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Federal Home Loan Bank Stock
12 Months Ended
Dec. 31, 2011
Federal Home Loan Bank Stock [Abstract]  
Federal Home Loan Bank Stock
Note 7.  Federal Home Loan Bank Stock

Restricted stock, which represents a required investment in the common stock of a correspondent bank, is carried at cost and as of December 31, 2011 and December 31, 2010, included the common stock of the FHLB, which is included in other assets.

Management evaluates the restricted stock for impairment in accordance with authoritative accounting guidance under ASC Topic 320, "Investments – Debt and Equity Securities."  Management's determination of whether these investments are impaired is based on their assessment of the ultimate recoverability of their cost rather than by recognizing temporary declines in value.  The determination of whether a decline affects the ultimate recoverability of the cost of an investment is influenced by criteria such as (1) the significance of the decline in net assets of the issuing bank as compared to the capital stock amount for that bank and the length of time this situation has persisted, (2) commitments by the issuing bank to make payments required by law or regulation and the level of such payments in relation to the operating performance of that bank, and (3) the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the issuing bank.

The FHLB of Atlanta neither provides dividend guidance prior to the end of each quarter, nor conducts repurchases of excess activity-based stock on a daily basis, instead making such determinations quarterly.  The FHLB of Atlanta announced on October 27, 2011 that it approved a dividend at the rate of 0.80% for the third quarter of 2011.  The FHLB of Atlanta repurchased $274 of capital stock in the fourth quarter, leaving a remaining balance of $460 in excess FHLB stock as of December 31, 2011.  The excess stock balance represents stock that the Company is not required to hold for which the FHLB is currently unable to redeem.

Based on evaluation of criteria under ASC Topic 320, management believes that no impairment charge in respect of the restricted stock is necessary as of December 31, 2011.