Loss-Share Agreement Buyouts

Turning a loss into a win

Early termination of Shared-Loss Agreements might save you millions of dollars.  If your bank has multiple Shared-Loss Agreements, let us help evaluate your eligibility for savings potential. Our analysis reviews:

1) Your historic loss share filings
2) Status of your indemnification asset
3) Any related True-Up payments that may be due with the termination

The DD&F Process:

  • Establish Buyout Range

  • Termination Proposal Letter to FDIC

  • FDIC conducts reasonableness test

  • Asset Valuation Report by FDIC-hired Financial Advisor

  • Loss Share Compliance Review by FDIC

  • FDIC review of pro forma financial projections showing early termination effect

  • If approved, Termination of Agreement

bank photograph representing Loss share FDIC buyout

DD&F has saved our clients over $190 million in true-up costs: This translates to increased earnings of the same amount. True-up savings have averaged $4.2 million or 30% per receivership.

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