Parent Company Financial Information

12 Months Ended

Dec. 31, 2018

(20.)PARENT COMPANY FINANCIAL INFORMATION

Condensed financial statements pertaining only to the Parent are presented below (in thousands).

Condensed Statements of Financial Condition	December 31,
	2018		2017
Assets:
Cash and due from subsidiary	$	7,377	$	10,687
Investment in and receivables due from subsidiary		429,202		409,127
Other assets		6,199		5,901
Total assets	$	442,778	$	425,715
Liabilities and shareholders’ equity:
Long-term borrowings, net of issuance costs of $869 and $939, respectively	$	39,202	$	39,131
Other liabilities		7,283		5,407
Shareholders’ equity		396,293		381,177
Total liabilities and shareholders’ equity	$	442,778	$	425,715

Condensed Statements of Income	Years ended December 31,
	2018		2017		2016
Dividends from subsidiary and associated companies	$	20,000	$	12,000	$	16,000
Management and service fees from subsidiaries		137		1,185		855
Other income		137		1,298		1,296
Total income		20,274		14,483		18,151
Interest expense		2,471		2,471		2,471
Operating expenses		4,156		4,249		5,950
Total expense		6,627		6,720		8,421
Income before income tax benefit and equity in undistributed earnings of subsidiary		13,647		7,763		9,730
Income tax benefit		1,745		1,817		2,783
Income before equity in undistributed earnings of subsidiary		15,392		9,580		12,513
Equity in undistributed earnings of subsidiary		24,134		23,946		19,418
Net income	$	39,526	$	33,526	$	31,931

Condensed Statements of Cash Flows	Years ended December 31,
	2018			2017			2016
Cash flows from operating activities:
Net income	$	39,526		$	33,526		$	31,931
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed earnings of subsidiary		(24,134	)		(23,946	)		(19,418	)
Depreciation and amortization		152			149			148
Share-based compensation		1,301			1,174			845
(Increase) decrease in other assets		(175	)		(1,673	)		1,772
Increase (Decrease) in other liabilities		1,548			(1,211	)		(389	)
Net cash provided by operating activities		18,218			8,019			14,889
Cash flows from investing activities:
Capital investment in subsidiaries		(803	)		(38,405	)		-
Purchase of premises and equipment		(19	)		(44	)		(1,290	)
Net cash paid for acquisition		(4,503	)		-			(918	)
Net cash used in investing activities		(5,325	)		(38,449	)		(2,208	)
Cash flows from financing activities:
Proceeds from issuance of common shares		-			38,303			-
Purchase of preferred and common shares		(114	)		(157	)		-
Proceeds from stock options exercised		320			413			964
Dividends paid		(16,409	)		(13,958	)		(12,946	)
Other		-			-			30
Net cash (used in) provided by financing activities		(16,203	)		24,601			(11,952	)
Net (decrease) increase in cash and cash equivalents		(3,310	)		(5,829	)		729
Cash and cash equivalents as of beginning of year		10,687			16,516			15,787
Cash and cash equivalents as of end of the year	$	7,377		$	10,687		$	16,516