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,
	2015			2014			2015			2014
(Amounts in thousands)
Beginning balance	$	23,653		$	30,908		$	27,900		$	34,691
Decrease in estimated losses on covered loans		(75	)		(110	)		(29	)		(451	)
Increase in estimated losses on covered OREO		801			674			1,359			1,233
Reimbursable expenses from the FDIC		44			88			409			375
Net amortization		(1,768	)		(1,096	)		(5,179	)		(3,166	)
Reimbursements from the FDIC		(606	)		(719	)		(2,411	)		(2,937	)

Ending balance	$	22,049		$	29,745		$	22,049		$	29,745