IBERIABANK, a subsidiary of IBERIABANK Corp, a Louisiana-based multi-bank financial holding company, has entered into a purchase and assumption agreement with a loss share arrangement with the Federal Deposit Insurance Corporation (FDIC) to assume all of the deposits and certain assets in a whole-bank acquisition of CapitalSouth Bank, a commercial bank headquartered in Birmingham, Alabama.
The Alabama state banking department took possession of CapitalSouth Bank and the superintendent of banks appointed the FDIC as receiver of CapitalSouth Bank effective immediately.
Reportedly, CapitalSouth Bank depositors will automatically become depositors of IBERIABANK, and deposits will continue to be insured by the FDIC. However, depositors can access their accounts through ATM transactions, checks, and debit transactions. All 10 CapitalSouth Bank offices will open as branches of IBERIABANK. The bank has said that with the completion of this transaction, IBERIABANK will have a combined 162 offices serving clients in 10 states.
The bank has added that to minimize client disruption, IBERIABANK assumed all of the outstanding deposits of CapitalSouth Bank. IBERIABANK will assume approximately $546 million in deposits, which include $9 million in brokered deposits. Moreover, the bank has also signed a loss sharing arrangement with The FDIC.
The bank has said that it has received all necessary regulatory approvals. The bank expects that its regulatory capital ratios will likely to increase in association with this transaction.
Daryl Byrd, president and CEO of IBERIABANK, said: “We will work diligently to ensure a smooth transition of CapitalSouth Bank clients. We are particularly excited about our opportunities to expand in Alabama. We expressed our commitment to make Alabama a priority when we opened our first branch in Mobile earlier this year. We look forward to working side-by-side with the seasoned professionals at the FDIC in bringing resolution to this process in an expedient and high-quality manner.”
