Condensed Financial Statements Of Parent Company

12 Months Ended

Dec. 31, 2011

Condensed Financial Statements Of Parent Company [Abstract]

Condensed Financial Statements Of Parent Company

NOTE 19. CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY

     Our investment in our wholly-owned subsidiaries is presented on the equity method of accounting. Information relative to our balance sheets at December 31, 2011 and 2010, and the related statements of income and cash flows for the years ended December 31, 2011, 2010 and 2009, are presented as follows:

Balance Sheets

	December 31,
Dollars in thousands	2011		2010
Assets
Cash	$	8,466	$	4,608
Investment in subsidiaries, eliminated in consolidation		141,098		132,767
Securities available for sale		92		1,173
Premises and equipment		12		33
Accrued interest receivable		2		6
Cash surrender value of life insurance policies		43		48
Other assets		1,425		1,050
Total assets	$	151,138	$	139,685
Liabilities and Shareholders' Equity
Short-term borrowings	$	-	$	-
Long-term borrowings		9,929		11,734
Subordinated debentures		16,800		16,800
Subordinated debentures owed to unconsolidated subsidiary trusts		19,589		19,589
Other liabilities		2,254		1,741
Total liabilities		48,572		49,864
Preferred stock and related surplus, $1.00 par value, authorized 250,000 shares:
Series 2009, 8% Non-cumulative convertible preferred stock,
par value $1.00; 3,710 shares issued		3,519		3,519
Series 2011, 8% Non-cumulative convertible preferred stock,
par value $1.00; 2011 - 12,000 shares issued		5,807		-
Common stock and related surplus, $2.50 par value, authorized
20,000,000 shares; issued 7,425,472 shares		24,518		24,508
Retained earnings		64,904		61,201
Accumulated other comprehensive income		3,818		593
Total shareholders' equity		102,566		89,821
Total liabilities and shareholders' equity	$	151,138	$	139,685

	For the Year Ended December 31,
Dollars in thousands	2011			2010			2009
Income
Dividends from subsidiaries	$	500		$	500		$	1,000
Other dividends and interest income		19			17			25
Realized securities gains		1,112			343			-
Other-than-temporary impairment of securities		-			-			(215	)
Management and service fees from subsidiaries		1,044			1,083			6,624
Total income		2,675			1,943			7,434
Expense
Interest expense		1,833			1,934			1,916
Operating expenses		1,641			1,724			6,950
Total expenses		3,474			3,658			8,866
Income (loss) before income taxes and equity in
undistributed income of subsidiaries		(799	)		(1,715	)		(1,432	)
Income tax (benefit)		(426	)		(829	)		(905	)
Income (loss) before equity in undistributed income of subsidiaries		(373	)		(886	)		(527	)
Equity in (distributed) undistributed income of subsidiaries		4,447			(1,089	)		(189	)
Net income (loss)		4,074			(1,975	)		(716	)
Dividends on preferred shares		371			297			74
Net income (loss) applicable to common shares	$	3,703		$	(2,272	)	$	(790	)

Statements of Income

Statements of Cash Flows
		For the Year Ended December 31,
Dollars in thousands		2011		2010		2009
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	4,074	$	(1,975	) $	(716	)
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Equity in (undistributed) distributed net income of
subsidiaries		(4,447	)	1,089		189
Deferred tax expense		(11	)	(120	)	(146	)
Depreciation		21		113		612
Other-than-temporary impairment of securities		-		-		215
Realized securities (gains)		(1,111	)	(343	)	-
Stock compensation expense		10		-		-
(Increase) decrease in cash surrender value of bank owned life insurance		5		(11	)	(56	)
(Increase) decrease in other assets		43		(729	)	(1,009	)
Increase (decrease) in other liabilities		439		883		(178	)
Net cash provided by (used in) operating activities		(977	)	(1,093	)	(1,089	)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in subsidiaries		-		(4,824	)	(5,500	)
Proceeds sales of available for sale securities		1,130		356		-
Purchase of available for sale securities		-		-		(37	)
Proceeds from sales of premises and equipment		-		5,552		-
Purchases of premises and equipment		-		(4	)	(64	)
Proceeds from sale of other assets		-		1,322		-
Net cash provided by (used in) investing activities		1,130		2,402		(5,601	)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid to shareholders		-		-		(445	)
Dividends paid on preferred stock		(297	)	(297	)	-
Exercise of stock options		-		-		43
Reinvested dividends		-		-		12
Net increase (decrease) in short-term borrowings		-		(2,666	)	467
Repayment of long-term borrowings		(1,805	)	(902	)	-
Proceeds from issuance of subordinated debentures		-		-		6,762
Net proceeds from issuance of preferred stock		5,807		-		3,519
Net cash provided by (used in) financing activities		3,705		(3,865	)	10,358
Increase (decrease) in cash		3,858		(2,556	)	3,668
Cash:
Beginning		4,608		7,164		3,496
Ending	$	8,466	$	4,608	$	7,164
SUPPLEMENTAL DISCLOSURES OF CASH
FLOW INFORMATION
Cash payments for:
Interest	$	1,832	$	1,941	$	1,936