Other Assets

3 Months Ended

Mar. 31, 2012

Other Assets [Abstract]

Other Assets [Text Block]

Note 6 -- Other Assets

Federal Home Loan Bank stock is a required investment for institutions that are members of the Federal Home Loan Bank system.  The required investment in the common stock is based on a predetermined formula. The Company owned approximately $3.2 million and $3.7 million of Federal Home Loan Bank of Chicago (FHLBC) stock included in other assets as of March 31, 2012 and December 31, 2011, respectively. The decrease in balance is due to the redemption of approximately $537,000 (5,374 shares) during the first quarter of 2012, under the FHLBC capital stock conversion plan approved during 2011.

Previously, the FHLBC received a Cease and Desist Order from its regulator, the Federal Housing Finance Agency (FHFA). In April 2012, FHFA terminated the Cease and Desist Order.

With regard to dividends, the FHLBC continues to assess its dividend capacity each quarter and make appropriate request for approval. The FHLBC declared and paid dividends at an annualized rate of 10 basis points per share during the first quarter of 2012 and each quarter of 2011. The Company evaluated its cost investment in FHLBC stock and deemed it was ultimately recoverable.