Condensed Balance Sheets

(in thousands) December 31	2012		2011
Assets:
Cash on deposit	$	5,442	$	6,105
Investment in and advances to subsidiaries		454,949		421,572
Goodwill		4,973		4,973
Premises and equipment, net		250		211
Other assets		1,277		498
Total assets	$	466,891	$	433,359

Liabilities and shareholders' equity:
Long-term debt	$	61,341	$	61,341
Other liabilities		5,206		5,152
Total liabilities		66,547		66,493

Shareholders' equity		400,344		366,866

Total liabilities and shareholders' equity	$	466,891	$	433,359

Condensed Statements of Income and Other Comprehensive Income

(in thousands) Year Ended December 31	2012			2011			2010
Income:
Dividends from subsidiary banks	$	16,572		$	20,370		$	34,620
Other income		238			255			34
Total income		16,810			20,625			34,654

Expenses:
Interest expense		2,403			3,999			3,999
Depreciation expense		127			72			25
Other expenses		1,990			1,808			1,557
Total expenses		4,520			5,879			5,581

Income before income taxes and equity in undistributed income of subsidiaries		12,290			14,746			29,073
Income tax benefit		(1,750	)		(2,277	)		(2,145	)
Income before equity in undistributed income of subsidiaries		14,040			17,023			31,218
Equity in undistributed income of subsidiaries		30,822			21,804			1,816

Net income	$	44,862		$	38,827		$	33,034

Other comprehensive income:
Unrealized holding gains (losses) on securities available-for-sale:
Unrealized holding gains arising during the period		4,973			9,868			(464	)
Less: Reclassification adjustments for realized gains included in net income		(1,155	)		(218	)		0
Tax expense (benefit)		1,336			3,378			(162	)
Other comprehensive income (loss), net of tax		2,482			6,272			(302	)
Comprehensive income	$	47,344		$	45,099		$	32,732

Condensed Statements of Cash Flows

(in thousands) Year Ended December 31	2012			2011			2010
Cash flows from operating activities:
Net income	$	44,862		$	38,827		$	33,034
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		127			72			25
Equity in undistributed earnings of subsidiaries		(30,822	)		(21,804	)		(1,816	)
Stock-based compensation		512			555			393
Excess tax benefit of stock-based compensation		496			23			205
Changes in:
Other assets		(771	)		395			1,795
Other liabilities		495			0			675
Net cash provided by operating activities		14,899			18,068			34,311

Cash flows from investing activities:
Purchase of premises and equipment		(166	)		(198	)		(76	)
Repayment of investments in and advances to subsidiaries		(80	)		(96	)		(411	)
Additional investment in subsidiaries		0			0			(17,306	)
Net cash used in investing activities		(246	)		(294	)		(17,793	)

Cash flows from financing activities:
Issuance of common stock		4,395			1,291			1,875
Excess tax benefit of stock-based compensation		(496	)		(23	)		(205	)
Dividends paid		(19,215	)		(18,742	)		(18,332	)
Net cash used in financing activities		(15,316	)		(17,474	)		(16,662	)

Net increase (decrease) in cash and cash equivalents		(663	)		300			(144	)
Cash and cash equivalents at beginning of year		6,105			5,805			5,949
Cash and cash equivalents at end of year	$	5,442		$	6,105		$	5,805