $ 419,842 $ 424,883 $ 441,349 $ 465,558 $ 468,724 $ Average equity 20,161 26,141 31,698 33,511 36,191 35,335 35,448 34,416 36,513 38,387 Return on assets (ROA) 1.60% 2.62% 2.13% 1.23% 1.41% 0.85% 0.57% 0.94% 0.86% 3.15% Return on equity (ROE) 24.56% 34.60% 25.62% 14.13% 17.49% 10.06% 6.78% 12.10% 10.93% 38.44% Interest-rate spread 5.27% 5.15% 5.11% 4.80% 4.74% 4.74% 4.68% 5.00% 4.51% 4.67% Net interest margin 6.01% 5.63% 5.45% 5.12% 5.01% 5.06% 5.00% 4.94% 4.99% 5.11% Efficiency ratio 77.7% 71.4% 77.6% 82.1% 79.7% 85.5% 89.4% 84.6% 86.0% 65.9% Effective tax rate 35.8% 36.6% 35.7% 39.6% 37.9% 39.9% 40.8% 40.3% 38.6% 36.5% Net charge-offs/avg. loans 0.30% 0.23% 0.22% 0.18% 0.23% 0.24% 0.17% 0.22% 0.17% 0.36% Loans 90+ days/gross loans 0.03% 0.02% 0.03% 0.03% 0.04% 0.03% 0.03% 0.02% 0.03% 0.04% Non-performing assets/assets 0.87% 0.39% 0.35% 0.12% 0.39% 0.12% 0.13% 0.12% 0.21% 0.39% Loan loss reserves/loans 1.12% 1.10% 1.18% 1.04% 1.31% 1.04% 1.03% 0.99% 1.02% 1.31% GAAP capital/total assets 6.40% 7.66% 8.75% 8.44% 8.49% 8.44% 8.29% 7.93% 7.89% 8.49% GAAP tangible capital/assets 6.04% 7.40% 8.44% 8.19% 8.25% 8.19% 8.05% 7.70% 7.66% 8.25% Leverage ratio 8.10% 8.72% 9.98% 9.68% 9.69% 9.68% 9.62% 9.40% 9.05% 9.69% Total risk-based capital ratio 11.60% 14.59% 15.25% 13.91% 14.84% 13.91% 13.70% 12.96% 13.05% 14.84% |
 11 Pulaski Background Pulaski Background Financials – Financials – Balance Sheet Trends Balance Sheet Trends |
 12 Pulaski Background Pulaski Background Financials – Financials – Income Trends Income Trends |
 13 Pulaski Background Pulaski Background Financials – Financials – Yield/Margin Trends Yield/Margin Trends |
 14 Pulaski Background Pulaski Background Financials – Financials – Asset Quality Trends Asset Quality Trends |
 15 Pulaski Background Pulaski Background Financials – Financials – Loan Composition Loan Composition |
 16 Pulaski Background Pulaski Background Financials – Financials – Funding Composition Funding Composition |
 17 Pulaski Background Pulaski Background Leadership And Ownership Leadership And Ownership Ownership Class A Class B Total %Total %Total (Voting) (Nonvoting) (Combined) (Voting) (Combined) Jim East & FLP 107,388 1,724,794 1,832,182 88.4% 75.1% Hunter East - 315,577 315,577 0.0% 12.9% Mark Williamson & FL 6,530 124,070 130,600 5.4% 5.4% East Family Trust 4,556 86,565 91,121 3.8% 3.7% All Others 2,940 66,936 69,876 2.4% 2.9% Total Shares 121,414 2,317,942 2,439,356 100.0% 100.0% Officers Current Officer Age Title Started Role Jim East 67 Chairman 1962 1973 Hunter East 42 CEO 1986 2000 Bob Magee 55 President & CFO 1976 2000 Charles Quick 55 Mtg President 1971 1996 Michael Pryor 52 Title Pres. & CEO 1995 1999 |
 18 Arkansas |
 19 A Little Rock B NW Arkansas C Jonesboro D Ft. Smith E Texarkana F Pine Bluff G Hot Springs F E D C B A G Searcy W. Memphis Batesville Mountain Home Arkadelphia El Dorado Conway Russellville Helena |
 20 AR Metropolitan Markets |
 21 AR & LA Markets - Deposits $17.4 $10.9 $9.3 $6.3 $4.4 $4.0 $3.8 $3.7 $2.5 $2.1 $2.1 $2.0 $1.6 $- $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 $ Billion Deposits New Orleans Little Rock, AR Baton Rouge NW Arkansas Lafayette Shreveport Northshore Ft. Smith, AR Houma-Thibodaux Lake Charles Monroe Jonesboro, AR Alexandria |
 22 AR MSA Population MSA Population 1.3% -0.2% 0.9% 0.6% 0.6% 3.1% 1.1% 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000 550,000 600,000 650,000 700,000 Little Rock NW Ark Ft. Smith Texarkana Jonesboro Pine Bluff Hot Springs 2002 2003 |
 23 AR Metro Market Comparison Summary Demographic Data MSAs With Populations Greater Than 100,000 State Total Population 2005 Pop. Change 2000-05 (%) Proj. Change 2005-10 (%) Median HH Income 2005 HH Inc. Chg 2000-05 (%) Proj. HH Inc. Change 2005-10 (%) 1 New Orleans, LA LA 1,346,180 2.3 2.7 $ 40,716 15.3 15.4 2 Memphis, TN-MS-AR MS 1,285,063 6.6 7.0 45,866 15.8 15.8 3 Oklahoma City, OK OK 1,156,464 5.6
5.4
43,940
19.4
18.1 4 Tulsa, OK OK 901,400 4.9 4.3 45,008 19.7 18.2 5 Baton Rouge, LA LA 745,951 5.7 6.1 42,812 14.4 15.1 6 Little Rock-North Little Rock, AR AR 653,153 7.0 7.5 47,104 21.0 22.6 7 Jackson, MS MS 521,356 4.9
5.3
42,500
13.8
