IberiaBank, a subsidiary of IberiaBank Corp. (IBKC), said Friday that it has signed a purchase and assumption agreement with a loss share arrangement with the Federal Deposit Insurance Corporation or FDIC to assume all of the deposits and certain assets of CapitalSouth Bank.
CapitalSouth Bank, headquartered in Birmingham, Alabama, was closed today by the Alabama State Banking Department, which appointed the FDIC as receiver.
CapitalSouth Bank depositors will automatically become depositors of IberiaBank and deposits will continue to be insured by the FDIC.
All 10 CapitalSouth Bank offices will open on Monday under regular operating hours as branches of IberiaBank. With the completion of the deal, IberiaBank Corp. will have a combined 162 offices serving clients in 10 states.
As of June 30, CapitalSouth Bank had total assets of $617 million and total deposits of about $546 million. In addition to assuming all of the deposits of the failed bank, IberiaBank agreed to purchase $589 million of the failed bank's assets. The FDIC will retain the remaining assets for later disposition.
IberiaBank will purchase all deposits, except about $3.6 million in brokered deposits, held by CapitalSouth Bank. The FDIC will pay the brokers directly for the amount of their funds.
FDIC and IberiaBank entered into a loss-share deal on about $499 million of CapitalSouth Bank's assets.
CapitalSouth Bank was the 80th bank in the U.S. to fail this year.
IberiaBank Corp. shares closed Friday's regular trading session at $49.22, up $1.06 or 2.20%.
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