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LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES
 12 Months Ended
Dec. 31, 2011
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES [Abstract]  
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES
NOTE 6 - LOANS RECEIVABLE AND ALLOWANCE FOR LOAN AND LEASE LOSSES

The composition of net loans receivable at December 31, 2011 and December 31, 2010 is as follows:

   
2011
   
2010
 
Construction
 
$
37,926
   
$
50,964
 
Commercial real estate
   
51,619
     
72,281
 
Commercial and industrial
   
10,254
     
13,156
 
Residential real estate
   
22,465
     
23,822
 
Manufactured housing
   
4,012
     
4,662
 
Total loans receivable covered under FDIC Loss Sharing Agreements (1)
   
126,276
     
164,885
 
Construction
   
15,271
     
13,387
 
Commercial real estate
   
352,635
     
144,849
 
Commercial and industrial
   
69,178
     
35,942
 
Mortgage warehouse
   
619,318
     
186,113
 
Manufactured housing
   
104,565
     
102,924
 
Residential real estate
   
53,476
     
28,964
 
Consumer
   
2,211
     
1,581
 
Deferred (fees) costs, net
   
(389)
     
327
 
Total loans receivable not covered under FDIC Loss Sharing Agreements
   
1,216,265
     
514,087
 
Allowance for loan and lease losses
   
(15,032
)
   
(15,129
)
Loans receivable, net
 
$
1,327,509
   
$
663,843
 
 
(1)  Loans that were acquired in the two FDIC assisted transactions and are covered under Loss Sharing Agreements with the FDIC are referred to as “covered” loans throughout these financial statements.
 
Non-Covered Nonaccrual Loans and Loans Past Due

The following table summarizes non-covered nonaccrual loans and past due loans, by class, as of December 31, 2011:
 
   
30-89 Days
 Past  Due (1)
   
Greater Than
 90 Days (1)
   
Total Past
 Due(1)
   
Non-
 Accrual
   
Current (2)
   
Total Loans
(4)
 
Commercial and industrial
 $-  $-  $-  $2,962  $66,216  $69,178 
Commercial real estate
  1,114   -   1,114   27,290   324,231   352,635 
Construction
  -   -   -   5,630   9,641   15,271 
Residential real estate
                        
First mortgages
  1,051   -   1,051   1,855   24,784   27,690 
Home equity
  448   -   448   1,091   24,247   25,786 
Acquired with credit deterioration
  -   -   -   -   -   - 
Consumer
  21   -   21   40   2,150   2,211 
Mortgage warehouse
  -   -   -   -   619,318   619,318 
Manufactured housing (3)
  5,162   -   5,162   -   99,403   104,565 
                          
Total
 $7,796  $-  $7,796  $38,868  $1,169,990  $1,216,654 
 
(1) 
Loan balances do not include non-accrual loans.
(2) 
Loans where payments are due within 29 days of the scheduled payment date.
(3) 
Purchased manufactured housing loans are subject to cash reserves held at the Bank and are used to fund the past due payments when the loan reaches 90 days or more delinquent.
(4) 
Loans exclude deferred costs and fees.

The following table summarizes non-covered nonaccrual loans and past due loans, by class, as of December 31, 2010:

   
30-89 Days
 Past  Due(1)
   
Greater Than
 90 Days(1)
   
Total Past
 Due(1)
   
Non-
 Accrual
   
Current(2)
 
Total Loans(4)
 
Commercial and industrial
 
$
-
   
$
-
   
$
-
   
$
705
   
$
35,237
   
$
35,942
 
Commercial real estate
   
3,545
     
-
     
3,545
     
15,739
     
125,565
     
144,849
 
Construction
   
51
     
-
     
51
     
4,673
     
8,663
     
13,387
 
Residential real estate
                                               
First mortgages
   
-
     
-
     
-
     
658
     
6,705
     
7,363
 
Home equity
   
400
     
-
     
400
     
467
     
20,702
     
21,569
 
Acquired with credit deterioration
   
-
     
-
     
-
     
32
     
-
     
32
 
Consumer
   
17
     
5
     
22
     
-
     
1,559
     
1,581
 
Mortgage warehouse
   
-
     
-
     
-
     
-
     
186,113
     
186,113
 
Manufactured housing (3)
   
2,698
     
-
     
2,698
     
-
     
100,226
     
102,924
 
Total
 
$
6,711
   
$
5
   
$
6,716
   
$
22,274
   
$
484,770
   
$
513,760
 
 
(1)    Loan balances do not include non-accrual loans.
(2)    Loans where payments are due within 29 days of the scheduled payment date. 
(3)    Purchased manufactured housing loans are subject to cash reserves held at the Bank and are used to fund the past due  payments when the loan reaches 90 days or more delinquent.
(4)    Loans exclude deferred costs and fees.
 
