April 15, 2013
/PRNewswire/ -- IBERIABANK Corporation (NASDAQ: IBKC; the "Company"), holding company of the 126-year-old IBERIABANK (
), announced the adoption of a new accounting standard effective in the first quarter ended
, 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
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
and Century Bank, FSB, each on
November 13, 2009
July 23, 2010
. In conjunction with these transactions, the Company acquired approximately
in loans covered under FDIC loss sharing agreements, recognized indemnification assets of approximately
, and recognized bargain purchase gains of
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
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."