Subsequent Events

6 Months Ended

Jun. 30, 2011

Subsequent Events

Subsequent Events

Note 13.  Subsequent Events

Litigation

On February 15, 2011, a purported class action lawsuit was filed in the Circuit Court of the First Circuit, State of Hawaii, by customers who claimed that the Bank had improperly charged overdraft fees on debit card transactions.  The lawsuit is similar to industry lawsuits filed against other financial institutions pertaining to overdraft fee debit card transactions.  On July 15, 2011, the Company reached a tentative settlement with the plaintiffs subject to documentation and court approvals.  The tentative settlement provides for a payment by the Company of $9.0 million into a class settlement fund, the proceeds of which will be used to refund class members and to pay attorneys’ fees and administrative and other costs, in exchange for a complete release of all claims asserted against the Company.  As of June 30, 2011, the $9.0 million tentative settlement amount was fully accrued for by the Company.

Partial Recovery on a Previously Charged-Off Leveraged Lease

In July 2011, the Company received a $3.4 million partial recovery on a previously charged-off leveraged lease.  Management will include the recovery in the assessment of the overall adequacy of the Allowance as of September 30, 2011.