Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Cash flows from operating activities:
Net income	$ 1,534	$ 470
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of premises and equipment	257	326
Amortization and accretion, net	174	92
Gain on sale of available for sale securities	(45)	(121)
Provision for loan losses	397	657
Loss on sale of foreclosed assets	11
Deferred income tax benefit	(480)
(Increase) decrease in interest receivable	(104)	19
Decrease in other assets	172	175
Decrease in accrued interest payable	(3)	(36)
Increase in other liabilities	179	126
Net cash provided by operating activities	2,092	1,708
Cash flows from investing activities:
Purchases of time deposits	(11,284)	(25,119)
Principal repayments on time deposits	21,592	32,275
Purchases of securities available for sale	(8,805)	(7,137)
Proceeds from sales of securities available for sale	1,117	2,235
Proceeds from maturities, calls and prepayments of securities available for sale	9,653	6,646
Net increase in loans receivable	(13,457)	(9,691)
Purchases of restricted stock	(193)	(1,059)
Redemption of restricted stock	450	791
Purchases of premises and equipment	(541)	(37)
Proceeds from the sale of foreclosed assets	412
Net cash used in investing activities	(1,056)	(1,096)
Cash flows from financing activities:
Net increase (decrease) in deposits	4,648	(7,167)
(Decrease) increase in short term borrowings	(5,476)	6,000
Increase in long term borrowings		(1,000)
Proceeds from the issuance of preferred stock	6,853	(10)
Redemption of preferred stock	(5,604)
Cash dividends paid on preferred stock	(239)	(286)
Net cash provided by (used in) financing activities	182	(2,463)
Net increase (decrease) in cash and cash equivalents	1,218	(1,851)
Cash and cash equivalents-beginning	1,447	3,298
Cash and cash equivalents-ending	2,665	1,447
Supplemental information:
Cash paid during the period for interest	1,196	1,600
Supplemental schedule of Non-cash Investing Activites:
Foreclosed real estate acquired in settlement of loan	$ 2,794	$ 799

HIGHLANDS BANCORP, INC. 10-K