2.4.0.80016 - Disclosure - FDIC Indemnification Asset Related to Covered Loanstruefalsefalse1falsefalsefalseFrom2013-01-01to2013-06-30http://www.sec.gov/CIK0001005817duration2013-01-01T00:00:002013-06-30T00:00:001true1us-gaap_BankingAndThriftAbstractus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse02false2tmp_FDICIndemnificationAssetRelatedToCoveredLoansTextBlocktmp_falsenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00<div style="text-indent: 0pt; display: block"> </div>
<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"><font style="display: inline; font: bold 10pt Times New Roman">8.  FDIC Indemnification Asset Related to Covered Loans</font></div>
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<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"><font style="display: inline; font: 10pt Times New Roman">Certain loans acquired in the VIST Financial acquisition were covered loans with loss share agreements with the FDIC.  Under the terms of loss sharing agreements, the FDIC will reimburse the Company for 70 percent of net losses on covered single family assets incurred up to $4.0 million, and 70 percent of net losses on covered commercial assets incurred up to $12.0 million. The FDIC will increase its reimbursement of net losses to 80 percent if net losses exceed the $4.0 million and $12 million thresholds, respectively. The term for loss sharing on residential real estate loans is ten years, while the term for loss sharing on non-residential real estate loans is five years in respect to losses and eight years in respect to loss recoveries.</font></div>
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<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"><font style="display: inline; font: 10pt Times New Roman">The receivable arising from the loss sharing agreements (referred to as the “FDIC indemnification asset” on our consolidated statements of financial condition) is measured separately from covered loans because the agreements are not contractually part of the covered loans and are not transferable should the Company choose to dispose of the covered loans. As of the acquisition date with VIST Financial, the Company recorded an aggregate FDIC indemnification asset of $4.4 million, consisting of the present value of the expected future cash flows the Company expected to receive from the FDIC under loss sharing agreements. The FDIC indemnification asset is reduced as loss sharing payments are received from the FDIC for losses realized on covered loans. Actual or expected losses in excess of the acquisition date estimates and accretion of the acquisition date present value discount will result in an increase in the FDIC indemnification asset and the immediate recognition of non-interest income in our financial statements.</font></div>
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<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"><font style="display: inline; font: 10pt Times New Roman">A decrease in expected losses would generally result in a corresponding decline in the FDIC indemnification asset and the non-accretable difference. Reductions in the FDIC indemnification asset due to actual or expected losses that are less than the acquisition date estimates are recognized prospectively over the shorter of (i) the estimated life of the applicable covered loans or (ii) the term of the loss sharing agreements with the FDIC.</font></div>
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<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"><font style="display: inline; font: 10pt Times New Roman">Changes in the FDIC indemnification asset during the six months ended June 30, 2013 is shown below.  The Company acquired the FDIC indemnification asset as part of the VIST acquisition on August 1, 2012.</font></div>
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<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: bold 10pt times new roman">Six months ended June 30, 2013</font></div>
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<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="font: italic 10pt times new roman; display: inline">(in thousands)</font></div>
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<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: right"><font style="display: inline; font: bold 10pt times new roman">06/30/2013</font></div>
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<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">Balance, beginning of the period</font></div>
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<td style="vertical-align: bottom; width: 22%; text-align: right"><font style="display: inline; font: 10pt times new roman">4,385</font></td>
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<div style="text-indent: 0pt; display: block; margin-left: 9pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">Discount accretion of the present value at the acquisition date</font></div>
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<td style="vertical-align: bottom; width: 22%; text-align: right"><font style="display: inline; font: 10pt times new roman">264</font></td>
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<div style="text-indent: 0pt; display: block; margin-left: 9pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">Prospective adjustment for additional cash flows</font></div>
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<td style="vertical-align: bottom; width: 22%; text-align: right"><font style="display: inline; font: 10pt times new roman">(115</font></td>
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<div style="text-indent: 0pt; display: block; margin-left: 9pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">Increase due to impairment on covered loans</font></div>
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<td style="vertical-align: bottom; width: 22%; text-align: right"><font style="display: inline; font: 10pt times new roman">0</font></td>
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<div style="text-indent: 0pt; display: block; margin-left: 9pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">Reimbursements from the FDIC</font></div>
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<td style="vertical-align: bottom; width: 1%; border-bottom: black 2px solid; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 22%; border-bottom: black 2px solid; text-align: right"><font style="display: inline; font: 10pt times new roman">0</font></td>
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<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">Balance, end of period</font></div>
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<td style="vertical-align: bottom; width: 22%; border-bottom: black 2px solid; text-align: right"><font style="display: inline; font: 10pt times new roman">4,534</font></td>
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<div style="text-indent: 0pt; display: block"> </div>falsefalsefalsenonnum:textBlockItemTypenaThe entire disclosure for FDIC Indemnification assets.No definition available.false0falseFDIC Indemnification Asset Related to Covered LoansUnKnownUnKnownUnKnownUnKnowntruefalsefalseSheethttp://tompkinstrustco.com/role/FdicIndemnificationAssetRelatedToCoveredLoans12