Photo by KELLY FARRELL, Staff
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Orion Bank's logo was covered Friday night. A new sign reading "IberiaBank" marks the entrance of the Marco branch drive-thru on Elkcam Circle.
Orion Bank’s name was literally wiped out as federal regulators turned the bank over to IberiaBank at the close of business Friday.
Banking hours and account security went uninterrupted as the signs on Orion Bank’s branches were covered with large white boards Friday night and IberiaBank stepped in to open as usual Saturday.
Friday, the Florida Office of Financial Regulation appointed the Federal Deposit Insurance Corp. as receiver and the FDIC entered into an agreement with the Lafayette, La.-based IberiaBank to assume all of Orion’s deposits and $2.4 billion of its assets.
Once confident Saturday that their money was secure, Islanders were concerned about whether their branch manager and vice president, Keith Dameron, would stick around to maintain community service.
“As I told the folks present at the shred party (held on Elkcam Circle Saturday), I have a lot of faith and confidence in Keith Dameron. I don’t think there is any reason to panic. Iberia has a couple hundred banks and has been around for more than a hundred years. I think it will work out alright,” said Councilman Chuck Kiester, adding that he will keep his accounts that transferred to IberiaBank.
Daryl Byrd, IberiaBank’s president and CEO, said most of Orion’s employees will stay with IberiaBank.
Jerry Williams, Orion’s former president, CEO and chairman was among the first to go. Other top management is still being evaluated, Byrd said.
“I just hope that the staff of Orion Bank will be there for Marcoites as Iberia employees. Orion Bank under Keith Dameron’s guidance has been a very positive influence on the cultural life of Marco Island. It would be a huge loss if that were to end,” said Donna Blankman of the Marco Players theater group.
Dameron serves on seven local boards and Orion supported the arts, businesses, and other segments of the community, hosting events such as the In the Round series, which continues Tuesday night featuring pianist Daniel Stenway.
Tarik Ayasun, who had personal and business accounts with Orion and now with IberiaBank, said he feels for the shareholders, who were among the biggest losers in the deal.
“It’s sad when it’s local people that you know. I felt bad for them, but I knew it was coming. There are others (bank failures) and tons of people lost a lot of money in shares.”
Ken Thomas, a Miami-based independent bank consultant and economist also expects more banks to fail this year and estimated there are 500 problem banks in the country, 10 percent of which are in Florida.
“By the time you know it’s coming, by the time the people on the street know it, it’s too late. Ninety percent of the people don’t know unless you’re in the business,” Ayasun said.
Orion was among the largest community banks in Southwest Florida with about 260 employees and 23 branches from Bradenton to Key West.
Federal regulators described Orion as “critically undercapitalized” in the Nov. 9 enforcement order released to the public Friday.
They claimed the bank loaned about $60 million in June to straw borrowers, who used $15 million to buy company stock. A straw borrower is an individual whose information is used to hide the identity of the organizers of a for-profit mortgage scheme.
The Florida Office of Financial Regulation has the authority to investigate and take legal action when violations of state law are suspected, but it does not discuss those possible actions, said spokeswoman Holly Hinson.
“It’s a shame that the greed of the officers and executives of Orion, and the multitudes of other banking and financial institutions that have created these down economic times, continues to wreak havoc with the lives and livelihoods of the employees and their families, the security of their customers and the dynamics of our economy as a whole,” said Vip Grover, a Marco insurance broker
Orion’s failure marked the 122nd FDIC-insured institution to close this year.
In Orion’s case, the takeover appeared to go smoothly as there was no rush of customers Monday morning at the former bank’s headquarters.
North Naples resident Dora Sharpe attributed that to communication and her old Orion ATM card working Saturday morning, which gave her confidence.
“I think it’s fantastic that the Federal Government has mastered the science of closing and re-opening banks over the weekends ... At the same time it’s frustrating to know that after 16 months into this bail out crisis, Congress has not passed any serious laws that may prevent another catastrophe, and banks are getting bigger and taking the same unregulated risks as before,” said Marco artist Juan Munera.
Marco residents want to see the large banks taking over will have the same small-town involvement they enjoyed at Orion.
“It remains to be seen if the out-of-the-area banks that are taking over local entities will be able to be as involved in our community,” said Patrick Neale, an Island attorney.
Dameron made his first public comment on the issue Tuesday morning.
“IberiaBank’s relationship-based approach to serving customers and the community is a perfect fit for how we in the Marco bank have been and will continue to operate.
“The acquisition of Orion Bank by IberiaBank brings to our current and future customers a much broader array of banking, lending and investment products and services.”
Council candidate Larry Magel, Collier County Commissioner Donna Fiala, and others, stood by Dameron.
“It’s a shame that the current economy has caused so many bank failures, but I’m confident that Keith Dameron can make the Iberia name as well known on the island as Orion,” Magel said.
IberiaBank, established in 1887, has 204 offices, including 135 bank branches in 11 states. The corporation has current assets of $9.6 billion and with the acquisition of Orion and Century banks, it ranks as the 20th largest financial institution.
“These readjustments are still going to occur as our economy continues to improve, and there are many indicators that that is happening. I am hopeful our local bank branches with strong local leadership will not fall victim also,” said Geoff Fahringer, a Marco resident and Collier County Sheriff’s Office employee.
Several correspondents contributed to this report, including Naples Daily News reporters Elysa Batista and Laura Layden
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Comments » 1
marcoislander writes:
like i said more than a year ago keith should have spent more time on remembering his banking customers than his community service on his banking time i felt screwed after he had forgotten a conversation we had 2 days after it took place i have no confidence in him or the so called councilers who back him.
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