Capital Bank Financial in Charlotte, N.C., will record a first-quarter $5.5 million net loss, after it agreed to an early termination of its loss-share agreements tied to three failed banks.
The $7.4 billion-asset company paid $3 million to the Federal Deposit Insurance Corp. to end the agreements. Capital Bank will record an after-tax charge of about $5.5 million in the first quarter, to cover the payment and the write-off of the remaining FDIC indemnification asset.
The early termination will eliminate the indemnification asset, related receivable and accrued clawback liability, totaling a net amount of $6 million as of Dec. 31. Capital Bank will benefit from the reduction in FDIC amortization expense and other related expenses, to the order of about $500,000 per quarter.
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Capital Bank CEO Eugene Taylor took a three-year break from acquisitions until agreeing to buy CommunityOne earlier this year. Taylor hopes the deal provides evidence that his team is a buyer not a seller in the year ahead.
December 30 -
CenterState Banks in Davenport, Fla., will record a first-quarter $17.5 million net loss on the early termination of its loss-share agreements associated with seven failed banks.
February 8 -
Sometimes it's for the best to end a complicated relationship. At least that's the view of some bankers who have negotiated early terminations of their FDIC loss-sharing agreements.
November 6
The assets that had been covered by the FDIC loss-share agreements, totaling $74.1 million, will be re-classified as noncovered assets, retroactive to Jan. 1.
Capital Bank Financial in July 2010
