Dividends and Other Restrictions

12 Months Ended

Dec. 31, 2011

Dividends and Other Restrictions

Dividends and Other Restrictions

 

Note 17 — Dividends and Other Restrictions

Certain restrictions, including capital requirements, exist on the availability of undistributed net profits of the Bank for the future payment of dividends to the Parent Corporation. A dividend may not be paid if it would impair the capital of the Bank. Furthermore, prior approval by the Comptroller of the Currency is required if the total of dividends declared in a calendar year exceeds the total of the Bank's net profits for that year combined with the retained profits for the two preceding years. The Office of the Comptroller of the Currency (the "OCC") has determined that the Memorandum of Understanding (the "MOU") that had previously been entered into by the Bank is no longer required and, accordingly, the OCC has terminated the MOU. Therefore, the Bank may declare dividends without prior approval of the OCC. At December 31, 2011, approximately $22.3 million was available for payment of dividends based on the preceding guidelines.