LEGAL AND OTHER PROCEEDINGS	9 Months Ended
Sep. 30, 2012
LEGAL AND OTHER PROCEEDINGS	12. LEGAL AND OTHER PROCEEDINGS In September 2012, we received a “30-day letter” from the Internal Revenue Service (the “IRS”) on behalf of a trust for which the Bank (as successor to Christiana Bank & Trust (“CB&T”)) serves as trustee. A “30 day letter” is a notice sent by the IRS to a taxpayer giving the taxpayer thirty days to appeal IRS findings. The IRS letter received by the Bank informed the trust of a proposed adjustment to an income tax return filed in 2007 for the 2006 tax year, a period prior to the Bank’s acquisition of CB&T. The IRS has agreed to extend the time that the trust has to respond to the IRS letter to November 30, 2012. The letter informs the trust of a proposed adjustment in income tax of $8.0 million plus interest and penalties in the range of $6.0 million to $10.0 million. We understand the IRS has submitted a similar letter to the grantor of the trust. To date, the IRS has not made any claim against the Bank. Since receiving this letter the Bank has been working with the IRS and our counsel to understand the circumstances relating to the proposed adjustment, interest and penalties and the context in which the transactions relating to the proposed adjustment occurred. We believe the Bank acted properly in its role as trustee. Further, based on the facts currently known to us, we believe any dispute or settlement is between the IRS and the grantor and we believe that if the IRS were to assert a claim against the Bank, the claim would have no merit. The trust intends to communicate this position to the IRS in its response. There were no material changes or additions to other significant pending legal or other proceedings involving us other than those arising out of routine operations. Management does not anticipate that the ultimate liability, if any, arising out of such other proceedings will have a material effect on the Consolidated Financial Statements.

12. LEGAL AND OTHER PROCEEDINGS

In September 2012, we received a “30-day letter” from the Internal Revenue Service (the “IRS”) on behalf of a trust for which the Bank (as successor to Christiana Bank & Trust (“CB&T”)) serves as trustee. A “30 day letter” is a notice sent by the IRS to a taxpayer giving the taxpayer thirty days to appeal IRS findings. The IRS letter received by the Bank informed the trust of a proposed adjustment to an income tax return filed in 2007 for the 2006 tax year, a period prior to the Bank’s acquisition of CB&T. The IRS has agreed to extend the time that the trust has to respond to the IRS letter to November 30, 2012. The letter informs the trust of a proposed adjustment in income tax of $8.0 million plus interest and penalties in the range of $6.0 million to $10.0 million. We understand the IRS has submitted a similar letter to the grantor of the trust. To date, the IRS has not made any claim against the Bank.

Since receiving this letter the Bank has been working with the IRS and our counsel to understand the circumstances relating to the proposed adjustment, interest and penalties and the context in which the transactions relating to the proposed adjustment occurred. We believe the Bank acted properly in its role as trustee. Further, based on the facts currently known to us, we believe any dispute or settlement is between the IRS and the grantor and we believe that if the IRS were to assert a claim against the Bank, the claim would have no merit. The trust intends to communicate this position to the IRS in its response.

There were no material changes or additions to other significant pending legal or other proceedings involving us other than those arising out of routine operations. Management does not anticipate that the ultimate liability, if any, arising out of such other proceedings will have a material effect on the Consolidated Financial Statements.