Subsequent Events

6 Months Ended

Jun. 30, 2012

Subsequent Events

12. Subsequent Events

The Bank holds OREO resulting from the foreclosure in July, 2010 of three loans to the same borrower with an outstanding principal balance aggregate approximately $4.8 million. The Bank also sued the guarantor of the borrower. Certain personal property of the borrower tied to the real estate securing the loans became the subject of an eminent domain action filed in June, 2008 by a government agency against the borrower. That eminent domain action was settled on July 17, 2012, and as part of the settlement, the Bank will be paid $2,908,000 in settlement of the Bank’s action against the guarantor. The Bank expects to receive the funds during the third quarter of 2012. The Bank continues to hold the OREO for sale.