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 September 30,						Nine Months Ended September 30,
(Amounts in thousands)	2014			2013			2014			2013
Beginning balance	$	30,908		$	40,389		$	34,691		$	48,149
(Decrease) increase in estimated losses on covered loans		(110	)		812			(451	)		812
Increase in estimated losses on covered OREO		674			3,654			1,233			3,752
Reimbursable expenses from the FDIC		88			327			375			818
Net amortization		(1,096	)		(1,089	)		(3,166	)		(4,290	)
Reimbursements from the FDIC		(719	)		(6,991	)		(2,937	)		(12,139	)

Ending balance	$	29,745		$	37,102		$	29,745		$	37,102