Assets Acquired in FDIC-Assisted Acquisitions (Tables)

9 Months Ended

Sep. 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 September 30, 2014, December 31, 2013 and September 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 loss-share receivable
As of September 30, 2014:
AUB	$	8,902	$	—	$	8.902	$	666	$	—	$	666	$	9,568	$	882
USB		13,576		351		13,225		2,134		48		2,086		15,311		(439	)
SCB		28,534		789		27,745		2,665		308		2,357		30,102		1,855
FBJ		22,421		2,346		20,075		1,578		90		1,488		21,563		2,138
DBT		75,683		8,531		67,152		9,804		1,024		8,780		75,932		9,337
TBC		25,577		1,465		24,112		3,552		394		3,158		27,270		2,542
HTB		54,317		5,761		48,556		3,477		1,239		2,238		50,794		7,152
OGB		48,889		4,160		44,729		2,244		39		2,205		46,934		5,803
CBG		67,273		8,180		59,093		7,195		1,290		5,905		64,998		8,963

Total	$	345,172	$	31,583	$	313,589	$	33,315	$	4,432	$	28,883	$	342,472	$	38,233


	Covered loans		Less: Fair value adjustments		Total covered loans		OREO		Less: Fair value adjustments		Total covered OREO		Total covered assets		FDIC loss-share receivable
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 loss-share receivable
As of September 30, 2013:
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		2,573		33,015		5,912		843		5,069		38,084		4,315
HTB		70,156		8,273		61,883		6,998		2,445		4,553		66,436		11,065
OGB		63,794		6,766		57,028		9,921		3,918		6,003		63,031		9,458
CBG		92,755		16,812		75,943		8,299		2,046		6,253		82,196		17,460

Total	$	482,259	$	64,610	$	417,649	$	64,184	$	11,632	$	52,552	$	470,201	$	81,763

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 nine months ended September 30, 2014, the year ended December 31, 2013 and the nine months ended September 30, 2013:


Total Amounts	September 30, 2014		December 31, 2013		September 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)	$	16,070	$	51,003	$	50,703
Adjustments needed where the Company’s initial estimate of cash flows were overstated: (recorded through a provision for loan losses)		3,425		7,695		6,305

Amounts reflected in the Company’s Statement of Operations	September 30, 2014		December 31, 2013		September 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)	$	3,214	$	10,201	$	10,141
Adjustments needed where the Company’s initial estimate of cash flows were overstated: (recorded through a provision for loan losses)		685		1,539		1,261

Changes in FDIC Shared-Loss Receivable

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


(Dollars in Thousands)	September 30, 2014			December 31, 2013			September 30, 2013
Balance, January 1	$	65,441		$	159,724		$	159,724
Indemnification asset recorded in acquisitions		—			—			—
Payments received from FDIC		(18,509	)		(68,822	)		(58,240	)
Effect of change in expected cash flows on covered assets		(8,699	)		(25,461	)		(19,721	)

Ending balance	$	38,233		$	65,441		$	81,763