LITTLE ROCK -- First Commercial Corp. has agreed to reimburse its customers for $7.5 million in derivatives-induced investment losses, quickly settling a class action.
Lynn Wright, chief financial officer of the Little Rock company, said the decision will not hurt fourth-quarter earnings. The bank has filed a claim with its insurance company and was pursuing a settlement with the Managers Fund and Piper, Jaffray & Co., both third parties whose derivatives losses cost First Commercial customers.
"We're comfortable saying we think the net impact on the fourth quarter will be immaterial," Mr. Wright said.
The bank said it would credit the accounts of affected customers at the end of December.
