This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

IBERIABANK Corporation Announces Financial Statement Impact Of Adoption Of A New Accounting Standard And Other Factors Impacting Covered Loans









LAFAYETTE, La., April 15, 2013 /PRNewswire/ -- IBERIABANK Corporation (NASDAQ: IBKC; the "Company"), holding company of the 126-year-old IBERIABANK ( www.iberiabank.com), announced the adoption of a new accounting standard effective in the first quarter ended March 31, 2013.  The adoption results in increased costs over the next eight quarters.  Those additional costs are anticipated to be largely offset by identified earnings enhancements. Separately, the Company expects to recognize an impairment charge totaling $32 million on a pre-tax basis associated with its indemnification assets from prior FDIC assisted acquisitions. 

Since 2009 the Company has completed several FDIC-related acquisitions, including: CapitalSouth Bank on August 21, 2009; Orion Bank and Century Bank, FSB, each on November 13, 2009; and Sterling Bank, on July 23, 2010. In conjunction with these transactions, the Company acquired approximately $1.9 billion in loans covered under FDIC loss sharing agreements, recognized indemnification assets of approximately $1.1 billion, and recognized bargain purchase gains of $243 million, or $7.60 per share on an after-tax basis.

Daryl G. Byrd, President and Chief Executive Officer, commented, "We have made tremendous progress in resolving problem assets we acquired from the FDIC, and in the process, created significant value for our shareholders.  The evolving nature of the accounting for these types of transactions and the relatively early stage of the cycle at which we completed these acquisitions resulted in unforeseen complexities to us.  As we continue to work these assets toward resolution and the eventual completion of the collection period, we have gained greater clarity and insight regarding the collectability of the assets and the timing of the associated cash flows.  In fact, we currently estimate the expected credit losses from these transactions are $310 million lower than our estimates at the time we acquired those entities.  We have also had to address many factors beyond our control, including the evolving accounting standards.  Consistent with our culture and past practices, we are moving to address these issues in a comprehensive and expeditious manner."

Byrd continued, "While our accounting for these transactions continues to follow generally accepted accounting principles, the adoption of the new accounting standard and cash flow adjustments undertaken in the first quarter of 2013 are expected to provide reduced future earnings volatility and greater transparency for the investment community.  We believe our continued efforts to improve the operating efficiencies of our Company will significantly mitigate the aggregate negative financial impact of these changes in future periods."

1 of 7

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,943.81 +28.74 0.17%
S&P 500 1,967.57 +2.89 0.15%
NASDAQ 4,415.49 +19.2860 0.44%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs