Reserve For Repurchased Loans

9 Months Ended

Sep. 30, 2011

Reserve For Repurchased Loans [Abstract]

Reserve For Repurchased Loans

Note 6. Reserve for Repurchased Loans

An analysis of the reserve for repurchased loans for the three and nine months ended September 30, 2011 and 2010 is as follows (in thousands). The reserve is included in other liabilities in the accompanying statements of financial condition.

	Three months ended September 30,				Nine months ended September 30,
	2011		2010		2011		2010
Balance at beginning of period	$	809	$	809	$	809	$	819
Recoveries		—		—		—		—
Loss on loans repurchased		—		—		—		(10	)
Balance at end of period	$	809	$	809	$	809	$	809

The reserve for repurchased loans was established to provide for expected losses related to outstanding loan repurchase requests and additional repurchase requests which may be received on loans previously sold to investors. In establishing the reserve for repurchased loans, the Company considered all types of sold loans. At September 30, 2011, there was one outstanding loan repurchase request on a loan with a total principal balance of $180,000. There are also seven claims from one loan investor totaling $2.8 million that the Company believes are covered by a settlement agreement and release between Columbia and the loan investor executed in August 2007. The Company has vigorously contested these claims and believes there are valid defenses, including the settlement and release agreement.