Iberiabank Corp. in Lafayette, La., reported a third-quarter loss of $1.3 million after it substantially boosted its loan-loss provision to cover expected defaults from customers affected by Hurricanes Katrina and Rita.
The $2.8 billion-asset company said late Wednesday that it had set aside an additional $14.4 million of provisions - an amount it said was based on very pessimistic damage assessments that do not factor in governmental assistance or private mortgage insurance.
Iberiabank has already charged off $1.2 million of loans losses related to the hurricanes.
Additional hurricane expenses included a one-time cost of $346,000 for recovery efforts and about $66,000 lost from waiving overdraft and automated teller machine charges.
The company said it believes all the issues associated with the hurricanes have been fully addressed in its third-quarter report. However, it is moving forward with an accelerated branch expansion, which includes purchasing 12 temporary facilities and land for them. The expansion will cost $9.8 million, most of which will be accounted for this quarter.
