Trust Preferred Securities

3 Months Ended

Mar. 31, 2012

TRUST PREFERRED SECURITIES [Abstract]

Trust Preferred Securities [Text Block]

TRUST PREFERRED SECURITIES

In connection with our acquisition of Mercer Insurance Group, we acquired three issuances of Trust Preferred Securities with an outstanding balance as of the acquisition date of $15.5 million. During the three-month period ending March 31, 2012, we redeemed two of the issuances totaling $8.0 million. The following Trust Preferred Security was outstanding as of March 31, 2012:

(In Thousands)	Issue Date	Amount	Interest Rate	Maturity Date
Financial Pacific Statutory Trust III	9/30/2003	$7,579	LIBOR + 4.05%	9/30/2033

Financial Pacific Statutory Trust III (“Trust III”) is a Delaware statutory business trust. Trust III issued 7.5 million shares of the Trust Preferred Securities at a price of $1 per share for $7.5 million and purchased $7.7 million in Junior Subordinated Debentures from Mercer Insurance Group that mature on September 30, 2033. The annual effective rate of interest at March 31, 2012 is 4.63 percent.

We redeemed this issuance in full on April 2, 2012.

Total interest expense for the three-month period ended March 31, 2012 was $0.2 million.