SOUTHERN PINES, N.C.,
Sept. 22, 2016 /PRNewswire/
-- First Bancorp (NASDAQ - FBNC), the parent company of First
Bank, reports that First Bank has entered into an agreement with
the Federal Deposit Insurance Corporation (FDIC) that terminates
all loss share agreements between First Bank and the FDIC.
The loss share agreements were related to two failed bank
acquisitions from 2009 and 2011.
Under the terms of the agreement, First Bank paid $2.0 million to the FDIC and all rights and
obligations related to payments under the agreements were
terminated. Accordingly, all future losses and recoveries
associated with the failed bank assets will be borne solely by
First Bank. As a result of the settlement, First Bancorp
expects to record a pretax expense of approximately $5.7 million this quarter, which primarily
relates to the write-off of the remaining indemnification asset
associated with the agreements. The Company expects there to
be a positive impact on future earnings as a result of the
elimination of FDIC Indemnification Asset Expense that had
previously been recorded in most recent financial quarters.
First Bancorp is a bank holding company headquartered in
Southern Pines, North Carolina,
with total assets of approximately $3.5
billion. Its principal activity is the ownership and
operation of First Bank, a state-chartered community bank that
operates 88 branches in North
Carolina and South Carolina. First Bank has loan
production offices in the North
Carolina cities of Greensboro, Greenville, and Raleigh. First Bank also provides SBA loans to
customers through its nationwide network of lenders – for more
information on First Bank's SBA lending capabilities, please visit
www.firstbanksba.com First Bancorp's common stock is traded
on The NASDAQ Global Select Market under the symbol "FBNC."
Please visit our website at www.LocalFirstBank.com.
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SOURCE First Bank