PARENT COMPANY FINANCIAL DATA

12 Months Ended

Dec. 31, 2019

PARENT COMPANY FINANCIAL DATA

PARENT COMPANY FINANCIAL DATA

NOTE Q - PARENT COMPANY FINANCIAL DATA

Following are the condensed balance sheets of Select Bancorp as of and for the years ended December 31, 2019 and 2018 and the related condensed statements of operations and cash flows for each of the years in the three-year period ended December 31, 2019:

Condensed Balance Sheets

December 31, 2019 and 2018

(dollars in thousands)

	2019		2018
Assets
Cash balances with Select Bank & Trust	$	22,556	$	34,949
Investment in Select Bank & Trust		196,536		181,442
Investment in New Century Statutory Trust I		598		580
Other assets		5,711		5,255
Total Assets	$	225,401	$	222,226
Liabilities and Shareholders’ Equity
Junior subordinated debentures	$	12,372	$	12,372
Accrued interest and other liabilities		254		243
Total Liabilities		12,626		12,615
Shareholders’ equity:
Preferred stock		-		—
Common stock		18,330		19,312
Additional paid-in capital		140,870		150,718
Retained earnings		52,675		39,640
Common stock issued to deferred compensation trust		(2,815)		(2,615)
Directors’ Deferred Compensation Plan Rabbi Trust		2,815		2,615
Accumulated other comprehensive income (loss)		900		(59)
Total Shareholders’ Equity		212,775		209,611
Total Liabilities and Shareholders’ Equity	$	225,401	$	222,226

Condensed Statements of Operations

Years Ended December 31, 2019, 2018 and 2017

(dollars in thousands)

	2019		2018		2017
Equity in earnings of subsidiaries	$	14,153	$	39,153	$	(9,236)
Dividends received for subsidiary		—		(25,000)		—
Dividends in excess of earnings		434		642		13,291
Operating expense		(1,862)		(1,275)		(1,175)
Income tax benefit		310		262		305
Net income	$	13,035	$	13,782	$	3,185

Condensed Statements of Cash Flows

Years Ended December 31, 2019, 2018 and 2017

(dollars in thousands)

	2019		2018		2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	13,035	$	13,782	$	3,185
Equity in undistributed income of subsidiaries		(14,153)		(39,153)		9,236
Stock based compensation		369		178		115
Net change in other assets		(456)		(283)		(315)
Net change in other liabilities		11		(12,185)		12,066
Net cash provided by (used in) operating activities		(1,194)		(37,661)		24,287
CASH FLOWS FROM INVESTING ACTIVITIES
Cash received from acquisition		—		—		257
Investment in subsidiary		—		—		(12,407)
Net cash used in investing activities		—		—		(12,150)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from stock option exercises		228		187		166
Repurchase of common stock		(11,427)		—		—
Proceeds from the issuance of common stock		—		63,250		—
Direct expenses related to capital transaction		—		(3,444)		—
Net cash provided by (used in) financing activities		(11,199)		59,993		166
Net (decrease) increase in cash and cash equivalents		(12,393)		22,332		12,303
Cash and cash equivalents at beginning of year		34,949		12,617		314
Cash and cash equivalents, end of year	$	22,556	$	34,949	$	12,617