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Note 20 - Wealth Management Transactions
6 Months Ended
Jun. 30, 2013
Subsequent Events [Text Block]  
Subsequent Events [Text Block]

20. Wealth Management Transactions


In April 2013, the Bank entered into a Transfer Agreement (the “Transfer Agreement”) with Thomasville National Bank (“TNB”), a wholly-owned subsidiary of Thomasville Bancshares, Inc., to transfer designated trust-related accounts of the Bank to TNB. Contemporaneously with entering into the Transfer Agreement, the Bank also entered into an Office Support and Referral Agreement (the “Support Agreement”) with TNB under which the Bank provides office space and other support services in its existing facilities to the TNB employees who provide the trust services. In accordance with the agreements, on June 28, 2013 TNB assumed ownership of the accounts, certain trust employees of the Bank, and all operational and fiduciary responsibility for administering the transferred accounts under the underlying client account agreements. In exchange, beginning on such date in accordance with the Support Agreement the Bank earns a percentage of the ongoing revenues generated from the assets under management in the transferred accounts owned by TNB and any new accounts referred to TNB.


In April 2013, the Bank also entered into a Non-Deposits Investment Products Marketing Agreement (the “Marketing Agreement”) with Investment Professionals, Inc. (“IPI”). IPI will provide brokerage services to clients of the Bank, including as clearing agent, executing purchases and sales of securities products on behalf of and for the account of clients, and maintaining securities in client accounts as agent. At June 30, 2013, the Bank had brokerage assets under management of $195 million. Under the Marketing Agreement, the Bank will provide office space and other support services in its existing facilities to the IPI employees who will provide the brokerage services. In exchange, the Bank will earn a percentage of the ongoing revenues generated from the brokerage assets managed by IPI under the Marketing Agreement. The Marketing Agreement is subject to customary closing conditions and is expected to close on August 1, 2013.


Other than an immaterial amount of contract termination costs, execution of the agreements did not result in the Bank recording any gain or loss.