South State in Columbia, S.C., has terminated five loss-share agreements with the Federal Deposit Insurance Corp.
The $8.7 billion-asset comapny said in a press release Thursday that it paid the FDIC $2.3 million to end the agreements. South State said it will record an after-tax charge of about $2.9 million.
The agreements were tied to the purchases of Cape Fear Bank in Wilmington, N.C.; Community Bank & Trust in Cornelia, Ga.; Habersham Bank in Clarkesville, Ga.; BankMeridian in Columbia, S.C.; and Plantation Federal Bank in Pawleys Island, S.C.
"We believe this early termination of these loss share agreements will allow us to move forward by allocating our resources to more meaningful projects within our Bank, simplify our financial results and earn back the tangible book value dilution in less than one year," John Pollok, South State's chief financial officer and chief operating officer, said in the release.
South State joins a growing list of banks, including First Citizens BancShares, Old National and PacWest Bancorp, that have exited loss-sharing agreements in recent weeks.