Simmons First National in Pine Bluff, Ark., has agreed to an early termination of its federal loss-share agreements for its acquisition of four failed banks.
The Federal Deposit Insurance Corp. will pay about $2.4 million to Simmons First to end the loss-share agreements, according to a news release Tuesday.
The $7.6 billion-asset Simmons First will record a pretax $7.5 million charge in the third quarter to write off its remaining FDIC indemnification assets and settlement charges paid to the FDIC.
The early termination will help Simmons First cut operating costs, retain all loss recoveries and simplify its financial reporting, George Makris, chairman and chief executive, said in the release.
Simmons First will eliminate its FDIC receivable for loss-share agreements, which totaled $7.9 million in the third quarter.
Simmons First will reclassify $93.1 million of covered loans and $12.8 million of covered real estate owned as noncovered assets as of Sept. 30.
Simmons First acquired four failed banks between 2010 and 2012. They were Excel Bank in Sedalia, Mo.; Truman Bank in St. Louis; Security Savings Bank in Olathe, Kan.; and Southwest Community Bank in Springfield, Mo.