IBERIABANK Corporation, the holding company of the 121-year-old IBERIABANK and Pulaski Bank and Trust Company, introduces shareholders and investors with recent events. First of all its the participation in United States Treasury Department (TARP) capital program, the FDIC Temporary Liquidity Guarantee Program administered under the Federal Deposit Insurance Corporation (“FDIC”) and shelf registration filing.
IBERIABANK Corporation submitted an application to Treasury for potentialparticipation in TARP up to an amount totaling $115 million, or approximately 3% of total risk weighted assets of the company. The company announced today that its application was approved on a preliminary basis for the total amount requested. In case of election to participate, the transaction would be expected to be completed by mid-December. The company continues to weigh the merits and costs associated with this program.
Shelf Registration Statement Filed. In connection with longer-term capital financing and to allow the company to raise capital from time to time, corporation has filed a mixed shelf registration statement on Form S-3 with the Securities and Exchange Commission (“SEC”). Specific terms and prices will be determined and disclosed at the time of each offering under a separate prospectus supplement, which will be filed with the SEC at the timeof the offering.
Also IBERIABANK Corporation will benefit from FDIC Temporary Liquidity Guarantee Program under which FDIC guarantees funds held in noninterest bearing deposit transaction accounts above the existing deposit insurance limit. This guarantee is in addition to, and separate from, the coverage provided pursuant to the FDIC’s general deposit insurance regulations (which was recently increased from $100,000 to $250,000 per eligible account).The deposit guarantee under TLG applies only to noninterest bearing transaction accounts.
The Company elected to participate in the deposit guarantee component of the TLG program. As a result, the Company will be assessed on a quarterly basis an amount equal to 10 basis points on balances in noninterest-bearing transaction accounts that exceed the existing deposit insurance limit of $250,000.The coverage was effective on 14 October 2008 and will expire on 31 December 2009.
The three events announced today regarding preliminary approval to participate in the TARP program, participation in the FDIC’s Liquidity Guarantee program, and the shelf registration filing underscore the strength and stability that our shareholders enjoy, says Daryl G. Byrd, president and chief executive officer, IBERIABANK Corporation.
L.D.