Condensed Balance Sheets

(in thousands) December 31	2013		2012
Assets:
Cash on deposit	$	1,272	$	5,442
Investment in and advances to subsidiaries		468,240		454,949
Goodwill		4,973		4,973
Premises and equipment, net		235		250
Other assets		617		1,277
Total assets	$	475,337	$	466,891

Liabilities and shareholders’ equity:
Long-term debt	$	61,341	$	61,341
Other liabilities		1,504		5,206
Total liabilities		62,845		66,547

Shareholders’ equity		412,492		400,344

Total liabilities and shareholders’ equity	$	475,337	$	466,891

Condensed Statements of Income and Comprehensive Income

(in thousands) Year Ended December 31	2013			2012			2011
Income:
Dividends from subsidiary banks	$	13,035		$	16,572		$	20,370
Other income		545			238			255
Total income		13,580			16,810			20,625

Expenses:
Interest expense		1,161			2,403			3,999
Depreciation expense		163			127			72
Other expenses		2,442			1,990			1,808
Total expenses		3,766			4,520			5,879

Income before income taxes and equity in undistributed income of subsidiaries		9,814			12,290			14,746
Income tax benefit		(1,416	)		(1,750	)		(2,277	)
Income before equity in undistributed income of subsidiaries		11,230			14,040			17,023
Equity in undistributed income of subsidiaries		33,942			30,822			21,804

Net income	$	45,172		$	44,862		$	38,827

Other comprehensive income:
Unrealized holding gains (losses) on securities available-for-sale:
Unrealized holding gains arising during the period		(31,878	)		4,973			9,868
Less: Reclassification adjustments for realized gains included in net income		45			(1,155	)		(218	)
Tax expense (benefit)		(11,142	)		1,336			3,378
Other comprehensive income (loss), net of tax		(20,691	)		2,482			6,272
Comprehensive income	$	24,481		$	47,344		$	45,099

Condensed Statements of Cash Flows

(in thousands) Year Ended December 31	2013			2012			2011
Cash flows from operating activities:
Net income	$	45,172		$	44,862		$	38,827
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		163			127			72
Equity in undistributed earnings of subsidiaries		(33,942	)		(30,822	)		(21,804	)
Stock-based compensation		658			512			555
Excess tax benefit of stock-based compensation		572			496			23
Changes in:
Other assets		660			(771	)		395
Other liabilities		1,505			495			0
Net cash provided by operating activities		14,788			14,899			18,068

Cash flows from investing activities:
Purchase of premises and equipment		(148	)		(166	)		(198	)
Repayment of investments in and advances to subsidiaries		(40	)		(80	)		(96	)
Net cash used in investing activities		(188	)		(246	)		(294	)

Cash flows from financing activities:
Issuance of common stock		6,348			4,395			1,291
Excess tax benefit of stock-based compensation		(572	)		(496	)		(23	)
Dividends paid		(24,546	)		(19,215	)		(18,742	)
Net cash used in financing activities		(18,770	)		(15,316	)		(17,474	)

Net increase (decrease) in cash and cash equivalents		(4,170	)		(663	)		300
Cash and cash equivalents at beginning of year		5,442			6,105			5,805
Cash and cash equivalents at end of year	$	1,272		$	5,442		$	6,105