Note 2 - Proposed Merger with United Community Banks, Inc.

6 Months Ended

Jun. 30, 2015

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

2.     Proposed Merger with United Community Banks, Inc.

On April 22, 2015, the Company and United jointly announced the signing of the Merger Agreement. Following the merger, the Bank will operate under the brand of United Community Bank.

Pursuant to the Merger Agreement and subject to certain conditions and potential adjustments, for each share of the Company’s common stock the Company’s shareholders will have the right to receive 0.97 shares of United’s common stock, $19.25 in cash, or a combination thereof. The total merger consideration will be prorated as necessary to ensure that 30% of the total outstanding shares of the Company’s common stock will be exchanged for cash and 70% of the total outstanding shares of the Company’s common stock will be exchanged for shares of United’s common stock. Shares of the Company’s common stock exchanged for United’s stock will convert into shares of United’s common stock in a tax free exchange. Cash will also be received in lieu of fractional shares of United’s common stock.

United has received all required regulatory approvals, and the Company has scheduled a special shareholders meeting to be held on August 12, 2015 to provide its shareholders with the opportunity to vote on the merger. Assuming approval of the merger by the Company’s shareholders and the satisfaction of other customary closing conditions, the merger is expected to close on September 1, 2015.

For the six months ended June 30, 2015, the Company incurred merger-related expenses of $1.4 million representing primarily investment banking, legal, accounting and other professional fees incurred in connection with the proposed merger.