FDIC Shared-Loss Payable

12 Months Ended

Dec. 31, 2021

FDIC Shared-Loss Receivable [Abstract]

Receivable from FDIC for Loss Share Agreements

FDIC SHARED-LOSS PAYABLE

Prior to 2020, certain consumer loans were “covered loans” for which BancShares was eligible for reimbursement for a portion of certain future losses with indemnifications provided by the FDIC under loss share agreements (“LSAs”). The LSAs for two FDIC-assisted transactions included provisions related to payments owed to the FDIC at the termination of the agreements if actual cumulative losses on covered assets are lower than originally estimated by the FDIC at the time of acquisition (“Clawback Liability”). All of the LSAs relate to transactions that occurred prior to 2020 and have since expired.

There was no Clawback Liability remaining at December 31, 2021 as FCB remitted the final payment of $16.1 million to the FDIC during the first quarter of 2021. At December 31, 2020, the estimated Clawback Liability was $15.6 million following a payment of $99.5 million to the FDIC during the first quarter of 2020.

The following table includes the changes in the FDIC shared-loss payable for the years ended December 31, 2021 and 2020.

(Dollars in thousands)	2021		2020
Beginning balance	$	15,601	$	112,395
Accretion	502		2,674
Payment made to the FDIC to settle shared-loss agreement	(16,103)		(99,468)
Ending balance	$	—	$	15,601