Assets Acquired in FDIC-Assisted Acquisitions (Tables)

9 Months Ended

Sep. 30, 2013

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


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

Components of Covered Assets

The following table summarizes components of all covered assets at September 30, 2013, December 31, 2012 and September 30, 2012 and their origin:


	Covered loans		Less: Credit risk adjustments		Less: Liquidity and rate adjustments		Total covered loans		OREO		Less: Fair value adjustments		Total covered OREO		Total covered assets		FDIC indemnification asset
As of September 30, 2013:	(Dollars in Thousands)

AUB	$	19,336	$	915	$	—	$	18,421	$	3,338	$	3	$	3,335	$	21,756	$	3,704

USB		21,168		1,665		—		19,503		3,066		139		2,927		22,430		2,796

SCB		35,555		1,902		—		33,653		5,348		429		4,919		38,572		4,020

FBJ		27,222		3,965		—		23,257		1,582		170		1,412		24,669		4,990

DBT		116,685		21,739		—		94,946		19,720		1,639		18,081		113,027		23,955

TBC		35,588		2,519		54		33,015		5,912		843		5,069		38,084		4,315

HTB		70,156		8,232		41		61,883		6,998		2,445		4,553		66,436		11,065

OGB		63,794		6,658		108		57,028		9,921		3,918		6,003		63,031		9,458

CBG		92,755		16,712		100		75,943		8,299		2,046		6,253		82,196		17,460


Total	$	482,259	$	64,307	$	303	$	417,649	$	64,184	$	11,632	$	52,552	$	470,201	$	81,763


	Covered loans		Less: Credit risk adjustments		Less: Liquidity and rate adjustments		Total covered loans		OREO		Less: Fair value adjustments		Total covered OREO		Total covered assets		FDIC indemnification asset
As of December 31, 2012:	(Dollars in Thousands)

AUB	$	27,169	$	2,481	$	—	$	24,688	$	10,636	$	102	$	10,534	$	35,222	$	2,905

USB		27,286		4,320		—		22,966		7,087		99		6,988		29,954		6,619

SCB		41,389		3,285		—		38,104		10,686		654		10,032		48,136		6,133

FBJ		32,574		6,204		27		26,343		3,260		526		2,734		29,077		6,589

DBT		169,527		41,631		207		127,689		30,395		2,160		28,235		155,924		47,012

TBC		46,796		4,979		173		41,644		11,089		1,381		9,708		51,352		8,073

HTB		90,602		16,072		52		74,478		13,980		4,954		9,026		83,504		20,020

OGB		81,908		17,127		136		64,645		9,168		4,078		5,090		69,735		16,871

CBG		124,200		36,884		161		87,155		9,046		3,120		5,926		93,081		45,502


Total	$	641,451	$	132,983	$	756	$	507,712	$	105,347	$	17,074	$	88,273	$	595,985	$	159,724


	Covered loans		Less: Credit risk adjustments		Less: Liquidity and rate adjustments		Total covered loans		OREO		Less: Fair value adjustments		Total covered OREO		Total covered assets		FDIC indemnification asset
As of September 30, 2012:	(Dollars in Thousands)

AUB	$	28,955	$	2,532	$	—	$	26,423	$	10,342	$	—	$	10,342	$	36,765	$	3,256

USB		33,145		5,036		—		28,109		7,641		99		7,542		35,651		8,408

SCB		44,340		3,892		—		40,448		10,464		646		9,818		50,266		6,130

FBJ		33,312		6,299		43		26,970		3,407		572		2,835		29,805		6,731

DBT		186,815		47,598		331		138,886		33,404		2,798		30,606		169,492		63,789

TBC		51,084		5,790		212		45,082		10,110		1,533		8,577		53,659		15,559

HTB		95,904		18,727		56		77,121		15,219		5,766		9,453		86,574		23,698

OGB		86,091		18,719		146		67,226		7,874		3,663		4,211		71,437		21,419

CBG		139,583		43,406		208		95,969		8,518		3,007		5,511		101,480		49,450


Total	$	699,229	$	151,999	$	996	$	546,234	$	106,979	$	18,084	$	88,895	$	635,129	$	198,440

