CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY

12 Months Ended

Dec. 31, 2020

CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY

CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY

NOTE 21 – CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY

The tables below present condensed financial statements pertaining only to FWFI (in thousands). Investments in subsidiaries are stated using the equity method of accounting.

	December 31,
Condensed Balance Sheets	2020		2019
ASSETS
Cash and cash equivalents	$	14,270	$	9,301
Investment in subsidiaries		157,377		122,792
Loans, net		2,021		2,091
Other assets		4,075		597
Total assets	$	177,743	$	134,781
LIABILITIES
Subordinated notes	$	24,291	$	6,560
Other liabilities(1)		(1,510)		543
Total liabilities		22,781		7,103
SHAREHOLDERS’ EQUITY
Total shareholders’ equity		154,962		127,678
Total liabilities and shareholders’ equity	$	177,743	$	134,781

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⁽¹⁾ As of December 31, 2020, taxes payable was in a receivable position as a result of timing of tax payments.

	Year Ended December 31,
Condensed Statements of Income	2020		2019
Income
Interest income	$	87	$	93
Non-interest income		(1)		—
Total income		86		93
Expense
Interest expense		854		476
Non-interest expense		355		267
Total expense		1,209		743
Loss before income tax and equity in undistributed income of subsidiaries		(1,123)		(650)
Income tax benefit		(85)		49
Loss before equity in undistributed income of subsidiaries		(1,208)		(601)
Equity in undistributed income to subsidiaries		25,742		8,610
Net income	$	24,534	$	8,009

	Year Ended December 31,
Condensed Statements of Cash Flows	2020		2019
Cash flows from operating activities
Net income	$	24,534	$	8,009
Adjustments:
Current & deferred income tax (benefit)/expense		(3,003)		282
Stock-based compensation		2,544		2,291
Undistributed equity in subsidiaries		(25,742)		(8,610)
Change in other assets		(32)		665
Change in other liabilities		(42)		—
Net cash (used in) provided by operating activities		(1,741)		2,637
Cash flows from investing activities
Investment in subsidiaries		(10,453)		(2,152)
Loan and note receivable originations and principal collections		70		—
Net cash used in investing activities		(10,383)		(2,152)
Cash flows from financing activities
Proceeds from subordinated notes		18,000		—
Repurchase of common stock		(377)		(743)
Settlement of restricted stock		(261)		(110)
Recognition of capitalized subordinated notes issuance costs		(269)		—
Net cash provided by (used in) financing activities		17,093		(853)
Net change in cash and cash equivalents		4,969		(368)
Cash and cash equivalents, beginning of year		9,301		9,669
Cash and cash equivalents, end of year	$	14,270	$	9,301
Supplemental cash flow information:
Interest paid on borrowed funds	$	854	$	476
Segment collapse impact to investment in subsidiary		2,454		—
Segment collapse impact to deferred income tax (benefit)/expense		640		—
Segment collapse impact to other assets		(3,202)		—
Segment collapse impact to other liabilities	$	108	$	—