BIRMINGHAM, Ala. - Secor Bank said the Federal Deposit Insurance Corp. had approved a plan allowing Secor to repurchase $53.3 million in preferred stock held by the resolution fund of the defunct Federal Savings and Loan Insurance Corp.
The agreement would also terminate the assistance arrangement under which the federal regulator owned the preferred.
The stock purchase and settlement remain subject to execution of a definitive agreement and approvals by the Office of Thrift Supervision and Secor shareholders.
"The purchase of the preferred stock for cash, debentures, and warrants would add approximately $15 million to core capital and common equity," said Victor E. Nichol, acting chief executive officer of the $2 billion-asset Alabama thrift.
