Academic journal article Federal Reserve Bulletin

IBERIABANK Lafayette, Louisiana

Academic journal article Federal Reserve Bulletin

IBERIABANK Lafayette, Louisiana

Article excerpt

Order Approving the Merger of Depository Institutions and Establishment of Branches FRB Order No. 18-06 (February 21, 2018)

IBERIABANK, the state member bank subsidiary of IBERIABANK Corporation ("IBKC"), (1) both of Lafayette, Louisiana, has requested the Board's approval under section 18(c) of the Federal Deposit Insurance Act ("Bank Merger Act") (2) to merge with Gibraltar Private Bank & Trust Company ("Gibraltar"), Coral Gables, Florida, a federal savings bank, with IBERIABANK as the surviving entity. IBERIABANK also has applied under section 9 of the Federal Reserve Act ("FRA") to establish and operate branches at the locations of Gibraltar's main office and branches. (3)

Notice of the proposal, affording interested persons an opportunity to submit comments, has been published in accordance with the Bank Merger Act and the Board's Rules of Procedure. (4) As required by the Bank Merger Act, a report on the competitive effects of the bank merger was requested from the United States Attorney General, and a copy of the request has been provided to the Federal Deposit Insurance Corporation. The time for submitting comments has expired, and the Board has considered the proposal and all comments received in light of the factors set forth in the Bank Merger Act and the FRA.

IBKC, with consolidated assets of approximately $28.0 billion, is the 65th largest insured depository organization in the United States, controlling deposits of approximately $21.3 billion, which represent less than 1 percent of the total amount of deposits of insured depository institutions in the United States. (5) IBKC controls IBERIABANK, which has offices in eight states. IBKC is the 14th largest insured depository organization in Florida, with approximately $8.7 billion in deposits, which represent approximately 1.5 percent of the total deposits of insured depository institutions in that state. (6)

Gibraltar, with consolidated assets of approximately $1.6 billion, is the 476th largest insured depository organization in the United States, controlling deposits of approximately $1.1 billion, which represent less than 1 percent of the total amount of deposits of insured depository institutions in the United States. Gibraltar has offices in Florida and New York. Gibraltar is the 49th largest insured depository institution in Florida, with approximately $1.0 billion in deposits, which represent less than 1 percent of the total deposits of insured depository institutions in Florida. Gibraltar is the 173rd largest insured depository institution in New York, with approximately $79.2 million in deposits, which represent less than 1 percent of the total deposits of insured depository institutions in New York.

On consummation of the proposal, IBKC would become the 64th largest depository organization in the United States, with consolidated assets of approximately $29.6 billion. IBKC would control approximately $22.4 billion in deposits, representing less than 1 percent of the total deposits of insured depository institutions in the United States. IBKC would continue to operate the 14th largest insured depository institution in Florida, controlling deposits of approximately $9.7 billion, representing approximately 1.7 percent of the total deposits of insured depository institutions in the state. IBKC would operate the 173rd largest insured depository institution in New York, controlling deposits of approximately $79.2 million, representing less than 1 percent of the total deposits of insured depository institutions in the state.

Interstate and Deposit Cap Analysis

The Bank Merger Act generally provides that the Board may not approve an application by one insured depository institution to acquire another insured depository institution if the home state of the target insured depository institution is a state other than the home state of the applicant and the applicant controls or would control upon consummation of the proposed transaction more than 10 percent of the total amount of deposits of insured depository institutions in the United States. …

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