Midland States Bancorp (MSBI) Reports Early Termination of FDIC Loss Share Agreements
- Apple (AAPL) Tops Q4 EPS by 2c; Issues Solid Outlook
- Wall Street slips on earnings; Apple falls late after results
- Chipotle Mexican Grill (CMG) Posts Q3 EPS of $0.27; Comps Miss Views; Additional Stock Buyback Approved
- Pandora (P) Misses Q3 EPS by 1c, Q4 Revenue Guidance Falls Short
- After-Hours Movers 10/25: (OGXI) (AKAM) (VRTX) Higher; (EW) (NUVA) (CMG) (AAPL) Lower (more...)
Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.
Midland States Bancorp, Inc. (NASDAQ: MSBI) announced today that it entered into an agreement with the Federal Deposit Insurance Corporation (“FDIC”) on October 3, 2016 to terminate its existing loss share agreements with the FDIC. The loss share agreements are with respect to certain assets Midland acquired from the FDIC as part of the two FDIC-assisted bank acquisitions it has done, one in 2009 and one in 2010.
Under the terms of the agreement, Midland made a net payment to the FDIC of $565,000 as consideration for the early termination of the loss share agreements. Midland will record a one-time after-tax charge of approximately $225,000 in the fourth quarter of 2016.
“We are pleased to have negotiated an early termination of our loss share agreements with the FDIC,” said Leon J. Holschbach, President and Chief Executive Officer of Midland States Bancorp. “Eliminating the loss share agreements provides a number of benefits to Midland including improving our balance sheet flexibility and simplifying our financial reporting.”
As a result of the termination of the agreements, covered residential real estate loans in the amount of $786,000 as of September 30, 2016, will be reclassified as non-covered assets in the fourth quarter of 2016.
The termination of the FDIC loss share agreements has no impact on the yield of the formerly covered loans. All rights and obligations of the parties under the loss share agreements will be eliminated under the early termination agreement. Midland will now recognize entirely all future gains, recoveries, charge-offs, losses and expenses related to the formerly covered assets with no offset to the FDIC.
DD&F Consulting Group, headquartered in Little Rock, Arkansas, served as advisors for this early termination.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- First NBC Bank (FNBC) Disagrees with 'Unfounded Assertions' in the Market
- Theravance Biopharma (TBPH) Announces Positive Data from TD-0714 Phase 1 MAD Trial
- Concordia International (CXRX) Says It's Part of Inquiry by UK's CMA
Create E-mail Alert Related CategoriesCorporate News, Management Comments
Related EntitiesFDIC, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!