Stockholders' Equity

9 Months Ended

Sep. 30, 2011

Stockholders' Equity [Abstract]

Stockholders' Equity

NOTE 5: Stockholders' Equity

Other Comprehensive Income

The following table presents the cumulative balances of the components of other comprehensive income, net of deferred tax assets of $1.95 million and $1.61 million as of September 30, 2011 and 2010, respectively.

(Dollars in thousands)	September 30,
	2011			2010
Net unrealized gains on securities	$	4,341		$	3,514
Net unrecognized loss on cash flow hedges		(336	)		(264	)
Net unrecognized losses on defined benefit pension plan		(328	)		(211	)
Total cumulative other comprehensive income	$	3,677		$	3,039

The Corporation had gains of less than $1,000 from securities reclassified from other comprehensive income to earnings for the nine months ended September 30, 2011. The Corporation reclassified net gains of $43,000 from other comprehensive income to earnings for the nine months ended September 30, 2010.

On July 27, 2011, the Corporation redeemed $10.00 million, or 50 percent, of the $20.00 million of its Fixed Rate Cumulative Perpetual Preferred Stock, Series A (the preferred stock) issued to the United States Department of the Treasury in January 2009 under the Capital Purchase Program (CPP).  The Corporation paid $10.10 million to redeem the preferred stock, consisting of $10.00 million in liquidation value and $100,000 of accrued and unpaid dividends associated with the preferred stock.  The funds for this redemption were provided by existing financial resources of the Corporation, and because no new capital was issued, there was no dilution to the Corporation's common shareholders resulting from this redemption.  The Corporation accelerated the accretion of the corresponding portion of the preferred stock discount, thereby reducing net income available to common shareholders by approximately $213,000 in the third quarter of 2011.  As a result of this redemption, preferred stock dividends will be reduced annually by $500,000.