DISCONTINUED OPERATIONS

12 Months Ended

Dec. 31, 2014

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

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 operations of First Bank's Association Bank Services line of business and Northern Florida Region for the years ended December 31, 2013 and 2012, as applicable. 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.

Association Bank Services. On May 13, 2013, First Bank entered into a Purchase and Assumption Agreement that provided for the sale of certain assets and the transfer of certain liabilities, primarily deposits, of First Bank's Association Bank Services (ABS) line of business, to Union Bank, N.A. (Union Bank), headquartered in San Francisco, California. ABS, previously headquartered in Vallejo, California, provided a full range of services to homeowners associations and community management companies. The transaction was completed on November 22, 2013. Under the terms of the agreement, Union Bank assumed $572.1 million of deposits, as well as certain other liabilities, and paid a premium on certain deposit accounts acquired in the transaction. Union Bank also purchased certain assets, including $20.8 million of loans, at par value. The transaction resulted in a gain of $28.6 million, after the write-off of goodwill of $18.0 million allocated to the transaction in the fourth quarter of 2013.

Northern Florida Region. On November 21, 2012, First Bank entered into a Branch Purchase and Assumption Agreement that provided 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. 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 $408,000, after the write-off of goodwill of $700,000 allocated to the Northern Florida Region, primarily 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. The closure of these three remaining retail branches in the Northern Florida Region resulted in expense of $2.3 million during the second quarter of 2013 attributable to continuing obligations under facility leasing arrangements.

Income from discontinued operations, net of tax, for the year ended December 31, 2013 was as follows:

(dollars in thousands)	Association Bank Services			Northern Florida		Total
Year ended December 31, 2013:
Interest income:
Interest and fees on loans	$	1,221		—		1,221
Interest expense:
Interest on deposits	292			233		525
Net interest income (loss)	929			(233	)	696
Provision for loan losses	—			—		—
Net interest income (loss) after provision for loan losses	929			(233	)	696
Noninterest income:
Service charges and client service fees	85			134		219
Other	105			4		109
Total noninterest income	190			138		328
Noninterest expense:
Salaries and employee benefits	3,045			885		3,930
Occupancy, net of rental income	6			579		585
Furniture and equipment	41			40		81
Legal, examination and professional fees	68			—		68
FDIC insurance	671			53		724
Other	743			2,452		3,195
Total noninterest expense	4,574			4,009		8,583
Loss from operations of discontinued operations	(3,455		)	(4,104	)	(7,559	)
Net gain on sale of discontinued operations	28,615			408		29,023
Provision for income taxes	241			—		241
Net income (loss) from discontinued operations, net of tax	$	24,919		(3,696	)	21,223

Loss from discontinued operations, net of tax, for the year ended December 31, 2012 was as follows:

(dollars in thousands)	Association Bank Services			Northern Florida			Total
Year ended December 31, 2012:
Interest income:
Interest and fees on loans	$	1,762		—			1,762
Interest expense:
Interest on deposits	477			972			1,449
Net interest income (loss)	1,285			(972		)	313
Provision for loan losses	—			—			—
Net interest income (loss) after provision for loan losses	1,285			(972		)	313
Noninterest income:
Service charges and client service fees	119			467			586
Other	109			13			122
Total noninterest income	228			480			708
Noninterest expense:
Salaries and employee benefits	2,583			2,279			4,862
Occupancy, net of rental income	12			1,760			1,772
Furniture and equipment	89			278			367
Legal, examination and professional fees	62			5			67
FDIC insurance	1,123			358			1,481
Other	942			351			1,293
Total noninterest expense	4,811			5,031			9,842
Loss from operations of discontinued operations	(3,298		)	(5,523		)	(8,821	)
Benefit for income taxes	—			—			—
Net loss from discontinued operations, net of tax	$	(3,298	)	$	(5,523	)	(8,821	)