Note 7—FDIC Indemnification Asset

The following table provides changes in FDIC indemnification asset:

	Three Months Ended
	March 31,			March 31,
(Dollars in thousands)	2013			2012
Balance at beginning of period	$	146,171		$	262,651
Increase (decrease) in expected losses on loans	(1,062		)	2,310
Additional losses on OREO	841			6,779
Reimbursable expenses	1,097			2,674
Amortization of discounts and premiums, net	(7,171		)	(3,233		)
Reimbursements from FDIC	(15,536		)	(39,850		)
Balance at end of period	$	124,340		$	231,331

The FDIC indemnification asset is measured separately from the related covered assets. At March 31, 2013, the projected cash flows related to the FDIC indemnification asset for losses on assets acquired were approximately $47.3 million less than the current carrying value. This amount is being recognized as negative accretion (in non-interest income) over the shorter of the underlying asset’s remaining life or remaining term of the loss share agreements. Subsequent to March 31, 2013, the Company expects to receive $13.0 million from loss share claims filed, including reimbursable expenses.

Included in the FDIC indemnification asset is an expected “true up” with the FDIC related to the BankMeridian acquisition. This amount is determined each reporting period and at March 31, 2013, was estimated to be approximately $3.7 million at the end of the loss share agreement (in ten years). The actual payment will be determined at the end of the loss sharing agreement term for each of the three FDIC-assisted acquisitions and is based on the negative bid, expected losses, intrinsic loss estimate, and assets covered under loss share. There was no true up expected from the CBT or Habersham Bank FDIC-assisted transactions as of March 31, 2013.