14.7 8 Fayetteville-Springdale-Rogers, AR AR 402,550 16.0 15.7 43,503 20.0 20.8 9 Shreveport-Bossier City, LA LA 385,145 2.4 2.5 37,838 14.0 13.7 10 Fort Smith, AR-OK AR 282,362 3.4
2.4
37,557
19.1
19.0 11 Gulfport-Biloxi, MS MS 259,348 5.3
5.0
39,168
10.8
11.3 12 Lafayette, LA LA 250,607 4.8 5.0 40,338 13.7 13.5 13 Lake Charles, LA LA 200,064 3.4
3.4
40,132
13.7
12.9 14 Houma-Thibodaux, LA LA 199,943 2.8 2.1 39,588 12.8 11.5 15 Monroe, LA LA 172,452 1.4 1.7 36,036 13.6 14.0 16 Pascagoula, MS MS 158,977 5.6
5.0
42,790
11.3
11.2 17 Alexandria, LA LA 147,988 2.0
0.5
33,511
12.4
13.0 18 Texarkana, TX-Texarkana, AR AR 133,498 2.9
1.7
38,691
19.8
19.2 19 Hattiesburg, MS MS 129,129 4.3
4.3
34,416
12.1
12.6 20 Tupelo, MS MS 128,479 2.6
1.8
38,292
11.4
11.2 21 Lawton, OK OK 113,783 (1.1)
(0.9)
39,464 16.2 16.6 22 Jonesboro, AR AR 113,249 5.1 5.4 37,884 21.8 22.3 23 Pine Bluff, AR AR 106,804 (0.5)
(1.1)
38,099 21.7
22.2 24 Meridian, MS MS 105,940 (0.6)
(0.5)
32,713 10.8
12.4 25 Hammond, LA LA 105,107 4.5
3.5
32,939
12.3
12.9 Source: ESRI |
 24 Arkansas Arkansas Large Construction Projects Large Construction Projects 20 Largest Commercial Projects In Arkansas Source: Arkansas Business, February 13, 2006 Rank Project Location Region Valuation 1. St. Mary's Health of NW Arkansas Rogers NW 89.0 $ 2. Tyson Food Discovery Center Springdale NW 50.0 3. Richard Sheppard Arnold US Courthouse Little Rock Central 49.1 4. Pinnacle Hills Promenade Rogers NW 42.0 5. Mount Magazine Lodge Logan County West 32.0 6. Turtle Creek Mall Jonesboro NE 30.5 7. Aviation Support Facility, AR Nat Guard N. Little Rock Central 30.0 8. ASU Student Union Building Jonesboro NE 29.0 9. 300 Third Condominium Little Rock Central 29.0 10. Church at Pinnacle Hills Rogers NW 26.0 11. Medium Security Prison Phase 3 Malvern Central 26.0 12. North AR Regional Medical Center Patient Tower Harrison NW 25.0 13. U of A Center For Academic Excellence Fayetteville NW 25.0 14. Van Buren School Addition Van Buren West 24.3 15. Dickey-Stephens Field N. Little Rock Central 23.0 16. Alcoa Exchange Shopping Center Bryant Central 22.0 17. ASU Residential Housing Jonesboro NE 20.5 18. Bentonville High School Phase 2 Bentonville NW 20.0 19. NW AR Community College Student Center Rogers NW 20.0 20. Pleasant Grove Apartments Rogers NW 20.0 |
 Pulaski
Investment Corp. Pulaski Investment Corp. Markets & Office Locations Markets & Office Locations |
 26 DALLAS FAYETTEVILLE ST LOUIS JONESBORO LITTLE ROCK SHREVEPORT ACADIANA NEW ORLEANS BATON ROUGE MEMPHIS MONROE PULASKI MARKETS AND OFFICES Legend Pulaski Branches PMC Branches Lenders Title Branches First Community Branches IBERIABANK Branches Under Construction IBERIABANK Branches IBERIABANK LPO |
 27 Saint Louis Metro Area Kansas City Memphis Memphis Tulsa Tulsa Little Rock Little Rock Fort Smith Fort Smith Springfield Springfield Legend Pulaski Branches PMC Branches Lenders Title Branches First Community Branches Pocahontas PULASKI AND POCAHONTAS MARKETS |
 Little
Rock, AR |
 29 Little Rock, Arkansas Little Rock, Arkansas • Population: 650,000 • Median HH Income: $47,000 • MSA Population Grew 7% From 2000 To 2005 And Expected To Grow 7.5% Through 2010 • 2 nd Most Diverse Economy In U.S. (Moody’s) • 22 nd Of 200 Best Places in America for Business and Careers (Forbes) • One Of 50 Hottest Cities Of 2005 For Business Expansion (Expansion Magazine) • MSA Counties: – Pulaski – Faulkner – Grant – Lonoke – Perry – Saline • HQs: Alltel, Acxiom, Dillard's, Stephens, Nuvell Financial Services • University Of Arkansas Medical School And Affiliates Have Annual Economic Impact Of $4.1 Billion • Little Rock National Airport (LIT) - Arkansas' Largest Airport, Serving 2.1 million Passengers Annually. |
