Condensed Balance Sheets

(in thousands) December 31	2018		2017
Assets:
Cash on deposit	$	1,939	$	1,500
Investment in and advances to subsidiaries		620,701		587,575
Goodwill		4,973		4,973
Premises and equipment, net		219		250
Other assets		238		200
Total assets	$	628,070	$	594,498

Liabilities and shareholders’ equity:
Long-term debt	$	61,341	$	61,341
Other liabilities		2,579		2,458
Total liabilities		63,920		63,799

Shareholders’ equity		564,150		530,699

Total liabilities and shareholders’ equity	$	628,070	$	594,498

Condensed Statements of Income and Comprehensive Income

(in thousands) Year Ended December 31	2018			2017			2016
Income:
Dividends from subsidiary banks	$	26,750		$	24,661		$	20,708
Other income		489			904			459
Total income		27,239			25,565			21,167

Expenses:
Interest expense		2,318			1,723			1,417
Depreciation expense		135			116			107
Other expenses		3,156			2,858			2,256
Total expenses		5,609			4,697			3,780

Income before income taxes and equity in undistributed income of subsidiaries		21,630			20,868			17,387
Income tax benefit		(1,219	)		(1,445	)		(1,373	)
Income before equity in undistributed income of subsidiaries		22,849			22,313			18,760
Equity in undistributed income of subsidiaries		36,379			29,180			28,586

Net income	$	59,228		$	51,493		$	47,346

Other comprehensive loss:
Unrealized holding losses on securities available-for-sale:
Unrealized holding losses arising during the period		(5,393	)		(820	)		(4,578	)
Less: Reclassification adjustments for realized gains included in net income		(821	)		73			522
Tax benefit		(960	)		(312	)		(1,785	)
Other comprehensive loss, net of tax		(3,612	)		(581	)		(3,315	)
Comprehensive income	$	55,616		$	50,912		$	44,031

Condensed Statements of Cash Flows

(in thousands) Year Ended December 31	2018			2017			2016
Cash flows from operating activities:
Net income	$	59,228		$	51,493		$	47,346
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		135			116			107
Equity in undistributed earnings of subsidiaries		(36,379	)		(29,180	)		(28,586	)
Stock-based compensation		710			636			458
Excess tax benefits of stock-based compensation		0			0			100
Gain on debt repurchase		0			(560	)		0
Changes in:
Other assets		(62	)		145			519
Other liabilities		53			412			(90	)
Net cash provided by operating activities		23,685			23,062			19,854

Cash flows from investing activities:
Payment for investment in subsidiary		0			(1,440	)		0
Purchase of premises and equipment		(81	)		(179	)		(104	)
Net cash used in investing activities		(81	)		(1,619	)		(104	)

Cash flows from financing activities:
Issuance of common stock		1,230			1,513			2,985
Repurchase of common stock		0			0			(382	)
Excess tax benefits of stock-based compensation		0			0			(100	)
Dividends paid		(24,395	)		(22,981	)		(22,190	)
Net cash used in financing activities		(23,165	)		(21,468	)		(19,687	)

Net increase (decrease) in cash and cash equivalents		439			(25	)		63
Cash and cash equivalents at beginning of year		1,500			1,525			1,462
Cash and cash equivalents at end of year	$	1,939		$	1,500		$	1,525