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BOSTON - Shares of IberiaBank Corp. rallied on Monday after the regional bank acquired deposits and other assets from two Florida banks that regulators shut down. Analysts hailed deals that are expected to boost IberiaBank's earnings for several years.
The stock jumped $7.79, or nearly 18 percent, to $52.19 in afternoon trading, after hitting a 52-week high of $54.18 earlier in the session.
The surge came after regulators shut down Orion Bank, based in Naples, and Century Bank, based in Sarasota, following Friday's closing bell, along with Pacific Coast National Bank in San Clemente, Calif.
IberiaBank, based in Lafayette, La., agreed to assume all of Orion Bank's deposits and $2.4 billion of its assets, as well as Century Bank's deposits and $706 million of its assets. The Federal Deposit Insurance Corp. will retain the rest for eventual sale. In addition, the FDIC and IberiaBank agreed to share losses on roughly $1.9 billion of Orion Bank's loans and other assets, and on about $656 million of Century Bank's.
Raymond James analyst Michael Rose reiterated his "Strong Buy" rating on IberiaBank's stock, and said in a research note that the bank will not require any additional capital to support the acquisitions.
Rose said he views the deals "positively," and cited forecasts from IberiaBank management that the acquisitions will add to earnings "at least over the next several years."
The deals will boost IberiaBank's asset base by nearly 50 percent to about $9.6 billion, he said, and make IberiaBank the 20th-largest in Florida with a 0.75 percent share of deposits, Rose said.
IberiaBank currently operates 135 branches in Louisiana, Arkansas, Tennessee, Alabama, Texas, and Florida. It also has title insurance offices in Arkansas and Louisiana, and mortgage representatives in 11 states.
With Friday's closures, the number of U.S. bank failures this year has risen to 123.
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