PARENT COMPANY FINANCIAL STATEMENTS (Tables)

12 Months Ended

Dec. 31, 2017

PARENT COMPANY FINANCIAL STATEMENTS

Schedule of condensed balance sheets

Condensed Balance Sheets

As of December 31,

	2017		2016
ASSETS
Cash on deposit with subsidiaries	$	3,563	$	1,317
Investment in subsidiaries		106,980		102,658
Securities available for sale		70		70
Other assets		310		287
Total assets	$	110,923	$	104,332
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Note payable	$	3,321	$	4,090
Subordinated debentures		7,217		7,217
Other Liabilities		56		53
Stockholders’ equity
Preferred stock		—		—
Common stock		20,931		20,767
Retained earnings		80,395		73,161
Accumulated other comprehensive income		(997)		(956)
Total liabilities and stockholders’ equity	$	110,923	$	104,332

Schedule of condensed statements of income and comprehensive income (loss)

Condensed Statements of Income and Comprehensive Income

Years Ended December 31,

	2017		2016		2015
Income
Dividends from subsidiary	$	7,135	$	5,700	$	4,200
Total income		7,135		5,700		4,200
Expenses
Interest expense		500		482		347
Other expenses		216		209		644
Total expenses		716		691		991
Income before income taxes and equity in undistributed income of subsidiary		6,419		5,009		3,209
Applicable income tax benefits		262		235		269
Income before equity in undistributed income of subsidiary		6,681		5,244		3,478
Equity in undistributed income of subsidiaries		4,036		3,325		3,354
Net income	$	10,717	$	8,569	$	6,832
Comprehensive income (loss)	$	10,840	$	7,254	$	6,400

Schedule of condensed statements of cash flows

Condensed Statements of Cash Flows

Years Ended December 31,

	2017		2016		2015
	(In Thousands)
Cash flows from operating activities
Net income	$	10,717	$	8,569	$	6,832
Adjustments to reconcile net income to net cash from operating activities
Equity in undistributed earnings of subsidiary		(4,036)		(3,325)		(3,354)
Change in other assets		(23)		82		12
Change in other liabilities		3		43		(49)
Net cash from operating activities		6,661		5,369		3,441
Cash flows from investing activities
Acquisition of Madison Financial Corporation		—		—		(229)
Net cash from investing activities		—		—		(229)
Cash flows from financing activities
Proceeds from issuance of long-term debt		—		—		5,000
Payments on note payable		(769)		(704)		(206)
Dividends paid		(3,447)		(3,229)		(2,972)
Payment to repurchase preferred stock		—		—		(6,066)
Proceeds from issuance of common stock		64		49		2
Purchase of common stock		(263)		(668)		(31)
Net cash from financing activities		(4,415)		(4,552)		(4,273)
Net change in cash		2,246		817		(1,061)
Cash at beginning of year		1,317		500		1,561
Cash at end of year	$	3,563	$	1,317	$	500