FDIC Indemnification Asset

Under the terms of the purchase and assumption agreement with the FDIC with regard to the TierOne Bank acquisition, the Company is reimbursed for a portion of the losses incurred on covered assets. As covered assets are resolved, whether it be through repayment, short sale of the underlying collateral, the foreclosure on or sale of collateral, or the sale or charge-off of loans or Other Real Estate Owned ("OREO"), any differences between the carrying value of the covered assets versus the payments received during the resolution process, that are reimbursable by the FDIC, are recognized as reductions in the FDIC indemnification asset. Any gains or losses realized from the resolution of covered assets reduce or increase, respectively, the amount recoverable from the FDIC. The following table represents a summary of the activity related to the FDIC indemnification asset for the three months ended December 31, 2016 and 2015:



	Three Months Ended December 31,
	2016			2015
	(dollars in thousands)
Balance at beginning of period	$	10,777		$	14,722
Amortization	(867		)	(1,032		)
Changes in expected reimbursements from FDIC for changes in expected credit losses	28			(128		)
Changes in reimbursable expenses	(239		)	(349		)
Payments (reimbursements) of covered losses to (from) the FDIC	188			(28		)
Balance at end of period	$	9,887		$	13,185

The loss claims filed are subject to review, approval, and annual audits by the FDIC or its assigned agents for compliance with the terms in the loss sharing agreements. The non-commercial loss share agreement ends June 4, 2020.