Condensed financial information for Arrow Financial Corporation is as follows:



BALANCE SHEETS	December 31,
ASSETS	2013		2012
Interest-Bearing Deposits with Subsidiary Banks	$	3,349	$	1,913
Available-for-Sale Securities	1,166		1,148
Held-to-Maturity Securities	1,000		1,000
Investment in Subsidiaries at Equity	206,680		192,985
Other Assets	5,807		5,339
Total Assets	$	218,002	$	202,385
LIABILITIES
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts	$	20,000	$	20,000
Other Liabilities	5,848		6,560
Total Liabilities	25,848		26,560
STOCKHOLDERS’ EQUITY
Total Stockholders’ Equity	192,154		175,825
Total Liabilities and Stockholders’ Equity	$	218,002	$	202,385



STATEMENTS OF INCOME	Years Ended December 31,
Income:	2013		2012		2011
Dividends from Bank Subsidiaries	$	12,900	$	12,700	$	14,450
Interest and Dividends on Investments	116		123		127
Other Income (Including Management Fees)	549		776		596
Net Gains on Securities Transactions	—		63		17
Total Income	13,565		13,662		15,190
Expense:
Interest Expense	640		692		669
Salaries and Employee Benefits	59		75		92
Other Expense	860		957		820
Total Expense	1,559		1,724		1,581
Income Before Income Tax Benefit and Equity
in Undistributed Net Income of Subsidiaries	12,006		11,938		13,609
Income Tax Benefit	634		575		477
Equity in Undistributed Net Income of Subsidiaries	9,155		9,666		7,847
Net Income	$	21,795	$	22,179	$	21,933

The Statement of Changes in Stockholders’ Equity is not reported because it is identical to the Consolidated Statement of Changes in Stockholders’ Equity.



STATEMENTS OF CASH FLOWS	Years Ended December 31,
	2013			2012			2011
Cash Flows from Operating Activities:
Net Income	$	21,795		$	22,179		$	21,933
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Undistributed Net Income of Subsidiaries	(9,155		)	(9,666		)	(7,847		)
Net Gains on the Sale of Securities Available-for-Sale	—			(63		)	(17		)
Shares Issued Under the Directors’ Stock Plan	198			175			175
Stock-Based Compensation Expense	372			424			354
Changes in Other Assets and Other Liabilities	(990		)	(1,640		)	(165		)
Net Cash Provided by Operating Activities	12,220			11,409			14,433
Cash Flows from Investing Activities:
Proceeds from the Sale of Securities Available-for-Sale	45			681			410
Purchases of Securities Available-for-Sale	(45		)	(359		)	(253		)
Net Cash Provided by Investing Activities	—			322			157
Cash Flows from Financing Activities:
Stock Options Exercised	1,254			2,105			1,413
Shares Issued Under the Employee Stock Purchase Plan	477			484			474
Shares Issued for Dividend Reinvestment Plans	1,280			1,822			1,796
Tax Benefit for Exercises of Stock Options	23			68			51
Purchase of Treasury Stock	(1,709		)	(4,877		)	(6,039		)
Cash Dividends Paid	(12,109		)	(11,815		)	(11,448		)
Net Cash Used in Financing Activities	(10,784		)	(12,213		)	(13,753		)
Net (Decrease) Increase in Cash and Cash Equivalents	1,436			(482		)	837
Cash and Cash Equivalents at Beginning of the Year	1,913			2,395			1,558
Cash and Cash Equivalents at End of the Year	$	3,349		$	1,913		$	2,395
Supplemental Disclosures to Statements of Cash Flow Information:
Interest Paid	$	640		$	692		$	669
Non-cash Investing and Financing Activities:
Shares Issued for Acquisition of Subsidiary	233			233			5,261