U.S. Treasury Capital Purchase Program

6 Months Ended

Jun. 30, 2011

U.S. Treasury Capital Purchase Program [Abstract]

U.S. Treasury Capital Purchase Program

Note 7 — U.S. Treasury Capital Purchase Program

Pursuant to the U.S. Treasury Capital Purchase Program, on December 12, 2008, the Company issued and sold to the U.S. Treasury (i) 52,372 shares of Bancorp’s Fixed Rate Cumulative Perpetual Preferred Stock, Series A (the “Series A Preferred Stock”) and (ii) a warrant (the “Warrant”) to purchase 2,567,255 shares of the Company’s common stock at an exercise price of $3.06 per share, for an aggregate purchase price of $52,372,000 in cash. The Warrant may be exercised by U.S. Treasury at any time before it expires on December 12, 2018. The fair value of the Warrant of $1,497,000 was estimated on the date of the grant using the Black-Scholes option-pricing model. The Series A Preferred Stock pays cumulative dividends of five percent for the first five years and nine percent thereafter, unless the Company redeems the shares.