DISTRIBUTION OF EARNINGS OF FIRST BANK

12 Months Ended

Dec. 31, 2012

Disclosure of Restrictions on Dividends, Loans and Advances Disclosure [Abstract]

DISTRIBUTION OF EARNINGS OF FIRST BANK

DISTRIBUTION OF EARNINGS OF FIRST BANK

First Bank is restricted by various state and federal regulations as to the amount of dividends that are available for payment to the Company. Under the most restrictive of these requirements, the payment of dividends is limited in any calendar year to the net profit of the current year combined with the retained net profits of the preceding two years. Permission must be obtained for dividends exceeding these amounts. Based on the current level of earnings, permission must be obtained for any payment of dividends from First Bank to the Company. Furthermore, First Bank, under its agreement with the MDOF and the FRB, has agreed, among other things, not to declare or pay any dividends or make certain other payments without the prior consent of the MDOF and the FRB, as further described in Note 14 to the consolidated financial statements.