Covered Nonaccrual Loans and Loans Past Due

The following table summarizes covered nonaccrual loans and past due loans, by class, as of December 31, 2011:
 
  
30-89 Days
Past Due (1)
   
Greater Than
 90 Days(1)
   
Total Past
 Due(1)
   
Nonaccrual
   
Current(3)
   
Total Loans
 
Commercial and industrial
                       
Acquired with credit
$
-
    $
-
   
$
-
   
$
378
   
$
-
   
$
378
 
deterioration
                                             
Remaining loans (2)
 
2,672
     
-
     
2,672
     
-
     
7,204
     
9,876
 
Commercial real estate
                                             
Acquired with credit
 
-
     
-
     
-
     
16,204
     
2,039
     
18,243
 
deterioration
                                             
Remaining loans (2)
 
1,074
     
-
     
1,074
     
1,462
     
30,840
     
33,376
 
Construction
                                             
Acquired with credit
 
-
     
-
     
-
     
18,896
     
3,266
     
22,162
 
deterioration
                                             
Remaining loans (2)
 
92
     
-
     
92
     
2,584
     
13,088
     
15,764
 
Residential real estate
                                             
Acquired with credit
 
-
     
-
     
-
     
4,002
     
-
     
4,002
 
deterioration
                                             
First mortgages (2)
 
570
     
-
     
570
     
-
     
8,601
     
9,171
 
Home equity (2)
 
281
     
-
     
281
     
1,532
     
7,479
     
9,292
 
Manufactured housing
                                             
Acquired with credit
 
-
     
-
     
-
     
77
     
-
     
77
 
deterioration
                                             
Remaining loans (2)
 
6
     
-
     
6
     
78
     
3,851
     
3,935
 
 
$
4,695
   
$
-
   
$
4,695
   
$
45,213
   
$
76,368
   
$
126,276
 
 
(1) Loan balances do not include non-accrual loans.
(2) Loans that were not identified at the acquisition date as a loan with credit deterioration.
(3) Loans where payments are due within 29 days of the scheduled payment date.

The following table summarizes covered nonaccrual loans and past due loans, by class, as of December 31, 2010:

   
30-89 Days
   
Greater than
   
Total past
   
Non-
             
   
Past Due (1)
   
90 days (1)
   
due (1)
   
accrual
   
Current(3)
   
Total Loans
 
                                     
Commercial and industrial
                                   
Acquired with credit deterioration
 
$
419
   
$
-
   
$
419
   
$
1,790
   
$
1,003
   
$
3,212
 
Remaining loans (2)
   
53
     
-
     
53
     
-
     
9,891
     
9,944
 
Commercial real estate
                                               
Acquired with credit deterioration
   
1,215
     
-
     
1,215
     
15,242
     
23,778
     
40,235
 
Remaining loans (2)
   
795
     
-
     
795
     
433
     
30,818
     
32,046
 
Construction
                                               
Acquired with credit deterioration
   
3,884
     
-
     
3,884
     
19,869
     
-
     
23,753
 
Remaining loans (2)
   
-
     
-
     
-
     
1,912
     
25,299
     
27,211
 
Residential real estate
                                               
Acquired with credit deterioration
   
-
     
-
     
-
     
4,013
     
1,751
     
5,764
 
First mortgages (2)
   
-
     
-
     
-
     
-
     
8,254
     
8,254
 
Home equity (2)
   
248
     
-
     
248
     
4
     
9,552
     
9,804
 
Manufactured housing
                                               
Acquired with credit deterioration
   
-
     
-
     
-
     
95
     
7
     
102
 
Remaining loans (2)
   
113
     
-
     
113
     
 96
     
4,351
     
4,560
 
   
$
6,727
   
$
-
   
$
6,727
   
$
43,454
   
$
114,704
   
$
164,885
 
         
(1) Loan balances do not include non-accrual loans.
       
