Parent Company Condensed Financial Statements

12 Months Ended

Dec. 31, 2011

Parent Company Condensed Financial Statements [Abstract]

Parent Company Condensed Financial Statements [Text Block]

(14) Parent Company Condensed Financial Statements

The following is condensed financial information of the parent company as of December 31, 2011 and 2010, and for the years ended December 31, 2011, 2010 and 2009:

Condensed Balance Sheets

(Dollars in thousands)	As of December 31,
	2011		2010
Assets:
Cash	$	15	$	13
Investment securities		1,107		1,115
Investment in Bank		75,370		72,268
Other		779		776
Total assets	$	77,271	$	74,172
Liabilities and stockholders’ equity:
Other borrowings	$	18,136	$	20,336
Other		15		19
Stockholders’ equity		59,120		53,817
Total liabilities and stockholders’ equity	$	77,271	$	74,172

Condensed Statements of Earnings

(Dollars in thousands)	Years ended December 31,
	2011			2010			2009
Dividends from Bank	$	4,723		$	2,910		$	2,709
Interest income		21			32			53
Other non-interest income		7			7			7
Interest expense		(607	)		(743	)		(792	)
Other expense, net		(341	)		(219	)		(244	)
Earnings before equity in undistributed earnings of Bank		3,803			1,987			1,733
Increase/(decrease) in undistributed equity of Bank		367			(260	)		1,199
Earnings before income taxes		4,170			1,727			2,932
Income tax benefit		(314	)		(316	)		(340	)
Net earnings	$	4,484		$	2,043		$	3,272

Condensed Statements of Cash Flows

(Dollars in thousands)	Years ended December 31,
	2011			2010			2009
Cash flows from operating activities:
Net earnings	$	4,484		$	2,043		$	3,272
(Increase)/decrease in undistributed equity of Bank		(367	)		260			(1,199	)
Loss on impairment of investment securities		72			9			-
Other		(30	)		(50	)		35
Net cash provided by operating activities		4,159			2,262			2,108
Cash flows from investing activities:
Purchase of investment securities		-			(74	)		-
Proceeds from sales and maturities of  investment securities		-			-			150
Net cash (used in) provided by investing activities		-			(74	)		150
Cash flows from financing activities:
Issuance of shares under stock option plan		57			228			-
Proceeds from other borrowings		-			2,398			3,185
Repayments on other borrowings		(2,200	)		(2,910	)		(3,618	)
Purchase of treasury stock		-			-			(12	)
Payment of dividends		(2,014	)		(1,908	)		(1,806	)
Net cash used in financing  activities		(4,157	)		(2,192	)		(2,251	)
Net increase (decrease) in cash		2			(4	)		7
Cash at beginning of year		13			17			10
Cash at end of year	$	15		$	13		$	17

Dividends paid by the Company are provided through dividends from the Bank. At December 31, 2011, the Bank could distribute dividends of up to $1.3 million without regulatory approvals. The primary source of funds for the Company is dividends from the Bank. Under the National Bank Act, a national bank may pay dividends out of its undivided profits in such amounts and at such times as the bank’s board of directors deems prudent. Without prior OCC approval, however, a national bank may not pay dividends in any calendar year that, in the aggregate, exceed the bank’s year-to-date net income plus the bank’s retained net income for the two preceding years. The payment of dividends by any financial institution is affected by the requirement to maintain adequate capital pursuant to applicable capital adequacy guidelines and regulations, and a financial institution generally is prohibited from paying any dividends if, following payment thereof, the institution would be undercapitalized.