Note 19 - Parent Company Only Financial Information

12 Months Ended

Dec. 31, 2011

Condensed Financial Information of Parent Company Only Disclosure [Text Block]

19. Parent Company Only Financial Information

Earnings of the Savings Bank are recognized by the Holding Company using the equity method of accounting. Accordingly, earnings of the Savings Bank are recorded as increases in the Holding Company’s investment, any dividends would reduce the Holding Company’s investment in the Bank, and any changes in the Savings Bank’s unrealized gain or loss on securities available for sale, net of taxes, would increase or decrease, respectively, the Holding Company’s investment in the Savings Bank. The condensed financial statements for the Holding Company are presented below:

Condensed Statements of Financial Condition	December 31, 2011			December 31, 2010
	(Dollars in thousands)
Assets:
Cash and due from banks	$	18,798		$	18,066
Securities available for sale:
Other securities ($2,612 and $2,563 at fair value pursuant to the fair value option at December 31, 2011 and 2010, respectively)		3,180			3,314
Interest receivable		12			12
Investment in subsidiaries		429,353			405,988
Goodwill		2,185			2,185
Other assets		4,521			4,525
Total assets	$	458,049		$	434,090
Liabilities:
Borrowings (at fair value pursuant to the fair value option at December 31, 2011 and 2010)	$	26,311		$	32,227
Other liabilities		14,827			11,818
Total liabilities		41,138			44,045
Stockholders' Equity:
Preferred stock		-			-
Common stock		315			313
Additional paid-in capital		195,628			189,348
Treasury stock, at average cost (626,418 shares and none at December 31, 2011 and 2010, respectively)		(7,355	)		-
Retained earnings		223,510			204,128
Accumulated other comprehensive income (loss), net of taxes		4,813			(3,744	)
Total equity		416,911			390,045
Total liabilities and equity	$	458,049		$	434,090

	For the years ended December 31,
Condensed Statements of Income	2011			2010			2009
	(In thousands)
Dividends from the Savings Bank	$	20,000		$	10,000		$	-
Interest income		753			750			1,175
Interest expense		(4,325	)		(4,324	)		(4,325	)
Gain on sale of securities		-			-			7
Net (loss) gain from fair value adjustments		5,725			2,253			(1,415	)
Other operating expenses		(746	)		(737	)		(829	)
Income before taxes and equity in undistributed earnings of subsidiary		21,407			7,942			(5,387	)
Income tax (expense) benefit		(585	)		972			2,397
Income before equity in undistributed earnings of subsidiary		20,822			8,914			(2,990	)
Equity in undistributed earnings of the Savings Bank		14,526			29,921			28,551
Net income	$	35,348		$	38,835		$	25,561

	For the years ended December 31,
Condensed Statements of Cash Flows	2011			2010			2009
	(In thousands)
Operating activities:
Net income	$	35,348		$	38,835		$	25,561
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed earnings of the Savings Bank		(14,526	)		(29,921	)		(28,551	)
Net loss on sale of securities		-			-			7
Deferred income tax (benefit) provision		3,003			972			(502	)
Fair value adjustments for financial assets and financial liabilities		(5,726	)		(2,253	)		1,415
Stock based compensation expense		2,720			2,154			2,041
Net change in operating assets and liabilities		1,542			1,499			3,258
Net cash provided by (used in) operating activities		22,361			11,286			3,229
Investing activities:
Purchases of securities available for sale		(37	)		(62	)		(107	)
Proceeds from sales and calls of securities available for sale		-			750			494
Investment in subsidiary		-			-			(23,500	)
Net cash provided by (used in) investing activities		(37	)		688			(23,113	)
Financing activities:
Purchase of treasury stock		(7,722	)		(347	)		(231	)
Cash dividends paid		(15,910	)		(15,788	)		(14,989	)
Issuance of common stock		-			-			101,537
Redemption of preferred stock		-			-			(70,900	)
Stock options exercised		2,040			458			627
Net cash (used in) provided by financing activities		(21,592	)		(15,677	)		16,044
Net (decrease) increase in cash and cash equivalents		732			(3,703	)		(3,840	)
Cash and cash equivalents, beginning of year		18,066			21,769			25,609
Cash and cash equivalents, end of year	$	18,798		$	18,066		$	21,769