Bank failure Friday

November 14, 2009

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.


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


  • 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


  • 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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You may have to add a new category to your BANK FAILURE FRIDAY feature beyond DIF damage. TARP damage is now rearing its ugly head after the failure of United Commercial Bank last week. That one cost taxpayers just under $300 million in lost TARP funds.

Posted by sangellone | Report as abusive

Could it be that Iberia is trying to put itself in the TBTF category?

Nah, I’m just being paranoid…

Posted by StevenKs | Report as abusive

Everything is getting better!! Why do you doubters doubt? Can’t you see how high the wall street flies? Don’t you know we have stepped back from the edge of depression, we are now a full 1 foot from depression, it can’t get much safer than that can it?

Soon there will be free gold for everyone and everlasting life and beauty, are we not living in the most glorious time ever? If you hear noises at night do not worry it is merely me Helicopter Ben dropping bales of Ben Franklins in your neighborhood from the BenCopter (copyright Federal Reserve Productions 2005)

Who will you believe your eyes or my words? Economic propaganda is the new black, if anyone had a clue what to do, we’d be doing it, instead you must settle for financial theater, where we tell you everything is better and better.

In retrospect, these will seem like the good times, so be careful wishing for the future, it may not be what you think it will be.

Buy canned goods….

Posted by Ben Bernanke | Report as abusive

Iberiabank has a looooooooooooong loooong way to go if that it’s goal.

Posted by Andrew | Report as abusive

Since banks have been given nearly carte blanche to cook the books what does a Texas ratio really mean now? I wouldn’t feel at all safe unless it were less than 10% so even if things were off by an order of magnitude it would still be <= 100%.

Posted by just doug | Report as abusive

2020. Finally, some one is listening. It remains to be seen if this a good or a bad thing. Help for our nations, and peoples motives can be so hard to gauge. But when people talk about relevant issues, my ears perk up!

Posted by dude | Report as abusive

2020 is a long way to go, and farbtoo long to wait for any nation. It is simply a date I read some where… Probably on the back of some worthless piece of paper, or something like that.

Posted by dude | Report as abusive