Item 8.01 Other Events.

On January 25, 2013, Atlantic States Insurance Company ("Atlantic States"), our largest insurance subsidiary and a member of the Federal Home Loan Bank of Pittsburgh (the "FHLB"), issued secured debt in the principal amount of $10.0 million to the FHLB in exchange for a cash advance in the amount of $10.0 million.

Also on January 25, 2013, Atlantic States provided a loan in the amount of $10.0 million to us in exchange for our unsecured note payable in the principal amount of $10.0 million. The note payable has a repayment date of January 25, 2023.

On January 28, 2013, we used the loan proceeds we received from Atlantic States to prepay $10.3 million of subordinated debentures we issued on October 29, 2003.

The use of FHLB borrowings to prepay our subordinated debentures will allow us to reduce our interest expense significantly.

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