CONDENSED FINANCIAL INFORMATION OF CITIZENS BANCSHARES CORPORATION (PARENT ONLY)

12 Months Ended

Dec. 31, 2011

CONDENSED FINANCIAL INFORMATION OF CITIZENS BANCSHARES CORPORATION (PARENT ONLY)

CONDENSED FINANCIAL INFORMATION OF CITIZENS BANCSHARES CORPORATION (PARENT ONLY)

16. CONDENSED FINANCIAL INFORMATION OF CITIZENS BANCSHARES CORPORATION (PARENT ONLY)

	December 31, 2011		December 31, 2010
Balance Sheets
Assets:
Cash	$	767,853	$	1,366,667
Investment in Bank		47,706,232		44,435,640
Other assets		85,939		64,044
	$	48,560,024	$	45,866,351
Liabilities and stockholders' equity:
Other liabilities	$	26,846	$	49,430
Total liabilities		26,846		49,430
Stockholders' equity		48,533,178		45,816,921
	$	48,560,024	$	45,866,351

	For the Years Ended December 31,
	2011			2010			2009
Statements of Income and Comprehensive Income
Total revenue	$	—		$	—		$	—
Interest expense		—			—			2,109
Other expense		249,311			217,873			316,254
Total expenses		249,311			217,873			318,363
Loss before income tax benefit and equity in undistributed earnings of the subsidiaries		(249,311	)		(217,873	)		(318,363	)
Income tax benefit		84,769			66,890			62,459
Loss before equity in undistributed earnings of the subsidiaries		(164,542	)		(150,983	)		(255,904	)
Equity in undistributed earnings of the subsidiaries		433,168			780,179			1,282,469
Net income		268,626			629,196			1,026,565
Change in other comprehensive income		2,837,423			(984,425	)		696,698
Comprehensive income	$	3,106,049		$	(355,229	)	$	1,723,263

	Years Ended December 31,
	2011			2010			2009
Statements of Cash Flows
Cash flows from operating activities—Net income	$	268,626		$	629,196		$	1,026,565
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Equity in undistributed earnings of the subsidiaries		(433,168	)		(780,179	)		(1,282,469	)
Stock based compensation plan		—			41,662			33,751
Restricted stock based compensation plan		5,062			2,511			10,302
Change in other assets		(21,895	)		342,780			(62,460	)
Change in other liabilities		(22,585	)		5,745			16,071
Net cash provided by (used in) operating activities		(203,960	)		241,715			(258,240	)
Cash flows from investing activities:
Investment in subsidiaries		—			(3,300,000	)		(6,000,000	)
Dividends from subsidiaries		—			—			—
Net cash provided by (used in) investing activities		—			(3,300,000	)		(6,000,000	)
Cash flows from financing activities:
Payment on note payable		—			—			(239,647	)
Common stock dividend paid		(168,663	)		(169,051	)		(399,191	)
Preferred stock dividend paid		(236,820	)		(330,001	)		(258,061	)
Net sale (purchase) of treasury stock		(5,372	)		—			8,139
Proceeds from issuance of common stock		16,001			—			—
Proceeds from issuance of preferred stock		—			4,379,000			7,462,000
Net cash cash provided by (used in) financing activities		(394,854	)		3,879,948			6,573,240
Net change in cash		(598,814	)		821,663			315,000
Cash:
Beginning of year		1,366,667			545,004			230,004
End of year	$	767,853		$	1,366,667		$	545,004
Supplemental disclosures of cash flow information:
Cash paid during the year for:
Interest	$	—		$	—		$	2,109
Income taxes	$	8,000		$	59,500		$	726,057
Noncash investing activity:
Change in Bank's unrealized gain (loss) on investment securities available for sale—net of tax	$	2,837,423		$	(984,425	)	$	696,698