Iberia, Teche Federal banks see drop in 2Q earnings
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.
MAY 22 This post was written the day after the second line shooting in NOLA, by Brentin Mock. Mock is a friend of Deb "Big Red" Cotton, a blogger who was shot in the back and was seriously injured. It is a raw, emotional piece of writing, something the writer obviously felt he needed to get off his chest. But it raises questions that can't be easily dismissed, and might give some insight into where the source of these events truly is.
MAY 22 In this Baton Rouge Business Report post, Rolfe McCollister considers the privatization of bus service in Baton Rouge. After decades of under-funding, it is a mess, and although a tax (partially) passed last year, improvement hasn't happened yet. McCollister apparently feels it is time to let private business get in on the transit business.
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