Subsequent Events

9 Months Ended

Sep. 30, 2013

Subsequent Events

Subsequent Events

Note 19 — Subsequent Events

Covered OREO Sale

On October 9, 2013, the Company auctioned 51 properties located in various counties in North Georgia and Northwest North Carolina.  All of these assets were held in the Company’s acquired covered OREO portfolio, and were covered under loss share agreements with the FDIC at 95% in the case of CBT or 80% in the case of Habersham Bank.  These assets had a carrying value of approximately $5.2 million, and would reduce the September 30, 2013 balance of OREO by almost 7%.  The expected loss, net of the FDIC reimbursement, was not material.  The Company does expect some portion of the auctioned assets not to close; however, there is no meaningful way of estimating this fallout.

Line of Credit

On October 28, 2013, the Company entered into a Credit Agreement (the “Agreement”) with U.S. Bank National Association (the “Lender”). The Agreement provides for a $30 million unsecured line of credit by the Lender to the Company.  The maturity date of the Agreement is October 27, 2014, provided that the Agreement may be extended subject to the approval of the Lender.  Borrowings by the Company under the Agreement will bear interest at a rate per annum equal to one-month LIBOR plus 1.75%.