DISCONTINUED OPERATIONS

3 Months Ended

Mar. 31, 2013

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

DISCONTINUEDOPERATIONS

Discontinued Operations. The assets and liabilities associated with the transactions described (and defined) below were previously reported in the First Bank segment and were sold as part of the Company’s Capital Optimization Plan (Capital Plan). The Company applied discontinued operations accounting in accordance with ASC Topic 205-20, “Presentation of Financial Statements – Discontinued Operations,” to the assets and liabilities associated with the Northern Florida Region as of March 31, 2013 and December 31, 2012, and to the operations of First Bank’s Northern Florida Region for the three months ended March 31, 2013 and 2012. The Company did not allocate any consolidated interest that is not directly attributable to or related to discontinued operations. All financial information in the consolidated financial statements and notes to the consolidated financial statements is reported on a continuing operations basis, unless otherwise noted.

Northern Florida Region. On November 21, 2012, First Bank entered into a Branch Purchase and Assumption Agreement that provides for the sale of certain assets and the transfer of certain liabilities associated with eight of First Bank’s retail branches located in Pinellas County, Florida to HomeBanc National Association (HomeBanc), headquartered in Lake Mary, Florida. The transaction was completed on April 19, 2013, as further decribed in Note 18 to the consolidated financial statements. Under the terms of the agreement, HomeBanc assumed $120.3 million of deposits, purchased the premises and equipment, and assumed the leases associated with these eight retail branches. The transaction resulted in a gain of $400,000, after the write-off of goodwill of $700,000 allocated to the Northern Florida Region, during the second quarter of 2013.

On April 5, 2013, First Bank closed its three remaining retail branches located in Hillsborough County and in Pasco County, as further described in Note 18 to the consolidated financial statements. The eight branches sold and three branches closed during the second quarter of 2013 are collectively defined as the Northern Florida Region. The assets and liabilities associated with the Northern Florida Region are reflected in assets and liabilities of discontinued operations in the consolidated balance sheets as of March 31, 2013 and December 31, 2012.

First Bank intends to continue to hold and operate its eight retail branches in the Manatee County communities of Bradenton, Palmetto and Longboat Key, Florida.

Assets and liabilities of discontinued operations at March 31, 2013 and December 31, 2012 were as follows:

	March 31, 2013		December 31, 2012
	Florida		Florida
	(dollars expressed in thousands)
Cash and due from banks	$	993	1,139
Total loans	—		—
Bank premises and equipment, net	4,824		4,837
Goodwill	700		700
Other assets	23		30
Assets of discontinued operations	$	6,540	6,706
Deposits:
Noninterest-bearing demand	$	12,590	12,488
Interest-bearing demand	9,709		10,480
Savings and money market	54,092		67,686
Time deposits of $100 or more	25,209		27,034
Other time deposits	34,470		37,964
Total deposits	136,070		155,652
Accrued expenses and other liabilities	76		59
Liabilities of discontinued operations	$	136,146	155,711

Loss from discontinued operations, net of tax, for the three months ended March 31, 2013 and 2012 was as follows:

	Three Months Ended			Three Months Ended
	March 31, 2013			March 31, 2012
	Florida			Florida
	(dollars expressed in thousands)
Interest income:
Interest and fees on loans	$	—		—
Interest expense:
Interest on deposits	192			284
Net interest loss	(192		)	(284	)
Provision for loan losses	—			—
Net interest loss after provision for loan losses	(192		)	(284	)
Noninterest income:
Service charges and customer service fees	104			113
Other	3			2
Total noninterest income	107			115
Noninterest expense:
Salaries and employee benefits	579			590
Occupancy, net of rental income	455			442
Furniture and equipment	39			86
FDIC insurance	53			104
Other	112			90
Total noninterest expense	1,238			1,312
Loss from operations of discontinued operations	(1,323		)	(1,481	)
Benefit for income taxes	—			—
Net loss from discontinued operations, net of tax	$	(1,323	)	(1,481	)