(2) Loans receivable that were not identified upon acquisition as a loan with credit deterioration.
       
(3) Loans where payments are due within 29 days of the scheduled payment date.
       
 
Impaired Loans - Covered and Non-Covered

The following table presents a summary of the impaired loans at December 31, 2011.

 
Unpaid
 Principal
 Balance (1)
 
Related
 Allowance
 
Average
 Recorded
 Investment
 
Interest
 Income
 Recognized
 
With no related allowance recorded:
                   
Commercial and industrial
 
$
6,975
   
$
-
   
$
7,109
   
$
356
 
Commercial real estate
   
20,431
     
-
     
21,887
     
792
 
Construction
   
8,773
     
-
     
8,776
     
255
 
Residential real estate
   
343
     
-
     
347
     
-
 
With an allowance recorded:
                               
Commercial and industrial
   
800
     
426
     
815
     
27
 
Commercial real estate
   
12,195
     
2,047
     
12,414
     
555
 
Construction
   
7,369
     
2,986
     
7,369
     
132
 
Consumer
   
22
     
22
     
27
     
1
 
Residential real estate
   
869
     
195
     
904
     
9
 
                                 
Total
 
$
57,777
   
$
5,676
   
$
59,648
   
$
2,127
 
 
(1) Also represents the recorded investment.
 
The following table presents a summary of the impaired loans at December 31, 2010.

 
  
Unpaid
 Principal
 Balance(1)
 
  
Related
 Allowance
 
  
Average
 Recorded
 Investment
 
  
Interest
 Income
 Recognized
 
With no related allowance recorded:
                               
Commercial and industrial
 
$
179
   
$
-
   
$
83
   
$
2
  
Commercial real estate
   
10,825
     
-
     
4,737
     
356
  
Construction
   
551
     
-
     
278
     
-
 
Consumer
   
-
     
-
     
-
     
-
 
Residential real estate
   
658
     
-
     
496
     
22
  
With an allowance recorded:
                               
Commercial and industrial
   
7,382
     
1,456
     
6,383
     
462
  
Commercial real estate
   
18,843
     
6,551
     
11,715
     
857
  
Construction
   
6,168
     
2,006
     
6,198
     
168
  
Consumer
   
-
     
-
     
-
     
-
 
Residential real estate
   
620
     
305
     
668
     
16
  
                               
  
Total
 
$
45,226
   
$
10,318
   
$
30,558
   
$
1,883
  
 
(1) Also represents the recorded investment.

Troubled Debt Restructurings

 
At December 31, 2011, there were $9.9 million in loans categorized as troubled debt restructurings (“TDR”). All TDRs are considered impaired loans in the calendar year of their restructuring. In subsequent years, a TDR may cease being classified as impaired if the loan was modified at a market rate and has performed according to the modified terms for at least six months. A loan that has been modified at a below market rate will return to performing status if it satisfies the six month performance requirement; however, it will remain classified as impaired.
 
The following is an analysis of loans modified in a troubled debt restructuring by type of concession for the year ended December 31, 2011. There were no modifications that involved forgiveness of debt.
 
   
TDRs in compliance with their modified terms and accruing interest
   
TDRs that are not accruing interest
   
Total
 
      
Extended under forbearance
 
$
-
   
$
5,151
   
$
5,151
 
Multiple extensions resulting from financial difficulty
   
72
     
-
     
72
 
Interest rate reductions
   
910
     
-
     
910
 
Total
 
$
982
   
$
5,151
   
$
6,133
 
 
Troubled Debt Restructurings
 
The following table provides, by class, the number of loans and leases modified in troubled debt restructurings, and the recorded investments and unpaid principal balances for the year ended December 31, 2011.
 
  
 
TDRs in compliance with
their modified terms and
accruing interest
   
TDRs that are not
accruing interest
 
   
Number
   
Recorded
   
Number
   
Recorded
 
   
of Loans
   
Investment
   
of Loans
   
Investment
 
Commercial and industrial
   
-
   
$
-
     
-
   
$
-
 
Commercial real estate
   
1
     
613
     
6
     
4,538
 
Construction
   
-
     
-
     
-
     
-
 
Manufactured housing
   
12
     
982
     
-
     
-
 
Residential real estate
   
-
     
-
     
-
     
-
 
Consumer
   
-
     
-
     
-
     
-
 
Total loans and leases
   
13
   
$
1,595
     
6
   
$
4,538
 
 
The following table provides, by class, the number of loans and leases modified in troubled debt restructurings, and the recorded investments and unpaid principal balances for the year ended December 31, 2010.
 
