Note 8: Acquired Loans, Loss Sharing Agreements and FDIC Indemnification Assets: InterBank Indemnification Asset Policy (Policies)

3 Months Ended

Sep. 30, 2014

Policies

InterBank Indemnification Asset Policy

InterBank Loans, Foreclosed Assets and Indemnification Asset.  The following table presents the balances of the FDIC indemnification asset related to the InterBank transaction at September 30, 2014.  Gross loan balances (due from the borrower) were reduced approximately $138.8 million since the transaction date because of $107.2 million of repayments by the borrower, $11.4 million in transfers to foreclosed assets and $20.2 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.