Midland States Bancorp (MSBI) Reports Early Termination of FDIC Loss Share Agreements
- Wall St. drops on bleak GE outlook; Microsoft blunts losses
- British American Tobacco Offers to Acquire Remaining Shares of Reynolds American (RAI) for $56.50/Share
- General Electric (GE) Tops Q3 EPS by 2c; Updates FY16 EPS Outlook
- Pre-Open Stock Movers 10/21: (ALKS) (RAI) (PFPT) (MSFT) Higher; (SGY) (TWLO) (RRGB) Lower (more...)
- Oil on track for first weekly loss in five weeks on strong dollar
Get the Pulse of the Market with StreetInsider.com's Pulse Picks. Get your Free Trial 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
- Equity Bancshares (EQBK) Clears Final Regulatory Hurdle Needed to Close Community First Bancshares Merger; Moves to Acquire Prairie State Bancshares
- Altra Industrial Motion (AIMC) to Acquire GKN's Stromag
- Independent Bank (INDB), Island Bancorp Enter Merger Agreement
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!