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FDIC Indemnification Asset and True-up Payment Obligation | 9 Months Ended
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Sep. 30, 2017
Banking and Thrift [Abstract] |
FDIC Indemnification Asset and True-up Payment Obligation [Text Block] | NOTE 7- FDIC INDEMNIFICATION ASSET, TRUE-UP PAYMENT OBLIGATION, AND FDIC SHARED-LOSS EXPENSE On February 6, 2017, the Bank and the FDIC agreed to terminate the single family and commercial shared-loss agreements related to the FDIC assisted acquisition of Eurobank on April 30, 2010. As part of the loss share termination transaction, the Bank made a payment of $10.1 million to the FDIC and recorded a net benefit of $1.4 million. Such termination payment took into account the anticipated reimbursements ove r the life of the shared-loss agreements and the true-up payment liability of the Bank anticipated at the end of the ten year term of the single family shared-loss agreement. All rights and obligations of the parties under the shared-loss agreements termin ated as of the closing date of the agreement. Pursuant to the terms of the shared-loss agreements, the FDIC would reimburse the Bank for 80% of all qualifying losses with respect to assets covered by such agreements, and the Bank would reimburse the FDIC f or 80% of qualifying recoveries with respect to losses for which the FDIC reimbursed the Bank. The single family shared-loss agreement provided for FDIC loss sharing and the Bank’s reimbursement to the FDIC to last for ten years, and the commercial shared-loss agreement provided f or FDIC loss sharing and the Bank’s reimbursement to the FDIC to last for five years, with additional recovery sharing for three years thereafter. The following table presents the activity in the FDIC indemnification asset and tru e-up payment obligation for the quarters and nine-month periods ended September 30, 2017 and 2016:
| Quarter Ended September 30, | Nine-Month Period Ended September 30,
| 2017 |  | 2016 |  | 2017 |  | 2016
| (In thousands)
FDIC indemnification asset: |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | - |  | $ | 18,426 |  | $ | 14,411 |  | $ | 22,599
Shared-loss agreements reimbursements from the FDIC |  | - |  |  | (87) |  |  | - |  |  | (824)
Increase in expected credit losses to be covered under shared-loss agreements, net |  | - |  |  | 818 |  |  | - |  |  | 3,213
FDIC indemnification asset benefit (expense) |  | - |  |  | (1,910) |  |  | 1,403 |  |  | (6,179)
Net expenses incurred under shared-loss agreements |  | - |  |  | (577) |  |  | - |  |  | (2,139)
Shared-loss termination settlement |  | - |  |  | - |  |  | (15,814) |  |  | -
Balance at end of period | $ | - |  | $ | 16,670 |  | $ | - |  | $ | 16,670
True-up payment obligation: |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | - |  | $ | 25,771 |  | $ | 26,786 |  | $ | 24,658
Change in true-up payment obligation |  | - |  |  | 508 |  |  | - |  |  | 1,621
Shared-loss termination settlement |  | - |  |  | - |  |  | (26,786) |  |  | -
Balance at end of period | $ | - |  | $ | 26,279 |  | $ | - |  | $ | 26,279
Oriental recognized an FDIC shared-loss (benefit) expense, net in the consolidated statements of operations, which consists of the following, for the quarters and nine-month periods ended September 30, 2017 and 2016:
|  | Quarter Ended September 30, |  | Nine-Month Period Ended September 30,
|  | 2017 |  | 2016 |  | 2017 |  | 2016
|  | (In thousands)
FDIC indemnification asset expense (benefit) |  | $ | - |  | $ | 1,910 |  | $ | (1,403) |  | $ | 6,179
Change in true-up payment obligation |  |  | - |  |  | 508 |  |  | - |  |  | 1,621
Reimbursement to FDIC for recoveries |  |  | - |  |  | 878 |  |  | - |  |  | 2,945
Total FDIC shared-loss expense (benefit), net |  | $ | - |  | $ | 3,296 |  | $ | (1,403) |  | $ | 10,745

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- Definition The FDIC indemnification asset represents the present value of losses on covered assets to be reimbursed by the FDIC under the loss share agreements. + References No definition available. + Details
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- References No definition available. + Details
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