Subsequent Events

9 Months Ended

Sep. 30, 2016

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including estimates inherent in the process of preparing financial statements. Nonrecognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. Management has reviewed all events occurring through the date the consolidated financial statements were available to be issued and determined that the following subsequent event required disclosure.

On September 29, 2010, the Company issued 22,000 shares of Series B Fixed Rate Cumulative Perpetual Preferred Stock to the United States Department of the Treasury (“Treasury”) in connection with its participation in the Community Development Capital Initiative.

On October 31, 2016, the Company repurchased all 22,000 shares of its Series B Fixed Rate Cumulative Perpetual Preferred Stock from Treasury for a repurchase amount of $21.3 million plus accrued but unpaid interest of $93,000 for a total payment amount of $21.4 million. In connection with this repurchase, the Company obtained a $14 million term loan with another financial institution. The loan accrues and pays interest quarterly at a floating rate of the Wall Street Journal Prime index minus 30 basis points.  The note matures on October 1, 2019.