Parent Company Financial Statements

12 Months Ended

Dec. 31, 2019

22. Parent Company Financial Statements

Condensed Balance Sheets

(in thousands) December 31	2019		2018
Assets:
Cash on deposit	$	2,089	$	1,939
Investment in and advances to subsidiaries		667,206		620,701
Goodwill		4,973		4,973
Premises and equipment, net		153		219
Deferred taxes		5,100		193
Other assets		44		45
Total assets	$	679,565	$	628,070

Liabilities and shareholders’ equity:
Long-term debt	$	61,341	$	61,341
Other liabilities		3,338		2,579
Total liabilities		64,679		63,920

Shareholders’ equity		614,886		564,150

Total liabilities and shareholders’ equity	$	679,565	$	628,070

Condensed Statements of Income and Comprehensive Income

(in thousands) Year Ended December 31	2019			2018			2017
Income:
Dividends from subsidiary banks	$	30,152		$	26,750		$	24,661
Other income		757			489			904
Total income		30,909			27,239			25,565

Expenses:
Interest expense		2,520			2,318			1,723
Depreciation expense		144			135			116
Other expenses		3,273			3,156			2,858
Total expenses		5,937			5,609			4,697

Income before income taxes and equity in undistributed income of subsidiaries		24,972			21,630			20,868
Income tax benefit		(4,947	)		(1,219	)		(1,445	)
Income before equity in undistributed income of subsidiaries		29,919			22,849			22,313
Equity in undistributed income of subsidiaries		34,621			36,379			29,180

Net income	$	64,540		$	59,228		$	51,493

Other comprehensive gain (loss):
Unrealized holding gains (losses) on securities available-for-sale :
Unrealized holding gains (losses) arising during the period		14,270			(5,393	)		(820	)
Less: Reclassification adjustments for realized gains (losses) included in net income		3			(821	)		73
Tax expense (benefit)		3,403			(960	)		(312	)
Other comprehensive gain (loss), net of tax		10,864			(3,612	)		(581	)
Comprehensive income	$	75,404		$	55,616		$	50,912

Condensed Statements of Cash Flows

(in thousands) Year Ended December 31	2019			2018			2017
Cash flows from operating activities:
Net income	$	64,540		$	59,228		$	51,493
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		144			135			116
Equity in undistributed earnings of subsidiaries		(34,621	)		(36,379	)		(29,180	)
Deferred taxes		(4,907	)		(12	)		192
Stock-based compensation		859			710			636
Gain on debt repurchase		(219	)		0			(560	)
Changes in:
Other assets		1			(50	)		(47	)
Other liabilities		683			53			412
Net cash provided by operating activities		26,480			23,685			23,062

Cash flows from investing activities:
Payment for investment in subsidiary		(1,281	)		0			(1,440	)
Purchase of premises and equipment		(78	)		(81	)		(179	)
Net cash used in investing activities		(1,359	)		(81	)		(1,619	)

Cash flows from financing activities:
Issuance of common stock		1,264			1,230			1,513
Dividends paid		(26,235	)		(24,395	)		(22,981	)
Net cash used in financing activities		(24,971	)		(23,165	)		(21,468	)

Net increase (decrease) in cash and cash equivalents		150			439			(25	)
Cash and cash equivalents at beginning of year		1,939			1,500			1,525
Cash and cash equivalents at end of year	$	2,089		$	1,939		$	1,500