Iberiabank Corp. in Lafayette, La., is believed to be the first banking company in the country to announce it will give back the money it received from the Treasury Department's Troubled Asset Relief Program.
The $5.4 billion-asset company said late Thursday that it would redeem the government's $90.6 million of preferred shares March 31. It is required by the agreement with the Treasury to give 30 days' notice before the redemption.
"When we decided to accept funds under this program, we believe we were the type of healthy bank that could employ the funds in the manner consistent with the goals initially set out by Congress and the Treasury in supporting the expansion of credit to the markets we serve," Daryl G. Byrd, Iberiabank's president and chief executive officer, said in a press release.
"We believe recent actions, interpretations, and commentary regarding various aspects of the program places our company at an unacceptable competitive disadvantage. Our board of directors has determined that continued participation in this program is no longer in the best interest of our company and its shareholders."