| Parent Company |
NOTE 15: PARENT COMPANY
Merchants Bancshares, Inc.’s (the “Parent Company”) investments in its subsidiaries are recorded using the equity method of accounting. Summarized financial information relative to the Parent Company only balance sheets at December 31, 2013 and 2012, and statements of income and cash flows for each of the years in the three year period ended December 31, 2013, are shown in the following table. The statement of changes in shareholders' equity for the Parent Company are not reported because they are identical to the consolidated financial statements.
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Balance Sheets as of December 31,
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(In thousands)
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2013
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2012
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Assets:
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Investment in subsidiaries*
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$
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137,810
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$
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135,373
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Cash*
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2,797
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4,116
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Other assets
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461
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526
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Total assets
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$
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141,068
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$
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140,015
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Liabilities and shareholders’ equity:
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Other liabilities
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$
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838
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$
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1,175
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Long term debt
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20,619
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20,619
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Shareholders’ equity
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119,611
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118,221
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Total liabilities and shareholders’ equity
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$
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141,068
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$
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140,015
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Statements of Income for the Years Ended December 31,
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(In thousands)
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2013
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2012
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2011
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Dividends from Merchants Bank*
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$
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5,789
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$
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7,607
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$
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7,953
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Equity in undistributed earnings of subsidiaries*
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10,211
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8,721
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7,832
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Other expense, net
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(1,337)
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(1,743)
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(1,788)
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Benefit from income taxes
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468
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609
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623
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Net income
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$
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15,131
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$
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15,194
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$
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14,620
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Statement of Cash Flows for the Years Ended December 31,
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(In thousands)
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2013
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2012
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2011
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Cash flow from operating activities:
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Net income
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$
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15,131
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$
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15,194
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$
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14,620
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Adjustments to reconcile net income to net cash provided by operating activities:
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Net change in other assets
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65
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170
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(84)
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Net change in other liabilities
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(121)
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(116)
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66
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Equity in undistributed earnings of subsidiaries*
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(10,211)
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(8,721)
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(7,832)
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Net cash provided by operating activities
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4,864
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6,527
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6,770
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Cash flows from financing activities:
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Sale of treasury stock
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15
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18
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14
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Proceeds from exercise of stock options
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0
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280
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(1)
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Tax benefit from exercises of stock options
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8
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20
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1
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Cash dividends paid
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(6,432)
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(6,324)
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(6,233)
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Other, net
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226
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200
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206
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Net cash used in financing activities
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(6,183)
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(5,806)
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(6,013)
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Increase (decrease) in cash and cash equivalents
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(1,319)
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721
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757
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Cash and cash equivalents at beginning of year
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4,116
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3,395
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2,638
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Cash and cash equivalents at end of year
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$
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2,797
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$
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4,116
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$
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3,395
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* Account balances are partially or fully eliminated in consolidation
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