FDIC LOSS SHARING ASSET

We are a party to four loss sharing agreements with the FDIC. Such agreements cover a substantial portion of losses incurred on acquired covered loans and other real estate owned. The loss sharing agreements relate to the acquisitions of: (1) Affinity Bank ("Affinity") in August 2009, (2) Los Padres Bank ("Los Padres") in August 2010, (3) Western Commercial Bank ("Western Commercial") in connection with the May 2013 FCAL acquisition, and (4) San Luis Trust Bank ("San Luis") in connection with the May 2013 FCAL acquisition. Generally, under the terms of the loss sharing agreements, the FDIC is responsible for 80% of losses in connection with covered assets and is entitled to receive 80% of loss recoveries on the covered assets during the applicable contractual periods. The loss sharing provisions for the Affinity Bank non-single family covered assets expired in the third quarter of 2014; accordingly, further activity will be limited to recoveries through the third quarter of 2017 for assets covered by this loss sharing agreement.

Both the Western Commercial and San Luis loss sharing agreements contain true-up provisions, under which we will owe the FDIC amounts at the end of the loss sharing agreements based on the performance of the covered assets. The true-up liability is included in other liabilities in the accompanying consolidated balance sheets.

The following table presents the changes in the FDIC loss sharing asset for the years indicated:



	Year Ended December 31,
	2014			2013			2012
	(In thousands)
Balance, beginning of year	$	45,524		$	57,475		$	95,187
Addition from the FCAL acquisition	—			17,241			—
FDIC share of additional losses, net of recoveries	(4,941		)	4,969			6,169
Cash paid to (received from) FDIC	3,202			(7,332		)	(33,223		)
Net amortization	(25,051		)	(26,829		)	(10,658		)
Balance, end of year	$	18,734		$	45,524		$	57,475

The following table presents information about the composition of the FDIC loss sharing asset, the true‑up liability, and the non‑single family and the single family covered assets as of the date indicated:



	December 31, 2014
	Affinity Bank			Los Padres Bank		Western Commercial Bank		San Luis Trust Bank		Total
	(In thousands)
FDIC loss sharing asset	$	(302	)	$	9,435	$	1,165	$	8,436	$	18,734
True‑up liability	N/A			N/A		$	1,753	$	5,433	$	7,186
Non-single family covered assets ⁽¹⁾	$	113,361		$	77,814	$	11,327	$	28,555	$	231,057
Single family covered assets	$	10,987		$	56,891	N/A		$	30,517	$	98,395

Loss sharing expiration dates:
Non‑single family	3rd Quarter 2014			3rd Quarter 2015		4th Quarter 2015		1st Quarter 2016
Single family	3rd Quarter 2019			3rd Quarter 2020		N/A		1st Quarter 2021
Loss recovery expiration dates:
Non‑single family	3rd Quarter 2017			3rd Quarter 2018		4th Quarter 2018		1st Quarter 2019
Single family	3rd Quarter 2019			3rd Quarter 2020		N/A		1st Quarter 2021

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(1)	Excludes securities.