Condensed Financial Statements of Parent Company (Tables)

12 Months Ended

Dec. 31, 2012

	December 31,
Balance Sheets	2012			2011
	(in thousands)
Assets
Cash and cash equivalents	$	220		$	85
Securities held-to-maturity		0			145
Investment in common stock of subsidiaries		88,815			85,498
Other assets		265			261
Total assets	$	89,300		$	85,989

Liabilities and Stockholders' Equity
Note payable - subsidiary	$	0		$	124
Common stock		24,795			24,795
Additional paid-in capital		16,392			16,310
Retained earnings		48,305			45,109
Accumulated other comprehensive loss		(192	)		(349	)
Total liabilities and stockholders' equity	$	89,300		$	85,989

	Years Ended December 31,
Statements of Income	2012		2011
	(in thousands)
Income:
Dividends from subsidiary	$	1,100	$	800
Interest on investments		8		16
Other income		660		300
Total income		1,768		1,116
Expenses:
Salary and benefits		500		521
Legal expenses		66		56
Service fees		147		160
Other operating expenses		33		37
Total expenses		746		774
Income before income taxes and equity in undistributed net income of subsidiaries		1,022		342
Income tax benefit		6		131
		1,028		473
Equity in undistributed net income of subsidiaries		3,159		2,817
Net income	$	4,187	$	3,290

	Years Ended December 31,
Statements of Cash Flows	2012			2011
	(in thousands)
Cash flows from operating activities:
Net income	$	4,187		$	3,290
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed net income of subsidiaries		(3,159	)		(2,817	)
Stock compensation expense		82			110
Increase in other assets		(4	)		(10	)
Decrease in other liabilities		(1	)		0
Net cash provided by operating activities		1,105			573

Cash flows from investing activities: maturity of investment securities		145			137

Cash flows from financing activities:
Repayment of advances from subsidiaries		(124	)		(120	)
Exercise of stock options		0			284
Cash dividends paid on common stock		(991	)		(991	)
Net cash used in financing activities		(1,115	)		(827	)
Net increase (decrease) in cash and cash equivalents		135			(117	)
Cash and cash equivalents at beginning of year		85			202
Cash and cash equivalents at end of year	$	220		$	85