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.
The $2.3 billion-asset holding company for CenterState Bank of Florida received a $5.5 million payment from the Federal Deposit Insurance Corp., to end the loss-share agreements. The payment will result in a pretax loss of about $17.5 million, which will reduce CenterState's first-quarter earnings by about 25 cents per share.
The termination will produce a loss because CenterState will write off its remaining FDIC indemnification asset balance and settlement charges payable to the FDIC.
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Talmer Bancorp in Troy, Mich., will record a nearly $14 million charge in the fourth quarter tied to ending its loss-share agreements with the Federal Deposit Insurance Corp.
December 29 -
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 -
CenterState Banks (CSFL) in Davenport, Fla., has agreed to buy First Southern Bancorp (FSOF) in Boca Raton, Fla.
January 30
Assets that were covered by the loss-share agreements, including covered loans totaling $177.3 million and other real estate owned totaling $9.6 million, will be reclassified as noncovered assets.
The early termination will also eliminate CenterState's FDIC receivable for loss-share agreements, which totaled $25.8 million at Dec. 31. About $21.5 million of the receivable had been scheduled to be amortized against future earnings.
CenterState acquired five failed banks in Florida between 2010 and 2012 and entered loss-share agreements on all five banks. Those banks were First Guaranty Bank & Trust in Jacksonville; Central Florida State Bank in Belleview; Independent National Bank in Ocala; Community National Bank in Bartow; and Olde Cypress Community Bank in Clewiston.
Additionally, as part of its June 2014
CenterState is the latest bank to
