First Community Bancshares 8-K 2010
Item 8.01 Other Events.
The Company previously reported in the September 30, 2009, Quarterly Report on Form 10-Q the identification of a $7.0 million retained portion of a $34.3 million loan which was displaying early stages of delinquency. As a result of the failure of a participant bank, the Company re-acquired a portion of the previously participated loan, increasing the Company’s retained portion to a face amount of approximately $15.9 million. Prior to year-end, the Company successfully negotiated resolution with the borrower which resulted in the loan returning to current status. The resolution consisted of the sale of the real estate collateral and a substitution of collateral to secure the remaining balance of the loan. Proceeds from the sale were applied to make a principal curtailment in excess of the scheduled principal curtailment and to make interest payments through December 31, 2009, as well as provide for interest payments through the duration of the loan. The Company completed a collateral substitution and the loan balance remains secured and in performing status.
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.