Old National Bancorp in Evansville, Ind., has negotiated an exit from its loss-share agreements with the Federal Deposit Insurance Corp.
The $11.9 billion-asset company said in a press release Thursday that the agreements were tied to its 2011 purchase of the failed Integra Bank.
Old National plans to record a pretax gain of $220,000 in the second quarter tied to the terminated agreement, which reflects a $8.7 million payment from the FDIC that was partially offset by the elimination of the FDIC indemnification asset and the payment of settlement charges.
"The early termination ... creates several benefits for Old National and our stakeholders, including reduced operating costs, retention of all loss recoveries and simplified financial reporting," Jim Ryan, Old National's chief financial officer, said in the release. "It is also a testament to the hard work and dedication of our credit department in the work-out and recovery of these troubled assets."
Old National had $95.4 million of covered loans and $6.5 million of covered real estate owned on March 31.
