17 million); finally mounting income tax from undivided profits
weakened growth of economy of scale.
In that situation, the language of the Bill states that "the creditor corporation is allowed to deduct from the total of its capital, surplus, and undivided profits
the amount of any debt owed to it by a parent, subsidiary, or affiliated corporation to the extent that the debt has been included in the tax base of the parent, subsidiary, or affiliated debtor corporation reporting for taxation under the provision to this section.
As a result of the redemption, the Company expects to record a reduction in undivided profits
of approximately $551,000 in the second quarter of 2009 associated with accelerated discount accretion related to the difference between the amount at which the Preferred Stock sale was initially recorded and its redemption price.
For example, a Delaware bank may not count its bank capital and surplus as part of the mandated capital and reserves for its insurance operations, nor may it allocate more than 25 percent of its total capital, surplus and undivided profits
in the aggregate to all of its insurance divisions and subsidiaries.
expects to record a reduction in undivided profits
of approximately $463,000 in the fourth quarter of 2009 associated with accelerated discount accretion related to the difference between the amount at which the Preferred Stock sale was initially recorded and its redemption price.
All of the Bank's dividends to the Company are payable only from the undivided profits
of the Bank.
ASSETS 1998 1997 Cash and Due from Bank $2,541 $976 Investment Securities 6,025 8,524 Federal Funds Sold 26,025 8,100 Loans 45,629 15,233 Net Loans 44,715 14,983 Premises and Equipment, net 3,068 1,916 Other Assets 377 284 Total Assets $82,751 $34,783 LIABILITIES Deposits $ 65,039 $ 23,261 Other Liabilities 323 133 Total Liabilities $ 65,362 $ 23,394 SHAREHOLDERS' EQUITY Common Stock 8,654 6,454 Surplus 10,340 5,930 Undivided Profits
(1,605) (995) Total Shareholders' Equity 17,389 11,389 TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $ 82,751 $ 34,783
ON SECURITIES 123,000 34,000 N/A UNDIVIDED PROFITS
9,520,000 8,794,000 8.
00 par value, 5,000,000 shares authorized; 2,116,250 and 2,090,250 shares issued and outstanding at March 31, 2006 and 2005, respectively 2,116 2,090 Additional paid-in capital 10,230 9,679 Undivided profits
38,496 34,642 Accumulated other comprehensive loss (1,335) (1,298) Total stockholders' equity 49,507 45,113 Total liabilities and stockholders' equity $ 642,097 $ 562,328 Book value per share $ 23.
Common stock 3,585 3,571 Additional paid in capital 13,207 13,032 Undivided profits
ON SECURITIES 34,000 (50,000) N/A UNDIVIDED PROFITS
8,794,000 7,299,000 20.
available for sale 124 283 Undivided profits
10,175 6,842 TOTAL STOCKHOLDERS' EQUITY 26,902 23,717