XML 87 R72.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 4: Acquired Loans, Loss Sharing Agreements and FDIC Indemnification Assets: FDIC Indemnification Asset Policy (Policies)
 12 Months Ended
Dec. 31, 2017
TeamBank  
FDIC Indemnification Asset Policy

 

TeamBank Loans and Foreclosed Assets.  The following tables present the balances of the acquired loans and foreclosed assets related to the TeamBank transaction at December 31, 2017 and 2016.  Through December 31, 2017, gross loan balances (due from the borrower) were reduced approximately $422.5 million since the transaction date because of $289.7 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  
FDIC Indemnification Asset Policy

 

Vantus Bank Loans and Foreclosed Assets.  The following tables present the balances of the acquired loans and foreclosed assets related to the Vantus Bank transaction at December 31, 2017 and 2016.  Through December 31, 2017, gross loan balances (due from the borrower) were reduced approximately $312.6 million since the transaction date because of $266.9 million of repayments by the borrower, $16.7 million of transfers to foreclosed assets and $29.0 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, 2017

 

 

 

Foreclosed

 

Loans

 

Assets

 

(In Thousands)

 

 

 

 

Initial basis for loss sharing determination,

 

 

 

net of activity since acquisition date

$           18,965

 

$                   15

Reclassification from nonaccretable discount

 

 

 

to accretable discount due to change in

 

 

 

expected losses (net of accretion to date)

                 (131)

 

                       --

Original estimated fair value of assets, net of

 

 

 

activity since acquisition date

           (18,605)

 

                   (15)

 

 

 

 

Expected loss remaining

$                229

 

$                     --

 

 

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

 

$                     --

 

 
Sun Security Bank  
FDIC Indemnification Asset Policy

 

Sun Security Bank Loans and Foreclosed Assets.  The following tables present the balances of the acquired loans and foreclosed assets related to the Sun Security Bank transaction at December 31, 2017 and 2016.  Through December 31, 2017, gross loan balances (due from the borrower) were reduced approximately $207.7 million since the transaction date because of $148.4 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, 2017

 

 

 

Foreclosed

 

Loans

 

Assets

 

(In Thousands)

 

 

 

 

Initial basis for loss sharing determination,

 

 

 

net of activity since acquisition date

$           26,787

 

$                306

Reclassification from nonaccretable discount

 

 

 

to accretable discount due to change in

 

 

 

expected losses (net of accretion to date)

                 (494)

 

                       --

Original estimated fair value of assets, net of

 

 

 

activity since acquisition date

           (25,348)

 

                 (299)

 

 

 

 

Expected loss remaining

$                945

 

$                     7

 

 

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

 

 
InterBank  
FDIC Indemnification Asset Policy

 

InterBank Loans, Foreclosed Assets and Indemnification Asset.  The following tables present the balances of the acquired loans, foreclosed assets and FDIC indemnification asset (for periods prior to the termination of the loss sharing agreements) related to the InterBank transaction at December 31, 2017 and 2016.  Through December 31, 2017, gross loan balances (due from the borrower) were reduced approximately $280.9 million since the transaction date because of $239.4 million of repayments by the borrower, $19.1 million of transfers to foreclosed assets and $22.4 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, 2017

 

 

 

Foreclosed

 

Loans

 

Assets

 

(In Thousands)

 

 

 

 

Initial basis for loss sharing determination,

 

 

 

net of activity since acquisition date

$        112,399

 

$             2,012

Noncredit premium/(discount), net of

 

 

 

activity since acquisition date

                   274

 

                       --

Reclassification from nonaccretable discount

 

 

 

to accretable discount due to change in

 

 

 

expected losses (net of accretion to date)

                 (972)

 

                       --

Original estimated fair value of assets, net of

 

 

 

activity since acquisition date

           (98,321)

 

             (1,785)

 

 

 

 

Expected loss remaining

$           13,380

 

$                227

 

 

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

 

$                     --

 

 
Valley Bank  
FDIC Indemnification Asset Policy

 

Valley Bank Loans and Foreclosed Assets.  The following tables present the balances of the acquired loans and foreclosed assets related to the Valley Bank transaction at December 31, 2017 and 2016.  Through December 31, 2017, gross loan balances (due from the borrower) were reduced approximately $133.2 million since the transaction date because of $121.4 million of repayments by the borrower, $4.0 million of transfers to foreclosed assets and $7.8 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, 2017

 

 

 

Foreclosed

 

Loans

 

Assets

 

(In Thousands)

 

 

 

 

Initial basis, net of activity

 

 

 

since acquisition date

$           59,997

 

$             1,673

Noncredit premium/(discount), net of

 

 

 

activity since acquisition date

                     11

 

                       --

Reclassification from nonaccretable discount

 

 

 

to accretable discount due to change in

 

 

 

expected losses (net of accretion to date)

                 (411)

 

                       --

Original estimated fair value of assets, net of

 

 

 

activity since acquisition date

           (54,442)

 

             (1,667)

Expected loss remaining

$             5,155

 

$                     6

 

 

 

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