PARENT ONLY CONDENSED FINANCIAL STATEMENTS

CONDENSED BALANCE SHEETS

December 31, 2019 and 2018



(In thousands)	2019		2018
ASSETS
Cash and cash equivalents	$	1,675	$	2,326
Investment in Bank subsidiary	231,671		222,514
Other assets	220		367
Total assets	$	233,566	$	225,207
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Junior subordinated debentures due to subsidiary grantor trust	$	5,155	$	5,155
Other liabilities	283		314
Total liabilities	5,438		5,469
Shareholders’ equity:
Common stock	89,379		103,851
Retained earnings	135,932		120,294
Accumulated other comprehensive income (loss), net of tax	2,817		(4,407		)
Total shareholders’ equity	228,128		219,738
Total liabilities and shareholders’ equity	$	233,566	$	225,207

CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

For the Years Ended December 31, 2019, 2018, and 2017



(In thousands)	2019		2018		2017
Income:
Dividends declared by Subsidiary - eliminated in consolidation	$	20,100	$	2,850	$	3,133
Other income	6		6		4
Total income	20,106		2,856		3,137
Expenses:
Interest on junior subordinated deferrable interest debentures	210		199		147
Professional fees	209		217		231
Other expenses	437		548		1,019
Total expenses	856		964		1,397
Income before equity in undistributed net income of Subsidiary	19,250		1,892		1,740
Equity in undistributed net income of Subsidiary, net of distributions	1,932		19,075		11,754
Income before income tax benefit	21,182		20,967		13,494
Benefit from income taxes	261		322		532
Net income	$	21,443	$	21,289	$	14,026

Comprehensive income	$	28,667	$	13,912	$	16,867

CONDENSED STATEMENTS OF CASH FLOWS

For the Years Ended December 31, 2019, 2018, and 2017



(In thousands)	2019			2018			2017
Cash flows from operating activities:
Net income	$	21,443		$	21,289		$	14,026
Adjustments to reconcile net income to net cash provided by operating activities:
Undistributed net income of subsidiary, net of distributions	(1,932		)	(19,075		)	(11,754		)
Stock-based compensation	555			482			384
Net decrease (increase) in other assets	136			372			(114		)
Net increase (decrease) in other liabilities	69			166			(7		)
Benefit for deferred income taxes	10			11			155
Net cash provided by operating activities	20,281			3,245			2,690
Cash flows used in investing activities:
Investment in subsidiary	—			—			(151		)
Cash flows from financing activities:
Cash dividend payments on common stock	(5,805		)	(4,270		)	(3,010		)
Purchase and retirement of common stock	(15,619		)	(894		)	—
Proceeds from exercise of stock options	276			738			2,880
Proceeds from stock issued under employee stock purchase plan	216			211			—
Net cash used in financing activities	(20,932		)	(4,215		)	(130		)
(Decrease) increase in cash and cash equivalents	(651		)	(970		)	2,409
Cash and cash equivalents at beginning of year	2,326			3,296			887
Cash and cash equivalents at end of year	$	1,675		$	2,326		$	3,296

Supplemental Disclosure of Cash Flow Information:
Cash paid during the year for interest	$	215		$	185		$	142
Non-cash investing and financing activities:
Common stock issued in acquisitions	$	—		$	—		$	28,405