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Midland States Bank Announces Termination of FDIC Loss Share AgreementsTuesday, October 11, 2016
Congratulations Midland States Bank!
Congratulations to Midland States Bancorp Inc. (Nasdaq: MSBI) & Midland States Bank (Midland) of Effingham, Illinois for successfully terminating their FDIC loss share agreements on two failed bank receiverships: Westbridge Bank & Trust Co. and Strategic Capital Bank.
Under the terms of the October 3 agreement, Midland made a net payment of $565,000 to the FDIC as consideration for early termination of the loss share agreements. The early termination resulted in a one-time after-tax charge of approximately $225,000 during 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 served as an advisor to Midland in successfully terminating their shared loss agreements with the FDIC and would like to congratulate all of the Midland team. We wish you continued success! For Midland’s press release, click here.
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