This excerpt taken from the BPFH 10-Q filed May 12, 2008.
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
During the first quarter, the Company identified certain loans as impaired as defined under FASB Statement No. 114 Accounting by Creditors for Impairment of a Loan (FAS 114). The Company recognized a provision for loan loss of $11.4 million for loans that were written down to the fair value of the underlying collateral. The underlying collateral was valued utilizing market rates for comparable properties less costs to sell.
The Company did not elect to early adopt FAS 157 for nonrecurring measurements of nonfinancial assets or liabilities as allowed under FSP FAS 157-2. As such, the Company did not comply with FAS 157 and required disclosures related to the goodwill impairment loss at FPB as allowed under that statement.