Parent Only Condensed Financial Statements

12 Months Ended

Dec. 31, 2012

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Parent Only Condensed Financial Statements

PARENT ONLY CONDENSED FINANCIAL STATEMENTS

CONDENSED BALANCE SHEETS

December 31, 2012 and 2011

(In thousands)

	2012		2011
ASSETS
Cash and cash equivalents	$	2,807	$	969
Investment in Bank subsidiary	119,812		111,357
Other assets	576		508
Total assets	$	123,195	$	112,834
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Junior subordinated debentures due to subsidiary grantor trust	$	5,155	$	5,155
Other liabilities	375		197
Total liabilities	5,530		5,352
Shareholders’ equity:
Preferred stock, Series C	7,000		7,000
Common stock	40,583		40,552
Retained earnings	62,496		55,806
Accumulated other comprehensive income, net of tax	7,586		4,124
Total shareholders’ equity	117,665		107,482
Total liabilities and shareholders’ equity	$	123,195	$	112,834

CONDENSEDSTATEMENTS OF INCOME AND COMPREHENSIVE INCOME

For the Years Ended December 31, 2012, 2011, and 2010

(In thousands)

	2012		2011			2010
Income:
Dividends declared by Subsidiary - eliminated in consolidation	$	3,000	$	—		$	—
Other income	3		3			3
Total income	3,003		3			3
Expenses:
Interest on junior subordinated deferrable interest debentures	107		100			102
Professional fees	140		148			147
Other expenses	587		352			329
Total expenses	834		600			578
Income (loss) before equity in undistributed net income of Subsidiary	2,169		(597		)	(575		)
Equity in undistributed net income of Subsidiary	4,993		6,854			3,657
Income before income tax benefit	7,162		6,257			3,082
Benefit from income taxes	358		220			197
Net income	7,520		6,477			3,279
Preferred stock dividend and accretion of discount	350		486			395
Income available to common shareholders	$	7,170	$	5,991		$	2,884
Comprehensive income	$	10,982	$	9,634		$	5,701

CONDENSEDSTATEMENTS OF CASH FLOWS

For the Years Ended December 31, 2012, 2011, and 2010

(In thousands)

	2012			2011			2010
Cash flows from operating activities:
Net income	$	7,520		$	6,477		$	3,279
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Undistributed net income of subsidiary, net of distributions	(4,993		)	(6,854		)	(3,657		)
Stock-based compensation	108			196			239
Tax benefit from exercise of stock options	(26		)	(116		)	(28		)
Net (increase) decrease in other assets	(28		)	(50		)	170
Net increase (decrease) in other liabilities	179			(23		)	23
Benefit for deferred income taxes	(15		)	(36		)	(43		)
Net cash provided by (used in) operating activities	2,745			(406		)	(17		)
Cash flows from financing activities:
Cash dividend payments on common stock	(480		)	—			—
Cash dividend payments on preferred stock	(350		)	(307		)	(349		)
Share repurchase and retirement	(488		)	—			—
Proceeds from exercise of stock options	385			680			550
Warrant purchase	—			(185		)	—
Tax benefit from exercise of stock options	26			116			28
Net cash (used in) provided by financing activities	(907		)	304			229
Increase (decrease) in cash and cash equivalents	1,838			(102		)	212
Cash and cash equivalents at beginning of year	969			1,071			859
Cash and cash equivalents at end of year	$	2,807		$	969		$	1,071
Cash paid during the year for interest	$	109		$	98		$	101
Non-cash investing and financing activities:
Redemption of preferred stock Series A and issuance of preferred stock Series C	$	—		$	7,000		$	—