Legal Proceedings and Contingencies

3 Months Ended

Mar. 31, 2015

Legal Proceedings and Contingencies [Abstract]

Legal Proceedings and Contingencies

Note 15 – Legal Proceedings and Contingencies

The Company is not involved in any legal proceedings which, in management's opinion, could have a material effect on the consolidated financial position of the Company. In November 2014, the Company received a Wells Notice from the SEC related to the Company's alleged failure to disclose certain related party transactions from 2009-2011. Since receipt of the Wells Notice letter, the Company has pursued negotiation discussions with the SEC staff in an attempt to resolve these matters. Based upon the discussion to date, management believes it is more likely than not that a settlement will be reached, involving a cease and desist order regarding these matters, but without any admissions by the Company, and a financial penalty in an amount that is not expected to have a material effect on the Company. Also, see “Part II, Item 1 - Legal Proceedings” for more information.

As discussed above in Note 9, the FDIC has denied $1.2 million in loss share claims that the Company has filed because the FDIC disagrees with the collection strategy that the Company undertook. The Company has notified the FDIC that it is invoking the arbitration provisions contained in the loss share agreement, as the Company believes it did not breach any provisions of the loss share agreement that would invalidate the claims. No allowance or reserve has been established for the disputed amount.