Coming on the heels of four closures earlier this year, IberiaBank Corp. officials announced plans to eliminate nine additional branches during a late April conference call detailing the bank’s first quarter earnings, which came in far below analysts' expectations.

Since the news was first reported by The Advocate, bank officials have yet to say which branches will be among the nine.

ABiz was able to confirm last week that Lafayette’s branches are safe. “No branches in Lafayette will be impacted,” Beth Ardoin, IberiaBank senior executive vice president, writes in an emailed response.

It remains to be seen which of the bank’s 181 existing branches will be among the nine closures, though an announcement is expected soon, according to Ardoin.

One major factor responsible for the closures, according to bank officials, centers on the bank’s acquisition of four failed financial institutions from the Federal Deposit Insurance Corp., and the fact that customers unexpectedly began making mortgage payments on time. As a result, the bank was hit with after-tax charges totaling 70 cents per share.

IberiaBank's arrangement with the FDIC allowed it to collect money quickly on troubled loans. But because customers are now making timely payments on the mortgages, IberiaBank's profit will take longer to hit the books.

Likewise, IberiaBank’s first quarter earnings also dropped significantly when compared to the same period last year, going from $19.4 million, or 66 cents per share, to $717,000, or 2 cents per share. Stock analysts surveyed by Thomson Reuters were way off the mark in predicting the Lafayette-based bank would earn 79 cents per share in the first quarter of this year.

“It is always disappointing to take these actions because of the impact it has on employees, but clearly at times it is necessary,” IberiaBank Chief Operating Officer Michael Brown said during the April 26 conference call. “We’ve taken small bites of this before, but again considering circumstances a larger bite is necessary. As we’ve taken these actions, we’ve left the loan parts of our business that are performing at or above expectations. The good news is this is the vast majority of our company. In fact, we will continue to invest in businesses and markets as we see defined and we need to get opportunity to add value.”

 

 

To post a comment, please log into your IND account. If you do not have an account, click the "register" button to create one. Facebook comments can be used as an alternative to creating an account at theIND.com.

feed-image RSS Feed
Loading
Chart
ABiz Stock Watch
o Home Bancorp 22.65 ▼0.50 (-2.16%)
o Frank's International 17.98 ▼1.55 (-7.94%)
o IberiaBank Corp 65.32 ▼2.26 (-3.34%)
o LHC Group 23.51 ▼0.45 (-1.88%)
o MidSouth Bancorp 17.71 ▼0.98 (-5.24%)
o Petroquest Energy 3.72 ▼0.39 (-9.49%)
o PHI Inc. 40.22 ▼0.87 (-2.12%)
o Superior Energy 19.31 ▼4.07 (-17.41%)
o Stone Energy 15.80 ▼5.03 (-24.15%)
o Facebook Inc. 77.70 ▲0.08 (0.10%)
o Twitter Inc. 41.74 ▲0.61 (1.48%)
o Gannett 32.55 ▼0.19 (-0.58%)
NYSE:HBCP

Home Bancorp

Company ID [NYSE:HBCP] Last trade:22.65 Trade time:12:59PM EST Value change:▼0.50 (-2.16%)
NYSE:FI

Frank's International

Company ID [NYSE:FI] Last trade:17.98 Trade time:1:02PM EST Value change:▼1.55 (-7.94%)
NYSE:IBKC

IberiaBank Corp

Company ID [NYSE:IBKC] Last trade:65.32 Trade time:1:07PM EST Value change:▼2.26 (-3.34%)
NYSE:LHCG

LHC Group

Company ID [NYSE:LHCG] Last trade:23.51 Trade time:1:07PM EST Value change:▼0.45 (-1.88%)
NYSE:MSL

MidSouth Bancorp

Company ID [NYSE:MSL] Last trade:17.71 Trade time:1:01PM EST Value change:▼0.98 (-5.24%)
NYSE:PQ

Petroquest Energy

Company ID [NYSE:PQ] Last trade:3.72 Trade time:1:02PM EST Value change:▼0.39 (-9.49%)
NYSE:PHII

PHI Inc.

Company ID [NYSE:PHII] Last trade:40.22 Trade time:12:32PM EST Value change:▼0.87 (-2.12%)
NYSE:SPN

Superior Energy

Company ID [NYSE:SPN] Last trade:19.31 Trade time:1:06PM EST Value change:▼4.07 (-17.41%)
NYSE:SGY

Stone Energy

Company ID [NYSE:SGY] Last trade:15.80 Trade time:1:01PM EST Value change:▼5.03 (-24.15%)
NYSE:FB

Facebook Inc.

Company ID [NYSE:FB] Last trade:77.70 Trade time:1:07PM EST Value change:▲0.08 (0.10%)
NYSE:TWTR

Twitter Inc.

Company ID [NYSE:TWTR] Last trade:41.74 Trade time:1:00PM EST Value change:▲0.61 (1.48%)
NYSE:GCI

Gannett

Company ID [NYSE:GCI] Last trade:32.55 Trade time:1:02PM EST Value change:▼0.19 (-0.58%)
Advertisement

Read the Flipping Paper!

Click Here for the Entire Print Version of
ABiz
 
Advertisement
Advertisement