FDIC loss share (expense) income

12 Months Ended

Dec. 31, 2016

Disclosure Text Block

FDIC Loss Share (Expense) Income

Note 38 – FDIC loss share (expense) income

The caption of FDIC loss-share (expense) income in the consolidated statements of operations consists of the following major categories:

			Years ended December 31,
(In thousands)			2016		2015		2014
Amortization of loss share indemnification asset		$	(10,201)	$	(66,238)	$	(189,959)
Reversal of accelerated amortization in prior periods			-		-		12,492
80% mirror accounting on credit impairment losses[1]			(239)		15,658		32,038
80% mirror accounting on reimbursable expenses			8,433		73,205		58,117
80% mirror accounting on recoveries on covered assets, including rental income
	on OREOs, subject to reimbursement to the FDIC		(31,338)		(13,836)		(13,124)
Change in true-up payment obligation			(33,413)		9,559		(1,791)
Arbitration decision charge[2]			(136,197)		-		-
Other			(4,824)		1,714		(797)
Total FDIC loss share (expense) income		$	(207,779)	$	20,062	$	(103,024)
[1] Reductions in expected cash flows for ASC 310-30 loans, which may impact the provision for loan losses, may consider reductions in both principal and interest cash flow expectations. The amount covered under the FDIC loss sharing agreements for interest not collected from borrowers is limited under the agreements (approximately 90 days); accordingly, these amounts are not subject fully to the 80% mirror accounting.
[2] Refer to Note 28, Commitments and Contingencies, for additional information on the FDIC arbitration decision.