NOTE 3. ASSETS ACQUIRED IN FDIC-ASSISTED ACQUISITIONS

From October 2009 through July 2012, the Company has participated in ten FDIC-assisted acquisitions (the “acquisitions”) whereby the Company purchased certain failed institutions out of the FDIC’s receivership. These institutions include:

Bank Acquired	Location:	Branches:	Date Acquired
American United Bank (“AUB”)	Lawrenceville, Ga.	1	October 23, 2009
United Security Bank (“USB”)	Sparta, Ga.	2	November 6, 2009
Satilla Community Bank (“SCB”)	St. Marys, Ga.	1	May 14, 2010
First Bank of Jacksonville (“FBJ”)	Jacksonville, Fl.	2	October 22, 2010
Tifton Banking Company (“TBC”)	Tifton, Ga.	1	November 12, 2010
Darby Bank & Trust (“DBT”)	Vidalia, Ga.	7	November 12, 2010
High Trust Bank (“HTB”)	Stockbridge, Ga.	2	July 15, 2011
One Georgia Bank (“OGB”)	Midtown Atlanta, Ga.	1	July 15, 2011
Central Bank of Georgia (“CBG”)	Ellaville, Ga.	5	February 24, 2012
Montgomery Bank & Trust (“MBT”)	Ailey, Ga.	2	July 6, 2012

The following table summarizes components of all covered assets at December 31, 2016 and 2015 and their origin. The FDIC loss-share receivable is shown net of the clawback liability.

	Covered loans		Less fair value adjustments		Total covered loans		OREO		Less fair value adjustments		Total covered OREO		Total covered assets		FDIC loss-share receivable (payable)

	(dollars in thousands)
As of December 31, 2016

AUB	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	(27)

USB		3,199		13		3,186		51		-		51		3,237		(1,642)

SCB		4,019		51		3,968		-		-		-		3,968		(32)

FBJ		3,767		452		3,315		-		-		-		3,315		(234)

DBT		12,166		565		11,601		-		-		-		11,601		(4,591)

TBC		1,679		-		1,679		-		-		-		1,679		(33)

HTB		1,913		33		1,880		-		-		-		1,880		734

OGB		1,077		32		1,045		-		-		-		1,045		(993)

CBG		33,449		1,963		31,486		1,161		4		1,157		32,643		505

Total	$	61,269	$	3,109	$	58,160	$	1,212	$	4	$	1,208	$	59,368	$	(6,313)

As of December 31, 2015

AUB	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	111

USB		3,639		16		3,623		165		-		165		3,788		(1,424)

SCB		5,228		124		5,104		-		-		-		5,104		149

FBJ		4,782		562		4,220		41		-		41		4,261		252

DBT		15,934		1,131		14,803		-		-		-		14,803		(1,084)

TBC		2,159		11		2,148		-		-		-		2,148		1,446

HTB		44,405		3,881		40,524		2,433		643		1,790		42,314		3,875

OGB		27,561		1,900		25,661		160		-		160		25,821		913

CBG		44,865		3,419		41,446		3,139		284		2,855		44,301		2,063

Total	$	148,573	$	11,044	$	137,529	$	5,938	$	927	$	5,011	$	142,540	$	6,301

A rollforward of acquired covered loans for the years ended December 31, 2016 and 2015 is shown below:

	2016		2015
	(dollars in thousands)
Balance, January 1	$	137,529	$	271,279
Charge-offs, net of recoveries		(2,510)		(5,558)
Accretion		3,353		9,658
Transfers to covered other real estate owned		(2,810)		(7,910)
Transfer to purchased non-covered loans due to loss-share expiration		(45,908)		(50,568)
Payments received		(31,494)		(79,372)
Ending balance	$	58,160	$	137,529

The following is a summary of changes in the accretable discounts of acquired covered loans during the years ended December 31, 2016 and 2015:

	2016		2015
	(dollars in thousands)
Balance, January 1	$	9,063	$	15,578
Accretion		(3,353)		(9,658)
Transfer to purchased non-covered loans due to loss-share expiration		(3,457)		(1,665)
Transfers between non-accretable and accretable discounts, net		244		4,808
Ending balance	$	2,497	$	9,063

Each acquisition with loss-sharing agreements has separate agreements for the single family residential assets (“SFR”) and the non-single family assets (“NSF”). The SFR agreements cover losses and recoveries for ten years. The NSF agreements are for eight years. During the first five years, losses and recoveries are covered. During the final three years, only recoveries, net of expenses, are covered. The AUB SFR agreement was terminated during 2012 and Ameris received a payment of $87,000. The AUB and USB NSF agreements passed their five-year anniversary during the fourth quarter of 2014, the SCB NSF agreement passed its five-year anniversary during the second quarter of 2015, the FBJ, TBC and DBT NSF agreements passed their five year anniversary during the fourth quarter of 2015, and the HTB and OGB NSF agreements passed their five year anniversary during the third quarter of 2016. Losses will no longer be reimbursed on these agreements. The remaining NSF assets for these eight agreements have been reclassified to purchased non-covered loans and purchased non-covered other real estate owned.

The shared-loss agreements are subject to the servicing procedures as specified in the agreement with the FDIC. The expected reimbursements under the shared-loss agreements were recorded as an indemnification asset at their estimated fair values on the acquisition dates. As of December 31, 2016 and 2015, the Company has recorded a clawback liability of $9.3 million and $8.2 million, respectively, which represents the obligation of the Company to reimburse the FDIC should actual losses be less than certain thresholds established in each loss-sharing agreement. This clawback is netted against the FDIC loss share receivable (payable). Changes in the FDIC loss-share receivable (payable) are as follows:

	For the Years Ended December 31,
	2016		2015

	(dollars in thousands)

Balance, January 1	$	6,301	$	31,351
Payments received from FDIC		(816)		(19,273)
Accretion, net		(3,913)		(8,878)
Change in clawback liability		(1,056)		(2,008)
Increase in receivable due to:
Charge-offs (recoveries) on covered loans		(4,804)		416
Write downs of covered other real estate owned		233		4,752
Reimbursable expenses on covered assets		749		2,582
Other activity, net		(3,007)		(2,641)
Ending balance	$	(6,313)	$	6,301