 30 Little Rock Largest Employers Employer Product Employees 1. State of Arkansas Government 28,100 2. Federal Government Government 9,400 3. University of Arkansas for Medical Sciences Education/Medical Services 8,500 4. Pulaski County Public School Districts Education 7,868 5. Baptist Health Medical Services 7,571 6. Little Rock Air Force Base Government 4,500 7. Acxiom Data Processing 4,388 8. St. Vincent Infirmary Medical Center Medical Services 3,500 9. Entergy Arkansas Utility (Electric) 2,881 10. Central Arkansas Veterans Healthcare System Medical Services 2,785 11. Alltel Corp. Telecommunications 2,734 12. Arkansas Children’s Hospital Medical Services 2,503 13. Dillard’s Department Store 2,400 14. Arkansas Blue Cross Blue Shield Insurance 2,163 15. University of Arkansas at Little Rock Education 2,150 16. AT&T Utility (Telephone) 1,600 17. Union Pacific Railroad Transportation 1,227 18. Fidelity Information Services Data Processing 1,000 |
 31 Conway Conway Russellville Russellville Ward Ward Beebe Beebe Maumelle Maumelle Morrilton Morrilton Hot Springs Village Hot Springs Village Lonoke Lonoke England England Hot Springs Little Rock Legend Pulaski Branches PMC Branches Lenders Title Branches LITTLE ROCK: PULASKI OFFICES |
 32 LITTLE ROCK (2004 MEDIAN HOUSEHOLD INCOME) |
 33 Little Rock Little Rock Area Area Deposit Deposit Market Share Market Share Source: FDIC Data at June 30, 2005 Source: FDIC Data at June 30, 2005 Rank Institution Type Offices 2005 Deps ($000) 2005 Mkt Share 2004 Deps ($000) 2004 Mkt Share Pulaski, AR 1 Bank of America Corp. (NC) Bank 17 1,358,812 19.7 1,300,958 20.0 2 Regions Financial Corp. (AL) Bank 21 1,225,131 17.8 1,185,752 18.3 3 Rogers Bancshares Inc. (AR) Bank 28 828,628 12.0 733,181 11.3 4 Bank of the Ozarks Inc. (AR) Bank 14 562,598 8.2 508,677 7.8 5 Home Bancshares Inc. (AR) Bank 19 534,525 7.8 403,411 6.2 6 U.S. Bancorp (MN) Bank 18 412,019 6.0 464,427 7.2 7 Arvest Bank Group Inc. (AR) Bank 17 376,963 5.5 408,976 6.3 8 Pulaski Investment Corp. (AR) Bank 10 328,404 4.8 305,939 4.7 9 OneFinancial Corporation (AR) Bank 9 251,606 3.7 221,985 3.4 10 First Arkansas Bancshares Inc. (AR) Bank 8 149,941 2.2 145,567 2.2 11 Arkansas Bankers' Bancorp (AR) Bank 1 123,507 1.8 177,845 2.7 12 Little Rock Bankshares Inc. (AR) Bank 4 114,948 1.7 88,846 1.4 13 National Banking Corp. (AR) Bank 6 106,217 1.5 106,401 1.6 14 Capital Bancshares Inc. (AR) Bank 2 98,147 1.4 90,192 1.4 15 BancorpSouth Inc. (MS) Bank 3 96,879 1.4 105,713 1.6 16 Delta Trust and Banking Corp (AR) Bank 3 81,586 1.2 80,899 1.3 17 State Holding Company (AR) Bank 7 80,853 1.2 71,594 1.1 18 Simmons First National Corp. (AR) Bank 7 76,289 1.1 77,024 1.2 19 Centennial Bancshares Inc (AR) Bank 2 46,576 0.7 - - 20 First Security Bancorp (AR) Bank 4 25,280 0.4 NA NA 21 Acme Holding Company Inc. (AR) Bank 2 12,646 0.2 13,958 0.2 22 MHBC Investments Lmtd (AR) Bank 1 7,179 0.1 3,251 0.1 23 Summit Bancorp Inc. (AR) Bank 2 2,669 0.0 - - 24 Peoples Home Holding Inc (AR) Bank 1 - - NA NA Total For Institutions In Market 206 6,901,403 100.0 6,496,114 100.0 Saline, AR 1 Regions Financial Corp. (AL) Bank 4 214,175 29.9 232,089 32.6 2 Union Bcshs of Benton Inc. (AR) Bank 6 171,508 24.0 179,068 25.2 3 Rogers Bancshares Inc. (AR) Bank 3 73,424 10.3 63,340 8.9 4 Arvest Bank Group Inc. (AR) Bank 2 69,808 9.8 71,310 10.0 5 MNB Bancshares Inc. (AR) Bank 3 64,350 9.0 69,223 9.7 6 Bank of the Ozarks Inc. (AR) Bank 3 46,592 6.5 30,584 4.3 7 Summit Bancorp Inc. (AR) Bank 2 41,927 5.9 38,456 5.4 8 Rock Bancshares Inc. (AR) Thrift 1 11,562 1.6 12,465 1.8 9 U.S. Bancorp (MN) Bank 1 10,201 1.4 8,309 1.2 10 Pulaski Investment Corp. (AR) Bank 1 9,124 1.3 6,189 0.9 11 Southern State Bancshares Inc (AR) Bank 1 3,075 0.4 - - 12 OneFinancial Corporation (AR) Bank 1 310 0.0 580 0.1 Total For Institutions In Market 28 716,056 100.0 711,613 100.0 |
 34 Northwest, AR (Fayetteville-Springdale-Rogers) |
 35 Northwest Arkansas • Population: Over 350,000 • The 6th Fastest Growing Region In U.S. • 47% Population Increase In The 1990s • 60% Employment Growth In The Last Decade • Unemployment Rate Among Lowest In U.S. • Cities Include: – Bentonville – Fayetteville – Rogers-Lowell – Siloam Springs – Springdale www.nwark.org • Medium HH Inc: $41,037 • Unemployment Rate 2.6% • Home of University of Arkansas • The Presence Of Major Corporate Leaders Like Wal- Mart, Tyson Foods, And J.B. Hunt Attracts Satellite Offices For Other Large Corporations, Including IBM And Proctor & Gamble |
