Restrictions on Dividends

12 Months Ended

Dec. 31, 2012

Restrictions on Dividends [Abstract]

Restrictions on Dividends

Note 12: Restrictions on Dividends

The Company's principal source of funds for dividend payments is dividends received from its subsidiary bank. For the years ended December 31, 2012, 2011 and 2010, dividends received from subsidiary banks were $7,639, $7,258 and $6,309, respectively.

Substantially all of Bankshares' retained earnings are undistributed earnings of its sole banking subsidiary, which are restricted by various regulations administered by federal bank regulatory agencies. Bank regulatory agencies restrict, without prior approval, the total dividend payments of a bank in any calendar year to the bank's retained net income of that year to date, as defined, combined with its retained net income of the preceding two years, less any required transfers to surplus. At December 31, 2012, retained net income, which was free of such restriction, amounted to approximately $30,700.