East West Bancorp in Pasadena, Calif., paid $118.4 million to terminate single-family and commercial shared-loss agreements with the Federal Deposit Insurance Corp., tied to an acquisition of a failed bank.
The $31.1 billion-asset company on Tuesday made the early-termination payment to the FDIC. The payment stems from East West's November 2009 acquisition of certain assets and liabilities of the failed United Commercial Bank in San Francisco.
Shared-loss coverage of commercial loans and other real estate owned assets expired on Dec. 31, 2014, but the loss recovery provisions of the commercial shared-loss agreement were still in effect.
East West previously ended its share-loss agreement tied to the failed Washington First International Bank, which helped boost its third-quarter profits.