CONDENSED FINANCIAL STATEMENTS - PARENT COMPANY ONLY

12 Months Ended

Dec. 31, 2011

CONDENSED FINANCIAL STATEMENTS - PARENT COMPANY ONLY

NOTE 19 - CONDENSED FINANCIAL STATEMENTS - PARENT COMPANY ONLY

Balance Sheets
	December 31,
	2011			2010
Assets
Cash - noninterest bearing	$	337,704		$	583,660
Investment in wholly owned subsidiaries		85,521,824			81,155,647
Other assets		2,755,040			2,417,496
Total assets	$	88,614,568		$	84,156,803
Liabilities and Stockholders' Equity
Current liabilities	$	788,470		$	679,876
Guaranteed preferred beneficial interest in junior subordinated debentures		12,372,000			12,372,000
Total liabilities		13,160,470			13,051,876
Stockholders' equity
Preferred Stock - Series C		20,000,000			-
Preferred Stock - Series A		-			15,540,000
Preferred Stock - Series B		-			777,000
Common stock		30,266			30,026
Additional paid in capital		17,367,403			16,962,460
Retained earnings		38,712,194			37,892,557
Accumulated other comprehensive income		289,599			411,188
Unearned ESOP shares		(945,364	)		(508,304	)
Total Stockholders’ Equity		75,454,098			71,104,927
Total Liabilities and Stockholders’ Equity	$	88,614,568		$	84,156,803

Condensed Statements of Income
	Years Ended December 31,
	2011			2010
Interest and Dividend Income
Dividends from subsidiary	$	3,275,000		$	2,500,000
Interest income		33,307			29,068
Interest expense		316,576			321,942
Net Interest Income		2,991,731			2,207,126
Miscellaneous expenses		(703,332	)		(600,562	)
Income before income taxes and equity in undistributed net income of subsidiary		2,288,399			1,606,564
Federal and state income tax benefit		335,444			303,768
Equity in undistributed net income of subsidiary		537,621			2,855,369
Net Income	$	3,161,464		$	4,765,701

Condensed Statements of Cash Flows
	Years Ended December 31,
	2011			2010
Cash Flows from Operating Activities
Net income	$	3,161,464		$	4,765,701
Adjustments to reconcile net income to net cash provided by operating activities
Equity in undistributed earnings of subsidiary		(537,621	)		(2,855,369	)
Stock based compensation		253,466			-
Increase in other assets		(301,185	)		(401,159	)
Deferred income tax benefit		(36,357	)		(60,782	)
Increase in current liabilities		108,595			249,301
Net Cash Provided by Operating Activities		2,648,362			1,697,692
Cash Flows from Financing Activities
Dividends paid		(1,932,099	)		(2,043,117	)
Proceeds from Small Business Lending Fund Preferred Stock		20,000,000			-
Redemption of Troubled Asset Relief Program Preferred Stock		(16,317,000	)		-
Downstream of capital to subsidiary		(3,950,148	)		-
Exercise of stock options		121,319			147,799
Excess tax benefits on stock based compensation		-			4,558
Net change in ESOP loan		(406,425	)		(62,577	)
Redemption of common stock		(409,965	)		(24,000	)
Net Cash Used in Financing Activities		(2,894,318	)		(1,977,337	)
Decrease in Cash		(245,956	)		(279,645	)
Cash at Beginning of Year		583,660			863,305
Cash at End of Year	$	337,704		$	583,660