20. Condensed Financial Statements Of Parent Company

12 Months Ended

Dec. 31, 2013

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

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, 2013 and 2012, and the related statements of income and cash flows for the years ended December 31, 2013, 2012 and 2011, are presented as follows:

Balance Sheets
	December 31,
Dollars in thousands	2013			2012
Assets
Cash	$	5,278		$	5,495
Investment in subsidiaries, eliminated in consolidation		151,289			148,951
Securities available for sale		181			422
Premises and equipment		82			-
Accrued interest receivable		2			3
Cash surrender value of life insurance policies		48			44
Other assets		1,657			1,502
Total assets	$	158,537		$	156,417
Liabilities and Shareholders' Equity
Short-term borrowings	$	-		$	-
Long-term borrowings		8,916			8,575
Subordinated debentures		16,800			16,800
Subordinated debentures owed to unconsolidated subsidiary trusts		19,589			19,589
Other liabilities		2,160			2,898
Total liabilities		47,465			47,862
Preferred stock and related surplus, authorized 250,000 shares:
Series 2009, 8% Non-cumulative convertible preferred stock,
par value $1.00; issued 3,710 shares		3,519			3,519
Series 2011, 8% Non-cumulative convertible preferred stock,
par value $1.00; issued 2013 - 11,938 shares; 2012 - 12,000 shares		5,776			5,807
Common stock and related surplus, $2.50 par value, authorized
20,000,000 shares; issued 2013 - 7,451,022 shares; 2012 - 7,425,472 shares		24,664			24,520
Retained earnings		77,134			69,841
Accumulated other comprehensive income		(21	)		4,868
Total shareholders' equity		111,072			108,555
Total liabilities and shareholders' equity	$	158,537		$	156,417

Statements of Income
	For the Year Ended December 31,
Dollars in thousands	2013			2012			2011
Income
Dividends from subsidiaries	$	2,500		$	500		$	500
Other dividends and interest income		26			41			19
Realized securities gains (losses)		-			(18	)		1,112
Management and service fees from subsidiaries		1,087			1,044			1,044
Total income		3,613			1,567			2,675
Expense
Interest expense		1,948			1,821			1,833
Operating expenses		1,717			1,661			1,641
Total expenses		3,665			3,482			3,474
Income (loss) before income taxes and equity in
undistributed income of subsidiaries		(52	)		(1,915	)		(799)
Income tax (benefit)		(894	)		(833	)		(426)
Income (loss) before equity in undistributed income of subsidiaries		842			(1,082	)		(373)
Equity in (distributed) undistributed income of subsidiaries		7,226			6,795			4,447
Net income		8,068			5,713			4,074
Dividends on preferred shares		775			777			371
Net income applicable to common shares	$	7,293		$	4,936		$	3,703

Statements of Cash Flows
	For the Year Ended December 31,
Dollars in thousands	2013			2012			2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	8,069		$	5,713		$	4,074
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Equity in (undistributed) distributed net income of
subsidiaries		(7,226	)		(6,795	)		(4,447)
Deferred tax (benefit)		(107	)		(61	)		(11)
Depreciation		2			12			21
Other-than-temporary impairment of securities		-			-			-
Realized securities (gains) losses		-			18			(1,112)
Tax benefit of exercise of stock options		-			-			-
Stock compensation expense		1			2			10
(Increase) decrease in cash surrender value of bank owned life insurance		(5	)		(1	)		5
(Increase) decrease in other assets		(1	)		(11	)		44
Increase (decrease) in other liabilities		(737	)		599			439
Net cash provided by (used in) operating activities		(4	)		(524	)		(977)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds sales of available for sale securities		-			648			1,130
Principal payments received on available for sale securities		440			662			-
Purchase of available for sale securities		(199	)		(1,672	)		-
Purchases of premises and equipment		(84	)		-			-
Net cash provided by (used in) investing activities		157			(362	)		1,130
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid on preferred stock		(776	)		(731	)		(297)
Exercise of stock options		111			-			-
Net proceeds from long-term borrowings		3,454			-			-
Repayment of long-term borrowings		(3,159	)		(1,354	)		(1,805)
Net proceeds from issuance of preferred stock		-			-			5,807
Net cash provided by (used in) financing activities		(370	)		(2,085	)		3,705
Increase (decrease) in cash		(217	)		(2,971	)		3,858
Cash:
Beginning		5,495			8,466			4,608
Ending	$	5,278		$	5,495		$	8,466
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash payments for:
Interest	$	1,942		$	1,824		$	1,832