Note 6. FDIC Indemnification Asset

The Company entered into loss share agreements with the FDIC in 2012 in connection with the FDIC-assisted acquisition of Waccamaw. Under the loss share agreements, the FDIC agreed to cover 80% of most loan and foreclosed real estate losses. Certain expenses incurred in relation to these covered assets are reimbursable by the FDIC. Estimated reimbursements are netted against the expense on covered assets in the Company’s consolidated statements of income. The following table presents activity in the FDIC indemnification asset in the periods indicated:


	Three Months Ended March 31,
(Amounts in thousands)	2014			2013
Beginning balance	$	34,691		$	48,149
Decrease in estimated losses on covered loans		(203	)		—
Increase in estimated losses on covered OREO		149			1,338
Reimbursable expenses from the FDIC		150			341
Net amortization		(1,134	)		(1,539	)
Reimbursements from the FDIC		(1,143	)		(4,368	)

Ending balance	$	32,510		$	43,921