trending Market Intelligence /marketintelligence/en/news-insights/trending/dvrnakufgt2vs-vxicahya2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *

* Required

In this list

IBERIABANK Corp. terminates FDIC loss-share agreements early

Street Talk Episode 41 - How to Win the Funding Battle, Use Fintech to Play Offense

Forward Spark Spreads Suggest Rising Profitability Of US Renewables As Sector Matures

MA Activity The Big Story In Mature Online Video Platform Market

Martina Cheung Backs The Quality Program

IBERIABANK Corp. terminates FDIC loss-share agreements early

Lafayette, La.-based IBERIABANK Corp. on Dec. 20 entered into an agreement with the FDIC for an early termination of its 12 loss-share agreements with the agency.

The loss-share agreements were entered into between 2009 and 2011 and relate to the FDIC-assisted transactions involving Birmingham, Ala.-based CapitalSouth Bank, Sarasota, Fla.-based Century Bank A FSB, and Naples, Fla.-based Orion Bank in 2009; Lantana, Fla.-based Sterling Bank in 2010; and Georgia Commerce Bank's acquisitions of Woodstock, Ga.-based CreekSide Bank, and Cumming, Ga.-based Patriot Bank of Georgia in 2011. IBERIABANK acquired Atlanta-based Georgia Commerce in 2015.

The FDIC made a $6.5 million net payment to the company as consideration for the early termination of the loss-share agreements.

The termination is expected to result in immediate earnings improvement beginning in the first quarter of 2017, company President and CEO Daryl Byrd stated in a news release. "[W]e estimate this transaction will have an earn-back period of less than 20 months and result in an internal rate of return in excess of 40%," Byrd said. In addition, IBERIABANK Corp. expects to record a non-core, after-tax charge of approximately $11.2 million, or 26 cents per fully diluted common share, during the fourth quarter. This stems primarily from the net of the write-offs of the remaining FDIC indemnification asset and net loss-share receivable and the payment received from the FDIC, net of expenses.

As of Sept. 30, the FDIC indemnification asset was $24.4 million, the net loss share receivable was $3.7 million, while assets covered under loss-share agreements included $202.2 million in loans and $900,000 in other real estate owned. Assets that were previously covered under the loss-share agreements will be reclassified as non-covered acquired loans at Dec. 31.