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Commitments and Contingencies
12 Months Ended
Dec. 31, 2012
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
COMMITMENTS AND CONTINGENCIES

In the normal course of business, the Company is involved in various claims and litigation. In the opinion of management, following consultation with legal counsel, the ultimate liability or disposition thereof is not expected to have a material adverse effect on the consolidated financial condition, results of operations or liquidity of the Company.

The Company had commitments under construction contracts of $197 as of December 31, 2012.

The Company leases certain premises and equipment from third parties under operating leases. Total rental expense to third parties was $1,423 in 2012, $2,030 in 2011 and $1,960 in 2010.

The total future minimum rental commitments, exclusive of maintenance and operating costs, required under operating leases that have initial or remaining noncancelable lease terms in excess of one year at December 31, 2012, are as follows:
 
Third
Parties
 
Related
Partnership
 
Total
For the year ending December 31:
 
 
 
 
 
2013
$
1,110

 
$
2,111

 
$
3,221

2014
1,062

 
2,020

 
3,082

2015
1,005

 
1,438

 
2,443

2016
919

 
165

 
1,084

2017
633

 
83

 
716

Thereafter
4,170

 

 
4,170

Total
$
8,899

 
$
5,817

 
$
14,716



The Parent Company and the Billings office of FIB are the anchor tenants in a building owned by a partnership in which FIB is one of two partners, and has a 50% partnership interest.
In conjunction with the sale of all of its Class B shares of Visa, Inc. common stock ("Visa common shares") in 2009, the Company entered into a derivative contract with the purchaser whereby the Company will make or receive payments based on subsequent changes in the conversion rate of Class B Visa common shares in Class A Visa common shares. The conversion rate is dependent upon the resolution of certain specifically defined litigation against Visa, U.S.A.. The value of the derivative contract is estimated based on the Company's expectations regarding the ultimate resolution of the Visa, U.S.A. litigation, which involves a high degree of judgment and subjectivity. On November 9, 2012, the court granted preliminary approval of a settlement agreement resolving all claims associated with the specifically defined litigation; however, objections to the preliminary approval have been filed. Final court approval of the settlement agreement is expected in late 2013. As of December 31, 2012, all estimated amounts due under the derivative liability contract were paid. As of December 31, 2011, a liability of $383 related to the derivative contract was included in accounts payable and accrued expenses. The derivative contract is collateralized by $1,000 of U.S. government agency investment securities.

Residential mortgage loans sold to investors in the secondary market are sold with varying recourse provisions. Essentially all of the loan sales agreements require the repurchase of a mortgage loan by the seller in situations such as breach of representation, warranty or covenant; untimely document delivery; false or misleading statements; failure to obtain certain certificates or insurance; unmarketability; etc. Certain loan sales agreements contain repurchase requirements based on payment-related defects that are defined in terms of the number of days or months since the purchase, the sequence number of the payment, and/or the number of days of payment delinquency. Based on the specific terms stated in the agreements, the Company had $19,877 and $13,839 of sold residential mortgage loans with recourse provisions still in effect as of December 31, 2012 and 2011, respectively. The Company did not repurchase any significant amount of loans from secondary market investors under the terms of loan sales agreements during the years ended December 31, 2012, 2011 and 2010. In the opinion of management, the risk of recourse and the subsequent requirement of loan repurchase to the Company is not significant, and accordingly no liabilities have been established related to such. In addition, the Company issues various representations and warranties associated with the sale of loans. The Company has not incurred significant losses resulting from these provisions.