FDIC SHARED-LOSS RECEIVABLE AND PAYABLE

BancShares completed six FDIC-assisted transactions with shared-loss agreements during the period beginning 2009 through 2011. Prior to its merger into BancShares, First Citizens Bancorporation, Inc. (Bancorporation) completed three FDIC-assisted transactions with shared-loss agreements: Georgian Bank (acquired in 2009); Williamsburg First National Bank (acquired in 2010); and Atlantic Bank & Trust (acquired in 2011).

During 2016, FCB entered into an agreement with the FDIC to terminate five of FCB's nine shared-loss agreements, including Temecula Valley Bank (TVB), Sun American Bank (SAB), Williamsburg First National Bank (WFNB), Atlantic Bank & Trust (ABT) and Colorado Capital Bank (CCB). Under the terms of the agreement, FCB made a net payment of $20.1 million to the FDIC as consideration for early termination of the shared-loss agreements. Also, FCB wrote-off $1.5 million of the FDIC shared-loss receivable and released $18.2 million of the FDIC shared-loss payable associated with the terminated agreements. As a result, FCB recognized a $3.4 million loss on the termination of the shared-loss agreements.

The early termination agreement eliminated FCB's FDIC shared-loss payable for SAB and CCB. The remaining FDIC shared-loss payable balance at December 31, 2016 was $97.0 million. In conjunction with the early termination, FCB adjusted the FDIC shared-loss payable under the two remaining shared-loss agreements with clawback provisions and released other related reserves. The clawback liabilities were adjusted in order to conform to the methodology used to determine the net termination payment. The adjustment to the clawback liabilities is accounted for by management as a change in estimate. The total one-time pre-tax benefit of these adjustments was $20.0 million. The resulting positive net impact to pre-tax earnings from the early termination of the FDIC shared-loss agreements was $16.6 million during 2016. See Note U for further information related to FCB's payable to the FDIC for shared-loss agreements.

As of December 31, 2016, shared-loss protection has expired or has been terminated for all non-single family residential loans. Shared-loss protection remains only for single family residential loans acquired from UWB, VB and GB in the amount of $84.8 million.

The following table provides changes in the receivable from the FDIC for the years ended December 31, 2016, 2015 and 2014:



	Year ended December 31
(Dollars in thousands)	2016			2015			2014
Balance at January 1	$	4,054		$	28,701		$	93,397
Additional receivable from Bancorporation merger	—			—			5,106
Amortization	(4,734		)	(10,899		)	(43,422		)
Net cash payments to the FDIC	21,059			33,296			1,286
Post-acquisition adjustments	(14,745		)	(47,044		)	(27,666		)
Termination of FDIC shared-loss agreements	(1,462		)	—			—
Balance at December 31	$	4,172		$	4,054		$	28,701