Retained Earnings

12 Months Ended

Dec. 31, 2012

Note 14.

Retained Earnings

Transfers of funds from the banking subsidiary to the Parent Company in the form of loans, advances, and cash dividends are restricted by federal and state regulatory authorities. Federal regulations limit the payment of dividends to the sum of a bank's current net income and retained net income of the three prior years. During the years ended December 31, 2011 and 2010, the Company required and received approval from federal and state regulatory authorities to transfer amounts in excess of dividend restrictions. As of December 31, 2012 the subsidiary bank had approximately $6.8 million in excess of regulatory limitations available for transfer to the Parent Company.