 36 • Best Places For Business & Careers #9 (Forbes, 2006) • #8 Hottest Places For Job Creation (Milken’s, 2005) • Featured In "Lifestyle Magazine", "Southern Living" and "The Best Towns in America" - A Where-To-Go Guide For A Better Life • The Presence Of Major Corporate Leaders Like Wal- Mart, Tyson Foods, And J.B. Hunt Attracts Satellite Offices For Other Large Corporations, Including IBM And Proctor & Gamble • Best Places 2005 (Ranked 7th) • Top MSA In Income Growth • 4th Fastest Job Growth (Forbes) • CNN/Money Magazine Ranked Best Places To Live in 2006 • #3 Best Cities for Doing Business (Inc. Magazine, 2006) • #9 Best Places for Business (Forbes Magazine, 2006) Northwest Arkansas (Continued) |
 37 Rogers Harrison Yellville Springdale Greenbrier Prairie Grove Mountain Home Conway Bentonville Russellville Fayetteville Legend PMC Branches Lenders Title Branches NW ARKANSAS: PULASKI OFFICES |
 38 § ¨ ¦ 540 § ¨ ¦ 540 § ¨ ¦ 540 Fayetteville Rogers Springdale Bentonville Bella Vista NW ARKANSAS (2004 MEDIAN HOUSEHOLD INCOME) Legend Pulaski Branches PMC Branches Lenders Title Branches 2004 Median Household Income $80,001 - $250,000 $60,001 - $80,000 $40,001 - $60,000 $25,001 - $40,000 $0 - $25,000 |
 39 Memphis, TN (Memphis-Germantown-Cordova, TN; Southaven-Olive Branch-Hernando, MS; W. Memphis, AR) |
 40 Memphis, Tennessee • County Seat Of Shelby County • Population: 680,000 • Largest City In The State • 17th Largest City In The Nation • 2nd Largest City In The Southeast • $2.3 Billion Tourism Industry • 3rd Largest Casino Cluster In U.S. • HQs: FedEx, AutoZone, Fred’s Stores • 153 Major Projects Announced In 2005 Adding 9,500 New Jobs • Ranked 16th Of “50 Hottest Cities” In 2005 For Relocating Or Expanding Companies • Memphis MSA Population 1,230,000 • 2nd Largest MSA In Tenn. (41st In US) • Median HH Income: $32,385 • Tennessee Counties: – Shelby – Tipton – Fayette • Mississippi Counties: – DeSoto – Marshall – Tate – Tunica • Arkansas County: – Crittendon |
 41 Hernando Hernando Memphis Cordova Germantown Memphis Cordova Hernando Southhaven Olive Branch West Memphis Legend Pulaski Branches PMC Branches Lenders Title Branches MEMPHIS: PULASKI OFFICES |
 42 Memphis Olive Branch Southaven Bartlett Germantown Horn Lake Collierville § ¨ ¦ 40 § ¨ ¦ 55 § ¨ ¦ 240 § ¨ ¦ 55 § ¨ ¦ 40 Legend Pulaski Branches PMC Branches Lenders Title Branches 2004 Median Household Income $80,001 - $250,000 $60,001 - $80,000 $40,001 - $60,000 $25,001 - $40,000 $0 - $25,000 MEMPHIS (2004 MEDIAN HOUSEHOLD INCOME) |
 43 Memphis Memphis Area Area Deposit Deposit Market Market Share Share Source: FDIC Data at June 30, 2005 Source: FDIC Data at June 30, 2005 Rank Institution Type Offices 2005 Deps ($000) 2005 Mkt Share 2004 Deps ($000) 2004 Mkt Share Shelby, TN 1 First Horizon National Corp. (TN) Bank 50 14,826,455 63.8 9,650,893 42.2 2 Regions Financial Corp. (AL) Bank 62 3,103,742 13.4 4,622,745 20.2 3 SunTrust Banks Inc. (GA) Bank 37 1,035,162 4.5 4,611,223 20.2 4 Bank of America Corp. (NC) Bank 17 762,375 3.3 603,007 2.6 5 Independent Holdings Inc (TN) Bank 5 400,044 1.7 374,188 1.6 6 West Tennessee Bancshares (TN) Bank 8 367,595 1.6 339,836 1.5 7 Synovus Financial Corp. (GA) Bank 7 351,081 1.5 334,533 1.5 8 Trustmark Corp. (MS) Bank 12 270,316 1.2 267,450 1.2 9 BancorpSouth Inc. (MS) Bank 8 268,923 1.2 283,743 1.2 10 Cadence Financial Corp. (MS) Bank 4 220,877 1.0 238,840 1.0 11 Renasant Corp. (MS) Bank 4 213,732 0.9 185,493 0.8 12 Financial Fedcorp Inc. (TN) Thrift 1 204,982 0.9 213,669 0.9 13 First Trust Bk for Svgs FSB (TN) Thrift 2 159,985 0.7 128,259 0.6 14 CIVITAS BankGroup (TN) Bank 4 136,634 0.6 136,843 0.6 15 Wachovia Corp. (NC) Bank 6 112,265 0.5 239,346 1.1 16 Tri State Bank of Memphis (TN) Bank 5 105,083 0.5 118,216 0.5 17 Commercial Holding Co. (TN) Bank 3 100,833 0.4 109,909 0.5 18 Independent Southern (TN) Bank 3 98,768 0.4 110,898 0.5 19 First Citizens Bancshares Inc. (TN) Bank 4 96,129 0.4 72,166 0.3 20 First Alliance Bank (TN) Bank 2 82,142 0.4 66,458 0.3 21 Security Bncp of TN Inc. (TN) Bank 2 78,711 0.3 67,477 0.3 22 First Capital Bank (TN) Bank 1 62,847 0.3 35,123 0.2 23 Paragon National Bank (TN) Bank 3 51,863 0.2 NA NA 24 Pulaski Investment Corp. (AR) Bank 1 44,395 0.2 109 - 25 MemphisFirst Corporation (TN) Bank 1 23,572 0.1 23,292 0.1 26 Oakland Fincl Services Inc. (TN) Bank 1 19,902 0.1 19,368 0.1 27 Community Bancshares of MS (MS) Bank 1 16,619 0.1 NA NA 28 First South Bancorp Inc. (TN) Bank 2 14,231 0.1 14,560 0.1 29 Brighton Bancorp Inc. (TN) Bank 1 12,376 0.1 10,649 0.1 30 Community First Bshrs Inc. (TN) Bank 1 5,537 0.0 0 - 31 First M & F Corp. (MS) Bank 3 0 - NA NA Total For Institutions In Market 261 23,247,176 100.0 22,878,293 100.0 |
