| Parent Company Financial Statements |
Parent Company Financial Statements
On January 1, 2014, the Company's parent company sold certain assets and liabilities, including premises, equipment, prepaid expenses and short-term liabilities, to the Bank in an arms-length transaction. Also, effective January 1, 2014, all employees of the parent company became Bank employees.
Following are the condensed statements of condition, income and cash flows for the Company's parent company:
STATEMENTS OF CONDITION
| | | | | | | | | | December 31, | | 2014 | | 2013 | ASSETS | |
| | |
| Cash | $ | 23,259 |
| | $ | 21,788 |
| Trading assets | 2,457 |
| | 2,488 |
| Premises and equipment | — |
| | 4,797 |
| Investment in subsidiaries: | |
| | |
| Bank subsidiary | 266,940 |
| | 246,213 |
| Other subsidiary | 9,450 |
| | 8,733 |
| Amounts receivable from subsidiaries | 25 |
| | 2,062 |
| Investments in CCTA and UBCT | 1,331 |
| | 1,331 |
| Other assets | 8,812 |
| | 7,278 |
| Total assets | $ | 312,274 |
| | $ | 294,690 |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |
| | |
| Amounts due to subsidiaries | $ | — |
| | $ | 5 |
| Junior subordinated debentures | 44,024 |
| | 43,922 |
| Other liabilities | 23,141 |
| | 19,667 |
| Shareholders’ equity | 245,109 |
| | 231,096 |
| Total liabilities and shareholders’ equity | $ | 312,274 |
| | $ | 294,690 |
|
STATEMENTS OF INCOME | | | | | | | | | | | | | | For The Years Ended December 31, | | 2014 | | 2013 | | 2012 | Operating Income | |
| | |
| | | Dividend income from subsidiaries | $ | 12,800 |
| | $ | 13,500 |
| | $ | 13,400 |
| Fees from subsidiaries | — |
| | 20,930 |
| | 20,070 |
| Other income | 104 |
| | 270 |
| | 170 |
| Total operating income | 12,904 |
| | 34,700 |
| | 33,640 |
| Operating Expenses | |
| | |
| | |
| Interest on borrowings | 2,532 |
| | 2,532 |
| | 2,546 |
| Fees to Bank | 160 |
| | — |
| | — |
| Salaries and employee benefits | — |
| | 13,354 |
| | 13,007 |
| Furniture, equipment and data processing | — |
| | 4,570 |
| | 3,971 |
| Depreciation and amortization | — |
| | 1,197 |
| | 1,196 |
| Stock-based compensation expense | — |
| | 596 |
| | 538 |
| Net occupancy | — |
| | 523 |
| | 492 |
| Other operating expenses | 453 |
| | 1,454 |
| | 1,056 |
| Total operating expenses | 3,145 |
| | 24,226 |
| | 22,806 |
| Income before equity in undistributed earnings of subsidiaries and income taxes | 9,759 |
| | 10,474 |
| | 10,834 |
| Equity in undistributed earnings of subsidiaries | 13,799 |
| | 11,233 |
| | 11,647 |
| Income before income taxes | 23,558 |
| | 21,707 |
| | 22,481 |
| Income tax benefit | 1,012 |
| | 1,076 |
| | 947 |
| Net Income | $ | 24,570 |
| | $ | 22,783 |
| | $ | 23,428 |
|
STATEMENTS OF CASH FLOWS
| | | | | | | | | | | | | | For The Years Ended December 31, | | 2014 | | 2013 | | 2012 | Operating Activities | |
| | |
| | |
| Net income | $ | 24,570 |
| | $ | 22,783 |
| | $ | 23,428 |
| Adjustments to reconcile net income to net cash provided by operating activities: | |
| | |
| | |
| Equity in undistributed earnings of subsidiaries | (13,799 | ) | | (11,233 | ) | | (11,647 | ) | Depreciation and amortization | — |
| | 1,197 |
| | 1,196 |
| Stock-based compensation expense | — |
| | 596 |
| | 538 |
| Decrease (increase) in amount receivable from subsidiaries | 2,037 |
| | 498 |
| | (983 | ) | Decrease (increase) in other assets | 165 |
| | (845 | ) | | (1,334 | ) | (Decrease) increase in accrued expenses | (2,106 | ) | | 459 |
| | 636 |
| Net cash provided by operating activities | 10,867 |
| | 13,455 |
| | 11,834 |
| Investing Activities | |
| | |
| | |
| Proceeds from sale of assets | 5,237 |
| | — |
| | — |
| Purchase of premises and equipment | — |
| | (896 | ) | | (1,009 | ) | Net cash provided by (used by) investing activities | 5,237 |
| | (896 | ) | | (1,009 | ) | Financing Activities | |
| | |
| | |
| Exercise of stock options and issuance of restricted stock, net of repurchase for tax withholdings and tax benefit | 328 |
| | 300 |
| | (212 | ) | Capital contribution from subsidiaries | 599 |
| | — |
| | — |
| Common stock repurchase | (7,475 | ) | | (2,460 | ) | | (2,097 | ) | Cash dividends paid on common stock | (8,085 | ) | | (8,121 | ) | | (7,667 | ) | Net cash used by financing activities | (14,633 | ) | | (10,281 | ) | | (9,976 | ) | Net increase in cash | 1,471 |
| | 2,278 |
| | 849 |
| Cash at beginning of year | 21,788 |
| | 19,510 |
| | 18,661 |
| Cash at end of year | $ | 23,259 |
| | $ | 21,788 |
| | $ | 19,510 |
| Supplemental information | | | | | | Common stock repurchased not yet settled | $ | — |
| | $ | 320 |
| | $ | — |
|
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