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Parent Company Financial Information
 12 Months Ended
Dec. 31, 2011
Parent Company Financial Information [Abstract]  
Parent Company Financial Information

24. PARENT COMPANY FINANCIAL INFORMATION

The parent company functions primarily as a coordinating and servicing unit for all subsidiary entities. Provided services include general management, accounting and taxes, loan review, internal auditing, investment advisory, marketing, insurance risk management, general corporate services, and financial and strategic planning. The following financial information relates only to the parent company operations:

BALANCE SHEETS

 

     AT DECEMBER 31,  
     2011      2010  
     (IN THOUSANDS)  

ASSETS

      

Cash

    $ 100       $ 100   

Short-term investments in money market funds

      4,430         2,632   

Investment securities available for sale

      11,269         13,996   

Equity investment in banking subsidiary

      103,010         97,156   

Equity investment in non-banking subsidiaries

      4,888         4,801   

Guaranteed junior subordinated deferrable interest debenture issuance costs

      256         271   

Other assets

      2,604         2,779   
  

 

 

     

 

 

  

TOTAL ASSETS

    $ 126,557       $ 121,735   
  

 

 

     

 

 

  

LIABILITIES

      

Guaranteed junior subordinated deferrable interest debentures

    $ 13,085       $ 13,085   

Other liabilities

      1,120         1,592   
  

 

 

     

 

 

  

TOTAL LIABILITIES

      14,205         14,677   
  

 

 

     

 

 

  

STOCKHOLDERS' EQUITY

      

Total stockholders' equity

      112,352         107,058   
  

 

 

     

 

 

  

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

    $ 126,557       $ 121,735   
  

 

 

     

 

 

  

STATEMENTS OF OPERATIONS

 

     YEAR ENDED DECEMBER 31,  
     2011      2010     2009  
     (IN THOUSANDS)  

INCOME

        

Inter-entity management and other fees

    $ 2,329       $ 2,362      $ 2,254   

Dividends from banking subsidiary

      2,500         —        —   

Dividends from non-banking subsidiaries

      620         205        460   

Interest and dividend income

      415         499        625   
  

 

 

     

 

 

    

 

 

  

TOTAL INCOME

      5,864         3,066        3,339   
  

 

 

     

 

 

    

 

 

  

EXPENSE

        

Interest expense

      1,121         1,121        1,121   

Salaries and employee benefits

      2,394         2,333        2,162   

Other expense

      1,477         1,529        1,441   
  

 

 

     

 

 

    

 

 

  

TOTAL EXPENSE

      4,992         4,983        4,724   
  

 

 

     

 

 

    

 

 

  

INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN UNDISTRIBUTED EARNINGS OF SUBSIDIARIES

      872         (1,917 )      (1,385 ) 

Benefit for income taxes

      764         722        627   

Equity in undistributed earnings of subsidiaries

      4,901         2,477        (4,137 ) 
  

 

 

     

 

 

    

 

 

  

NET INCOME (LOSS)

    $ 6,537       $ 1,282      $ (4,895 ) 
  

 

 

     

 

 

    

 

 

  

 

STATEMENTS OF CASH FLOWS

 

     YEAR ENDED DECEMBER 31,  
     2011     2010     2009  
     (IN THOUSANDS)  

OPERATING ACTIVITIES

       

Net income (loss)

    $ 6,537      $ 1,282      $ (4,895 ) 

Adjustment to reconcile net income (loss) to net cash provided by (used in) operating activities:

       

Equity in undistributed earnings of subsidiaries

      (4,901 )      (2,477 )      4,137   

Stock compensation expense

      15        61        73   

Other — net

      (285 )      (107 )      (462 ) 
  

 

 

    

 

 

    

 

 

  

NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES

      1,366        (1,241 )      (1,147 ) 
  

 

 

    

 

 

    

 

 

  

INVESTING ACTIVITIES

       

Purchase of investment securities – available for sale

      (3,049 )      (4,044 )      (16,099 ) 

Proceeds from maturity of investment securities – available for sale

      5,942        7,050        7,906   

Capital contribution to banking subsidiary

      —        (1,000 )      (1,000 ) 
  

 

 

    

 

 

    

 

 

  

NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES

      2,893        2,006        (9,193 ) 
  

 

 

    

 

 

    

 

 

  

FINANCING ACTIVITIES

       

Purchase of treasury stock

      (582 )      —        —   

Warrant repurchase

      (825 )      —        —   

Preferred stock dividends paid

      (1,054 )      (1,050 )      (951 ) 
  

 

 

    

 

 

    

 

 

  

NET CASH USED IN FINANCING ACTIVITIES

      (2,461 )      (1,050 )      (951 ) 
  

 

 

    

 

 

    

 

 

  

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

      1,798        (285 )      (11,291 ) 

CASH AND CASH EQUIVALENTS AT JANUARY 1

      2,732        3,017        14,308   
  

 

 

    

 

 

    

 

 

  

CASH AND CASH EQUIVALENTS AT DECEMBER 31

    $ 4,530      $ 2,732      $ 3,017   
  

 

 

    

 

 

    

 

 

  

The ability of the subsidiary Bank to upstream cash to the parent company is restricted by regulations. Federal law prevents the parent company from borrowing from its subsidiary Bank unless the loans are secured by specified assets. Further, such secured loans are limited in amount to ten percent of the subsidiary Bank's capital and surplus. In addition, the Bank is subject to legal limitations on the amount of dividends that can be paid to its shareholder. The dividend limitation generally restricts dividend payments to a bank's retained net income for the current and preceding two calendar years. At December 31, 2011, our subsidiary Bank had $3.3 million of cash available for immediate dividends to the holding company under the applicable regulatory formulas. Cash may also be upstreamed to the parent company by the subsidiaries as an inter-entity management fee. The subsidiary Bank had a combined $107,647,000 of restricted surplus and retained earnings at December 31, 2011.