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Bank of North Carolina Announces Termination of its FDIC Loss Share AgreementsTuesday, May 10, 2016
Congratulations Bank of North Carolina!
Congratulations to BNC Bancorp (Nasdaq: BNCN) & Bank of North Carolina (BNC) of High Point, North Carolina for successfully terminating their FDIC loss share agreements on two failed bank receiverships: Beach First National Bank and Blue Ridge Savings Bank.
Under the terms of the agreement, the FDIC made a net payment of $2.1 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 expects to realize a corresponding one-time pre-tax net gain of approximately $70,000.
Richard D. Callicutt, II, President and CEO, stated, “We are pleased to have successfully negotiated early termination of our loss share agreements with the FDIC. We believe that our participation with the FDIC has been a success for the customers, associates and communities of those institutions, as well as for our Company and shareholders. We expect to realize future benefits associated with the termination, such as reduced operating costs, retention of all loss recoveries and simplified financial reporting. We believe these benefits will far outweigh the risk of loss associated with any assets or expenses previously covered by the loss share agreements.”
DD&F served as an advisor to Bank of North Carolina in successfully terminating their shared loss agreements with the FDIC and would like to congratulate all of the BNC team. We wish you continued success.
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