Condensed Financial Statements Of Parent Company

12 Months Ended

Dec. 31, 2012

Condensed Financial Statements Of Parent Company [Abstract]

Condensed Financial Statements Of Parent Company

NOTE 19. CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY

     Our investment in our wholly-owned subsidiaries is presented on the equity method of accounting. Information relative to our balance sheets at December 31, 2012 and 2011, and the related statements of income and cash flows for the years ended December 31, 2012, 2011 and 2010, are presented as follows:

Balance Sheets
		December 31,
Dollars in thousands		2012		2011
Assets
Cash	$	5,495	$	8,466
Investment i n subs idiaries, eliminated in consolidation		148,951		141,098
Securities ava ila ble for s ale		422		92
Premises a nd equipment		-		12
Accrued interest receiva ble		3		2
Cash surrender value of life insura nce policies		44		43
Other a ssets		1,502		1,425
Total assets	$	156,417	$	151,138
Liabilities and Shareholders' Equity
Short-term borrowings	$	-	$	-
Long-term borrowings		8,575		9,929
Subordinated debentures		16,800		16,800
Subordinated debentures owed to unconsolidated subsidiary trusts		19,589		19,589
Other lia bilities		2,898		2,254
Total liabilities		47,862		48,572
Preferred s tock and rela ted s urplus, a uthorized 250,000 s hares:
Series 2009, 8% Non-cumula tive convertible preferred stock,
par va lue $1.00; i ssued 3,710 shares		3,519		3,519
Series 2011, 8% Non-cumula tive convertible preferred stock,
par va lue $1.00; i ssued 12,000 s hares		5,807		5,807
Common stock a nd rela ted surplus, $2.50 pa r value, a uthorized
20,000,000 s hares ; issued 7,425,472 shares		24,520		24,518
Retained earnings		69,841		64,904
Accumulated other comprehensive income		4,868		3,818
Total shareholders' equity		108,555		102,566
Total liabilities and shareholders' equity	$	156,417	$	151,138

Statements of Income
		For the Year Ended December 31,
Dollars in thousands		2012			2011			2010
Income
Dividends from subsidiaries	$	500		$	500		$	500
Other dividends and interest income		41			19			17
Realized securities gains (losses)		(18	)		1,112			343
Management and service fees from subsidiaries		1,044			1,044			1,083
Total income		1,567			2,675			1,943
Expense
Interest expense		1,821			1,833			1,934
Operating expenses		1,661			1,641			1,724
Total expenses		3,482			3,474			3,658
Income (loss) before income taxes and equity in
undistributed income of subsidiaries		(1,915	)		(799	)		(1,715	)
Income tax (benefit)		(833	)		(426	)		(829	)
Income (loss) before equity in undistributed income of subsidiaries		(1,082	)		(373	)		(886	)
Equity in (distributed) undistributed income of subsidiaries		6,795			4,447			(1,089	)
Net income (loss)		5,713			4,074			(1,975	)
Dividends on preferred shares		777			371			297
Net income (loss) applicable to common shares	$	4,936		$	3,703		$	(2,272	)

Statements of Cash Flows
		For the Year Ended December 31,
Dollars in thousands		2012		2011		2010
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	5,713	$	4,074	$	(1,975	)
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Equity in (undistributed) distributed net income of
subsidiaries		(6,795	)	(4,447	)	1,089
Deferred tax (benefit)		(61	)	(11	)	(120	)
Depreciation		12		21		113
Realized securities (gains) losses		18		(1,112	)	(343	)
Stock compensation expense		2		10		-
(Increase) decrease in cash surrender value of bank owned life insurance		(1	)	5		(11	)
(Increase) decrease in other assets		(11	)	44		(729	)
Increase in other liabilities		599		439		883
Net cash provided by (used in) operating activities		(524	)	(977	)	(1,093	)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in subsidiaries		-		-		(4,824	)
Proceeds sales of available for sale securities		648		1,130		356
Principal payments received on available for sale securities		662		-		-
Purchase of available for sale securities		(1,672	)	-		-
Proceeds from sales of premises and equipment		-		-		5,552
Purchases of premises and equipment		-		-		(4	)
Proceeds from sale of other assets		-		-		1,322
Net cash provided by (used in) investing activities		(362	)	1,130		2,402
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid on preferred stock		(731	)	(297	)	(297	)
Net (decrease) in short-term borrowings		-		-		(2,666	)
Repayment of long-term borrowings		(1,354	)	(1,805	)	(902	)
Net proceeds from issuance of preferred stock		-		5,807		-
Net cash provided by (used in) financing activities		(2,085	)	3,705		(3,865	)
Increase (decrease) in cash		(2,971	)	3,858		(2,556	)
Cash:
Beginning		8,466		4,608		7,164
Ending	$	5,495	$	8,466	$	4,608
SUPPLEMENTAL DISCLOSURES OF CASH
FLOW INFORMATION
Cash payments for:
Interest	$	1,824	$	1,832	$	1,941