Restatement of Consolidated Financial Statements

12 Months Ended

Dec. 31, 2012

Restatement of Consolidated Financial Statements [Abstract]

Restatement of Consolidated Financial Statements

Note 2 – Restatement of Consolidated Financial Statements

We have restated our audited financial statements for the years ended December 31, 2011 and 2010.

On February 14, 2013, Bancorp's Board of Directors, upon recommendation of the Audit Committee of the Board of Directors and in consultation with Bancorp's management determined that the consolidated financial statements for the years ended December 31, 2011 and 2010, respectively should be revised to correct an error in the accounting method of amortization used by the Bancorp related to its prepaid FDIC special assessment. In 2009, Bancorp paid an estimated FDIC insurance assessment in advance for fiscal years 2010, 2011 and 2012 based on the level of net assets as of June 30, 2009, and began expensing the prepayment evenly over the three year period covered by the prepayment. During the course of preparation of the 2012 year-end financial statements and audit, management determined that this method of amortization was incorrect and that Bancorp should have amortized the prepayment based on the actual reduced level of net assets over that period. The impact of this correction for the restatement periods increases cumulative net income by approximately $980,000 and cumulative earnings per share by approximately $0.09.

The effect of the restatement is as follows:

	For year ended December 31, 2011						For year ended December 31, 2010
	(In thousands except per share data)
	As reported		Adjustment		Restated		As Reported		Adjustment		Restated
Consolidated Statement of Financial Condition:
Accrued interest receivable and other assets	$	21,357	$	535	$	21,892	$	24,940	$	202	$	25,142
Total assets	$	900,628	$	535	$	901,163	$	962,543	$	202	$	962,745
Retained earnings	$	31,142	$	535	$	31,677	$	31,643	$	202	$	31,845
Total stockholders' equity	$	105,930	$	535	$	106,465	$	106,100	$	202	$	106,302
Total liabilities and stockholders' equity	$	900,628	$	535	$	901,163	$	962,543	$	202	$	962,745

	For year ended December 31, 2011									For year ended December 31, 2010
	(In thousands except per share data)
	As reported			Adjustment			Restated			As Reported			Adjustment			Restated
Consolidated Statement of Operations:
FDIC assessments and regulatory expense	$	2,231		$	(561	)	$	1,670		$	2,282		$	(334	)	$	1,948
Total non-interest expenses	$	24,611		$	(561	)	$	24,050		$	25,008		$	(334	)	$	24,674
Income tax provision	$	982		$	228		$	1,210		$	1,040		$	132		$	1,172
Net income	$	1,219		$	333		$	1,552		$	1,157		$	202		$	1,359
Loss to common stockholders	$	(501	)	$	333		$	(168	)	$	(563	)	$	202		$	(361	)
Net income (loss) per common share:
Basic	$	(0.05	)	$	0.03		$	(0.02	)	$	(0.06	)	$	0.02		$	(0.04	)
Diluted	$	(0.05	)	$	0.03		$	(0.02	)	$	(0.06	)	$	0.02		$	(0.04	)
Consolidated Statement of Cash Flows:
Net Income	$	1,219		$	333		$	1,552		$	1,157		$	202		$	1,359
Deferred income tax expense	$	931		$	228		$	1,159		$	2,160			-		$	2,160
Accrued interest receivable and other assets	$	2,652		$	(561	)	$	2,091		$	2,890		$	(202	)	$	2,688