ASSETS ACQUIRED IN FDIC-ASSISTED ACQUISITIONS (Tables)

6 Months Ended

Jun. 30, 2014

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 June 30, 2014, December 31, 2013 and June 30, 2013 and their origin:


	Covered loans		Less: Fair value adjustments		Total covered loans		OREO		Less: Fair value adjustments		Total covered OREO		Total covered assets		FDIC indemnification asset
	(Dollars in Thousands)
As of June 30, 2014:
AUB	$	9,106	$	133	$	8,973	$	1,690	$	—	$	1,690	$	10,663	$	1,676
USB		14,030		805		13,225		2,927		62		2,865		16,090		920
SCB		30,545		954		29,591		3,332		308		3,024		32,615		3,073
FBJ		23,264		2,696		20,568		1,734		135		1,599		22,167		2,752
DBT		81,700		8,774		72,926		12,766		913		11,853		84,779		10,119
TBC		28,363		1,853		26,510		4,493		758		3,735		30,245		3,543
HTB		59,267		6,535		52,732		4,130		1,349		2,781		55,513		9,000
OGB		49,501		4,937		44,564		7,964		2,984		4,980		49,544		7,268
CBG		71,959		9,798		62,161		7,432		1,533		5,899		68,060		10,829

Total	$	367,735	$	36,485	$	331,250	$	46,468	$	8,042	$	38,426	$	369,676	$	49,180


	Covered loans		Less: Fair value adjustments		Total covered loans		OREO		Less: Fair value adjustments		Total covered OREO		Total covered assets		FDIC indemnification asset
	(Dollars in Thousands)
As of December 31, 2013:
AUB	$	15,787	$	231	$	15,556	$	4,264	$	—	$	4,264	$	19,820	$	1,452
USB		18,504		1,427		17,077		2,865		141		2,724		19,801		889
SCB		34,637		1,483		33,154		3,461		303		3,158		36,312		3,175
FBJ		25,891		3,730		22,161		1,880		242		1,638		23,799		3,689
DBT		105,157		17,819		87,338		17,023		1,282		15,741		103,079		18,724
TBC		32,590		2,354		30,236		4,844		745		4,099		34,335		3,721
HTB		67,126		7,359		59,767		6,374		2,304		4,070		63,837		9,325
OGB		58,512		5,067		53,445		7,506		2,984		4,522		57,967		9,645
CBG		85,118		13,615		71,503		7,610		1,933		5,677		77,180		14,821

Total	$	443,322	$	53,085	$	390,237	$	55,827	$	9,934	$	45,893	$	436,130	$	65,441


	Covered loans		Less: Fair value adjustments		Total covered loans		OREO		Less: Fair value adjustments		Total covered OREO		Total covered assets		FDIC indemnification asset
	(Dollars in Thousands)
As of June 30, 2013:
AUB	$	23,721	$	2,114	$	21,607	$	4,847	$	—	$	4,847	$	26,454	$	4,526
USB		23,298		2,552		20,746		4,127		140		3,987		24,733		5,802
SCB		38,478		2,882		35,596		4,655		306		4,349		39,945		4,603
FBJ		29,154		5,086		24,068		2,037		209		1,828		25,896		5,632
DBT		132,707		27,386		105,321		23,594		2,003		21,591		126,912		27,957
TBC		37,560		3,299		34,261		7,069		1,650		5,419		39,680		6,083
HTB		74,867		9,747		65,120		10,868		3,436		7,432		72,552		13,314
OGB		70,644		11,568		59,076		10,244		3,948		6,296		65,372		14,591
CBG		99,363		21,641		77,722		8,519		2,090		6,429		84,151		23,005

Total	$	529,792	$	86,275	$	443,517	$	75,960	$	13,782	$	62,178	$	505,695	$	105,513

Loan-by-Loan Basis Performance of Fair Value Adjustments

The adjustments are performed on a loan-by-loan basis and have resulted in the following adjustments for the six months ended June 30, 2014, the year ended December 31, 2013 and the six months ended June 30, 2013:


Total Amounts	June 30, 2014		December 31, 2013		June 30, 2013
	(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 to be accreted into income over remaining term of the loan)	$	5,850	$	51,003	$	39,278
Adjustments needed where the Company’s initial estimate of cash flows were overstated: (recorded through a provision for loan losses)		2,965		7,695		3,950

Amounts reflected in the Company’s Statement of Operations	June 30, 2014		December 31, 2013		June 30, 2013
	(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 to be accreted into income over remaining term of the loan)	$	1,170	$	10,201	$	2,942
Adjustments needed where the Company’s initial estimate of cash flows were overstated: (recorded through a provision for loan losses)		593		1,539		790

Changes in FDIC Shared-Loss Receivable

Changes in the FDIC shared-loss receivable for the six months ended June 30, 2014, for the year ended December 31, 2013 and for the six months ended June 30, 2013 are as follows:


(Dollars in Thousands)	June 30, 2014			December 31, 2013			June 30, 2013
Balance, January 1	$	65,441		$	159,724		$	159,724
Indemnification asset recorded in acquisitions		—			—			—
Payments received from FDIC		(10,576	)		(68,822	)		(45,604	)
Effect of change in expected cash flows on covered assets		(5,685	)		(25,461	)		(8,607	)

Ending balance	$	49,180		$	65,441		$	105,513