 
  
 
TDRs in compliance with
their modified terms and
accruing interest
   
TDRs that are not
accruing interest
 
   
Number
   
Recorded
   
Number
   
Recorded
 
   
of Loans
   
Investment
   
of Loans
   
Investment
 
Commercial and industrial
   
1
   
$
124
     
4
   
$
617
 
Commercial real estate
   
5
     
2,728
     
9
     
3,501
 
Construction
   
1
     
550
     
-
     
-
 
Manufactured housing
   
-
     
-
     
-
     
-
 
Residential real estate
   
-
     
-
     
1
     
658
 
Consumer
   
1
     
3
     
-
     
-
 
Total loans and leases
   
8
   
$
3,405
     
14
   
$
4,776
 
 
TDR modifications primarily involve interest rate concessions, extensions of term, deferrals of principal, and other modifications. Other modifications typically reflect other nonstandard terms which the Bancorp would not offer in non-troubled situations. During the years ended December 31, 2011 and 2010, respectively, $2,403 and $1,029 were modified in a troubled debt restructuring. TDR modifications of loans within the commercial and industrial category were primarily interest rate concessions, deferrals of principal and other modifications; modifications of commercial real estate loans were primarily deferrals of principal, extensions of term and other modifications; and modifications of residential real estate loans were primarily interest rate concessions and deferrals of principal.  As of December 31, 2011 and 2010, there were no commitments to lend additional funds to debtors whose terms have been modified in troubled debt structuring.

During the first quarter of 2011, one TDR loan in the amount of $710,000 defaulted on its modified terms and transferred to OREO. The loan was part of the commercial real estate segment and had already been evaluated for impairment with no specific reserve assigned.  There were no valuation losses at the time of the transfer and had no impact on the ALLL. There were no other TDR loans that defaulted during the twelve month period ending December 31, 2011.
 
All loans and leases modified in troubled debt restructurings are evaluated for impairment. The nature and extent of impairment of TDRs, including those which have experienced a subsequent default, is considered in the determination of an appropriate level of allowance for credit losses. There was $352 and $480 in specific reserves resulting from the addition of TDR modifications during the years ended December 31, 2011 and December 31, 2010.

Credit Quality Indicators

Commercial and industrial, commercial real estate, residential real estate and construction loans are based on an internally assigned risk rating system which are assigned at the loan origination and reviewed on a periodic or on an “as needed” basis. Consumer, mortgage warehouse and manufactured housing loans are evaluated based on the payment activity of the loan. The following presents the credit quality tables as of December 31, 2011 and December 31, 2010 for the non-covered loan portfolio.

   
   
December 31, 2011
 
   
Commercial and
Industrial
   
Commercial
Real Estate
   
Construction
   
Residential Real Estate
 
Pass/Satisfactory
 
$
61,327
   
$
308,258
   
$
9,314
   
$
50,517
 
Special Mention
   
57
     
13,402
     
237
     
-
 
Substandard
   
7,472
     
29,312
     
4,349
     
2,959
 
Doubtful
   
322
     
1,663
     
1,371
     
-
 
Total
 
$
69,178
   
$
352,635
   
$
15,271
   
$
53,476
 
 
 
  
Consumer
 
  
Mortgage Warehouse
 
  
Manufactured Housing
 
Performing
  
$
2,171
   
$
619,318
   
$
104,565
  
Nonperforming (1)
  
 
40
     
-
     
-
  
Total
  
$
2,211
   
$
619,318
   
$
104,565
  
 
  
                     
 
(1)               Includes loans that are on non-accrual status or past due ninety days or more at December 31, 2011.

 
December 31, 2010
   
Commercial and
Industrial
   
Commercial
Real Estate
   
Construction
   
Residential Real Estate
 
Pass/Satisfactory
 
$
27,771
   
$
107,480
   
$
4,653
   
$
27,566
 
Special Mention
   
534
     
8,500
     
1,416
     
-
 
Substandard
   
7,306
     
25,213
     
6,246
     
1,398
 
Doubtful
   
331
     
3,656
     
1,072
     
-
 
Total
 
$
35,942
   
$
144,849
   
$
13,387
   
$
28,964
 
 
 
  
Consumer
 
  
Mortgage Warehouse
 
  
Manufactured Housing
 
Performing
  
$
1,559
   
$
186,113
   
$
100,226
  
Nonperforming (1)
  
 
22
     
-
     
2,698
  
Total
  
$
1,581
   
$
186,113
   
$
102,924
  
 
 (1)
Includes loans that are on non-accrual status or past due ninety days or more at December 31, 2010.
     
