BIRMINGHAM, AL-The Birmingham News reported that the 12-branch CapitalSouth Bancorp, facing rising delinquent loans and financial losses, has been shut down by regulators, with assets sold to IberiaBank Corp., headquartered in Lafayette, LA. According to the article, the Federal Deposit Insurance Corp. regulators shut down CapitalSouth on Friday.
IberiaBank, which recently entered the Mobile, AL area, has rebranded all CapitalSouth offices under the IberiaBank name. The Birmingham News article says Iberia Bank now has 162 offices in ten states since the acquisition. Read more about the story here.
The FDIC seizure and takeover is the second in Alabama within 10 days. Montgomery, AL-based ColonialBancGroup Inc. was shut down by regulators and taken over by BB&B Corp. earlier this month.