Two community banks — Community Bankers Trust in Richmond, Va., and Charter Financial in West Point, Ga. — have reached early terminations of loss-share agreements with the Federal Deposit Insurance Corp.

The $1.2 billion-asset Community Bankers Trust, the holding company for Essex Bank, has received a $3.1 million payment from the FDIC to terminate its loss-share agreement for the failed Suburban Federal Savings Bank in Crofton, Md.

Community Bankers Trust will record an after-tax $8 million charge in the third quarter to account for the write-off of its FDIC indemnification asset and receivable. Those totaled $16.8 million, as of June 30.

The early termination will also eliminate Community Bankers Trust's FDIC indemnification asset amortization expense, which totaled $5.8 million last year.

Essex Bank acquired two failed banks during the financial crisis: Community Bank in Loganville, Ga., in November 2008; and Suburban Federal Savings in January 2009. However, it did not enter into a loss-share agreement for the acquisition of Community Bank.

The $1 billion-asset CharterBank has received a $1.8 million payment from the FDIC to complete the early termination of all its loss-share agreements. In the quarter ending Sept. 30, Charter expects to record a pretax $2.5 million charge, to account for the write-off of its FDIC indemnification assets and for settlement charges paid to the FDIC.

However, by reaching an early termination of the loss-share agreements, Charter will eliminate the FDIC receivable for its indemnification asset. The receivable totaled $4.5 million in the quarter ended June 30, although about $1.7 million of that figure was scheduled to be amortized against future earnings.

Additionally, Charter will reclassify $45.8 million of covered loans, and $2.4 million of covered real estate, as noncovered assets, as of Sept. 30.

Charter bought three failed banks between 2009 and 2011: First National Bank of Florida in Milton; McIntosh Commercial Bank in Carrollton, Ga.; and Neighborhood Community Bank in Newnan, Ga.

The termination agreements were disclosed in separate news releases on Thursday.

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