Loan-by-Loan Basis Performance of Fair Value Adjustments

The adjustments to fair value are performed on a loan-by-loan basis and have resulted in the following:


Total Amounts	September 30, 2013		December 31, 2012		September 30, 2012
	(Dollars in Thousands)
Adjustments needed where the Company’s initial estimate of cash flows were underestimated: (recorded with a reclassification from non-accretable difference to accretable discount)	$	50,703	$	23,050	$	16,210

Adjustments needed where the Company’s initial estimate of cash flows were overstated: (recorded through a provision for loan losses)		6,305		13,190		11,435

Amounts reflected in the Company’s Statement of Operations	September 30, 2013		December 31, 2012		September 30, 2012
	(Dollars in Thousands)
Adjustments needed where the Company’s initial estimate of cash flows were underestimated: (recorded with a reclassification from non-accretable difference to accretable discount)	$	10,141	$	4,610	$	3,242

Adjustments needed where the Company’s initial estimate of cash flows were overstated: (recorded through a provision for loan losses)		1,261		2,638		2,287

Schedule of Changes in Accretable Discount Related Acquired Loan

The following is a summary of changes in the accretable discounts of acquired loans during the nine months ended September 30, 2013, the year ended December 31, 2012 and the nine months ended September 30, 2012.


(Dollars in Thousands)	September 30, 2013			December 31, 2012			September 30, 2012
Balance, January 1	$	16,698		$	29,537		$	29,537
Additions due to acquisitions		—			9,863			9,863
Accretion		(36,552	)		(45,752	)		(36,241	)
Other activity, net		50,703			23,050			16,210

Ending balance	$	30,849		$	16,698		$	19,369

Changes in FDIC Shared Loss Receivable

Changes in the FDIC shared-loss receivable for the nine months ended September 30, 2013, for the year ended December 31, 2012 and for the nine months ended September 30, 2012 are as follows:


(Dollars in Thousands)	September 30, 2013			December 31, 2012			September 30, 2012
Balance, January 1	$	159,724		$	242,394		$	242,394
Indemnification asset recorded in acquisitions		—			52,654			52,654
Payments received from FDIC		(58,240	)		(128,730	)		(97,399	)
Effect of change in expected cash flows on covered assets		(19,721	)		(6,594	)		791

Ending balance	$	81,763		$	159,724		$	198,440

Loans with Deterioration of Credit Quality [Member]

Rollforward of Acquired Loans Deterioration of Credit Quality

A rollforward of acquired loans with deterioration of credit quality for the nine months ended September 30, 2013, the year ended December 31, 2012 and the nine months ended September 30, 2012 is shown below:


(Dollars in Thousands)	September 30, 2013			December 31, 2012			September 30, 2012
Balance, January 1	$	282,737		$	307,790		$	307,790
Change in estimate of cash flows, net of charge-offs or recoveries		30,371			(17,712	)		(7,119	)
Additions due to acquisitions		—			73,414			73,414
Other (loan payments, transfers, etc.)		(81,519	)		(80,755	)		(70,402	)

Ending balance	$	231,589		$	282,737		$	303,683

Loans without Deterioration of Credit Quality [Member]

Rollforward of Acquired Loans Deterioration of Credit Quality

A rollforward of acquired loans without deterioration of credit quality for the nine months ended September 30, 2013, the year ended December 31, 2012 and the nine months ended September 30, 2012 is shown below:


(Dollars in Thousands)	September 30, 2013			December 31, 2012			September 30, 2012
Balance, January 1	$	228,602		$	266,966		$	266,966
Change in estimate of cash flows, net of charge-offs or recoveries		11,554			1,376			3,861
Additions due to acquisitions		—			51,368			51,367
Other (loan payments, transfers, etc.)		(53,870	)		(91,108	)		(72,755	)

Ending balance	$	186,286		$	228,602		$	249,439