Item 2.01. Completion of Acquisition or Disposition of Assets.
On March 10, 2017, First NBC Bank (“FNBC Bank”), the wholly-owned banking subsidiary of First NBC Bank Holding Company (“Company”), pursuant to the previously disclosed Purchase and Assumption Agreement, dated as of December 30, 2016, with Whitney Bank, the wholly-owned banking subsidiary of Hancock Holding Company, completed the disposition of certain loans and other assets to Whitney Bank.
In the transaction, Whitney Bank acquired approximately $1.3 billion in total loans (inclusive of approximately $300 million in previously closed tranches) and 9 branch locations, and assumed approximately $400 million in deposits and approximately $600 million in Federal Home Loan Bank of Dallas borrowings from FNBC Bank. Whitney Bank paid approximately $320 million in total cash in connection with the transaction, including just under $42 million in a transaction premium.
Item 8.01. Other Events.
On March 2, 2017, FNBC Bank received a Supervisory Prompt Corrective Action Directive (the “Directive”), effective as of February 24, 2017, from the Federal Deposit Insurance Corporation (“FDIC”). The FDIC issued the Directive because it deemed FNBC Bank to be “significantly undercapitalized”
as that term is defined in Section 38 of the Federal Deposit Insurance Act. The Directive requires, among other things, that FNBC Bank must increase its capital to a level sufficient to restore the bank to at least an “adequately capitalized” level as defined in the FDIC regulations or take the actions necessary to effectuate a merger with another financial institution. FNBC Bank and the Company are committed to exploring all feasible alternatives in order to comply with the Directive. If FNBC Bank is unable to satisfy the requirements of the Directive, then the FDIC has authority to take additional regulatory action.
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