IberiaBank is reporting a 41 percent drop in second quarter earnings over the same period last year due to one-time acquisition expenses and the settlement of two class action lawsuits filed over the bank’s overdraft policy.
According to a press release, the company earned $5 million (18 cents a share) for the second quarter of 2011, down from a profit of $8.7 million, or 33 cents per share, at the end of the second quarter in 2010.
The Lafayette-based bank attributes the losses to the one-time expenses incurred when it purchased Omni Bank of Metairie and Cameron Bank of Lake Charles. The company also notes that it was party to two class action lawsuits filed over the bank’s “high-to-low sequence (largest transactions first) overdraft policy,” which the plaintiffs claimed is a deceptive practice. The bank says in a release that the overdraft policy is a “widespread practice” in the industry, but to “save the potential expense of protracted litigation and to avoid any misunderstanding with clients, IberiaBank agreed to settle with the parties in these lawsuits, subject to court approval.”
With the acquisition of Cameron and Omni banks, IberiaBank has 259 offices, including 170 bank branches in six states. As of March 31, the financial institution had roughly $10 billion in assets.
Teche Federal Bank, headquartered in Franklin, reported a 2.3 percent profit loss over second-quarter earnings of 2010, down slightly from $1.82 million last year to $1.8 million as of June 30, 2011.
Teche Federal has 19 offices in South Louisiana and reports more than $789 million in assets as of June 30.
Read the full releases here and here.
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