CONDENSED FINANCIAL INFORMATION - PARENT COMPANY ONLY

12 Months Ended

Dec. 31, 2012

CONDENSED FINANCIAL INFORMATION - PARENT COMPANY ONLY

CONDENSED FINANCIAL INFORMATION - PARENT COMPANY ONLY

Note 20.  CONDENSED FINANCIAL INFORMATION — PARENT COMPANY ONLY

Condensed parent company only financial information is as follows:

Condensed Statements of Condition

	December 31,
(in thousands)	2012		2011
Assets
Cash	$	355	$	353
Investment in statutory trust	358		351
Investment in subsidiary (equity method)	77,301		77,842
Other assets	46		—
Total assets	$	78,060	$	78,546
Liabilities and Shareholders’ Equity
Junior subordinated debentures	$	10,310	$	10,310
Subordinated debentures	25,000		25,000
Accrued interest payable	5,822		3,310
Other liabilities	3		1
Shareholders’ equity	36,925		39,925
Total liabilities and shareholders’ equity	$	78,060	$	78,546

Condensed Statements of Operations

	Year Ended December 31,
(in thousands)	2012			2011			2010
Income
Equity in undistributed (loss) income of subsidiary	$	(11,206	)	$	2,248		$	(29,076	)
Equity in trust	7			4			6
Total (loss) income	(11,199		)	2,252			(29,070		)
Expense	2,512			2,587			2,650
Net loss	$	(13,711	)	$	(335	)	$	(31,720	)

Condensed Statements of Cash Flows

	For the Year Ended
(in thousands)	2012			2011			2010
Cash Flows from Operating Activities:
Net loss	$	(13,711	)	$	(335	)	$	(31,720	)
Adjustments to reconcile net loss to net cash provided (used) by operating activities:
Equity in undistributed loss (income) of subsidiary	11,206			(2,248		)	29,076
Equity in trust	(7		)	(4		)	(6		)
Stock-based compensation	46			—			—
Increase in other assets	(46		)	—			—
Increase in accrued interest payable	2,512			2,486			628
Increase in other liabilities	2			—			—
Net cash used by operating activities	2			(101		)	(2,022		)
Cash Flows from Investing Activities:
Investment in capital of subsidiary	—			(3,000		)	(1,520		)
Net cash used by investing activities	—			(3,000		)	(1,520		)
Cash Flows from Financing Activities:
Increase in borrowed funds	—			—			1,900
Cash dividends	—			—			—
Proceeds from issuance of common stock, net of stock issuance costs	—			29			528
Net cash provided by financing activities	—			29			2,428
Increase (decrease) in cash	2			(3,072		)	(1,114		)
Cash at beginning of year	353			3,425			4,539
Cash at end of year	$	355		$	353		$	3,425