TARP REPURCHASE

6 Months Ended

Jun. 30, 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 Company’s 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, 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.  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 $1,242 was credited to retained earnings.  The settlement of the offering took place on April 3, 2012.  On May 31, 2012 the Company purchased an additional 1,820 shares or $1,820 of the preferred stock at a cost of $1,747.  The difference between the book value and the bid price of $60 was credited to retained earnings.  None of the remaining shares of outstanding Preferred Stock are held by the U.S. Treasury.  Included in the first six months of 2012 operating results are $250 of expenses associated with Treasury’s auction and the Company’s purchase of the Preferred Stock.