Lafayette-based IberiaBank Corp. on Friday said energy loans account for 7.6 percent of its total loans as it sought to reassure investors about its energy-related financing activities with the recent decline in oil prices.
IberiaBank said the Sept. 30 loan figure is down from 8.4 percent six months earlier.
On Oct. 31, energy loans past due stood at $36,410 — equal to 0.004 percent of total energy loans outstanding, the bank said.
The company made its disclosure as a result of investor inquiries.
“We recognize that the dramatic fluctuation in energy prices over the last several years, combined with limited data regarding the banking industry’s energy lending practices, has created a challenging environment in which to evaluate and differentiate investment decisions,” said Daryl G. Byrd, president and chief executive officer.
“Over half of our energy loans outstanding and energy commitments are in the exploration and production segment, a business we know very well,” Byrd said. “Our experience and historical data have shown that segment to be a very solid performing form of cash flow lending throughout the volatility of economic and commodity price cycles.”
The bank also noted that about 90 percent of its total loan growth since year-end 2011, excluding FDIC-related loans, was associated with loans not related to the energy sector. It also cited the diversity of its markets and business.
IberiaBank is a financial holding company with 280 combined offices, including 187 bank branch offices and three loan production offices in Louisiana, Arkansas, Tennessee, Alabama, Texas and Florida; 22 title insurance offices in Arkansas and Louisiana; and mortgage representatives in 59 locations in 10 states.