Enterprise Financial Services in Clayton, Mo., has reached an agreement to end loss-share agreements tied to the four failed banks it acquired during the financial crisis.
The $3.5 billion-asset holding company for Enterprise Bank & Trust will record a pretax charge of $2.4 million, or 7 cents per share, to cover the agreement, according to a Tuesday news release.
The Federal Deposit Insurance Corp. made a net payment of $1.3 million as part of the agreement. By ending the loss-shares early, Enterprise will eliminate its FDIC's clawback liability of $3.5 million and its $7.2 million loss-share receivable.
The assets that had been covered by the loss-shares "have contributed more than $53 million in net earnings to Enterprise," Peter Benoist, chief executive, said in the release.
Enterprise acquired four failed banks between 2009 and 2011, including First National Bank of Olathe in Kansas; Legacy Bank in Scottsdale, Ariz.; and Valley Capital Bank in Mesa, Ariz.
Enterprise is the latest bank to end its loss-share agreements early, as the FDIC has loosened requirements on them, making them eligible for early termination.