SouthernPines, N.C.-based FirstBancorp unit FirstBank terminated all its existing loss-share agreements with theFDIC ahead of schedule, paying $2.0 million in the process to the agency.
Theloss-share agreements were related to the acquisitions of two — Cooperative Bank in 2009 and Bank of Asheville in 2011.
FirstBancorp expects a pretax expense of about $5.7 million in the third quarter asa result of the termination, which primarily relates to the write-off of theremaining indemnification asset associated with the agreements. The companyalso estimates that the termination will have a positive impact on futureearnings.
All rightsand obligations related to payments under the agreements have now beenterminated, with the bank bearing any future losses and recoveries associatedwith the assets of the failed banks.