BNC Bancorp in High Point, N.C., is the latest company to terminate its loss-share arrangements with the Federal Deposit Insurance Corp.
The $5.7 billion-asset company said in a press release Thursday that its bank received a net payment of $2.1 million from the FDIC as consideration for the early termination. After the elimination of the FDIC indemnification asset and payment of settlement charges, BNC said it expects to realize a corresponding one-time pretax net gain of about $70,000.
The agreements were tied to BNC's purchase of two failed banks in the aftermath of the financial crisis.
"We believe that our participation with the FDIC has been a success for the customers, associates and communities of those institutions, as well as for our company and shareholders," Rick Callicutt, BNC's president and chief executive, said in the release. "We expect to realize future benefits associated with the termination, such as reduced operating costs, retention of all loss recoveries and simplified financial reporting."
BNC said that about $38.3 million in covered loans and $1.8 million in covered real estate owned will be reclassified as noncovered as of June 30.
DD&F Consulting Group in Little Rock, Ark., served as an adviser for the early termination.