PREFERRED STOCK AND COMMON STOCK WARRANTS

9 Months Ended

Sep. 30, 2011

PREFERRED STOCK AND COMMON STOCK WARRANTS [Abstract]

PREFERRED STOCK AND COMMON STOCK WARRANTS

7. PREFERRED STOCK AND COMMON STOCK WARRANTS

On September 15, 2011, the Company issued to the U.S. Treasury under the United States Department of Treasury Small Business Lending Fund (SBLF) 22,847 shares of the Company's Non-Cumulative Perpetual Preferred Stock, Series A (SBLF Shares), having a liquidation preference per share equal to $1,000, for an aggregate purchase price of $22,847,000.

On September 15, 2011, the Company redeemed from the U.S. Treasury, using the partial proceeds from the issuance of the SBLF Shares, all 17,390 outstanding shares of its Fixed Rate Cumulative Perpetual Preferred Stock, Series A, liquidation amount $1,000 per share, for a redemption price of $17,390,000, plus accrued but unpaid dividends at the date of redemption.  The warrant issued on March 13, 2009 to the U.S. Treasury to purchase 352,977 shares of the Company's common stock at an exercise price of $7.39 per share remains outstanding.  The warrant, if not exercised, will expire ten years after the issuance date.