Accounting for FDIC-Assisted AcquisitionsThe Company performs ongoing assessments of the estimated cash flows of its FDIC-acquired loan portfolios. The fair value of the FDIC-acquired loan portfolios consisted of $57.2 million in covered and $74.6 million in non-covered loans at the end of the second quarter of 2013 compared with $65.8 million in covered and $83.3 million in non-covered loans for the linked quarter. The outstanding principal balance of the FDIC-acquired loan portfolios totaled $210.0 million at the end of the second quarter of 2013 compared with $234.8 million for the linked quarter. The details of the accounting for the FDIC-acquired loan portfolios for the second quarter of 2013 are as follows:
- Covered FDIC-acquired loans decreased $8.6 million to $57.2 million;
- Non-covered FDIC-acquired loans decreased $8.7 million to $74.6 million;
- The FDIC loss-share receivable associated with covered assets acquired in FDIC-assisted acquisitions decreased $3.9 million to $48.1 million;
- The negative accretion for the FDIC loss-share receivable was $3.4 million and the FDIC loss-share clawback accrual was increased to $1.4 million;
- Provision expense for individually assessed FDIC-acquired loans was $28,000;
- The non-accretable discount decreased $4.4 million to $55.2 million; and
- The accretable discount decreased $3.1 million to $23.0 million.