IberiaBank Shares Surge On Acquisitions

BOSTON (AP) — Shares of IberiaBank Corp. rallied on Monday after the regional bank acquired deposits and other assets from two Florida banks that regulators shut down. Analysts hailed deals that are expected to boost IberiaBank's earnings for several years.

The stock jumped $7.79, or nearly 18 percent, to $52.19 in afternoon trading, after hitting a 52-week high of $54.18 earlier in the session.

The surge came after regulators shut down Orion Bank, based in Naples, and Century Bank, based in Sarasota, following Friday's closing bell, along with Pacific Coast National Bank in San Clemente, Calif.

IberiaBank, based in Lafayette, La., agreed to assume all of Orion Bank's deposits and $2.4 billion of its assets, as well as Century Bank's deposits and $706 million of its assets. The Federal Deposit Insurance Corp. will retain the rest for eventual sale. In addition, the FDIC and IberiaBank agreed to share losses on roughly $1.9 billion of Orion Bank's loans and other assets, and on about $656 million of Century Bank's.

Raymond James analyst Michael Rose reiterated his "Strong Buy" rating on IberiaBank's stock, and said in a research note that the bank will not require any additional capital to support the acquisitions.