 

The following presents the credit quality tables as of December 31, 2011 and December 31, 2010 for the covered loan portfolio.

 
December 31, 2011
   
Commercial and
Industrial
   
Commercial
Real Estate
   
Construction
   
Residential Real Estate
 
Pass/Satisfactory
 
$
9,823
   
$
30,998
   
$
5,539
   
$
16,476
 
Special Mention
   
53
     
3,358
     
7,641
     
455
 
Substandard
   
378
     
17,263
     
24,746
     
5,534
 
Doubtful
   
-
     
  -
     
-
     
-
 
Total
 
$
10,254
   
$
51,619
   
$
37,926
   
$
22,465
 
 
 
  
Manufactured Housing
 
Performing
 
$
3,857
  
Nonperforming (1)
   
155
  
Total
 
$
4,012
  
 
 (1)
Includes loans that are on non-accrual status or past due ninety days or more at December 31, 2011.

 
December 31, 2010
   
Commercial and
Industrial
   
Commercial
Real Estate
   
Construction
   
Residential Real Estate
 
Pass/Satisfactory
 
$
11,134
   
$
38,431
   
$
 23,134
   
$
 17,219
 
Special Mention
   
 1,060
     
 16,118
     
 19,573
     
 3,214
 
Substandard
   
 917
     
 14,736
     
 8,257
     
 1,672
 
Doubtful
   
 45
     
 2,996
     
-
     
 1,717
 
Total
 
$
 13,156
   
$
72,281
   
$
50,964
   
$
 23,822
 
 
 
  
Manufactured Housing
 
Performing
 
$
4,358
  
Nonperforming (1)
   
304
  
Total
 
$
4,662
  
 
(1)
Includes loans that are on non-accrual status or past due ninety days or more at December 31, 2010.
 
Allowance for loan and lease losses

The changes in the allowance for loan and lease losses as of December 31, 2011 and December 31, 2010 and the loans and allowance for loan and lease losses by loan segment based on impairment method are as follows:

Twelve months ended December 31, 2011
 
Commercial and
Industrial
   
Commercial
Real Estate
   
Construction
   
Residential Real Estate
 
Beginning Balance, January 1, 2011
 
$
1,662
   
$
9,152
   
$
2,127
   
$
1,116
 
Charge-offs
   
(2,543
)
   
(5,775
)
   
(1,179
)
   
(109
)
Recoveries
   
11
     
94
     
2
     
-
 
Provision for loan losses
   
2,311
     
3,558
     
3,706
     
(163
) 
Ending Balance, December 31, 2011
 
$
1,441
   
$
7,029
   
$
4,656
   
$
844
 
 
Loans:
             
Individually evaluated for impairment
 
$
7,775
   
$
32,625
   
$
16,142
   
$
1,212
 
Collectively evaluated for impairment
   
73,877
     
354,561
     
16,025
     
71,477
 
Loans acquired with credit deterioration
   
885
     
20,962
     
26,428
     
4,731
 
Allowance for loan and lease losses:
                               
Individually evaluated for impairment
 
$
426
   
$
2,047
   
$
2,986
   
$
195
 
Collectively evaluated for impairment
   
911
     
4,063
     
209
     
554
 
Loans acquired with credit deterioration
   
104
     
920
     
1,461
     
94
 
 
Twelve months ended December 31, 2011
Manufactured Housing
 
Consumer
 
Mortgage Warehouse
 
Unallocated
 
Total
 
Beginning Balance, January 1, 2011
 
$
-
   
$
11
   
$
465
   
$
596
   
$
15,129
 
Charge-offs
   
-
     
(55
) 
   
-
     
-
     
(9,661
)
Recoveries
   
-
     
7
     
-
     
-
     
114
 
Provision for loan losses
   
18
     
98
     
464
     
(542
) 
   
9,450
 
Ending Balance, December 31, 2011
 
$
18
   
$ 
61
   
$ 
929
   
$ 
54
   
$ 
15,032
 
 
Loans:
  
