Dividend and Capital Restrictions

12 Months Ended

Dec. 31, 2011

Disclosure Of Restrictions On Dividends, Loans and Advances Disclosure [Abstract]

Dividend and Capital Restrictions

Note 11: Dividend and Capital Restrictions

Without an application or prior approval of the Federal Reserve Board, but only upon giving prior notice to the Federal Reserve Board (with a copy to the OCC), current regulations allow the Bank to pay dividends to the Company not exceeding net profits (as defined) for the current year plus those for the previous two years. The Bank normally restricts dividends to a lesser amount because of the need to maintain an adequate capital structure. Also, the Bank’s Plan of Conversion from its 1996 conversion from mutual to stock form imposes additional limitations on the amount of distributions to the Company, limiting distributions to prevent the Company’s net worth from being reduced below the amount required for a liquidation account. At December 31, 2011, the stockholder’s equity of the Bank was $39,367,000, of which approximately $36,716,000 was restricted from dividend distribution to the Company.