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FDIC Indemnification Asset

12 Months Ended

Dec. 31, 2011

Note 6. FDIC Indemnification Asset

As discussed in Note 1(i), the FDIC indemnification asset is the estimated amount that the Company will receive from the FDIC under loss share agreements associated with two FDIC-assisted failed bank acquisitions.

At December 31, 2011 and 2010, the FDIC indemnification asset was comprised of the following components:

($ in thousands)		2011	2010
Receivable related to claims submitted, not yet received	$	13,377	30,201
Receivable related to estimated future claims on loans		90,275	86,966
Receivable related to estimated future claims on other real estate owned		18,025	6,552
FDIC indemnification asset	$	121,677	123,719

The following presents a rollforward of the FDIC indemnification asset since the date of the Cooperative Bank acquisition on June 19, 2009.

($ in thousands)
Balance at June 19, 2009	$	185,112
Decrease related to favorable change in loss estimates		(1,516	)
Increase related to reimbursable expenses		1,300
Cash received		(40,500	)
Accretion of loan discount		(1,175	)
Balance at December 31, 2009		143,221
Increase related to unfavorable change in loss estimates		30,419
Increase related to reimbursable expenses		2,900
Cash received		(46,721	)
Accretion of loan discount		(6,100	)
Balance at December 31, 2010	$	123,719
Increase related to acquisition of The Bank of Asheville		42,218
Increase related to unfavorable change in loss estimates		29,814
Increase related to reimbursable expenses		5,725
Cash received		(69,339	)
Accretion of loan discount		(9,278	)
Other		(1,182	)
Balance at December 31, 2011	$	121,677