Banking On It
Wednesday, June 29, 2011
Reaux joins MidSouth board of directors
MidSouth Bank’s Chief Operating Officer Jerry Reaux has been named vice chairman of MidSouth’s board of directors, as well as vice chairman of the board that oversees MidSouth Bancorp Inc., the bank’s holding company. Reaux joined MidSouth in February after decades of banking experience in Acadiana, most recently serving as CEO and board vice chairman of Tri-Parish Bank. Reaux’s many roles at MidSouth include finance and accounting, credit, information technology and human resources. He is also MidSouth’s Lafayette market president and works closely with the mergers and acquisitions team. Reaux, who from 1995 to 2003 was CEO of LBA Savings Bank, plays a critical part in developing MidSouth’s strategy for potential mergers. Reaux is filling the board seats for Dr. JB Hargroder, a founding director of MidSouth Bank who served as vice chairman of both boards for 26 years. “[Hargroder] has served this bank and helped guide its incredible growth with the utmost professionalism and integrity,” says MidSouth President and CEO Rusty Cloutier. “While he will continue to serve as an invaluable board member, he was ready and willing to pass the torch to a new board member who, as a top executive for MidSouth Bank, is closely involved in the day-to-day decision making.” In addition to his banking board seats, Reaux also serves as finance chairman for the board of directors at Our Lady of Lourdes Regional Medical Center and on the board of directors for Lafayette Crime Stoppers.
Teche Federal converts to state-chartered commercial bank
Teche Federal Bank has completed a conversion from a federally chartered savings bank to a Louisiana chartered commercial bank, which will be regulated by the commissioner of the state Office of Financial Institutions and the Federal Deposit Insurance Corporation. As a result of the charter conversion, the board of governors of the Federal Reserve System has replaced the Office of Thrift Supervision as the federal regulator for Teche Holding Company. “This is a significant and positive change for our bank in light of the Dodd-Frank Act, which made certain changes that removed most of the advantages of our savings bank charter,” says Teche Federal President and CEO Patrick Little. “We also believe there is a significant advantage to being a commercial bank and having a local, Louisiana-based regulator who understands and lives in our market area. Additionally, we expect our annual regulatory assessment to decrease by approximately $100,000, a significant annual savings for our shareholders.”
Regions board investigating its own execs
Regions Bank executives could come under fire if an investigation by the bank’s own board finds they shielded bad loans from investors and the public for too long amid the financial crisis. Citing a report from The Wall Street Journal, financial blog The Street says the execs came under scrutiny after the Federal Reserve raised concerns about the bank’s practices and people within the company. The Regions Financial audit committee is trying to find out whether top dogs at Regions delayed the reclassifying of loans that were likely not going to be repaid. Regions, the 12th largest bank in the country and the only one of its size still receiving government assistance following the financial meltdown, may also be on the verge of a $200 million settlement with the SEC to answer to civil charges of “defrauding investors in subprime securities,” The Street reports.
IberiaBank closes third acquisition of the year
Lafayette-based IberiaBank has just finished another acquisition, adding certain assets of Florida Trust Company, a subsidiary of the Bank of Florida Corporation, to the bank’s list of recently completed mergers. The Florida Trust clients and associates will be brought into the IberiaBank Wealth Advisers. IberiaBank paid $700,000 for the deal at closing, but an undetermined contingency payment will be made by IberiaBank in about a year. The amount of the contingency payment is based on the amount of revenue Iberia receives through the acquisition. Incorporated in 2000, Florida Trust had approximately $415 million in assets at the time of the closing. It operates offices in Naples and Ft. Lauderdale, Fla. The Florida Trust acquisition comes on the heels of IberiaBank’s completed purchase of Metairie-based Omni Bank and Cameron Bank of Lake Charles. The three buys bring the Lafayette-based bank’s assets to approximately $12 billion with 177 bank branch offices in six states, 24 title insurance offices in Arkansas and Louisiana, mortgage representatives at 54 locations in 12 states, and one office of Iberia Capital Partners LLC.
— Compiled and edited by Heather Miller