Contingencies

6 Months Ended

Jun. 30, 2011

Contingencies

Contingencies

Note 15. Contingencies

In connection with the liquidation of an investment acquired in a previous bank merger, the Company has an outstanding long-term indemnity.  The maximum liability under the indemnity is $23.0 million, but the Company does not expect to make any payments of more than nominal amounts under the terms of this indemnity.

In 2011, the Company received unfavorable judgments through arbitration on two dispute-related legal claims totaling $7.2 million.  Approximately $5.3 million of these judgments are covered by the Company’s insurance policies.  Net charges of $1.2 million were included in Other operating expense in the noninterest expense section of the consolidated statements of income for the six-months ended June 30, 2011.  Net charges of $0.7 million were recognized in the three months ended September 30, 2010.