FDIC loss share (expense) income

6 Months Ended

Jun. 30, 2016

Disclosure Text Block

FDIC Loss Share (Expense) Income

Note 30 – FDIC loss share (expense) income

The caption of FDIC loss-share (expense) income in the consolidated statements of operations consists of the following major categories:

			Quarters ended June 30,				Six months ended June 30,
(In thousands)			2016		2015		2016		2015
Amortization of loss-share indemnification asset		$	(4,036)	$	(31,065)	$	(8,078)	$	(58,381)
80% mirror accounting on credit impairment losses (reversal)[1]			475		7,647		(1,618)		15,893
80% mirror accounting on reimbursable expenses			2,235		42,730		6,185		64,275
80% mirror accounting on recoveries on covered assets, including
	rental income on OREOs, subject to reimbursement to the FDIC		(3,956)		(5,203)		(4,601)		(7,822)
Change in true-up payment obligation			(7,688)		3,672		(8,131)		7,836
Other			394		1,294		521		1,413
Total FDIC loss-share (expense) income		$	(12,576)	$	19,075	$	(15,722)	$	23,214
[1] Reductions in expected cash flows for ASC 310-30 loans, which may impact the provision for loan losses, may consider reductions in both principal and interest cash flow expectations. The amount covered under the FDIC loss-sharing agreements for interest not collected from borrowers is limited under the agreements (approximately 90 days); accordingly, these amounts are not subject fully to the 80% mirror accounting.