FDIC Indemnification Asset

6 Months Ended

Jun. 30, 2013

FDIC Indemnification Asset [Abstract]

FDIC Indemnification Asset [TextBlock]

The FDIC indemnification asset activity for the three and six months ended June 30, 2013 and 2012 is summarized as follows (dollars in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
Balance at beginning of period	$	42,476	$	73,521	$	53,519	$	91,851
Accretion of present value discount, net		-		-		(24)		631
Post-acquisition adjustments		858		8,191		811		13,332
Receipt of payment from FDIC		(5,168)		(9,229)		(16,140)		(33,331)
Balance at end of period	$	38,166	$	72,483	$	38,166	$	72,483

The FDIC indemnification asset is measured separately from the related covered assets and is initially recorded at fair value. The fair value was estimated using projected cash flows related to the loss-share agreements based on the expected reimbursements for losses and the applicable loss-share percentages. Cash flow projections are reviewed and updated prospectively as loss estimates related to both covered loans and covered OREO change.