Note 21 - Variable Interest Entities

12 Months Ended

Dec. 31, 2011

Equity Method Investments Disclosure [Text Block]

21.   VARIABLE INTEREST ENTITIES (“VIE”s)

A VIE is a partnership, limited liability company, trust, or other legal entity that does not have sufficient equity to finance its activities without additional subordinated financial support from other parties, or whose investors lack one of three characteristics associated with owning a controlling financial interest. Those characteristics are: (i) the direct or indirect ability to make decisions about an entity’s activities through voting rights or similar rights; (ii) the obligation to absorb the expected losses of an entity, if they occur; and (iii) the right to receive the expected residual returns of the entity, if they occur.

GAAP requires VIEs to be consolidated by the party that has both (i) the ability to direct the VIE’s activities that most impact the entity’s economic performance and (ii) the exposure to a majority of the VIE’s expected losses and/or residual returns (i.e., meets the definition of the primary beneficiary). The following table summarizes the VIEs in which the Company has an interest.

	December 31, 2011						December 31, 2010
	Number of VIEs		Carrying Amount of Assets		Maximum Exposure to Loss		Number of VIEs		Carrying Amount of Assets		Maximum Exposure to Loss
FMCT:
Principal balance of debentures issued by the Company			$	87,277	$	87,277			$	87,273	$	87,273
Related interest receivable				506		506				506		506
Total FMCT assets		1	$	87,783	$	87,783		1	$	87,779	$	87,779
Interest in trust-preferred capital securities issuances		1	$	32	$	31		1	$	32	$	31
Investment in low-income housing tax credit partnerships		12	$	1,066	$	1,011		12	$	1,546	$	1,222

The Company owns 100% of the common stock of FMCT, a business trust that was formed in November 2003 to issue trust-preferred securities to third party investors. FMCT issued preferred securities and common stock and used the proceeds to purchase junior subordinated debentures issued by the Company. FMCT’s only assets as of December 31, 2011 and 2010 were the principal balance of the debentures and the related interest receivable. FMCT meets the definition of a VIE, but the Company is not the primary beneficiary of FMCT. Accordingly, FMCT is not consolidated in the Company’s financial statements. The subordinated debentures issued by the Company to FMCT are included in senior and subordinated debt in the Company’s Consolidated Statements of Financial Condition.

The Company holds an interest in one trust-preferred capital securities issuance. Although this investment may meet the definition of a VIE, the Company is not the primary beneficiary. The Company accounts for its interest in this investment as an available-for-sale security.

The Company has limited partner interests in low-income housing tax credit partnerships and limited liability corporations, which were acquired at various times from 1997 to 2004. These entities meet the definition of a VIE. Since the Company is not the primary beneficiary of the entities, it accounts for its investment using the cost method. The carrying amount of the Company’s investment in these partnerships is included in other assets in the Consolidated Statements of Financial Condition.