Parent Company (Tables)

12 Months Ended

Dec. 31, 2014

Parent Company [Abstract]

Balance Sheets

Balance Sheets as of December 31,
(In thousands)	2014		2013
Assets:
Investment in subsidiaries*	$	144,533	$	137,810
Cash*		2,197		2,797
Other assets		323		461
Total assets	$	147,053	$	141,068
Liabilities and shareholders’ equity:
Other liabilities	$	613	$	838
Long term debt		20,619		20,619
Shareholders’ equity		125,821		119,611
Total liabilities and shareholders’ equity	$	147,053	$	141,068

Statements of Income

Statements of Income for the Years Ended December 31,
(In thousands)	2014		2013		2012
Dividends from Merchants Bank*	$	7,085	$	5,789	$	7,607
Equity in undistributed earnings of subsidiaries*		5,857		10,211		8,721
Other expense, net		(1,276)		(1,337)		(1,743)
Benefit from income taxes		459		468		609
Net income	$	12,125	$	15,131	$	15,194

Statements of Cashflows

Statement of Cash Flows for the Years Ended December 31,
(In thousands)	2014		2013		2012
Cash flow from operating activities:
Net income	$	12,125	$	15,131	$	15,194
Adjustments to reconcile net income to net cash provided by operating activities:
Net change in other assets		138		65		170
Net change in other liabilities		(67)		(121)		(116)
Equity in undistributed earnings of subsidiaries*		(5,857)		(10,211)		(8,721)
Net cash provided by operating activities		6,339		4,864		6,527
Cash flows from financing activities:
Sale of treasury stock		0		15		18
Proceeds from exercise of stock options		0		0		280
Tax benefit from exercises of stock options		14		8		20
Cash dividends paid		(7,167)		(6,432)		(6,324)
Other, net		214		226		200
Net cash used in financing activities		(6,939)		(6,183)		(5,806)
Increase (decrease) in cash and cash equivalents		(600)		(1,319)		721
Cash and cash equivalents at beginning of year		2,797		4,116		3,395
Cash and cash equivalents at end of year	$	2,197	$	2,797	$	4,116
* Account balances are partially or fully eliminated in consolidation