Note 9 – FDIC Indemnification Asset

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 page 40 of the Company's 2014 Annual Report on Form 10-K for a detailed explanation of this asset.

The FDIC indemnification asset was comprised of the following components as of the dates shown:

($ in thousands)	March 31, 2015		December 31, 2014		March 31, 2014
Receivable related to loss claims incurred, not yet reimbursed	$	4,884		6,899		7,101
Receivable related to estimated future claims on loans		12,886		14,933		24,764
Receivable related to estimated future claims on foreclosed real estate		682		737		3,639
FDIC indemnification asset	$	18,452		22,569		35,504

Included in the receivable related to loss claims incurred, not yet reimbursed, at March 31, 2015, is $1.2 million related to two claims involving the same borrower for which the FDIC has denied the claims because the FDIC disagrees with the collection strategy that the Company undertook. The Company has notified the FDIC that it is invoking the arbitration provisions contained in the loss share agreement, as the Company does not believe it has breached any provisions of the loss share agreement that would invalidate the claims. No allowance or reserve has been established for the disputed amount.

The following presents a rollforward of the FDIC indemnification asset since December 31, 2014.

($ in thousands)
Balance at December 31, 2014	$	22,569
Decrease related to favorable changes in loss estimates		(500	)
Increase related to reimbursable expenses		441
Cash received		(2,282	)
Related to accretion of loan discount		(1,752	)
Other		(24	)
Balance at March 31, 2015	$	18,452