 44 Dallas, TX |
 45 Dallas, Texas • 2004 Population: 1,210,390 • 9th Largest City In U.S. • 3rd Largest City In Texas • Among Nation's 100 Most Ethnically Diverse Communities • 10 Largest Municipalities In The Nation • Least Densely Populated Major Metropolitan Area In The World. • Ranked Among the 7 Most Livable Urban Complexes In The World • Fastest Growing Of The Top 36 “Most Livable” • Named the “Best City For Business” By Fortune Magazine In 1999 • Pulaski Mortgage Offices In Dallas Metro Area: – Dallas, Texas – Argyle, Texas • Median HH Income: $91,161 – Bedford, Texas – Ardmore, Oklahoma th th th |
 46 Dallas Argyle Bedford Ardmore DALLAS, TX Legend PMC Branches OKLAHOMA |
 47 St. Louis, MO |
 48 St. Louis, Missouri • Total Population: More Than 2.7 Million In Greater St. Louis – St. Charles Population: 320,734, 2nd Largest County • Nation’s 18th Largest Metropolitan Area With Annual Household Income Of $47,370 • Largest Employment Sector Is Manufacturing With Nearly 12% Of Population, Following Retail Trades • Forbes Magazine Ranked St. Louis 27th Out Of 200 Best Metropolitan Areas For Cost Of Doing Business In 2006 • Eight St. Louis Companies Are Listed On The Fortune 500, 21 Are Listed On The Fortune 1000 • Home To Many Of The Nation’s Largest Privately Held Companies, Including Enterprise Rent – A – Car, Edward Jones And UniGroup Pulaski has locations in Swansea, Illinois And St. Charles, Missouri |
 49 Alton St. Louis Swansea Saint Charles ST. LOUIS AREA Legend PMC Branches |
 50 Pulaski Businesses |
 51 Pulaski Businesses Pulaski Businesses Pulaski Bank Pulaski Bank Subsidiary Of Holding Company Subsidiary Of Holding Company 11 Offices In Little Rock (8), North Little Rock (2), 11 Offices In Little Rock (8), North Little Rock (2), And Bryant, AR. Additionally, Offices In Cordova, And Bryant, AR. Additionally, Offices In Cordova, TN And Germantown (Opening in Late 2006); 5 TN And Germantown (Opening in Late 2006); 5 Offices Leased Offices Leased LPOs In Fayetteville, AR And Southaven, MS LPOs In Fayetteville, AR And Southaven, MS $85 Million In Construction Loans Outstanding (42% $85 Million In Construction Loans Outstanding (42% NW AR, 26% Memphis, 23% Little Rock, And 8% NW AR, 26% Memphis, 23% Little Rock, And 8% MS); Total Commitments Of $125 Million MS); Total Commitments Of $125 Million Approximately 180 Employees Approximately 180 Employees |
 52 Pulaski Businesses Pulaski Businesses Pulaski Mortgage Company Pulaski Mortgage Company Subsidiary Of Pulaski Bank & Trust Subsidiary Of Pulaski Bank & Trust PMC Has One Subsidiary—Bankers Home Lending PMC Has One Subsidiary—Bankers Home Lending Operates In The St. Louis Area (Name Conflict) Operates In The St. Louis Area (Name Conflict) 22 Offices In Arkansas (12), Mississippi (3), Texas 22 Offices In Arkansas (12), Mississippi (3), Texas (3), Tennessee (2), Missouri, Illinois, And Oklahoma (3), Tennessee (2), Missouri, Illinois, And Oklahoma Founded By Jim East’s Father in 1944 Founded By Jim East’s Father in 1944 Approximately 135 Employees Approximately 135 Employees Production Of $685 Million And Revenues Of $16 Production Of $685 Million And Revenues Of $16 Million In 2005 Million In 2005 Sell Nearly All Production Into Secondary Market Sell Nearly All Production Into Secondary Market 2005 Efficiency Ratio Of 83% 2005 Efficiency Ratio Of 83% |
 53 Pulaski Businesses Pulaski Businesses Lenders Title Company Lenders Title Company Subsidiary Of Pulaski Bank & Trust Subsidiary Of Pulaski Bank & Trust Lenders Has One Subsidiary—Asset Exchange, Inc. Lenders Has One Subsidiary—Asset Exchange, Inc. 20 Offices, Including 10 In Central Arkansas 20 Offices, Including 10 In Central Arkansas Founded in 1987 Founded in 1987 Approximately 200 Employees Approximately 200 Employees In 2005, Closed 16,400 With Revenues Of $16 Million In 2005, Closed 16,400 With Revenues Of $16 Million 2005 Efficiency Ratio Of 86% 2005 Efficiency Ratio Of 86% |
