PREFERRED STOCK- U.S. TREASURY DEPARTMENT'S CAPITAL PURCHASE PROGRAM

12 Months Ended

Dec. 31, 2011

PREFERRED STOCK – U.S. TREASURY DEPARTMENT’S CAPITAL PURCHASE PROGRAM [Abstract]

Preferred Stock

PREFERRED STOCK - U.S. TREASURY DEPARTMENT'S CAPITAL PURCHASE PROGRAM

On August 20, 2010, the Company completed an exchange of the Series A Preferred Stock for an equal number of shares, Series B Fixed Rate Cumulative Perpetual Preferred Stock having a liquidation preference of $1,000 per share (“Series B Preferred Stock”), under the Community Development Capital Initiative (“CDCI”), also part of TARP. Neither the Series A nor Series B Preferred Stock has any mandatory redemption and/or conversion features.

Under the CPP terms, the Series A Preferred Stock carried a dividend rate of 5% for the first five years after issuance, payable quarterly, after which the dividend rate increased to 9% until the Series A Preferred Stock is repurchased at its liquidation value. Under the CDCI program, the Series B Preferred Stock carries a dividend rate of 2% for eight years, after which the dividend rate increases to 9% until the Series B Preferred Stock is repurchased at its liquidation value. The Company paid dividends on the Series A Preferred Stock up to the date of closing of the CDCI exchange on August 20, 2010.