FDIC Shared-Loss Agreements

12 Months Ended

Dec. 31, 2019

Banking and Financial Service Reveues [Abstract]

NOTE 8- FDIC SHARED-LOSS AGREEMENTS

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 over 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 terminated as of the closing date of the agreement.

The following table presents the activity in the FDIC indemnification asset and true-up payment obligation for the years ended December 31, 2019, 2018, and 2017:

	Year Ended December 31,
	2019		2018		2017
	(In thousands)
FDIC indemnification asset:
Balance at beginning of year	$	-	$	-	$	14,411
FDIC indemnification asset benefit		-		-		1,403
Shared-loss termination settlement		-		-		(15,814)
Balance at end of year	$	-	$	-	$	-

True-up payment obligation:
Balance at beginning of year	$	-	$	-	$	26,786
Shared-loss termination settlement		-		-		(26,786)
Balance at end of year	$	-	$	-	$	-

Oriental recognized an FDIC shared-loss benefit in the consolidated statements of operations, which consists of the following, for the years ended December 31, 2019, 2018 and 2017:

	Year Ended December 31,
	2019		2018		2017
	(In thousands)
FDIC indemnification asset benefit	$	-	$	-	$	(1,403)
Change in true-up payment obligation		-		-		-
Reimbursement to FDIC for recoveries		-		-		-
Total FDIC shared-loss benefit	$	-	$	-	$	(1,403)