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State Bank Financial in Atlanta reported a decline quarterly profits as the accounting benefits related to its failed-bank purchases continued to wane.
January 29 -
State Bank Financial (STBZ) in Atlanta has agreed to buy Atlanta Bancorp.
April 28 -
It hasn't been easy for banks to get out of loss-sharing agreements with the FDIC, but Bank of the Ozarks recently secured the most significant early-termination deal yet. It could be a sign that banks and the regulator are getting on the same page.
January 2
State Bank Financial in Atlanta reached an agreement to end its loss-share agreements for 12 failed banks that it acquired during the financial crisis.
The $3.4 billion-asset State Bank will record a second-quarter, pretax charge of $15.1 million, primarily to write off its remaining indemnification asset and for settlement charges paid to the Federal Deposit Insurance Corp.
I am very pleased to close the books on our FDIC loss share agreements, which have been an incredible opportunity for us from start to finish, Joe Evans, chairman and chief executive, said
State Bank did not disclose a schedule for when its loss-share agreements were set to expire. The agreements were reached on banks acquired between 2009 and 2011, and loss-share agreements typically run for five years.
State Bank is the latest institution among those that were active acquirers of failed banks to
State Bank's loss-share agreements had applied to $88.6 million in loans and $4.3 million in other real estate owned, as of March 31. The termination also eliminates the FDIC's receivable for loss-share agreements, which totaled $17.1 million and the agency's clawback-payable, which totaled $5.5 million.
As a result of the termination, State Bank's earnings will be positively impacted by the elimination of future indemnification asset amortization, lower operating expenses and our retention of 100% of future recoveries, Evans said.
