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FDIC Indemnification Asset

12 Months Ended

Dec. 31, 2013

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. See unaudited additional information regarding the FDIC indemnification asset in the “FDIC Indemnification Asset” section of the Management’s Discussion and Analysis included in the Company’s Form 10-K.

At December 31, 2013 and 2012, the FDIC indemnification asset was comprised of the following components:

($ in thousands)	2013		2012
Receivable related to loss claims incurred, not yet reimbursed	$	12,649		33,040
Receivable related to estimated future claims on loans		33,398		62,044
Receivable related to estimated future claims on foreclosed real estate		2,575		7,475
FDIC indemnification asset	$	48,622		102,559

The following presents a rollforward of the FDIC indemnification asset since January 1, 2011.

($ in thousands)
Balance at January 1, 2011	$	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
Increase related to unfavorable changes in loss estimates		16,984
Increase related to reimbursable expenses		6,947
Cash received		(29,796	)
Accretion of loan discount		(13,173	)
Other		(80	)
Balance at December 31, 2012	$	102,559
Increase related to unfavorable changes in loss estimates		9,312
Increase related to reimbursable expenses		5,352
Cash received		(49,572	)
Accretion of loan discount		(16,160	)
Other		(2,869	)
Balance at December 31, 2013	$	48,622