Note N - Parent Company Financial Information

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Condensed Financial Information of Parent Company Only Disclosure [Text Block]

NOTE

N

– PARENT COMPANY FINANCIAL INFORMATION

Condensed financial information for the Corporation (parent company only) is as follows:

CONDENSED BALANCE SHEETS

	December 31,
	2016			2015
	(in thousands)
Assets:
Cash and due from banks	$	1,372		$	2,351
Investment in subsidiary bank, at equity		306,107			249,260
Prepaid income taxes		123			719
Deferred income tax benefits		1,548			1,464
Other assets		68			4
	$	309,218		$	253,798
Liabilities:
Other liabilities	$	20		$	39
Cash dividends payable		3,368			2,823
		3,388			2,862
Stockholders' equity:
Common stock		2,370			1,412
Surplus		101,738			56,931
Retained earnings		203,326			185,069
		307,434			243,412
Accumulated other comprehensive income (loss), net of tax		(1,604	)		7,524
		305,830			250,936
	$	309,218		$	253,798

CONDENSED STATEMENTS OF INCOME

	Year ended December 31,
	2016			2015			2014
	(in thousands)
Income:
Dividends from subsidiary bank	$	4,500		$	7,500		$	6,000
Expenses:
Salaries		1,517			1,319			1,511
Other operating expenses		376			541			409
		1,893			1,860			1,920
Income before income taxes		2,607			5,640			4,080
Income tax benefit		(1,181	)		(832	)		(759	)
Income before undistributed earnings of subsidiary bank		3,788			6,472			4,839
Equity in undistributed earnings		27,092			19,418			18,175
Net income	$	30,880		$	25,890		$	23,014
Comprehensive income	$	21,752		$	22,629		$	32,137

CONDENSED STATEMENTS OF CASH FLOWS

	Year ended December 31,
	2016			2015			2014
	(in thousands)
Cash Flows From Operating Activities:
Net income	$	30,880		$	25,890		$	23,014
Adjustments to reconcile net income to net cash provided by operating activities:
Undistributed earnings of subsidiary bank		(27,092	)		(19,418	)		(18,175	)
Deferred income tax credit		(84	)		(278	)		(289	)
Tax benefit of stock-based compensation		-			336			224
Stock-based compensation expense		1,517			1,319			1,511
(Increase) decrease in prepaid income taxes		596			(362	)		139
(Increase) decrease in other assets		(64	)		38			(41	)
Increase (decrease) in other liabilities		(19	)		39			(12	)
Net cash provided by operating activities		5,734			7,564			6,371
Cash Flows From Investing Activities:
Payments for investments in and advances to subsidiaries		(38,883	)		-			-
Cash Flows From Financing Activities:
Repurchase and retirement of common stock		(370	)		(287	)		(286	)
Proceeds from exercise of stock options		906			707			1,055
Proceeds from issuance of common stock, net		43,712			3,870			2,185
Cash dividends paid		(12,078	)		(10,759	)		(9,736	)
Net cash provided by (used in) financing activities		32,170			(6,469	)		(6,782	)
Net increase (decrease) in cash and cash equivalents*		(979	)		1,095			(411	)
Cash and cash equivalents, beginning of year		2,351			1,256			1,667
Cash and cash equivalents, end of year	$	1,372		$	2,351		$	1,256
Supplemental Schedule of Noncash Financing Activities:
Cash dividends payable	$	3,368		$	2,823		$	2,642

*

Cash and cash equivalents is defined as cash and due from banks and includes, among other things, the checking and money market accounts with the Corporation’s wholly-owned bank subsidiary.