Subsequent Events

9 Months Ended

Sep. 30, 2011

Note 16 – Subsequent Event

On October 21, 2011, the Company entered into a Branch Purchase and Assumption Agreement (“The Agreement”). The Agreement, between the Company's subsidiary, First Bank, and Waccamaw Bankshares, Inc., and its subsidiary, Waccamaw Bank, provides for First Bank to acquire eleven branches from Waccamaw Bank, which includes assuming all deposits, selected performing loans, and all premises and equipment. Deposits total approximately $180 million and loans total approximately $98 million.

The Agreement provides for the deposits to be purchased at the following premiums by account type, which was expected at the announcement date to result in a blended premium of approximately 1.5% of total deposits:

5.0% for noninterest demand deposit accounts

3.5% for negotiable order of withdrawal (“NOW”) accounts

3.0% for savings accounts

1.5% for money market accounts

0.0% for certificates of deposit

The Agreement provides for loans to be purchased at par (the amount of principal outstanding and interest receivable) and for premises and equipment to be purchased at net book value. Approximately $31 million of the $98 million in loans being acquired are subject to a provision in the Agreement allowing First Bank to put the loans back to Waccamaw Bank at par value for any reason within 20 months following the closing date of the transaction. The Agreement, which is expected to close during the first quarter of 2012, is subject to regulatory approval and other customary conditions.