Parent Only Condensed Financial Statements

12 Months Ended

Dec. 31, 2011

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Parent Only Condensed Financial Statements

PARENT ONLY CONDENSED FINANCIAL STATEMENTS

CONDENSED BALANCE SHEETS

December 31, 2011 and 2010

(In thousands)

	2011		2010
ASSETS
Cash and cash equivalents	$	969	$	1,071
Investment in Bank subsidiary	111,357		101,346
Other assets	508		305
Total assets	$	112,834	$	102,722
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Junior subordinated debentures due to subsidiary grantor trust	$	5,155	$	5,155
Other liabilities	197		176
Total liabilities	5,352		5,331
Shareholders’ equity:
Preferred stock, Series A	—		6,864
Preferred stock, Series B	—		1,317
Preferred stock, Series C	7,000		—
Common stock	40,552		38,428
Retained earnings	55,806		49,815
Accumulated other comprehensive income, net of taxes	4,124		967
Total shareholders’ equity	107,482		97,391
Total liabilities and shareholders’ equity	$	112,834	$	102,722

CONDENSEDSTATEMENTS OF INCOME

For the Years Ended December 31, 2011, 2010, and 2009

(In thousands)

	2011			2010			2009
Income:
Other income	$	3		$	3		$	13
Total income	3			3			13
Expenses:
Interest on junior subordinated deferrable interest debentures	100			102			129
Professional fees	148			147			30
Other expenses	352			329			295
Total expenses	600			578			454
Loss before equity in undistributed net income of Subsidiary	(597		)	(575		)	(441		)
Equity in undistributed net income of Subsidiary, net of distributions	6,854			3,657			2,871
Income before income tax benefit	6,257			3,082			2,430
Benefit from income taxes	220			197			158
Net income	6,477			3,279			2,588
Preferred stock dividend and accretion of discount	486			395			365
Income available to common shareholders	$	5,991		$	2,884		$	2,223

CONDENSEDSTATEMENTS OF CASH FLOWS

For the Years Ended December 31, 2011, 2010, and 2009

(In thousands)

	2011			2010			2009
Cash flows from operating activities:
Net income	$	6,477		$	3,279		$	2,588
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Undistributed net income of subsidiary, net of distributions	(6,854		)	(3,657		)	(2,871		)
Stock-based compensation	196			239			284
Tax benefit from exercise of stock options	(116		)	(28		)	(7		)
Net (increase) decrease in other assets	(50		)	170			1,765
Net (decrease) increase in other liabilities	(23		)	23			(140		)
Provision for deferred income taxes	(36		)	(43		)	68
Net cash (used in) provided by operating activities	(406		)	(17		)	1,687
Cash flows used in investing activities:
Investment in subsidiary	—			—			(16,578		)
Cash flows from financing activities:
Net proceeds from issuance of common stock	—			—			6,441
Proceeds from issuance of Series A preferred stock and warrants	—			—			7,000
Proceeds from issuance of Series B preferred stock	—			—			1,317
Cash dividend payments	(307		)	(349		)	(277		)
Proceeds from exercise of stock options	680			550			175
Warrant purchase	(185		)	—			—
Tax benefit from exercise of stock options	116			28			7
Net cash provided in financing activities	304			229			14,663
(Decrease) increase in cash and cash equivalents	(102		)	212			(228		)
Cash and cash equivalents at beginning of year	1,071			859			1,087
Cash and cash equivalents at end of year	$	969		$	1,071		$	859
Cash paid during the year for interest	$	98		$	101		$	182
Non-Cash Investing and Financing Activities:
Redemption of preferred stock Series A and issuance of preferred stock Series C	$	7,000		$	—		$	—
Accrued Preferred Stock Dividend	$	88		$	45		$	44

SUPPLEMENTARY FINANCIAL INFORMATION

The following supplementary financial information is not a part of the Company’s financial statements.

Unaudited Quarterly Statement of Operations Data

(Dollars in thousands, except per share data)

	Q4 2011		Q3 2011		Q2 2011		Q1 2011		Q4 2010			Q3 2010			Q2 2010		Q1 2010
Net interest income	$	8,016	$	7,949	$	7,794	$	7,598	$	7,641		$	8,173		$	7,930	$	7,986
Provision for credit losses	300		400		250		100		900			1,300			1,000		600
Net interest income after provision for credit losses	7,716		7,549		7,544		7,498		6,741			6,873			6,930		7,386
Total non-interest income	1,336		1,595		1,597		1,748		347			1,293			747		1,334
Total non-interest expense	6,803		7,222		7,067		7,153		6,986			7,409			7,142		7,204
(Benefit from) Provision for income taxes	541		514		301		505		(517		)	(107		)	31		224
Net income	$	1,708	$	1,408	$	1,773	$	1,588	$	619		$	864		$	504	$	1,292
Net income available to common shareholders	$	1,622	$	1,206	$	1,674	$	1,489	$	520		$	766		$	405	$	1,193
Basic earnings per share	$	0.17	$	0.13	$	0.18	$	0.16	$	0.06		$	0.08		$	0.04	$	0.13
Diluted earnings per share	$	0.17	$	0.13	$	0.18	$	0.16	$	0.06		$	0.08		$	0.04	$	0.13