| Item 1.01 |
Entry into a Material Definitive Agreement |
On October 28, 2009, BancTrust Financial Group, Inc. (the "Company"), as borrower, entered into First Amendment to Loan Agreement (the "Amendment") with Federal Deposit Insurance Corporation as Receiver of Silverton Bank, N.A., as lender.
The Amendment modified certain loan covenants contained in the Loan Agreement (the "Loan Agreement") between the Company and Federal Deposit Insurance Corporation as Receiver of Silverton Bank, N.A. (formerly known as The Bankers Bank, N.A.) so that the Company is no longer in breach of such loan covenants. More specifically, the Amendment:
deleted the covenant regarding the required minimum ratio of non-performing assets to the sum of total loans and other real estate owned and replaced it with a covenant that the Company's non-performing assets shall not exceed $200 million at the end of any calendar quarter
deleted the minimum debt service coverage ratio covenant and replaced it with a covenant requiring the Company to maintain a minimum allowance for loan and lease losses for its bank subsidiary of at least 3% of its gross loans
modified the covenant regarding classified assets to require that the Company's assets which are classified as "substandard" and "doubtful" shall be less than $275 million
The Amendment applies to the Company's covenants under the Loan Agreement as of September 30, 2009.
The foregoing description of the Amendment does not purport to be complete and is qualified by reference to the Amendment, which is filed herewith as Exhibit 10.1 and incorporated herein by reference.
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Item 9.01 |
Financial Statements and Exhibits. |
(d) Exhibits.
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Exhibit No. |
Description |
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10.1 |
First Amendment to Loan Agreement made as of the 28th day of October, 2009 between Federal Deposit Insurance Corporation as Receiver of Silverton Bank, N.A. and BancTrust Financial Group, Inc. |
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SIGNATURES
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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, hereunto duly authorized.
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BANCTRUST FINANCIAL GROUP, INC. |
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DATE: October 29, 2009 |
By: /s/ F. Michael Johnson |
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F. Michael Johnson |
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Executive Vice President, Chief Financial Officer and Secretary |
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Exhibit Index
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Exhibit No. |
Description |
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10.1 |
First Amendment to Loan Agreement made as of the 28th day of October, 2009 between Federal Deposit Insurance Corporation as Receiver of Silverton Bank, N.A. and BancTrust Financial Group, Inc. |