On Thursday, Shares of BNC Bancorp (NASDAQ:BNCN)gained1.33% to $22.14. The share price is trading in a range of 21.66 - 22.16 (Price in Dollars). The stock exchanged hands with 98,221shares contrast to its average daily volume of 126,642shares.BNC Bancorp, parent company for Bank of North Carolina, stated that the Bank has reached a contract with the Federal Deposit Insurance Corporation on May 2, 2016 to terminate all existing loss share agreements with the FDIC. The loss share agreements were related to the Bank’s acquisition of assets and assumption of liabilities of two failed banks through FDIC-assisted transactions in 2010 and 2011.
Under the terms of the agreement, the FDIC made a net payment of $2.10 million to the Bank as consideration for the early termination of the loss share agreements. After the elimination of the FDIC indemnification asset and payment of settlement charges, the Company anticipates to realize a corresponding one-time pre-tax net gain of about $70,000.
As a result of entering into the early termination agreements, assets that were covered by the loss share arrangements, counting covered loans in the amount of $38.30 million and covered real estate owned in the amount of $1.80 million as of March 31, 2016, will be reclassified as non-covered as of June 30, 2016.
All rights and obligations of the Bank and the FDIC under the FDIC loss share agreements, counting the clawback provisions and the settlement of loss share and expense reimbursement claims, have been resolved and terminated under the termination agreement.
DD&F Consulting Group, headquartered in Little Rock, Arkansas, served as advisors for this early termination. DD&F was one of the first advisors in the nation to assist with loss share buyout and have accomplished 36 transactions to date for banks.
