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Commitments And Liabilities
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12 Months Ended |
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Dec. 31, 2011
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| Commitments And Liabilities [Abstract] | |
| Commitments And Liabilities |
14. COMMITMENTS AND LIABILITIES In the ordinary course of its operations, the Company and its subsidiaries are parties to various legal proceedings. Based on the information presently available, and after consultation with legal counsel, management believes that the ultimate outcome in such proceedings, in the aggregate, will not have a material adverse effect on the business or the financial condition or results of operations of the Company. On September 2, 2009, Union Mortgage, a wholly owned subsidiary of the Company, received notice that it was being sued in Maryland state court in a class action lawsuit under the Maryland Secondary Mortgage Loan Law (the "SMLL"). In general, the lawsuit alleged that Union Mortgage, in connection with making second mortgage loans to customers, violated the SMLL by charging certain fees, closing costs and interest in excess of the limitations established by the SMLL. The case was removed to federal court and consolidated for certain pre-trial purposes with approximately 18 other cases brought under the SMLL by the same attorneys. Union Mortgage was a defendant in only one of these cases. On April 23, 2010, Union Mortgage filed an answer and a motion for judgment on the pleadings as to certain issues. In 2011, the lawsuit was dismissed as a result of the parties' confidential settlement with no material financial impact upon either UMG or the Company.
The Company must maintain a reserve against its deposits in accordance with Regulation D of the Federal Reserve Act. For the final weekly reporting period in the years ended December 31, 2011 and 2010, the aggregate amount of daily average required reserves was approximately $14.2 million and $13.2 million, respectively. The Company has approximately $3.0 million in deposits in other financial institutions. The Dodd-Frank Act, which was signed into law on July 21, 2010, provides unlimited deposit insurance coverage for transaction accounts through December 31, 2012. |