Iberiabank Corp. has agreed to pay $2.5 million to settle claims the Lafayette, La., company illegally charged customers excessive overdraft fees.

The $11 billion-asset company also agreed to change its transaction posting policies so that debit card transactions post in the order in which they are authorized or settled, according to an Oct. 19 filing in the U.S. District Court for the Southern District of Florida.

A court filing said that bank customers will receive their respective shares of settlement funds "without having to do anything at all." The filing said that available Iberiabank data will be used to determine who qualifies and that a formula will determine amounts.

The announcement follows what court filings described as months of "intense negotiations" between involved parties.

Earlier this year, Bank of America Corp. agreed to settle similar claims for $410 million. More than a dozen other banks are involved in similar litigation.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.