Parent Only Condensed Financial Statements (Tables)

12 Months Ended

Dec. 31, 2017

CONDENSED BALANCE SHEETS

December 31, 2017 and 2016



(In thousands)	2017		2016
ASSETS
Cash and cash equivalents	$	3,296	$	887
Investment in Bank subsidiary	210,816		167,666
Other assets	750		790
Total assets	$	214,862	$	169,343
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Junior subordinated debentures due to subsidiary grantor trust	$	5,155	$	5,155
Other liabilities	148		155
Total liabilities	5,303		5,310
Shareholders’ equity:
Common stock	103,314		71,645
Retained earnings	103,419		92,904
Accumulated other comprehensive (loss) income, net of tax	2,826		(516		)
Total shareholders’ equity	209,559		164,033
Total liabilities and shareholders’ equity	$	214,862	$	169,343

CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

For the Years Ended December 31, 2017, 2016, and 2015



(In thousands)	2017		2016		2015
Income:
Dividends declared by Subsidiary - eliminated in consolidation	$	3,133	$	13,010	$	2,260
Other income	4		4		3
Total income	3,137		13,014		2,263
Expenses:
Interest on junior subordinated deferrable interest debentures	147		121		99
Professional fees	231		133		156
Other expenses	1,019		779		411
Total expenses	1,397		1,033		666
Income before equity in undistributed net income of Subsidiary	1,740		11,981		1,597
Equity in undistributed net income of Subsidiary, net of distributions	11,754		2,852		9,080
Income before income tax benefit	13,494		14,833		10,677
Benefit from income taxes	532		349		287
Income available to common shareholders	$	14,026	$	15,182	$	10,964

Comprehensive income	$	16,867	$	10,204	$	10,049

CONDENSED STATEMENTS OF CASH FLOWS

For the Years Ended December 31, 2017, 2016, and 2015



(In thousands)	2017			2016			2015
Cash flows from operating activities:
Net income	$	14,026		$	15,182		$	10,964
Adjustments to reconcile net income to net cash provided by operating activities:
Undistributed net income of subsidiary, net of distributions	(11,754		)	(2,852		)	(9,080		)
Stock-based compensation	384			284			238
Tax benefit from exercise of stock options	—			(30		)	(6		)
Net (increase) decrease in other assets	(114		)	(405		)	50
Net (decrease) increase in other liabilities	(7		)	64			(32		)
Benefit from deferred income taxes	155			98			(5		)
Net cash provided by operating activities	2,690			12,341			2,129
Cash flows used in investing activities:
Investment in subsidiary	(151		)	(9,584		)	—
Cash flows from financing activities:
Cash dividend payments on common stock	(3,010		)	(2,715		)	(1,979		)
Proceeds from exercise of stock options	2,880			231			60
Tax benefit from exercise of stock options	—			30			6
Net cash used in financing activities	(130		)	(2,454		)	(1,913		)
Increase in cash and cash equivalents	2,409			303			216
Cash and cash equivalents at beginning of year	887			584			368
Cash and cash equivalents at end of year	$	3,296		$	887		$	584

Supplemental Disclosure of Cash Flow Information:
Cash paid during the year for interest	$	142		$	112		$	97
Non-cash investing and financing activities:
Common stock issued in acquisitions	$	28,405		$	16,678		$	—