PARENT COMPANY FINANCIAL INFORMATION

12 Months Ended

Dec. 31, 2018

Note 20

PARENT COMPANY FINANCIAL INFORMATION

The following are condensed statements of financial condition of the parent company at December 31:

Parent Company Statements of Financial Condition

(Dollars in Thousands, Except Per Share Data)	2018		2017
ASSETS
Cash and Due From Subsidiary Bank	$	19,053	$	17,515
Investment in Subsidiary Bank		344,714		327,416
Other Assets		5,440		5,112
Total Assets	$	369,207	$	350,043

LIABILITIES
Long-Term Borrowings	$	2,100	$	2,700
Subordinated Notes Payable		52,887		52,887
Other Liabilities		11,633		10,246
Total Liabilities		66,620		65,833

SHAREOWNERS’ EQUITY
Common Stock, $.01 par value; 90,000,000 shares authorized; 16,747,571 and 16,988,951 shares issued and outstanding at December 31, 2018 and December 31, 2017, respectively		167		170
Additional Paid-In Capital		31,058		36,674
Retained Earnings		300,177		279,410
Accumulated Other Comprehensive Loss, Net of Tax		(28,815)		(32,044)
Total Shareowners’ Equity		302,587		284,210
Total Liabilities and Shareowners’ Equity	$	369,207	$	350,043

The operating results of the parent company for the three years ended December 31 are shown below:

Parent Company Statements of Operations

(Dollars in Thousands)	2018		2017		2016
OPERATING INCOME
Income Received from Subsidiary Bank:
Administrative Fees	$	5,700	$	4,813	$	4,700
Dividends		15,000		12,000		9,300
Other Income		171		124		2,675
Total Operating Income		20,871		16,937		16,675

OPERATING EXPENSE
Salaries and Associate Benefits		3,679		3,783		3,581
Interest on Subordinated Notes Payable		2,286		1,761		1,527
Professional Fees		1,210		1,072		1,114
Advertising		106		130		160
Legal Fees		166		140		167
Other		2,170		1,338		1,384
Total Operating Expense		9,617		8,224		7,933
Earnings Before Income Taxes and Equity in Undistributed
Earnings of Subsidiary Bank		11,254		8,713		8,742
Income Tax (Benefit) Expense		(901)		166		(1,492)
Earnings Before Equity in Undistributed Earnings of Subsidiary Bank		12,155		8,547		10,234
Equity in Undistributed Earnings of Subsidiary Bank		14,069		2,316		1,512
Net Income	$	26,224	$	10,863	$	11,746

The cash flows for the parent company for the three years ended December 31 were as follows:

Parent Company Statements of Cash Flows

(Dollars in Thousands)	2018		2017		2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	26,224	$	10,863	$	11,746
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities:
Equity in Undistributed Earnings of Subsidiary Bank		(14,069)		(2,316)		(1,512)
Stock Compensation		1,421		1,502		1,260
Gain on Retirement of Trust Preferred Securities		-		-		(2,487)
Decrease (Increase) in Other Assets		(327)		450		(399)
Increase in Other Liabilities		1,579		960		345
Net Cash Provided By Operating Activities		14,828		11,459		8,953

CASH FROM FINANCING ACTIVITIES:
Redemption of Subordinated Notes		-		-		(7,500)
Proceeds from Short-Term Borrowings		-		-		3,750
Repayment of Short-Term Borrowings		-		-		(750)
Repayment of Long-Term Borrowings		(600)		(300)		-
Dividends Paid		(5,457)		(4,071)		(2,890)
Issuance of Common Stock Under Compensation Plans		797		809		840
Payments to Repurchase Common Stock		(8,030)		-		(6,312)
Net Cash Used In Financing Activities		(13,290)		(3,562)		(12,862)

Net Increase (Decrease) in Cash		1,538		7,897		(3,909)
Cash at Beginning of Year		17,515		9,618		13,527
Cash at End of Year	$	19,053	$	17,515	$	9,618