TeamBank Loans, Foreclosed Assets and Indemnification Asset

The following tables present the balances of the loans, discount and FDIC indemnification asset related to the TeamBank transaction at December 31, 2016 and 2015. Through December 31, 2016, gross loan balances (due from the borrower) were reduced approximately $417.3 million since the transaction date because of $284.5 million of repayments by the borrower, $61.7 million of transfers to foreclosed assets and $71.1 million of charge-downs to customer loan balances. Based upon the collectability analyses performed at the time of 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.

Vantus Bank Loans, Foreclosed Assets and Indemnification Asset

The following tables present the balances of the loans, discount and FDIC indemnification asset related to the Vantus Bank transaction at December 31, 2016 and 2015. Through December 31, 2016, gross loan balances (due from the borrower) were reduced approximately $307.8 million since the transaction date because of $262.0 million of repayments by the borrower, $16.7 million of transfers to foreclosed assets and $29.1 million of charge-downs to customer loan balances. Based upon the collectability analyses performed at the time of 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.

	December 31, 2016
		Foreclosed
	Loans	Assets
	(In Thousands)

Initial basis for loss sharing determination,
net of activity since acquisition date	$ 23,712	$ 15
Reclassification from nonaccretable discount
to accretable discount due to change in
expected losses (net of accretion to date)	(239)	—
Original estimated fair value of assets, net of
activity since acquisition date	(23,232)	(15)

Expected loss remaining	$ 241	$ —

	December 31, 2015
		Foreclosed
	Loans	Assets
	(In Thousands)

Initial basis for loss sharing determination,
net of activity since acquisition date	$ 31,818	$ 608
Reclassification from nonaccretable discount
to accretable discount due to change in
expected losses (net of accretion to date)	(470)	—
Original estimated fair value of assets, net of
activity since acquisition date	(31,092)	(418)
Expected loss remaining	256	190
Assumed loss sharing recovery percentage	61%	0%
Expected loss sharing value	156	—
Indemnification asset to be amortized resulting from
change in expected losses	319	—

FDIC indemnification asset	$ 475	$ —

FDIC Indemnification Asset Policy

Sun Security Bank Loans, Foreclosed Assets and Indemnification Asset

The following tables present the balances of the loans, discount and FDIC indemnification asset related to the Sun Security Bank transaction at December 31, 2016 and 2015. Through December 31, 2016, gross loan balances (due from the borrower) were reduced approximately $200.9 million since the transaction date because of $141.6 million of repayments by the borrower, $28.4 million of transfers to foreclosed assets and $30.9 million of charge-downs to customer loan balances. Based upon the collectability analyses performed at the time of 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.

	December 31, 2016
		Foreclosed
	Loans	Assets
	(In Thousands)

Initial basis for loss sharing determination,
net of activity since acquisition date	$ 33,579	$ 365
Reclassification from nonaccretable discount
to accretable discount due to change in
expected losses (net of accretion to date)	(1,086)	—
Original estimated fair value of assets, net of
activity since acquisition date	(31,499)	(286)

Expected loss remaining	$ 994	$ 79

	December 31, 2015
		Foreclosed
	Loans	Assets
	(In Thousands)

Initial basis for loss sharing determination,
net of activity since acquisition date	$ 43,855	$ 557
Reclassification from nonaccretable discount
to accretable discount due to change in
expected losses (net of accretion to date)	(2,171)	—
Original estimated fair value of assets, net of
activity since acquisition date	(40,349)	(461)
Expected loss remaining	1,335	96
Assumed loss sharing recovery percentage	34%	80%
Expected loss sharing value	456	77
Indemnification asset to be amortized resulting from
change in expected losses	1,725	— —
Accretable discount on FDIC indemnification asset	(36)	(63)

FDIC indemnification asset	$ 2,145	$ 14

FDIC Indemnification Asset Policy

InterBank Loans, Foreclosed Assets and Indemnification Asset

The following tables present the balances of the loans, discount and FDIC indemnification asset related to the InterBank transaction at December 31, 2016 and 2015. Through December 31, 2016, gross loan balances (due from the borrower) were reduced approximately $243.6 million since the transaction date because of $204.0 million of repayments by the borrower, $16.6 million of transfers to foreclosed assets and $23.0 million of charge-offs to customer loan balances. Based upon the collectability analyses performed at the time of 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.

	December 31, 2016
		Foreclosed
	Loans	Assets
	(In Thousands)

Initial basis for loss sharing determination,
net of activity since acquisition date	$ 149,657	$ 1,417
Noncredit premium/(discount), net of
activity since acquisition date	543	—
Reclassification from nonaccretable discount
to accretable discount due to change in
expected losses (net of accretion to date)	(1,984)	—
Original estimated fair value of assets, net of
activity since acquisition date	(134,355)	(1,417)
Expected loss remaining	13,861	—
Assumed loss sharing recovery percentage	84%	—
Expected loss sharing value	11,644	—
FDIC loss share clawback	953	—
Indemnification asset to be amortized resulting from
change in expected losses	1,586	—
Accretable discount on FDIC indemnification asset	(1,038)	—

FDIC indemnification asset	$ 13,145	$ —

	December 31, 2015
		Foreclosed
	Loans	Assets
	(In Thousands)

Initial basis for loss sharing determination,
net of activity since acquisition date	$ 193,654	$ 2,110
Noncredit premium/(discount), net of
activity since acquisition date	902	—
Reclassification from nonaccretable discount
to accretable discount due to change in
expected losses (net of accretion to date)	(4,901)	—
Original estimated fair value of assets, net of
activity since acquisition date	(170,308)	(1,392)
Expected loss remaining	19,347	718
Assumed loss sharing recovery percentage	83%	80%
Expected loss sharing value	16,032	575
FDIC loss share clawback	2,360	—
Indemnification asset to be amortized resulting from
change in expected losses	3,920	—
Accretable discount on FDIC indemnification asset	(1,801)	(33)

FDIC indemnification asset	$ 20,511	$ 542

FDIC Indemnification Asset Policy

Valley Bank Loans and Foreclosed Assets

The following tables present the balances of the loans and discount related to the Valley Bank transaction at December 31, 2016 and 2015. Through December 31, 2016, gross loan balances (due from the borrower) were reduced approximately $108.9 million since the transaction date because of $98.5 million of repayments by the borrower, $3.0 million of transfers to foreclosed assets and $7.4 million of charge-offs to customer loan balances. The Valley Bank transaction did not include a loss sharing agreement; however, the loans were recorded at a discount, which is accreted to yield over the life of the loans. Based upon the collectability analyses performed at the time of 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.

	December 31, 2016
		Foreclosed
	Loans	Assets
	(In Thousands)

Initial basis, net of activity
since acquisition date	$ 84,283	$ 1,973
Noncredit premium/(discount), net of
activity since acquisition date	228	—
Reclassification from nonaccretable discount
to accretable discount due to change in
expected losses (net of accretion to date)	(2,121)	—
Original estimated fair value of assets, net of
activity since acquisition date	(76,231)	(1,952)
Expected loss remaining	$ 6,159	$ 21

	December 31, 2015
		Foreclosed
	Loans	Assets
	(In Thousands)

Initial basis, net of activity
since acquisition date	$ 109,791	$ 1,017
Noncredit premium/(discount), net of
activity since acquisition date	719	—
Reclassification from nonaccretable discount
to accretable discount due to change in
expected losses (net of accretion to date)	(3,213)	—
Original estimated fair value of assets, net of
activity since acquisition date	(93,436)	(995)
Expected loss remaining	$ 13,861	$ 22