Note 8: Acquired Loans, Loss Sharing Agreements and FDIC Indemnification Assets: Sun Security Bank Indemnification Asset (Policies)

3 Months Ended

Sep. 30, 2014

Policies

Sun Security Bank Indemnification Asset

Sun Security Bank Loans, Foreclosed Assets and Indemnification Asset.  The following tables present the balances of the FDIC indemnification asset related to the Sun Security Bank transaction at September 30, 2014 and December 31, 2013.  Gross loan balances (due from the borrower) were reduced approximately $171.7 million since the transaction date because of $112.8 million of repayments from borrowers, $27.6 million in transfers to foreclosed assets and $31.3 million of charge-offs to customer loan balances.  Based upon the collectability analyses performed during the acquisition, we expected certain levels of foreclosures and charge-offs and actual results have been better than our expectations.  As a result, cash flows expected to be received from the acquired loan pools have increased, resulting in adjustments that were made to the related accretable yield as described above.