PURCHASED ACCOUNTS RECEIVABLE

12 Months Ended

Dec. 31, 2016

Accounts Receivable Additional Disclosures [Abstract]

PURCHASED ACCOUNTS RECEIVABLE

PURCHASED ACCOUNTS RECEIVABLE

Income from purchased accounts receivable, which is recorded in other non-interest income, totaled $292, $872 and $552 for the years ended December 31, 2016, 2015 and 2014, respectively. Purchased accounts receivable totaled $4,980 and $52,688, respectively, at December 31, 2016 and December 31, 2015.

As of December 31, 2016 and December 31, 2015, purchased accounts receivable includes $4,980 and $7,900, respectively, that are due from a U.S. bioenergy company that produces ethanol. The U.S bioenergy company's debt is guaranteed by its Spanish parent company. The Spanish parent company commenced pre-insolvency proceedings in Spain during November, 2015. An involuntary bankruptcy petition was filed against the U.S. subsidiary in the District of Kansas on February 11, 2016. On February 24, 2016, a related U.S. subsidiary of the Spanish parent company filed a voluntary Chapter 11 bankruptcy petition in the Eastern District of Missouri, along with various affiliates, including the U.S. subsidiary, with joint administration requested. On February 29, 2016, the Kansas case for the U.S. subsidiary was converted to a voluntary Chapter 11 case, with venue transferred to the Eastern District of Missouri on March 1, 2016. On March 10, 2016, the Spanish parent company announced the basis of a debt restructuring agreement that, among other things, will give creditors a controlling stake in the company in return for a 70 percent reduction in the Spanish parent company’s outstanding debt as well as $2,000,000 in additional loans. Under governing law, the parent company needs to present a restructuring plan to a Spanish court to avoid insolvency proceedings. Any such transaction would also require approval of at least 75 percent of creditors.

Based on an assumed partial contribution from the Spanish parent company to settle the existing guarantee and projected proceeds from the bankruptcy-related liquidation of assets, management evaluated this investment and, as of December 31, 2016, recorded a $2,927 writedown on purchased accounts receivable. There was no writedown related to this potential exposure as of December 31, 2015 due to management's inability to determine the extent of loss on the investment in purchased accounts receivable in the pending bankruptcy case for the U.S. subsidiary and insufficient information to determine the extent of recovery possible on the guarantee by the Spanish parent company.