NEW ORLEANS - Regional banking company Iberiabank Corp. said Tuesday that it has returned $90 million it took from the U.S. Treasury under a program designed for healthy banks to stimulate lending during the current credit crisis.

The money was obtained from the federal government in exchange for preferred stock in Lafayette, La.-based Iberiabank. Iberiabank said it decided to drop out of the program - known as the Capital Purchase Program - because of strings attached by the government to participate.

Iberiabank said it would take a first-quarter charge of $2.2 million to account for the initial value of the preferred stock and its redemption price. The company also said it had informed the government of its intent to repurchase a warrant for up to 138,900 common shares of Iberiabank, which was also part of the deal.

Iberiabank and other banking companies that have avoided major loan problems - such as those that took direct bailout money from the government's Troubled Asset Relief Program to remain solvent - have had second thoughts about CPP since the $787 billion economic stimulus program put them, as well as their troubled counterparts, under restrictions on executive bonuses.

Two other major Louisiana banking companies - Lafayette-based MidSouth Bancorp Inc. and New Orleans-based Whitney Holding Corp. - also are reconsidering their participation in CPP.

MidSouth sold $20 million of preferred stock to the Treasury, while Whitney - after issuing preferred stock for the first time - sold the shares to the government for $300 million.

A service of YellowBrix, Inc.