Parent Company Only Financial Statements

12 Months Ended

Dec. 31, 2011

Parent Company Only Financial Statements [Abstract]

Parent Company Only Financial Statements

Note 20. Parent Company Only Financial Statements

FIRST NATIONAL CORPORATION

(Parent Company Only)

Balance Sheets

December 31, 2011 and 2010

(in thousands)


	2011		2010
Assets
Cash	$	124	$	91
Investment in subsidiaries, at cost, plus undistributed net income		45,725		57,058
Other assets		563		693

Total assets	$	46,412	$	57,842


Liabilities and Shareholders' Equity

Trust preferred capital notes	$	9,279	$	9,279
Other liabilities		37		65

Total liabilities	$	9,316	$	9,344


Preferred stock	$	14,263	$	14,127
Common stock		3,695		3,686
Surplus		1,644		1,582
Retained earnings, which are substantially undistributed earnings of subsidiaries		16,503		28,969
Accumulated other comprehensive income, net		991		134

Total shareholders' equity	$	37,096	$	48,498


Total liabilities and shareholders' equity	$	46,412	$	57,842

FIRST NATIONAL CORPORATION

(Parent Company Only)

Statements of Operations

Three Years Ended December 31, 2011

(in thousands)


	2011			2010			2009

Income
Dividends from subsidiary	$	1,600		$	2,575		$	2,575
Other income (expense)		(26	)		11			(30	)

	$	1,574		$	2,586		$	2,545


Expense
Interest expense	$	386		$	439		$	470
Stationery and supplies		14			18			34
Legal and professional fees		—			20			75
Other		52			53			62

Total expense	$	452		$	530		$	641


Income before allocated tax benefits and undistributed income of subsidiary	$	1,122		$	2,056		$	1,904

Allocated income tax benefits		162			176			228


Income before equity in (distributions in excess of) undistributed income of subsidiary	$	1,284		$	2,232		$	2,132

Equity in (distributions in excess of) undistributed income of subsidiary		(12,245	)		(5,835	)		17


Net (loss) income	$	(10,961	)	$	(3,603	)	$	2,149

Effective dividend and accretion on preferred stock		894			887			704


Net (loss) income available to common shareholders	$	(11,855	)	$	(4,490	)	$	1,445

FIRST NATIONAL CORPORATION

(Parent Company Only)

Statements of Cash Flows

Three Years Ended December 31, 2011

(in thousands)


	2011			2010			2009

Cash Flows from Operating Activities
Net (loss) income	$	(10,961	)	$	(3,603	)	$	2,149
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
(Undistributed) distributions in excess of earnings of subsidiaries		12,245			5,835			(17	)
Compensation expense for ESOP shares allocated		—			42			190
(Increase) decrease in other assets		45			(23	)		42
Increase (decrease) in other liabilities		2			(9	)		7

Net cash provided by operating activities	$	1,331		$	2,240		$	2,371


Cash Flows from Financing Activities
Principal payments on other borrowings	$	—		$	(42	)	$	(190	)
Proceeds from issuance of preferred stock		—			—			13,900
Distribution of capital to subsidiary		—			—			(13,900	)
Cash dividends paid on common stock		(540	)		(1,433	)		(1,529	)
Cash dividends paid on preferred stock		(758	)		(758	)		(509	)
Shares issued to leveraged ESOP		—			(26	)		(85	)

Net cash used in financing activities	$	(1,298	)	$	(2,259	)	$	(2,313	)


Increase (decrease) in cash and cash equivalents	$	33		$	(19	)	$	58

Cash and Cash Equivalents
Beginning		91			110			52


Ending	$	124		$	91		$	110

- Definition

The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document.

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