PARENT COMPANY FINANCIAL STATEMENTS

12 Months Ended

Dec. 31, 2014

PARENT COMPANY FINANCIAL STATEMENTS

PARENT COMPANY FINANCIAL STATEMENTS

NOTE 20 - PARENT COMPANY FINANCIAL STATEMENTS

Condensed Balance Sheets

December 31

	2014		2013
	(In Thousands)
ASSETS
Cash on deposit with subsidiaries	$	1,561	$	1,008
Investment in subsidiaries	83,162		73,507
Securities available for sale	20		20
Other assets	475		364
Total assets	$	85,218	$	74,899
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Subordinated debentures	$	7,217	$	7,217
Notes payable	—		—
Other Liabilities	59		9
Stockholders’ equity
Preferred stock	—		—
Common stock	12,662		12,570
Retained earnings	64,489		60,229
Accumulated other comprehensive income (loss)	791		(5,126		)
Total liabilities and stockholders’ equity	$	85,218	$	74,899

Condensed Statements of Income and Comprehensive Income (Loss)

Years Ended December 31

	2014			2013			2012
	(In Thousands)
Income
Dividends from subsidiary	$	4,100		$	3,800		$	4,200
Interest income	—			—			—
Total income	4,100			3,800			4,200
Expenses
Interest expense	230			238			277
Other expenses	385			123			112
Total expenses	615			361			389
Income before income taxes and equity in undistributed income of subsidiary	3,485			3,439			3,811
Applicable income tax benefits	209			123			132
Income before equity in undistributed income of subsidiary	3,694			3,562			3,943
Equity in undistributed income of subsidiaries	3,377			2,260			3,065
Net income	7,071			5,822			7,008
Other comprehensive income (loss), net of tax:
Unrealized gains (losses) on securities arising during the period	6,555			8,770		)	1,723
Reclassification of realized amount	(638		)	(639		)	(1,210		)
Net change in unrealized gain (loss) on securities	5,917			(9,409		)	513
Comprehensive income (loss)	$	12,988		$	(3,587	)	$	7,521

Condensed Statements of Cash Flows

Years Ended December 31

	2014			2013			2012
	(In Thousands)
Cash flows from operating activities
Net income	$	7,071		$	5,822		$	7,008
Adjustments to reconcile net income to net cash from operating activities
Equity in undistributed earnings of subsidiary	(3,377		)	(2,260		)	(3,065		)
Change in other assets	(109		)	11			(1		)
Change in other liabilities	50			—			(1		)
Net cash from operating activities	3,635			3,573			3,941
Cash flows from investing activities
Investment in captive insurance subsidiary	(250		)	—			—
Net cash from investing activities	(250		)	—			—
Cash flows from financing activities
Payments on  note payable	—			(500		)	(800		)
Dividends paid	(2,721		)	(2,613		)	(2,503		)
Proceeds from issuance of common stock	—			—			1
Purchase of common stock	(111		)	(217		)	(56		)
Net cash from financing activities	(2,832		)	(3,330		)	(3,358		)
Net change in cash	553			243			583
Cash at beginning of year	1,008			765			182
Cash at end of year	$	1,561		$	1,008		$	765