PARENT COMPANY FINANCIAL INFORMATION

12 Months Ended

Dec. 31, 2021

Condensed Financial Information Disclosure [Abstract]

PARENT COMPANY FINANCIAL INFORMATION

NOTE 26. PARENT COMPANY FINANCIAL INFORMATION

Following is condensed financial information of GrandSouth Bancorporation (parent company only) as of the dates indicated (in thousands):

Condensed Balance Sheets
	December 31,
	2021		2020
Assets
Cash	$	7,671	$	12,537
Equity investment in bank subsidiary		125,268		108,716
Equity investment in trust		247		247
Other assets		403		964
Total assets	$	133,589	$	122,464
Liabilities and Shareholders' Equity
Junior subordinated debentures	$	35,864	$	35,744
Other liabilities		320		195
Shareholders' equity		97,405		86,525
Total liabilities and shareholders' equity	$	133,589	$	122,464

Condensed Statements of Income
	Year Ended December 31,
	2021			2020
Income
Interest income	$	5		$	7
Total income		5			7
Expenses
Interest		1,727			1,035
Other		64			57
Total expenses		1,791			1,092
Loss before income taxes and equity in undistributed income of subsidiary		(1,786	)		(1,085	)
Income tax benefit allocated from consolidated income tax return		375			228
Loss before equity in undistributed income of subsidiary		(1,411	)		(857	)
Equity in earnings of subsidiary greater than dividends received		17,525			9,502
Net income	$	16,114		$	8,645

Condensed Statements of Cash Flows
	For the Year Ended December 31,
	2021			2020
Cash flows from operating activities:
Net income	$	16,114		$	8,645
Adjustments to reconcile net income to net cash used in operating activities
Amortization of junior subordinated notes issuance costs		120			—
Equity in undistributed earnings of subsidiary		(17,525	)		(9,502	)
Share-based compensation expense		585			711
Decrease (increase) in other assets		561			(100	)
Decrease in other liabilities		125			161
Net cash used in operating activities		(20	)		(85	)
Cash flows from investing activities:
Investment in subsidiary		—			(6,000	)
Net cash used in investing activities		—			(6,000	)
Cash flows from financing activities:
Repurchase of common stock		(3,946	)		—
Repurchase of preferred stock		(94	)		—
Proceeds from issuance of subordinated debt, net of issuance costs		—			17,602
Cash received upon exercise of stock options		1,380			309
Cash dividends paid on common stock		(2,066	)		(1,668	)
Cash dividends paid on preferred stock		(120	)		(97	)
Net cash provided by financing activities		(4,846	)		16,146
Net change in cash and cash equivalents		(4,866	)		10,061
Cash and cash equivalents, beginning of year		12,537			2,476
Cash and cash equivalents, end of year	$	7,671		$	12,537
Supplemental disclosures of cash flow information:
Cash paid during the year for:
Interest on junior subordinated debt	$	1,482		$	882