First NBC Bank‘s investments in real estate developments and New Markets Tax Credits helped the bank more than double its earnings in 4Q 2013.
The bank reported earnings up nearly 40 percent to $40.9 million for the year, or $2.32 per share compared to $2.02 per share in 2012, an increase of 14.9 percent.
Much of the increase stems from gains related to the New Markets tax credits First NBC was awarded as part of the U.S. Treasury’s Community Development Financial Institutions program to encourage investment in low income areas. It was allocated $50 million in tax credits in April 2013 through the program.
Many of FNBC’s deals closed in the fourth quarter, which resulted in $1.1 million in fees tied to the deployment of those credits.
The bank earned another $1.5 million in fees from the sale of tax credits under the state’s New Markets Job Premium Tax Credits program, which piggybacks off of its federal counterpart.
Executive Vice President Brad Calloway runs the bank’s tax credit investment and lending program. Many in the community credit him with instituting and running the successful program for First NBC.
IberiaBank Corp. moved into the Dallas-Fort Worth market Tuesday (Feb. 11) with a $64 million acquisition of First Private Holdings Inc.
Nola.com reports that under the terms of the First Private Bank of Texas merger, First Private shareholders will receive 0.27 shares of IberiaBank common stock, which amounts to a total value of $64 million based on IberiaBank’s Feb. 10 closing price of $63.62 per share.
First Private had $357 million in total assets as of Dec. 31, $257 million in loans, and has three branches in the Dallas area.