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Note 6 - FDIC Indemnification Asset
 9 Months Ended
Sep. 30, 2017
Notes to Financial Statements  
FDIC Loss Share Agreement Receivable [Text Block]
Note
6
. FDIC
Indemnification Asset
 
In connection with the FDIC-
assisted acquisition of Waccamaw in
2012,
the Company entered into loss share agreements with the FDIC that covered
$31.29
million of loans and
$54
thousand of OREO as of
September 30, 2017,
compared to
$56.99
million of loans and
$276
thousand of OREO as of
December 31, 2016.
Under the loss share agreements, the FDIC agrees to cover
80%
of most loan and foreclosed real estate losses and reimburse certain expenses incurred in relation to these covered assets. Loss share coverage expired
June 30, 2017,
for commercial loans, with recoveries continuing until
June 30, 2019.
Loss share coverage will expire
June 30, 2022,
for single family loans. The Company’s condensed consolidated statements of income include the expense on covered assets net of estimated reimbursements. The following table presents the changes in the FDIC indemnification asset during the periods indicated:
 
   
Three Months Ended September 30,
    
Nine Months Ended September 30,
  
   
2017
    
2016
    
2017
    
2016
  
(Amounts in thousands)
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Beginning balance
   $
8,159
     $
16,431
     $
12,173
     $
20,844
  
Decrease in estimated losses on covered loans
    
-
      
-
      
-
      
(1
 )
Increase in estimated losses on covered OREO
    
4
      
277
      
71
      
851
  
Reimbursable expenses from the FDIC
    
47
      
60
      
108
      
134
  
Net amortization
    
(268
 )    
(1,369
 )    
(3,186
 )    
(3,856
 )
Reimbursements from the FDIC
    
(477
 )    
(1,067
 )    
(1,701
 )    
(3,640
 )
Ending balance
   $
7,465
     $
14,332
     $
7,465
     $
14,332