ACQUIRED LOANS

Since 2009, the Company acquired the majority of the assets and assumed the deposits of four financial institutions in FDIC-assisted transactions. In three of those transactions, most loans and OREO acquired are covered by the FDIC Agreements. The significant accounting policies related to purchased impaired loans and the related FDIC indemnification asset are presented in Note 1, “Summary of Significant Accounting Policies.”

Acquired Loans

(Dollar amounts in thousands)



	March 31, 2014							December 31, 2013
	Covered			Non-Covered		Total		Covered			Non-Covered		Total
Purchased impaired loans	$	92,621	⁽¹⁾	$	15,341	$	107,962	$	103,525	⁽¹⁾	$	15,608	$	119,133
Other loans ⁽²⁾	29,766			14,512		44,278		30,830			17,024		47,854
Total acquired loans	$	122,387		$	29,853	$	152,240	$	134,355		$	32,632	$	166,987


⁽¹⁾	At acquisition, the Company made an election to account for certain covered loans as purchased impaired loans. These loans totaled $23.3 million at March 31, 2014 and $24.6 million at December 31, 2013.


⁽²⁾	These loans did not meet the criteria to be accounted for as purchased impaired loans.

In connection with the FDIC Agreements, the Company recorded an indemnification asset. To maintain eligibility for the loss share reimbursement, the Company is required to follow certain servicing procedures as specified in the FDIC Agreements. The Company was in compliance with those requirements as of March 31, 2014 and December 31, 2013.

Changes in the FDIC Indemnification Asset

(Dollar amounts in thousands)



	Quarters Ended March 31,
	2014			2013
Beginning balance	$	16,585		$	37,051
Amortization	(1,316		)	(1,324		)
Change in expected reimbursements from the FDIC for changes in expected credit losses	1,161			(942		)
Payments received from the FDIC	(893		)	(5,827		)
Ending balance	$	15,537		$	28,958

Changes in the accretable yield for purchased impaired loans were as follows.

Changes in Accretable Yield

(Dollar amounts in thousands)



	Quarters Ended March 31,
	2014			2013
Beginning balance	$	36,792		$	51,498
Accretion	(3,510		)	(3,886		)
Other ⁽¹⁾	(1,272		)	(2,080		)
Ending balance	$	32,010		$	45,532


⁽¹⁾	Decreases result from the resolution of certain loans occurring earlier than anticipated.