PARENT COMPANY FINANCIAL STATEMENTS

12 Months Ended

Dec. 31, 2016

PARENT COMPANY FINANCIAL STATEMENTS

PARENT COMPANY FINANCIAL STATEMENTS

NOTE 20 - PARENT COMPANY FINANCIAL STATEMENTS

Condensed Balance Sheets

December 31

	2016		2015
	(In Thousands)
ASSETS
Cash on deposit with subsidiaries	$	1,317	$	500
Investment in subsidiaries		102,658		100,495
Securities available for sale		70		70
Other assets		287		369
Total assets	$	104,332	$	101,434
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Note payable	$	4,090	$	4,794
Subordinated debentures		7,217		7,217
Other Liabilities		53		10
Stockholders’ equity
Preferred stock		—		—
Common stock		20,767		20,730
Retained earnings		73,161		68,324
Accumulated other comprehensive income (loss)		(956)		359
Total liabilities and stockholders’ equity	$	104,332	$	101,434

Condensed Statements of Income and Comprehensive Income

Years Ended December 31

	2016		2015		2014
	(In Thousands)
Income
Dividends from subsidiaries	$	5,700	$	4,200	$	4,100
Interest income		—		—		—
Total income		5,700		4,200		4,100
Expenses
Interest expense		482		347		230
Other expenses		209		644		385
Total expenses		691		991		615
Income before income taxes and equity in undistributed income of subsidiaries		5,009		3,209		3,485
Applicable income tax benefits		235		269		209
Income before equity in undistributed income of subsidiaries		5,244		3,478		3,694
Equity in undistributed income of subsidiaries		3,325		3,354		3,377
Net income		8,569		6,832		7,071
Other comprehensive income (loss), net of tax:
Unrealized gains (losses) on securities arising during the period		(1,126)		(160)		6,555
Reclassification of realized amount		(189)		(272)		(638)
Other comprehensive income (loss)		(1,315)		(432)		5,917
Comprehensive income	$	7,254	$	6,400	$	12,988

Condensed Statements of Cash Flows

Years Ended December 31

	2016		2015		2014
	(In Thousands)
Cash flows from operating activities
Net income	$	8,569	$	6,832	$	7,071
Adjustments to reconcile net income to net cash from operating activities
Equity in undistributed earnings of subsidiaries		(3,325)		(3,354)		(3,377)
Change in other assets		82		12		(109)
Change in other liabilities		43		(49)		50
Net cash from operating activities		5,369		3,441		3,635
Cash flows from investing activities
Acquisition of Madison Financial Corporation		—		(229)		—
Investment in captive insurance subsidiary		—		—		(250)
Net cash from investing activities		—		(229)		(250)
Cash flows from financing activities
Proceeds from issuance of long-term debt		—		5,000		—
Payments on note payable		(704)		(206)		—
Dividends paid		(3,229)		(2,972)		(2,721)
Payment to repurchase preferred stock		—		(6,066)		—
Proceeds from issuance of common stock		49		2		—
Purchase of common stock		(668)		(31)		(111)
Net cash from financing activities		(4,552)		(4,273)		(2,832)
Net change in cash		817		(1,061)		553
Cash at beginning of year		500		1,561		1,008
Cash at end of year	$	1,317	$	500	$	1,561