host posted on August 26, 2009 07:12
By Adam Smith
The North Jefferson News
For the second time in two weeks, an Alabama-based bank was bought by another bank after failing.
Shortly after 4 p.m. on Friday, the FDIC seized Birmingham-based CapitalSouth and sold its assets to Louisiana-based IberiaBank.
Montgomery-based Colonial Bank was seized on Aug. 14 and purchased by BB&T of Winston-Salem, N.C.
CapitalSouth Bank is the 80th FDIC-insured institution to fail in the nation this year, according to an FDIC press release.
CapitalSouth operated one branch in Fultondale, which was the city’s only bank.
Fultondale Mayor Jim Lowery said he was optimistic about the bank’s future in Fultondale after the sale to IberiaBank.
“We feel like this is a good outcome and that they’ll remain solid,” he said. “We’re pleased that it’s open and operating and people can still bank with the same people they’re familiar with.”
IberiaBank of Fultondale management deferred questions about the takeover to corporate spokesperson Beth Ardoin, who did not return calls prior to press time.
According to a press release from the FDIC, the 10 CapitalSouth branches were to open as IberiaBank on Monday morning with no noticeable interruptions to customers.
“We are delighted to welcome the clients of CapitalSouth Bank to IberiaBank,” said IberiaBank President and CEO Daryl G. Byrd. “... We will work diligently to ensure a smooth transition of CapitalSouth Bank clients.”
With the purchase of CapitalSouth, the 122-year-old IberiaBank will operate 162 offices in 10 states.
As per the terms of the transaction, IberiaBank agreed to purchase $589 million of CapitalSouth’s failed assets, attributed to housing loans.
The FDIC and IberiaBank also reportedly entered into a loss-share agreement on $499 million of CapitalSouth’s assets, designed to maximize returns on assets while minimizing disruptions for loan customers.
Former CapitalSouth customers who may have questions about the IberiaBank transaction can call the FDIC at 1-877-894-4710 or visit www.fdic.gov/bank/individual/failed/capitalsouth.html.