Reduction in Branch Network

12 Months Ended

Dec. 31, 2012

Reduction in Branch Network

23. Reduction in Branch Network

In December 2011, the Company announced plans to reduce the branch network of the Bank by four branches through sale or consolidation into existing branches. The Bank consolidated the North Harper branch into the West Main branch in Laurens and the South Main branch into the Montague branch in Greenwood on March 30, 2012.

On July 1, 2012, the Bank consummated the sale of its Rock Hill and Blacksburg, South Carolina branches. In connection with the sale, the Bank sold real estate, equipment, substantially all of the loans, certain other assets, deposits and lease obligations associated with these two branches. The Company recorded a gain on sale of the branches, net of transaction costs, of $568 thousand. As part of the settlement of the sale, the Company made a cash payment to the purchaser of $31.6 million representing the excess of deposits and other liabilities assumed by the purchaser over the carrying value of loans and other assets sold and the deposit premium received.

The following table summarizes the primary balance sheet amounts relative to the branches sold (in thousands).

Assets
Cash and cash equivalents	$	643
Other loans held for sale		7,508
Long-lived assets held for sale		664
Liabilities
Transaction deposits	$	12,641
Money market deposits		3,550
Savings deposits		2,141
Time deposits		22,763
Total deposits	$	41,095