 54 Pulaski Businesses Pulaski Businesses Credit Card Business Credit Card Business Division Within Pulaski Bank & Trust Division Within Pulaski Bank & Trust Entered Credit Card Business In 1994 Entered Credit Card Business In 1994 High Quality National Credit Card Focus; High Quality National Credit Card Focus; Processing Nearly 40,000 Applications Annually Processing Nearly 40,000 Applications Annually Three Portfolio Sales in 1997 ($19 Million At 20% Three Portfolio Sales in 1997 ($19 Million At 20% Premium), 2002 ($34 Million At 19% Premium), And Premium), 2002 ($34 Million At 19% Premium), And 4Q05 ($34 Million At 17% Premium) 4Q05 ($34 Million At 17% Premium) 2005 Net Charge-Offs/Avg. Receivables Of 1.39% 2005 Net Charge-Offs/Avg. Receivables Of 1.39% At June 30, 2006, $31 Million In Outstanding At June 30, 2006, $31 Million In Outstanding Receivables And 0.39% Delinquencies Receivables And 0.39% Delinquencies Approximately 13 Employees Approximately 13 Employees |
 55 Pulaski Businesses Pulaski Businesses Trust/Investment/Insurance Trust/Investment/Insurance Division Within Pulaski Bank & Trust Division Within Pulaski Bank & Trust Granted Trust Powers In 1974 Granted Trust Powers In 1974 Affiliation With Raymond James Affiliation With Raymond James Offer Clients Annuities, Life Insurance, Mutual Offer Clients Annuities, Life Insurance, Mutual Funds, Brokerage, Retirement Planning, And Tax Funds, Brokerage, Retirement Planning, And Tax Management Management $126 Million In Trust Assets Under Management $126 Million In Trust Assets Under Management $69 Million In Brokerage Accounts $69 Million In Brokerage Accounts Approximately 8 Employees Approximately 8 Employees |
 56 Merger Proposal Merger Proposal For For Pulaski Investment Pulaski Investment Corporation Corporation |
 57 Merger Proposal Merger Proposal Deal Overview Deal Overview Estimated Value Of $130 Million (Assuming $58.60 IBKC Price) Estimated Value Of $130 Million (Assuming $58.60 IBKC Price) Consideration: Consideration: • • 50% Stock And 50% Cash Paid To Shareholders 50% Stock And 50% Cash Paid To Shareholders • • Stock Portion Is Half Fixed Exchange (0.2274 Shares), And Half Stock Portion Is Half Fixed Exchange (0.2274 Shares), And Half Floating ($13.323 Value Per Share, The Shares Of Which Will Be Floating ($13.323 Value Per Share, The Shares Of Which Will Be Based On Future Period 15-Day Trading Average) Based On Future Period 15-Day Trading Average) • • Anticipate Issuing Combination Of $15 Million Trust Preferred And Anticipate Issuing Combination Of $15 Million Trust Preferred And $50-55 Million Equity Raise $50-55 Million Equity Raise No Pricing Collars No Pricing Collars Customary Walk-Away Provisions (12-Month, Mutual, MAC, Etc.) Customary Walk-Away Provisions (12-Month, Mutual, MAC, Etc.) Insiders Sign Support And Affiliate Agreements Insiders Sign Support And Affiliate Agreements Five Management Employment Contracts Five Management Employment Contracts Board Members Form Little Rock Advisory Board Board Members Form Little Rock Advisory Board Lock-Up Fee Of $6.4 Million Lock-Up Fee Of $6.4 Million |
 58 Merger Proposal Merger Proposal Arkansas Leadership Team Arkansas Leadership Team Jim East (Pulaski Chairman) And Hunter East (Pulaski Jim East (Pulaski Chairman) And Hunter East (Pulaski CEO) – CEO) – 3-Year Employment/Consulting Agreements; 3-Year Employment/Consulting Agreements; Serve In Active Advisory Capacity Serve In Active Advisory Capacity Robert Head (IBKC) – Robert Head (IBKC) – Arkansas CEO Arkansas CEO Bob Magee (Pulaski) – Bob Magee (Pulaski) – Arkansas Chief Admin. Officer Arkansas Chief Admin. Officer Mike Pryor (Pulaski) – Mike Pryor (Pulaski) – CEO-Lenders Title Co.; Teana CEO-Lenders Title Co.; Teana Bradford (Pulaski) As Chief Operating Officer-Lenders Bradford (Pulaski) As Chief Operating Officer-Lenders Title Company Title Company Chuck Quick (Pulaski) – Chuck Quick (Pulaski) – CEO-Pulaski Mortgage Co; CEO-Pulaski Mortgage Co; David Bryles David Bryles (Pulaski) As Chief Operating Officer- (Pulaski) As Chief Operating Officer- Pulaski Mortgage Company Pulaski Mortgage Company David Doherty (IBKC) – David Doherty (IBKC) – Northeast AR Regional President Northeast AR Regional President |
