Parent Only Condensed Financial Statements (Tables)

12 Months Ended

Dec. 31, 2014

CONDENSED BALANCE SHEETS

December 31, 2014 and 2013



(In thousands)	2014		2013
ASSETS
Cash and cash equivalents	$	368	$	385
Investment in Bank subsidiary	135,366		124,378
Other assets	589		523
Total assets	$	136,323	$	125,286
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Junior subordinated debentures due to subsidiary grantor trust	$	5,155	$	5,155
Other liabilities	123		88
Total liabilities	5,278		5,243
Shareholders’ equity:
Preferred stock, Series C	—		—
Common stock	54,216		53,981
Retained earnings	71,452		68,348
Accumulated other comprehensive (loss) income, net of tax	5,377		(2,286		)
Total shareholders’ equity	131,045		120,043
Total liabilities and shareholders’ equity	$	136,323	$	125,286

CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

For the Years Ended December 31, 2014, 2013, and 2012



(In thousands)	2014		2013			2012
Income:
Dividends declared by Subsidiary - eliminated in consolidation	$	2,350	$	18,000		$	3,000
Other income	3		5			3
Total income	2,353		18,005			3,003
Expenses:
Interest on junior subordinated deferrable interest debentures	96		98			107
Professional fees	187		102			140
Other expenses	389		424			587
Total expenses	672		624			834
Income before equity in undistributed net income of Subsidiary	1,681		17,381			2,169
Equity in undistributed net income of Subsidiary, net of distributions	3,325		(9,414		)	4,993
Income before income tax benefit	5,006		7,967			7,162
Benefit from income taxes	288		283			358
Net income	5,294		8,250			7,520
Preferred stock dividend and accretion of discount	—		350			350
Income available to common shareholders	$	5,294	$	7,900		$	7,170

Comprehensive income (loss)	$	12,957	$	(1,622	)	$	10,982

CONDENSED STATEMENTS OF CASH FLOWS

For the Years Ended December 31, 2014, 2013, and 2012



(In thousands)	2014			2013			2012
Cash flows from operating activities:
Net income	$	5,294		$	8,250		$	7,520
Adjustments to reconcile net income to net cash provided by operating activities:
Undistributed net income of subsidiary, net of distributions	(3,325		)	9,414			(4,993		)
Stock-based compensation	173			98			108
Tax benefit from exercise of stock options	(7		)	(17		)	(26		)
Net (increase) decrease in other assets	(50		)	86			(28		)
Net increase (decrease)in other liabilities	34			(198		)	179
Benefit from deferred income taxes	(8		)	(18		)	(15		)
Net cash provided by operating activities	2,111			17,615			2,745
Cash flows used in investing activities:
Investment in subsidiary	—			(11,358		)	—
Cash flows from financing activities:
Cash dividend payments on common stock	(2,190		)	(2,048		)	(480		)
Cash dividend payments on preferred stock	—			(437		)	(350		)
Share repurchase and retirement	—			—			(488		)
Proceeds from exercise of stock options	55			789			385
Redemption of preferred stock Series C	—			(7,000		)	—
Tax benefit from exercise of stock options	7			17			26
Net cash used in financing activities	(2,128		)	(8,679		)	(907		)
(Decrease) increase in cash and cash equivalents	(17		)	(2,422		)	1,838
Cash and cash equivalents at beginning of year	385			2,807			969
Cash and cash equivalents at end of year	$	368		$	385		$	2,807

Supplemental Disclosure of Cash Flow Information:
Cash paid during the year for interest	$	194		$	125		$	109
Non-cash investing and financing activities:
Common stock issued in Visalia Community Bank acquisition	$	—		$	12,494		$	—