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&lt;p style="MARGIN: 0in 0in 0pt;"&gt;&lt;b&gt;&lt;font style="FONT-FAMILY: Arial; FONT-SIZE: 16pt; FONT-WEIGHT: bold;" size="5"&gt;Note 14.&amp;#160; Subsequent Events&lt;/font&gt;&lt;/b&gt;&lt;/p&gt;
&lt;p style="MARGIN: 0in 0in 0pt;"&gt;&amp;#160;&lt;/p&gt;
&lt;p style="TEXT-ALIGN: justify; MARGIN: 0in 0in 0pt;"&gt;&lt;font style="FONT-FAMILY: Arial; FONT-SIZE: 10pt;" size="2"&gt;In July 2013, the Company received approval to dividend $25 million from the Bank to the Company, to facilitate the repurchase of the 21,000 shares of Series A Preferred Stock and related warrant to purchase 611,650 shares of the Company&amp;#8217;s Common Stock.&amp;#160; The Company completed the repurchase of the Series A Preferred at par, including accrued but unpaid dividends, for $21.2 million on July 17, 2013.&amp;#160; On July 29, 2013, the Company made a formal bid to repurchase warrants to purchase 611,650 of the Company&amp;#8217;s common stock issued to the United States Department of Treasury as part of TARP CPP for $1.6 million.&amp;#160; On July 30, 2013, the United States Department of Treasury accepted the Company&amp;#8217;s bid.&amp;#160; The repurchase of these warrants is expected to occur on August 7, 2013.&amp;#160; The Company&amp;#8217;s pro-forma regulatory capital ratios at June 30, 2013, after considering the July 17, 2013 repurchase of Series A Preferred Shares and the August 7, 2013 repurchase of warrants from the United States Department of Treasury are 10.5% and 14.4% for Tier 1 Leverage Capital ratio and Total Risk-Based Capital ratio, respectively.&lt;/font&gt;&lt;/p&gt;
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