Note 18 - Condensed Financial Information - Parent Company Only

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

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

Note

18.

CONDENSED FINANCIAL INFORMATION

— PARENT COMPANY ONLY

The following tables present condensed parent company only financial information:

Condensed Statements of Financial Condition

	December 31,
(in thousands)	2019		2018
Assets:
Cash	$	10,343	$	5,976
Investment in statutory trust		418		405
Investment in subsidiary (equity method)		131,194		104,134
Other assets		2,019		2,081
Total assets	$	143,974	$	112,596
Liabilities and Shareholders’ Equity:
Subordinated debentures	$	-	$	5,000
Junior subordinated debentures		10,310		10,310
Accrued interest payable		16		38
Other liabilities		41		29
Total liabilities		10,367		15,377
Shareholders’ equity		133,607		97,219
Total liabilities and shareholders’ equity	$	143,974	$	112,596

Condensed Statements of Income

	For the Year Ended December 31,
(in thousands)	2019		2018
Income:
Dividends from subsidiaries	$	10,000	$	12,180
Interest on interest-bearing deposits in other banks		77		3
Income from trust		13		12
Total income		10,090		12,195
Expense:
Interest on subordinated notes		24		228
Interest on junior subordinated debt		430		400
Other operating expenses		275		353
Other losses		-		32
Total expenses		729		1,013
Income before income taxes		9,361		11,182
Provision for income taxes		-		-
Income before equity in undistributed net income of subsidiary		9,361		11,182
Equity in undistributed net income of subsidiary		1,714		2,167
Net income	$	11,075	$	13,349

Condensed Statements of Cash Flows

	For the Year Ended December 31,
(in thousands)	2019			2018
Cash flows from operating activities:
Net income	$	11,075		$	13,349
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed income of subsidiary		(1,714	)		(2,167	)
Equity in trust		(13	)		(12	)
(Decrease) increase in accrued interest payable		(22	)		3
Decrease in other assets		467			65
Decrease in director indemnification liability		-			(2,553	)
Increase (decrease) in other liabilities		12			(30	)
Net cash provided by operating activities		9,805			8,655
Cash flows from investing activities:
Investment in Subsidiary		(17,750	)		-
Net cash used in investing activities		(17,750	)		-
Cash flows from financing activities:
Principal reduction on subordinated debentures		(5,000	)		-
Proceeds from issuance of common shares		21,342			117
Cash dividends paid		(4,030	)		(2,857	)
Net cash provided by (used in) financing activities		12,312			(2,740	)
Net increase in cash		4,367			5,915
Cash at beginning of year		5,976			61
Cash at end of year	$	10,343		$	5,976