Parent Company Financial Information

12 Months Ended

Dec. 31, 2016

(19.) PARENT COMPANY FINANCIAL INFORMATION

Condensed financial statements pertaining only to the Parent are presented below (in thousands).


Condensed Statements of Condition		December 31,
		2016		2015
Assets:
Cash and due from subsidiary	$	16,516	$	15,787
Investment in and receivables due from subsidiary		344,741		318,928
Other assets		4,020		4,451
Total assets	$	365,277	$	339,166
Liabilities and shareholders' equity:
Long-term borrowings, net of issuance costs of $939 and $1,010, respectively	$	39,061	$	38,990
Other liabilities		6,162		6,332
Shareholders' equity		320,054		293,844
Total liabilities and shareholders' equity	$	365,277	$	339,166


Condensed Statements of Income	Years ended December 31,
		2016		2015		2014
Dividends from subsidiary and associated companies	$	16,000	$	16,000	$	20,920
Management and service fees from subsidiary		855		599		417
Other income		1,296		1,175		74
Total income		18,151		17,774		21,411
Interest expense		2,471		1,750		-
Operating expenses		5,950		3,509		3,437
Total expense		8,421		5,259		3,437
Income before income tax benefit and equity in undistributed
earnings of subsidiary		9,730		12,515		17,974
Income tax benefit		2,783		1,814		1,120
Income before equity in undistributed earnings of subsidiary		12,513		14,329		19,094
Equity in undistributed earnings of subsidiary		19,418		14,008		10,261
Net income	$	31,931	$	28,337	$	29,355


Condensed Statements of Cash Flows		Years ended December 31,
		2016			2015			2014
Cash flows from operating activities:
Net income	$	31,931		$	28,337		$	29,355
Adjustments to reconcile net income to net cash provided
by operating activities:
Equity in undistributed earnings of subsidiary		(19,418	)		(14,008	)		(10,261	)
Depreciation and amortization		148			97			48
Share-based compensation		845			674			471
(Increase) decrease in other assets		1,772			(1,069	)		5,661
Decrease in other liabilities		(389	)		(258	)		(5,717	)
Net cash provided by operating activities		14,889			13,773			19,557
Cash flows from investing activities:
Capital investment in Five Star Bank		-			(34,000	)		-
Purchase of premises and equipment		(1,290	)		-			-
Net cash paid for acquisition		(918	)		-			(7,995	)
Net cash used in investing activities		(2,208	)		(34,000	)		(7,995	)
Cash flows from financing activities:
Issuance of long-term debt, net of issuance costs		-			38,940			-
Purchase of preferred and common shares		-			(202	)		(196	)
Proceeds from stock options exercised		964			359			667
Dividends paid		(12,946	)		(12,721	)		(11,984	)
Other		30			79			-
Net cash (used in) provided by financing activities		(11,952	)		26,455			(11,513	)
Net increase in cash and cash equivalents		729			6,228			49
Cash and cash equivalents as of beginning of year		15,787			9,559			9,510
Cash and cash equivalents as of end of the year	$	16,516		$	15,787		$	9,559