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Acquired and Covered Loans
 6 Months Ended
Jun. 30, 2017
Acquired Loans [Abstract]  
Acquired and Covered Loans
ACQUIRED AND COVERED LOANS
The significant accounting policies related to acquired and covered loans, which are classified as PCI and non-PCI, are presented in Note 1, "Summary of Significant Accounting Policies."
The following table presents the carrying amount of acquired and covered PCI and non-PCI loans as of June 30, 2017 and December 31, 2016.
Acquired and Covered Loans (1) 
(Dollar amounts in thousands)
 
 
As of June 30, 2017
 
As of December 31, 2016
 
 
PCI
 
Non-PCI
 
Total
 
PCI
 
Non-PCI
 
Total
Acquired loans
 
$
161,222

 
$
1,871,576

 
$
2,032,798

 
$
53,772

 
$
613,339

 
$
667,111

Covered loans
 
7,387

 
13,837

 
21,224

 
7,895

 
15,379

 
23,274

Total acquired and covered loans
 
$
168,609

 
$
1,885,413

 
$
2,054,022

 
$
61,667

 
$
628,718

 
$
690,385



(1) 
Included in loans in the Consolidated Statements of Condition.
The outstanding balance of PCI loans was $242.0 million and $84.8 million as of June 30, 2017 and December 31, 2016, respectively.
The increase in acquired loans compared to December 31, 2016 includes loans acquired in the Standard acquisition. For additional disclosure related to the Standard transaction, see Note 3, "Acquisitions."
Acquired non-PCI loans that are renewed are no longer classified as acquired loans. These loans totaled $233.6 million and $117.6 million as of June 30, 2017 and December 31, 2016, respectively.
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 June 30, 2017 and December 31, 2016.
Rollforwards of the carrying value of the FDIC indemnification asset for the quarters and six months ended June 30, 2017 and 2016 are presented in the following table.
Changes in the FDIC Indemnification Asset
(Dollar amounts in thousands)
 
 
Quarters Ended 
 June 30,
 
Six Months Ended 
 June 30,
 
 
2017
 
2016
 
2017
 
2016
Beginning balance
 
$
4,220

 
$
5,680

 
$
4,522

 
$
3,903

Amortization
 
(302
)
 
(302
)
 
(604
)
 
(582
)
Change in expected reimbursements from the FDIC for
  changes in expected credit losses
 
(202
)
 
(475
)
 
(530
)
 
(259
)
Net payments to the FDIC
 
202

 
268

 
530

 
2,109

Ending balance
 
$
3,918

 
$
5,171

 
$
3,918

 
$
5,171


Changes in the accretable yield for acquired and covered PCI loans were as follows.
Changes in Accretable Yield
(Dollar amounts in thousands)
 
 
Quarters Ended 
 June 30,
 
Six Months Ended 
 June 30,
 
 
2017
 
2016
 
2017
 
2016
Beginning balances
 
$
41,249

 
$
27,258

 
$
19,385

 
$
24,912

Additions
 
—

 
—

 
27,316

 
3,981

Accretion
 
(3,888
)
 
(2,303
)
 
(7,843
)
 
(3,849
)
Other (1)
 
2,509

 
127

 
1,012

 
38

Ending balance
 
$
39,870

 
$
25,082

 
$
39,870

 
$
25,082


(1) 
Increases represent a rise in the expected future cash flows to be collected over the remaining estimated life of the underlying portfolio.
Total accretion on acquired and covered PCI and non-PCI loans for the quarter and six months ended June 30, 2017 was $8.8 million and $20.1 million, respectively, and $4.9 million and $7.4 million for the same periods in 2016.