ASSETS ACQUIRED IN FDIC-ASSISTED ACQUISITIONS (Tables)

3 Months Ended

Mar. 31, 2013

Schedule of Acquisition Details

From October 2009 through July 2012, the Company participated in ten FDIC-assisted acquisitions whereby the Company purchased certain failed institutions out of the FDIC’s receivership. These institutions include:

Bank Acquired	Location	Branches	Date Acquired
American United Bank (“AUB”)	Lawrenceville, Ga.	1	October 23, 2009
United Security Bank (“USB”)	Sparta, Ga.	2	November 6, 2009
Satilla Community Bank (“SCB”)	St. Marys, Ga.	1	May 14, 2010
First Bank of Jacksonville (“FBJ”)	Jacksonville, Fl.	2	October 22, 2010
Tifton Banking Company (“TBC”)	Tifton, Ga.	1	November 12, 2010
Darby Bank & Trust (“DBT”)	Vidalia, Ga.	7	November 12, 2010
High Trust Bank (“HTB”)	Stockbridge, Ga.	2	July 15, 2011
One Georgia Bank (“OGB”)	Midtown Atlanta, Ga.	1	July 15, 2011
Central Bank of Georgia (“CBG”)	Ellaville, Ga.	5	February 24, 2012
Montgomery Bank & Trust (“MBT”)	Ailey, Ga.	2	July 6, 2012

Components of Covered Assets

The following table summarizes components of all covered assets at March 31, 2013, December 31, 2012 and March 31, 2012 and their origin:

	Covered loans		Less: Credit risk adjustments		Less: Liquidity and rate adjustments		Total covered loans		OREO		Less: Fair value adjustments		Total covered OREO		Total covered assets		FDIC indemnification asset
As of March 31, 2013:	(Dollars in thousands)
AUB	$	25,001	$	2,508	$	—	$	22,493	$	8,079	$	100	$	7,979	$	30,472	$	4,176
USB		25,921		3,879		—		22,042		5,379		139		5,240		27,282		9,932
SCB		40,008		3,189		—		36,819		6,670		299		6,371		43,190		8,189
FBJ		31,479		5,662		11		25,806		1,450		93		1,357		27,163		6,840
DBT		146,178		35,461		83		110,634		25,990		1,895		24,095		134,729		37,333
TBC		42,302		4,450		133		37,719		10,478		1,814		8,664		46,383		8,050
HTB		82,202		14,068		49		68,085		14,823		3,445		11,378		79,463		21,423
OGB		73,279		14,877		127		58,275		10,384		4,144		6,240		64,515		18,687
CBG		109,596		30,605		140		78,851		8,424		1,833		6,591		85,442		46,349
Total	$	575,966	$	114,699	$	543	$	460,724	$	91,677	$	13,762	$	77,915	$	538,639	$	160,979
	Covered loans		Less: Credit risk adjustments		Less: Liquidity and rate adjustments		Total covered loans		OREO		Less: Fair value adjustments		Total covered OREO		Total covered assets		FDIC indemnification asset
As of December 31, 2012:	(Dollars in thousands)
AUB	$	27,169	$	2,481	$	—	$	24,688	$	10,636	$	102	$	10,534	$	35,222	$	2,905
USB		27,286		4,320		—		22,966		7,087		99		6,988		29,954		6,619
SCB		41,389		3,285		—		38,104		10,686		654		10,032		48,136		6,133
FBJ		32,574		6,204		27		26,343		3,260		526		2,734		29,077		6,589
DBT		169,527		41,631		207		127,689		30,395		2,160		28,235		155,924		47,012
TBC		46,796		4,979		173		41,644		11,089		1,381		9,708		51,352		8,073
HTB		90,602		16,072		52		74,478		13,980		4,954		9,026		83,504		20,020
OGB		81,908		17,127		136		64,645		9,168		4,078		5,090		69,735		16,871
CBG		124,200		36,884		161		87,155		9,046		3,120		5,926		93,081		45,502
Total	$	641,451	$	132,983	$	756	$	507,712	$	105,347	$	17,074	$	88,273	$	595,985	$	159,724

	Covered loans		Less: Credit risk adjustments		Less: Liquidity and rate adjustments		Total covered loans		OREO		Less: Fair value adjustments		Total covered OREO		Total covered assets		FDIC indemnification asset
As of March 31, 2012:	(Dollars in thousands)
AUB	$	33,063	$	2,672	$	—	$	30,391	$	11,842	$	—	$	11,842	$	42,233	$	2,648
USB		48,017		5,083		—		42,934		8,401		50		8,351		51,285		6,621
SCB		53,643		5,628		52		47,963		10,833		405		10,428		58,391		7,660
FBJ		38,116		6,994		76		31,046		2,674		534		2,140		33,186		7,540
DBT		245,117		64,530		579		180,008		28,759		2,253		26,506		206,514		65,932
TBC		74,893		14,052		292		60,549		6,678		880		5,798		66,347		18,166
HTB		106,730		23,637		73		83,020		17,755		8,055		9,700		92,720		29,997
OGB		96,271		27,105		190		68,976		12,049		7,037		5,012		73,988		30,126
CBG		164,541		55,830		221		108,490		13,792		7,766		6,026		114,516		51,326
Total	$	860,391	$	205,531	$	1,483	$	653,377	$	112,783	$	26,980	$	85,803	$	739,180	$	220,016

