NOTE 4 – DISPOSITION ACTIVITY

Branch Dispositions

During the fourth quarter of 2012, the Company announced plans to close four branches during 2013 as part of its ongoing business strategy, which includes a periodic review of its branch network to maximize shareholder return. The Company closed these four branches during the first quarter of 2013. As part of these branch closures, the Company incurred various disposal costs during the three months ended March 31, 2013 and expects to incur additional costs in the second quarter of 2013, including personnel termination costs, contract termination costs, and fixed asset disposals. The following table shows the costs the Company incurred that are included in its statement of comprehensive income for the three months ended March 31, 2013.


(Dollars in thousands, except per share data)	2013

Employee termination	$	55
Accelerated depreciation		375

Total	$	430

The Company estimates future exit costs, which would include additional employee termination costs, fixed asset disposals, and lease termination costs, will not be material.

During the second quarter of 2013, the Company also announced plans to close or consolidate nine additional branches.

Note 17 to these unaudited consolidated financial statements provides additional information on this announcement.