SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2013

SUBSEQUENT EVENTS [Abstract]

Subsequent Events [Text Block]

11. SUBSEQUENT EVENT

On October 16, 2013, the Bank sold 40,000 Visa Class B shares at a gross pre-tax gain of approximately $2.7 million, which will be recorded in non-interest income in the Company’s statement of operations in the fourth quarter of 2013. The Company will also record its current estimate of the related liability of approximately $374 thousand arising from the sale of these shares as an operating expense in the fourth quarter as it retains the risk of future additions to the Visa, Inc. litigation reserve.

The Company continues to own 48,638 Visa Class B shares subsequent to the sale described above.  These shares remain restricted because of the continuing uncertainty of the litigation pending against Visa, Inc.  Accordingly, the Company continues to record its Visa Class B shares at zero pending the outcome of the litigation. To the extent that the Company continues to own Visa Class B shares in the future, the Company expects to record the fair value of those shares upon expiration of the foregoing restriction.