Shareholders' Equity

6 Months Ended

Jun. 30, 2011

Shareholders' Equity

Shareholders' Equity

8. Shareholders’ Equity

On December 5, 2008, the Company entered into and consummated a Letter Agreement (the “Purchase Agreement”) with the United States Department of the Treasury (the “Treasury”), pursuant to which the Company issued 38,235 shares of the Company’s Fixed Rate Cumulative Perpetual Preferred Stock, Series A (the “Series A Preferred Stock”), having a liquidation amount per share equal to $1,000, for a total purchase price of $38,235,000.  The Series A Preferred Stock pays cumulative dividends at a rate of 5% per year for the first five years and thereafter at a rate of 9% per year. On December 23, 2009, the Company redeemed 15,000 shares of Series A Preferred Stock for an aggregate redemption price of $15,079,166, including accrued but unpaid dividends on the shares. Subsequent to June 30, 2011, the Company repurchased all of the remaining 23,325 shares of Series A Preferred Stock, see Note 9. The Company accrued dividends on the preferred stock and recognized discount accretion totaling $1.2 million, which included the acceleration of the unamortized discount accretion, for the six months ended June 30, 2011, reducing net income available to common shareholders to $9.7 million ($0.49 per basic common share and $0.48 diluted common share).