FDIC loss share (expense) income

3 Months Ended

Mar. 31, 2017

Disclosure Text Block

FDIC Loss Share (Expense) Income

Note 28 – 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:

			Quarters ended March 31,
(In thousands)			2017		2016
Amortization of loss share indemnification asset		$	(776)	$	(4,042)
80% mirror accounting on credit impairment losses (reversal)[1]			148		(2,093)
80% mirror accounting on reimbursable expenses			921		3,950
80% mirror accounting on recoveries on covered assets, including rental income on OREOs, subject
	to reimbursement to the FDIC		4,833		(645)
Change in true-up payment obligation			(7,385)		(443)
Other			(5,998)		127
Total FDIC loss share expense		$	(8,257)	$	(3,146)
[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.