Commitments and Contingencies

12 Months Ended

Dec. 31, 2011

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

COMMITMENTS AND CONTINGENCIES

In the normal course of business, the Company is involved in various claims and litigation. In the opinion of management, following consultation with legal counsel, the ultimate liability or disposition thereof is not expected to have a material adverse effect on the consolidated financial condition, results of operations or liquidity of the Company.

The Company had commitments under construction contracts of $4,006 as of December 31, 2011.

The Company had commitments to purchase held-to-maturity municipal investment securities of $1,916 as of December 31, 2011.

The Company leases certain premises and equipment from third parties under operating leases. Total rental expense to third parties was $2,030 in 2011, $1,960 in 2010 and $2,425 in 2009.

The total future minimum rental commitments, exclusive of maintenance and operating costs, required under operating leases that have initial or remaining noncancelable lease terms in excess of one year at December 31, 2011, are as follows:

	Third Parties		Related Partnership		Total
For the year ending December 31:
2012	$	1,008	$	2,071	$	3,079
2013	922		1,916		2,838
2014	835		1,755		2,590
2015	812		1,199		2,011
2016	745		—		745
Thereafter	4,572		—		4,572
Total	$	8,894	$	6,941	$	15,835

The Parent Company and the Billings office of FIB are the anchor tenants in a building owned by a partnership in which FIB is one of two partners, and has a 50% partnership interest.

In 2008, Visa, Inc. completed a restructuring and issued shares of Class B Visa, Inc. common stock to its financial members, including 60,108 shares to the Company. In September 2009, the Company sold all of its Visa Class B shares for $2,128. In conjunction with the sale, the Company entered into a derivative contract whereby the Company will make or receive payments based on subsequent changes in the conversion rate of Class B Visa common shares in Class A Visa common shares, which is subject to adjustment depending on the outcome of certain specifically defined litigation against Visa, Inc. The value of the derivative liability contract is estimated based on the Company's expectations regarding the ultimate resolution of the Visa, Inc. litigation, which involves a high degree of judgment and subjectivity. This litigation had not been resolved as of December 31, 2011. As of December 31, 2011 and 2010, a liability of $383 and $86, respectively, related to the derivative contract is included in accounts payable and accrued expenses. The derivative contract is collateralized by $1,021 of U.S. government agency investment securities.

Residential mortgage loans sold to investors in the secondary market are sold with varying recourse provisions. Essentially all of the loan sales agreements require the repurchase of a mortgage loan by the seller in situations such as breach of representation, warranty or covenant; untimely document delivery; false or misleading statements; failure to obtain certain certificates or insurance; unmarketability; etc. Certain loan sales agreements contain repurchase requirements based on payment-related defects that are defined in terms of the number of days or months since the purchase, the sequence number of the payment, and/or the number of days of payment delinquency. Based on the specific terms stated in the agreements, the Company had $13,839 and $18,122 of sold residential mortgage loans with recourse provisions still in effect as of December 31, 2011 and 2010, respectively. The Company did not repurchase any significant amount of loans from secondary market investors under the terms of loan sales agreements during the years ended December 31, 2011, 2010 and 2009. In the opinion of management, the risk of recourse and the subsequent requirement of loan repurchase to the Company is not significant, and accordingly no liabilities have been established related to such. In addition, the Company issues various representations and warranties associated with the sale of loans. The Company has not incurred significant losses resulting from these provisions