Individually evaluated for impairment
 
$
-
   
$
23
   
$
-
   
$
-
   
$
57,777
 
Collectively evaluated for impairment
   
113,380
     
6,545
     
619,318
     
-
     
1,153,029
 
Loans acquired with credit deterioration
   
88
     
-
     
-
     
-
     
155,249
 
Market discounts/premiums/valuation adjustments 
                                   
 (23,514
) 
Total loans 
                                   
1,342,541
 
Allowance for loan and lease losses:
 
Individually evaluated for impairment
 
$
-
   
$
22
   
$
-
   
$
-
   
$
5,676
 
Collectively evaluated for impairment
   
1
     
39
     
929
     
54
     
6,760
 
Loans acquired with credit deterioration
   
17
     
-
     
-
     
-
     
2,596
 
 
The non-covered manufactured housing portfolio was purchased in August 2010.  A portion of the purchase price may be used to reimburse the Bank under the specified terms in the Purchase Agreement for defaults of the underlying borrower and other specified items.  At December 31, 2011 and December 31, 2010, funds available for reimbursement, if necessary, are $6,534 and $10,419, respectively.   Each quarter, these funds are evaluated to determine if they would be sufficient to absorb probable losses within the manufactured housing portfolio.  

The analysis of the allowance for loan and lease losses for 2011 and 2010 is as follows:
 
   
2011
  
2010
  
2009
 
Balance, January 1
 $15,129  $10,032  $2,876 
Provision for loan losses
  9,450   10,397   11,778 
Loans charged off
  (9,661)  (5,265)  (4,630)
Recoveries
  114   15   8 
Transfers (1)
  -   (50)  - 
Balance, December 31
 $15,032  $15,129  $10,032 

(1) At December 31, 2010, the Bancorp had a reserve of $50 for unfunded commitments included within the allowance for loan and lease losses. The reserve for unfunded loan commitments was reclassified to Other Liabilities during the year ended December 31, 2010.

The following tables present the loans with credit deterioration as of acquisition date for acquired loans.   Both the Berkshire Bancorp and Tammac transactions occurred in September 2011. The USA Bank and ISN Bank acquisitions occurred in July and September of 2010, respectively.  The balances presented are estimates based on data collected at the time of the transactions.

   
2011
  
2010
 
Contractually required payments receivable
 $175,050  $123,100 
Credit discount (nonaccretable difference)
  (24,922)  (41,792)
Cash flows expected to be collected
  150,128   81,308 
Market discount (accretable yield)
  (41,306)  (6,832)
Fair value of loans acquired with credit deterioration
 $108,822  $74,476 

The changes in the accretable yield as of December 31:  
 
2011
  
2010
 
Balance, beginning of period
 $7,176  $- 
Additions resulting from acquisition
  41,306   6,832 
Accretion to interest income
  (3,556)  (971)
Reclassification (to)/from nonaccretable difference and disposals, net
  432   1,315 
         
Balance, end of period
 $45,358  $7,176 

The outstanding balance as defined by ASC 310-30-50-1, of acquired covered loans with credit deterioration is $252,247 with a carrying value of $229,060 at December 31, 2011.  The outstanding balance was $113,279 with a carrying balance of $73,066 at December 31, 2010.
 
FDIC Loss Sharing Receivable
 
Prospective losses incurred on Covered Loans are eligible for partial reimbursement by the FDIC. Subsequent decreases in the amount expected to be collected result in a provision for loan and lease losses, an increase in the allowance for loan and lease losses, and a proportional adjustment to the FDIC loss sharing receivable for the estimated amount to be reimbursed. Subsequent increases in the amount expected to be collected result in the reversal of any previously-recorded provision for loan and lease losses and related allowance for loan and lease and lease losses and adjustments to the FDIC loss sharing receivable, or accretion of certain fair value amounts into interest income in future periods if no provision for loan and lease losses had been recorded. 
 
The following table summarizes the activity related to the FDIC loss sharing receivable as of December 31:
 
   
2011
  
2010
 
        
Balance, beginning of period
 $16,702  $- 
 Acquisitions
  -   27,297 
 Change in FDIC loss sharing receivable
  3,920   520 
 Reimbursement from the FDIC
  (7,545)  (11,115)
 Balance, end of period
 $13,077  $16,702