Parent Only Condensed Financial Statements (Tables)

12 Months Ended

Dec. 31, 2016

CONDENSED BALANCE SHEETS

December 31, 2016 and 2015



(In thousands)	2016			2015
ASSETS
Cash and cash equivalents	$	887		$	584
Investment in Bank subsidiary	167,666			143,531
Other assets	790			454
Total assets	$	169,343		$	144,569
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Junior subordinated debentures due to subsidiary grantor trust	$	5,155		$	5,155
Other liabilities	155			91
Total liabilities	5,310			5,246
Shareholders’ equity:
Common stock	71,645			54,424
Retained earnings	92,904			80,437
Accumulated other comprehensive (loss) income, net of tax	(516		)	4,462
Total shareholders’ equity	164,033			139,323
Total liabilities and shareholders’ equity	$	169,343		$	144,569

CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

For the Years Ended December 31, 2016, 2015, and 2014



(In thousands)	2016		2015		2014
Income:
Dividends declared by Subsidiary - eliminated in consolidation	$	13,010	$	2,260	$	2,350
Other income	4		3		3
Total income	13,014		2,263		2,353
Expenses:
Interest on junior subordinated deferrable interest debentures	121		99		96
Professional fees	133		156		187
Other expenses	779		411		389
Total expenses	1,033		666		672
Income before equity in undistributed net income of Subsidiary	11,981		1,597		1,681
Equity in undistributed net income of Subsidiary, net of distributions	2,852		9,080		3,325
Income before income tax benefit	14,833		10,677		5,006
Benefit from income taxes	349		287		288
Income available to common shareholders	$	15,182	$	10,964	$	5,294

Comprehensive income	$	10,204	$	10,049	$	12,957

CONDENSED STATEMENTS OF CASH FLOWS

For the Years Ended December 31, 2016, 2015, and 2014



(In thousands)	2016			2015			2014
Cash flows from operating activities:
Net income	$	15,182		$	10,964		$	5,294
Adjustments to reconcile net income to net cash provided by operating activities:
Undistributed net income of subsidiary, net of distributions	(2,852		)	(9,080		)	(3,325		)
Stock-based compensation	284			238			173
Tax benefit from exercise of stock options	(30		)	(6		)	(7		)
Net (increase) decrease in other assets	(405		)	50			(50		)
Net increase (decrease) in other liabilities	64			(32		)	34
Benefit from deferred income taxes	98			(5		)	(8		)
Net cash provided by operating activities	12,341			2,129			2,111
Cash flows used in investing activities:
Investment in subsidiary	(9,584		)	—			—
Cash flows from financing activities:
Cash dividend payments on common stock	(2,715		)	(1,979		)	(2,190		)
Proceeds from exercise of stock options	231			60			55
Tax benefit from exercise of stock options	30			6			7
Net cash used in financing activities	(2,454		)	(1,913		)	(2,128		)
Increase (decrease) in cash and cash equivalents	303			216			(17		)
Cash and cash equivalents at beginning of year	584			368			385
Cash and cash equivalents at end of year	$	887		$	584		$	368

Supplemental Disclosure of Cash Flow Information:
Cash paid during the year for interest	$	112		$	97		$	194
Non-cash investing and financing activities:
Common stock issued in Sierra Vista Bank acquisition	$	16,678		$	—		$	—