Item 8.01 Other Events

On July 2, 2012, BankTrust, an Alabama banking corporation and wholly owned subsidiary of BancTrust Financial Group, Inc., entered into a Final Settlement Agreement (the "Agreement") with Countrywide Home Loans, Inc. ("Countrywide"). Pursuant to the Agreement, BankTrust paid Countrywide $3.520 million as full and final settlement of any and all claims and disputes related to mortgage loans sold by BankTrust or its predecessors in interest to Countrywide prior to July 2, 2012 pursuant to loan purchase agreements between BankTrust, or its predecessors in interest, and Countrywide. The Agreement contains a mutual release whereby BankTrust and Countrywide fully, finally and completely release each other and their respective related parties from any claims and disputes related to the mortgage loans transferred by BankTrust or its predecessors in interest to Countrywide.

The Agreement was made to compromise and settle the claims and disputes at issue and is not an admission of liability or any other matter by either BankTrust or Countrywide.

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