Gulag Blog

Bank failure Friday

IBERIABANK is busy tonight, acquiring $3.1 billion of failed bank assets. The bank also bought nearly $600m of assets from the estate of CapitalSouth Bank of Alabama back in August.

After these transactions, IBERIABANK will have increased its balance sheet nearly 67% since June.

It’s worth nothing that IBERIA received $90m worth of TARP money, though it exited the program in May.

There are cases in the past when other banks have taken multiple failures, expanding significantly, only to fail themselves later on. One example I recall (though am having trouble Googling the evidence) is Talman Federal in IL.

Is IBERIA too weak to be be growing so quickly? Perhaps not. The bank’s Texas ratio is around 24%, well below the dangerous 100% threshold. If readers have thoughts, please chime in with a comment.

#121

• Failed bank: Century Bank, Sarasota FL
• Acquiring bank: IBERIABANK, Lafayette LA
• Vitals: at 10/31, assets of $728m, deposits of $631m
• DIF damage: $344m

#122

• Failed bank: Orion Bank, Naples FL
• Acquiring bank: IBERIABANK, Lafayette LA
• Vitals: at 10/31, assets of $2.7b, deposits of $2.1b
• DIF damage: $615m

#123

• Failed bank: Pacific Coast National Bank, San Clemente CA
• Acquiring bank: Sunwest Bank, Tustin CA
• Vitals: at 8/31, assets of $134.4m, deposits of $130.9
• DIF damage: $27.4m

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