 59 Merger Proposal Merger Proposal Significant Assumptions Significant Assumptions We Estimate Pulaski Will Earn Base Net Income Of We Estimate Pulaski Will Earn Base Net Income Of Approximately $5.0 Million In 2007 Approximately $5.0 Million In 2007 Anticipate Minimal Loan And Deposit Run-Off To Anticipate Minimal Loan And Deposit Run-Off To Occur Within The First Year, Due To Similar Clients Occur Within The First Year, Due To Similar Clients And Underwriting Approach And Underwriting Approach Cost Savings Phased In Over 1 Year; Expect Cost Savings Phased In Over 1 Year; Expect Combined Cost Savings And Revenue Enhancements Combined Cost Savings And Revenue Enhancements Of $7.8 Million (Pre-Tax) Equate To 20% Of Current Of $7.8 Million (Pre-Tax) Equate To 20% Of Current Operating Expense Operating Expense One-Time Costs Of $12 Million (Some Capitalized) One-Time Costs Of $12 Million (Some Capitalized) CDI Assumed To Be $14 Million; 10 Years, SL Basis CDI Assumed To Be $14 Million; 10 Years, SL Basis |
 60 Merger Proposal Merger Proposal Pulaski Financial Impact Pulaski Financial Impact Excluding One-Time Merger-Related Charges, And Excluding One-Time Merger-Related Charges, And Assuming Capital Raise At 5% Discount, Project An Assuming Capital Raise At 5% Discount, Project An Immaterial Impact On GAAP EPS In 2006; Breakeven Or Immaterial Impact On GAAP EPS In 2006; Breakeven Or Slightly Dilutive To 2007 GAAP EPS And Slightly Slightly Dilutive To 2007 GAAP EPS And Slightly Accretive To 2007 Cash EPS Accretive To 2007 Cash EPS 18% Accretive to BVS; 9% Dilutive To Tangible BVS 18% Accretive to BVS; 9% Dilutive To Tangible BVS Approximately $96 Million Of Net Goodwill Created, Approximately $96 Million Of Net Goodwill Created, After Impact Of Estimated Marks After Impact Of Estimated Marks No Material Change In Tier 1 Leverage Ratio No Material Change In Tier 1 Leverage Ratio Internal Rate Of Return In “Mid-Teens” Internal Rate Of Return In “Mid-Teens” Pulaski Shareholders Will Own 8.5% Of Pro Forma Pulaski Shareholders Will Own 8.5% Of Pro Forma Combined Shares; Offering Equal To 6.5% Of Shares Combined Shares; Offering Equal To 6.5% Of Shares |
  61 Merger Proposal Merger Proposal Combined Financial Statements Combined Financial Statements IBKC Corp Pocahontas Pulaski Adjustments IBKC 6/30/2006 6/30/2006 6/30/2006 Pro Forma Cash 63,295 $ 16,172 $ 19,108 $ (13,259) $ 85,316 $ Securities 619,855 233,264 60,399 (2,250) 911,268 Fed Funds & Rev REPOS 15,550 - - - 15,550 Loans & Held for Sale 13,459 3,537 - - 16,996 Net Loans 1,996,717 425,682 373,930 (5,139) 2,791,190 Premises and Equipment 64,511 16,138 23,319 6,930 110,898 Intangible Assets 100,068 13,441 1,129 134,272 248,910 BOLI 45,644 8,343 - - 53,987 Other Assets 58,510 16,367 14,826 3,200 92,903 Total Assets 2,977,609 $ 732,944 $ 492,711 $ 123,754 $ 4,327,018 $ - $
Total Deposits 2,368,893 $ 534,755 $ 393,041 $ 818 $
3,297,507 $ Fed Funds & REPOS 82,033 $ - $
4,000 $ - $
86,033 $ Debt 206,597 $ 125,077 $ 42,843 $ 2,551 $ 377,068 $ Trust preferred 37,281 $ 16,978 $ 6,186 $ 16,983 $ 77,428 $ Other Liabilities 16,423 $ 4,667 $ 6,007 $ 11,486 $ 38,583 $ Total Liabilities 2,711,227 $ 681,477 $ 452,077 $ 29,088 $ 3,873,869 $ Total Equity 266,382 $ 51,467 $ 40,634 $ 94,666 $ 453,149 $ Total Liab & Equity 2,977,609 $ 732,944 $ 492,711 $ 123,754 $ 4,327,018 $ Leverage Ratio 7.48% 7.37% 9.87% -0.60% 7.15% Tier 1 Risk Weighted Ratio 10.23% 11.26% 13.85% -0.84% 10.53% Total Risk Weighted Ratio 11.48% 12.51% 13.85% -0.56% 11.78% |
