Renasant in Tupelo, Miss., is the latest banking company to get out of loss-share agreements with the Federal Deposit Insurance Corp.
The $8.5 billion-asset company said in a press release Thursday that it paid $4.8 million to the FDIC as consideration for the early termination of the agreements, which covered single-family and commercial credits.
The loss-share agreements were tied to the bank's purchase of assets and assumption of liabilities of two failed banks through FDIC-assisted transactions in 2010 and 2011. Also included in the termination agreement were two loss-share agreements the bank assumed as a result of last year's acquisition of Heritage Financial Group.
Renasant said it expects to record an after-tax charge of about $1.4 million, or 3 cents a share, in the fourth quarter, which will reflect the writeoff of the remaining FDIC indemnification asset, the corresponding claw-back liability and settlement charges.
At Sept. 30, the company had about $30.5 million in acquired covered loans and about $1 million in covered other real estate owned.
