Info released in FFCH deal for NC bank

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First Financial Holdings of Charleston has released details of its Federal Deposit Insurance Corp.-brokered deal to take over Wilmington, NC-based Cape Fear Bank after the latter was seized in April.

According to information filed with the US Securities and Exchange Commission, the acquisition consisted of assets with a fair value of $413.2 million, including $274.5 million of loans, $48.4 million of investment securities, $17.2 million of cash and cash equivalents, $7.5 million of foreclosed assets and $3.5 million of Federal Home Loan Bank stock. 

Liabilities with a fair value of $384.3 million were also assumed, including $305.4 million of deposits and $58.9 million of Federal Home Loan Bank advances.

The acquisition also resulted in an $18.8 million deferred tax liability. 

In addition, First Federal entered into a loss-sharing agreement with the FDIC.  Under the agreement, First Federal will share in the losses on assets covered under the agreement.

On losses up to $110 million, First Federal will assume the first $31.5 million and the FDIC has agreed to reimburse First Federal for 80 percent of the losses between $31.5 million and $110 million. 

On losses exceeding $110 million, the FDIC has agreed to reimburse First Federal for 95 percent of the losses. 

Reimbursement for losses on single family one-to-four residential mortgage loans are to be made monthly until the end of the month in which the tenth anniversary of the closing of the acquisition occurs.

Reimbursement for losses on non-single family one-to-four residential mortgage loans are to be made quarterly until the end of the quarter in which the fifth anniversary of the closing of the acquisition occurs. 

The reimbursable losses from the FDIC are based on the book value of the relevant loans and foreclosed assets as determined by the FDIC as of the date of the acquisition, April 10, 2009.

Within 15 days after the end of each calendar month through April 2019, First Federal will deliver to the FDIC a certificate documenting the losses on single family one-to-four residential mortgage loans and any recoveries offsetting prior losses on such loans during the applicable month. 

Within 30 days after each calendar quarter between and including the quarter ended June 30, 2009, and the quarter ended June 30, 2014, First Federal will deliver to the FDIC a certificate documenting the losses on non-single family one-to-four residential mortgage loans and any recoveries offsetting prior losses on such loans. 

In addition, within 15 days after the end of each quarter between and including June 30, 2014, and June 30, 2017, First Federal will deliver to the FDIC a certificate documenting recoveries on non-single family one-to-four residential mortgage loans.

Cape Fear Bank was seized by the FDIC April, 10, the first bank to fail in North Carolina since 1993.

One thought on “Info released in FFCH deal for NC bank

  1. Pingback: First Financial plans stock sale « The Cotton Boll Conspiracy

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