PARENT COMPANY FINANCIAL INFORMATION

12 Months Ended

Dec. 31, 2012

PARENT COMPANY FINANCIAL INFORMATION [Abstract]

PARENT COMPANY FINANCIAL INFORMATION

NOTE O – PARENT COMPANY FINANCIAL INFORMATION

Condensed financial information for the Corporation (parent company only) is as follows:

CONDENSED BALANCE SHEETS	December 31,
	2012		2011
	(in thousands)
Assets:
Cash and due from banks	$	981	$	685
Investment in subsidiary bank, at equity		202,880		189,300
Prepaid income taxes		601		461
Deferred income tax benefits		907		922
Other assets		1		1
	$	205,370	$	191,369
Liabilities:
Cash dividends payable	$	-	$	2,022
Stockholders' equity:
Common stock		900		879
Surplus		42,643		37,507
Retained earnings		145,087		133,273
		188,630		171,659
Accumulated other comprehensive income, net of tax		16,740		17,688
		205,370		189,347
	$	205,370	$	191,369

CONDENSED STATEMENTS OF INCOME	Year ended December 31,
	2012			2011			2010
	(in thousands)
Income:
Dividends from subsidiary bank	$	6,550		$	6,790		$	3,750
Interest on deposits with subsidiary bank		-			1			7
		6,550			6,791			3,757
Expenses:
Salaries		782			756			647
Other operating expenses		353			313			268
		1,135			1,069			915
Income before income taxes		5,415			5,722			2,842
Income tax benefit		(451	)		(424	)		(360	)
Income before undistributed earnings of
subsidiary bank		5,866			6,146			3,202
Equity in undistributed earnings		14,527			13,311			15,190
Net income	$	20,393		$	19,457		$	18,392
Comprehensive Income	$	19,445		$	38,561		$	13,325
CONDENSED STATEMENTS OF CASH FLOWS	Year ended December 31,
		2012			2011			2010
	(in thousands)
Cash Flows From Operating Activities:
Net income	$	20,393		$	19,457		$	18,392
Adjustments to reconcile net income to net cash provided by operating activities:
Undistributed earnings of subsidiary bank		(14,527	)		(13,311	)		(15,190	)
Deferred income tax debit (credit)		15			(102	)		(127	)
Stock-based compensation expense		782			756			647
Increase in prepaid income taxes		(140	)		(188	)		(110	)
Decrease in other assets		-			-			1
Net cash provided by operating activities		6,523			6,612			3,613
Cash Flows From Investing Activities:
Contribution of capital to subsidiary bank		-			-			(32,200	)
Net cash used in investing activities		-			-			(32,200	)
Cash Flows From Financing Activities:
Repurchase and retirement of common stock		(369	)		(185	)		(91	)
Proceeds from exercise of stock options		2,603			1,279			676
Tax benefit of stock options		135			139			39
Proceeds from issuance of common stock		2,006			-			32,362
Cash dividends paid		(10,602	)		(7,790	)		(6,253	)
Net cash provided by (used in) financing activities		(6,227	)		(6,557	)		26,733
Net increase (decrease) in cash and cash equivalents*		296			55			(1,854	)
Cash and cash equivalents, beginning of year		685			630			2,484
Cash and cash equivalents, end of year	$	981		$	685		$	630
Supplemental Schedule of Noncash Financing Activities:
Cash dividends payable	$	-		$	2,022		$	1,916

*Cash and cash equivalents is defined as cash and due from banks and includes, among other things, the checking and money market accounts with the Corporation's wholly-owned bank subsidiary.