FDIC Shared-Loss Payable

9 Months Ended

Sep. 30, 2020

FDIC Shared-Loss Receivable [Abstract]

FDIC SHARED-LOSS PAYABLE

At September 30, 2020, shared-loss protection remains for single family residential loans acquired in the amount of $36.2 million. The shared-loss agreement for two of the FDIC-assisted transactions include a provision related to a payment that may be owed to the FDIC at the termination of the agreement if actual cumulative losses on acquired covered assets are lower than the cumulative losses originally estimated by the FDIC at the time of acquisition (the “clawback liability”). BancShares issued a payment to the FDIC in the first quarter of 2020 for $99.5 million related to one of the transactions. The remaining clawback liability payment date is March 2021.

The following table provides changes in the FDIC shared-loss payable since December 31, 2019:


(Dollars in thousands)	Total
Balance at December 31, 2019	$	112,395
Accretion	2,386
Payment made to the FDIC to settle shared-loss agreement	(99,468)
Balance at September 30, 2020	$	15,313