Park Sterling in Charlotte, N.C., has negotiated an early termination of loss-share agreements with the Federal Deposit Insurance Corp. for about $15.5 million in assets.
The $3.2 billion-asset Park Sterling paid the FDIC $4.4 million to end the agreements. Park Sterling will record a $15,000 after-tax charge in the third quarter to cover the payment cost. The termination will result in lower operating costs and increase the bank's loss-share recoveries, James Cherry, chief executive, said in a news release.
Park Sterling had about $15.1 million of loans and leases covered by loss-share agreements as of June 30, including about $9.8 million in residential mortgages. It also had $380,000 in other real estate owned covered by loss-share.
Park Sterling inherited the loss-share agreements from its 2012 acquisition of Citizens South Bank. Citizens South had previously acquired two failed banks, Bank of Hiawassee in 2010 and New Horizons Bank in 2011.