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The way you have it is fine. It's clear that each paragraph is a different speaker, even if the dialogue doesn't begin the paragraph. You may also want to browse other questions here under the dia...
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#4: Attribution notice removed
Source: https://writers.stackexchange.com/a/11019 License name: CC BY-SA 3.0 License URL: https://creativecommons.org/licenses/by-sa/3.0/
#3: Attribution notice added
Source: https://writers.stackexchange.com/a/11019 License name: CC BY-SA 3.0 License URL: https://creativecommons.org/licenses/by-sa/3.0/