Loan-by-Loan Basis Performance of Fair Value Adjustments

On the dates of acquisition, the Company estimated the future cash flows on each individual loan and made the necessary adjustments to reflect the asset at fair value. At each quarter end subsequent to the acquisition dates, the Company revises the estimates of future cash flows based on current information and makes the necessary adjustments to continue reflecting the assets at fair value. The adjustments to fair value are performed on a loan-by-loan basis and have resulted in the following:

Total Amounts	March 31,   2013		December 31, 2012		March 31,   2012
	(Dollars in thousands)
Adjustments needed where the Company’s initial estimate of cash flows were underestimated: (recorded with a reclassification from non-accretable difference to accretable discount)	$	4,052	$	23,050	$	2,818
Adjustments needed where the Company’s initial estimate of cash flows were overstated: (recorded through a provision for loan losses)		1,600		13,190		1,410
Amounts reflected in the Company’s Statement of Earnings	March 31, 2013		December 31, 2012		March 31, 2012
	(Dollars in thousands)
Adjustments needed where the Company’s initial estimate of cash flows were underestimated: (recorded with a reclassification from non-accretable difference to accretable discount)	$	810	$	4,610	$	564
Adjustments needed where the Company’s initial estimate of cash flows were overstated: (recorded through a provision for loan losses)		320		2,638		282

Schedule of Changes in Accretable Discount Related Acquired Loan

The following is a summary of changes in the accretable discounts of acquired loans during the three months ended March 31, 2013, the year ended December 31, 2012 and the three months ended March 31, 2012:

(Dollars in Thousands)	March 31,   2013			December 31, 2012			March 31,   2012
Balance, January 1	$	16,698		$	29,537		$	29,537
Additions due to acquisitions		—			9,863			9,863
Accretion		(7,218	)		(45,752	)		(12,051	)
Other activity, net		4,052			23,050			2,818
Ending balance	$	13,532		$	16,698		$	30,167

Changes in FDIC Shared Loss Receivable

The shared-loss agreements are subject to the servicing procedures as specified in the agreement with the FDIC. The expected reimbursements under the shared-loss agreements were recorded as an indemnification asset at their estimated fair values on the acquisition dates. Changes in the FDIC shared-loss receivable for the three months ended March 31, 2013, for the year ended December 31, 2012 and for the three months ended March 31, 2012 are as follows:

(Dollars in Thousands)	March 31,   2013			December 31, 2012			March 31,   2012
Balance, January 1	$	159,724		$	242,394		$	242,394
Indemnification asset recorded in acquisitions		—			52,654			52,654
Payments received from FDIC		(6,324	)		(128,730	)		(71,169	)
Effect of change in expected cash flows on covered assets		7,579			(6,594	)		(3,863	)
Ending balance	$	160,979		$	159,724		$	220,016

Loans With Deterioration Of Credit Quality [Member]

Rollforward of Acquired Loans Deterioration of Credit Quality

A rollforward of acquired loans with deterioration of credit quality for the three months ended March 31, 2013, the year ended December 31, 2012 and the three months ended March 31, 2012 is shown below:

(Dollars in Thousands)	March 31,   2013			December 31, 2012			March 31,   2012
Balance, January 1	$	282,737		$	307,790		$	307,790
Change in estimate of cash flows, net of charge-offs or recoveries		(5,391	)		(17,712	)		(3,388	)
Additions due to acquisitions		—			73,414			73,414
Other (loan payments, transfers, etc.)		(22,279	)		(80,755	)		(9,451	)
Ending balance	$	255,067		$	282,737		$	368,365

Loans without Deterioration of Credit Quality [Member]

Rollforward of Acquired Loans Deterioration of Credit Quality

A rollforward of acquired loans without deterioration of credit quality for the three months ended March 31, 2013, the year ended December 31, 2012 and the three months ended March 31, 2012 is shown below:

(Dollars in Thousands)	March 31,   2013			December 31, 2012			March 31,   2012
Balance, January 1	$	228,602		$	266,966		$	266,966
Change in estimate of cash flows, net of charge-offs or recoveries		(2,625	)		1,376			222
Additions due to acquisitions		—			51,368			51,367
Other (loan payments, transfers, etc.)		(20,229	)		(91,108	)		(19,684	)
Ending balance	$	205,748		$	228,602		$	298,871