IberiaBank Shares Plunged: What You Need to Know (IBKC)

IberiaBank Shares Plunged: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of regional bank IberiaBank (Nasdaq: IBKC ) fell as low as 10% in intraday trading Wednesday after quarterly results disappointed investors.

So what: Driven by one-time expenses associated with a pair of acquisitions, IberiaBank posted a second-quarter profit of $5 million, or $0.18 per share, down 45% from its $0.33-per-share profit in the year-ago period. Although Wall Street isn't pleased with the results, IberiaBank CEO Daryl Byrd said that the most recent quarter "was a period of strong acquisition and organic growth. Our credit fundamentals and capital strength remain among the best in the industry."

Now what: I'd look into this plunge as a possible buying opportunity. IberiaBank -- which sidestepped much of the subprime mess -- remains one of the more conservative banks in the space and is sporting a solid dividend yield of more than 2%. Given that the second-quarter profit drop was driven largely by one-time charges, Mr. Market seems to be overreacting.

Interested in more info on IberiaBank? Add it to your watchlist.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.

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