FDIC LOSS SHARE RECEIVABLE

The following table provides changes in the receivable from the FDIC for the three and six months ended June 30, 2015 and June 30, 2014.



	Three months ended June 30						Six months ended June 30
(Dollars in thousands)	2015			2014			2015			2014
Beginning balance	$	21,340		$	74,784		$	28,701		$	93,397
Amortization	(1,461		)	(12,922		)	(6,492		)	(30,667		)
Net cash payments to FDIC	5,128			859			10,890			4,350
Post-acquisition adjustments	(19,199		)	(12,762		)	(27,291		)	(17,121		)
Ending balance	$	5,808		$	49,959		$	5,808		$	49,959

The receivable from the FDIC for loss share agreements is measured separately from the related covered assets and is recorded at fair value at the acquisition date using projected cash flows based on the expected reimbursements for losses and the applicable loss share percentages. See Note L for information related to FCB's recorded payable to the FDIC for loss share agreements.

Amortization reflects changes in the FDIC loss share receivable due to improvements in expected cash flows that are being recognized over the remaining term of the loss share agreement. Cash payments to FDIC represent the net impact of loss share loan recoveries, charge-offs and related expenses as calculated and reported in FDIC loss share certificates. Post-acquisition adjustments represent the net change in loss estimates related to acquired loans and covered OREO as a result of changes in expected cash flows and the ALLL related to those covered loans. For loans covered by loss share agreements, subsequent decreases in the amount expected to be collected from the borrower or collateral liquidation result in a provision for loan and lease losses, an increase in the ALLL and a proportional adjustment to the receivable from the FDIC for the estimated amount to be reimbursed. Subsequent increases in the amount expected to be collected from the borrower or collateral liquidation result in the reversal of some or all previously recorded provision for loan and lease losses, a decrease in the related ALLL and a proportional adjustment to the receivable from the FDIC, or prospective adjustment to the accretable yield and the related receivable from the FDIC if no provision for loan and lease losses had been recorded previously. The loss share agreements for FRB and non-single family residential loans acquired from SAB expired at the beginning of the second quarter of 2015. The loss share agreement for non-single family residential loans for Williamsburg First National Bank will expire at the beginning of the fourth quarter of 2015.