Note 5—FDIC Indemnification Asset

The following table provides changes in the FDIC indemnification asset:


	Year Ended December 31,
(Dollars in thousands)	2015		2014		2013
Balance at beginning of period	$	22,161	$	86,447	$	146,171
FDIC indemnification asset recorded for First Federal’s loss share agreements		—		—		21,891
Decrease in expected losses on loans		(788)		(2,421)		(3,452)
Additional recoveries on OREO		(5,440)		(4,520)		(2,252)
Reimbursable expenses		789		2,829		5,542
Amortization of discounts and premiums, net		(8,587)		(21,895)		(29,535)
Reimbursements from FDIC		(3,734)		(38,279)		(51,918)
Balance at end of period	$	4,401	$	22,161	$	86,447

The FDIC indemnification asset is measured separately from the related covered assets. At December 31, 2015, the projected cash flows related to the FDIC indemnification asset for losses on assets acquired were approximately $8.6 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.

Included in the FDIC indemnification asset is an expected “true up” with the FDIC related to both the BankMeridian and Plantation acquisitions. This amount is determined each reporting period and at December 31, 2015, was estimated to be approximately $4.2 million related to the BankMeridian acquisition at the end of the loss share agreement (July 2021) and $3.6 million related to the Plantation acquisition at the end of the loss share agreement (April 2017). The actual payment will be determined at the end of the loss sharing agreement term for each of the five 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, Cape Fear, or Habersham FDIC‑assisted transactions as of December 31, 2015.

Effective March 31, 2015, the Commercial Shared-Loss Agreement with the FDIC for CBT expired and losses on assets covered under this agreement are no longer claimable after filing the first quarter of 2015 commercial loss share certificate. The carrying value of commercial loans and OREO no longer covered under the CBT loss share agreement as of April 1, 2015 totaled $49.0 million and $2.2 million, respectively. These assets were transferred from the balance of loans and OREO classified as covered to non-covered. The Commercial Shared-Loss Agreement for Cape Fear expired June 30, 2014, and losses on assets covered under this agreement are no longer claimable. On March 31, 2016, the Commercial Shared-Loss Agreement with the FDIC for Habersham will expire and losses on assets covered under this agreement are no longer claimable after March 31, 2016.