TARP REPURCHASE

3 Months Ended

Mar. 31, 2012

TARP REPURCHASE

TARP REPURCHASE

NOTE 11 — TARP REPURCHASE

On March 28, 2012, the U.S. Department of the Treasury priced its secondary public offering of 57,000 shares of the Preferred Stock.  The Company successfully bid for the purchase of 21,030 shares of the Preferred Stock for a total purchase price of $19,581,243, plus accrued and unpaid dividends on the Preferred Stock from and including February 15, 2012 to the settlement date, April 3, 2012. The book value of the preferred stock retired was $20,823,000.  As a result of its successful bid in the offering, the Company retired 21,030 shares of its original sale of 57,000 shares of Preferred Stock on March 29, 2012.  The difference between the book value and the bid price of $1,241,757 was credited to retained earnings.  The Company set up a payable for $19,721,513 at the end of the quarter as settlement of the offering took place on April 3, 2012.  None of the remaining shares of outstanding Preferred Stock are held by the U.S. Treasury.  Included in the first quarter of 2012 operating results are $300 thousand of expenses associated with Treasury’s auction and the Company’s purchase of the Preferred Stock.