FDIC Indemnification Asset

9 Months Ended

Jun. 30, 2011

FDIC Indemnification Asset [Text Block]

NOTE 4. FDIC Indemnification Asset

          The following table presents the change in the FDIC indemnification asset during the current fiscal year.

(in thousands)	Amount Receivable		Discount			Net Receivable
Balance at September 30, 2010	$	70,079	$	(2,496	)	$	67,583
Payments from FDIC for losses on covered assets		10,425		—			10,425
Valuation adjustment on acquired other real estate owned		79		—			79
Discount accretion		—		1,689			1,689
Balance at June 30, 2011	$	59,733	$	(807	)	$	58,926

          During the nine-months ended June 30, 2011, First Federal received payments totaling $11.3 million from the FDIC, of which $10.4 million was credited to the FDIC indemnification asset and $842 thousand was credited to other real estate owned expenses, net and other loan expense on the Consolidated Statements of Operations. Subsequent to June 30, 2011 First Federal received a payment of $278 thousand. These payments satisfied all claims through March 31, 2011. Based on the June 30, 2011 reporting period, First Federal filed a $8.9 million claim with the FDIC under the terms of the loss share agreement and payment is expected.