 62 Merger Proposal Merger Proposal Strategic Impact W/ Pocahontas Strategic Impact W/ Pocahontas Enter Arkansas With $1.3 Billion In Assets (Up 45%), Enter Arkansas With $1.3 Billion In Assets (Up 45%), $0.9 Billion In Deposits, And $0.8 Billion In Loans $0.9 Billion In Deposits, And $0.8 Billion In Loans 85 Bank Offices & LPOs In Louisiana (49), Arkansas (32), 85 Bank Offices & LPOs In Louisiana (49), Arkansas (32), Tennessee (2), Oklahoma (1), And Miss. (1) – Tennessee (2), Oklahoma (1), And Miss. (1) – Up 73% Up 73% 27 Mortgage Offices In Arkansas (11), Louisiana (4), 27 Mortgage Offices In Arkansas (11), Louisiana (4), Mississippi (3), Texas (3), Tennessee (2), Oklahoma (2), Mississippi (3), Texas (3), Tennessee (2), Oklahoma (2), Missouri (1), Illinois (1) – Missouri (1), Illinois (1) – A 5-Fold Increase A 5-Fold Increase Total 132 Offices In 8 States; Over 1,400 Employees Total 132 Offices In 8 States; Over 1,400 Employees Significant Presence Added In Targeted Metropolitan Significant Presence Added In Targeted Metropolitan Markets Of Little Rock, Jonesboro, NW Arkansas, And Markets Of Little Rock, Jonesboro, NW Arkansas, And Memphis. Also Added In Growth Markets Of Dallas, Memphis. Also Added In Growth Markets Of Dallas, Tulsa, St. Louis. Tulsa, St. Louis. |
 63 Merger Proposal Merger Proposal Combined Strategic Impact (Cont.) Combined Strategic Impact (Cont.) Combined Mortgage Production of Nearly $1 Billion Combined Mortgage Production of Nearly $1 Billion 20 Title Insurance Offices – 20 Title Insurance Offices – AR’s Largest Title Agency AR’s Largest Title Agency National Credit Card Operations With $38 Million O/S National Credit Card Operations With $38 Million O/S Enter Trust Business With $126 Million AUM; Also Add Enter Trust Business With $126 Million AUM; Also Add $69 Million In Brokerage Accounts $69 Million In Brokerage Accounts No Change From Current Exceptional Asset Quality No Change From Current Exceptional Asset Quality Geographic Diversification Into Strong Markets Geographic Diversification Into Strong Markets Greater Sources Of Fee Income Greater Sources Of Fee Income Pro Forma Market Capitalization Of Nearly $750 Million Pro Forma Market Capitalization Of Nearly $750 Million |
 64 Merger Proposal Merger Proposal Financial Impact W/ Pocahontas Financial Impact W/ Pocahontas Immaterial Impact On GAAP EPS In 2006, Excluding Immaterial Impact On GAAP EPS In 2006, Excluding One-Time Merger-Related Costs One-Time Merger-Related Costs $0.02 Accretive To 2007 GAAP EPS (+0%) $0.02 Accretive To 2007 GAAP EPS (+0%) $0.07 Accretive To 2007 Cash EPS (+2%) $0.07 Accretive To 2007 Cash EPS (+2%) $7.44 Accretive to BVS (+27%) $7.44 Accretive to BVS (+27%) $1.43 Dilutive To Tangible BVS (-8%) $1.43 Dilutive To Tangible BVS (-8%) Tier 1 Leverage Ratio Declines Approximately 31 Bps Tier 1 Leverage Ratio Declines Approximately 31 Bps Internal Rate Of Return In “Mid-Teens” Internal Rate Of Return In “Mid-Teens” |
 65 Merger Proposal Merger Proposal Market Multiples Market Multiples Comparative Comparative Bank M&A Bank M&A Multiples Multiples Source: Stifel Nicolaus Source: Stifel Nicolaus Nicolaus Through August 4, 2006 Through August 4, 2006 Market-To-Book = 3.20x Market-To-Book = 3.20x Market-To-Tang. Book = 3.29x Market-To-Tang. Book = 3.29x Price-To-Earnings = 19.5x Price-To-Earnings = 19.5x Core Dep. Premium = 25.8% Core Dep. Premium = 25.8% Pulaski Pulaski Only Only Pulaski & Pulaski & Pocahontas Pocahontas Market-To-Book = 2.26x Market-To-Book = 2.26x Market-To-Tang. Book = 2.68x Market-To-Tang. Book = 2.68x Price-To-Earnings = 21.5x Price-To-Earnings = 21.5x Core Dep. Premium = 17.0% Core Dep. Premium = 17.0% |
 66 Merger Proposal Merger Proposal Summary Of Merger Summary Of Merger Opportunistic; We Bring Something To The Table Opportunistic; We Bring Something To The Table Solid Strategic, Cultural, And Financial Fit Solid Strategic, Cultural, And Financial Fit Excellent Returns For Shareholders Of Both Excellent Returns For Shareholders Of Both Companies Companies Substantial Arkansas Presence Substantial Arkansas Presence Excellent Platform For Growth (Over 5 Years) Excellent Platform For Growth (Over 5 Years) Some Risk Associated With Mortgage Cycle Some Risk Associated With Mortgage Cycle Complementary To Pocahontas Acquisition Complementary To Pocahontas Acquisition Our View: Fills In Pieces Of the Puzzle Our View: Fills In Pieces Of the Puzzle |
 67 |