CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY

12 Months Ended

Dec. 31, 2021

CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY

CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY

NOTE 20 – CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY

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

	December 31,		December 31,
Condensed Balance Sheets	2021		2020
ASSETS
Cash and cash equivalents	$	18,124	$	14,270
Investment in subsidiaries		233,417		157,377
Loans, net		1,978		2,021
Other assets		3,611		4,075
Total assets	$	257,130	$	177,743
LIABILITIES
Subordinated notes	$	39,031	$	24,291
Other liabilities(1)		(942)		(1,510)
Total liabilities		38,089		22,781
SHAREHOLDERS’ EQUITY
Total shareholders’ equity		219,041		154,962
Total liabilities and shareholders’ equity	$	257,130	$	177,743

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⁽¹⁾ As of December 31, 2021 and 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	2021		2020
Income
Interest income	$	60	$	87
Non-interest income		—		(1)
Total income		60		86
Expense
Interest expense		1,549		854
Non-interest expense		285		355
Total expense		1,834		1,209
Loss before income tax and equity in undistributed income of subsidiaries		(1,774)		(1,123)
Income tax benefit		119		(85)
Loss before equity in undistributed income of subsidiaries		(1,655)		(1,208)
Equity in undistributed income to subsidiaries		22,265		25,742
Net income	$	20,610	$	24,534

	Year Ended December 31,
Condensed Statements of Cash Flows	2021		2020
Cash flows from operating activities
Net income	$	20,610	$	24,534
Adjustments:
Depreciation and amortization		73		12
Current and deferred income tax expense/(benefit)		301		(3,003)
Stock-based compensation		2,903		2,544
Undistributed equity in subsidiaries		(22,265)		(25,742)
Change in other assets		678		(32)
Change in other liabilities		53		(42)
Net cash provided by/(used in) operating activities		2,353		(1,729)
Cash flows from investing activities
Net cash paid on acquisition		(11,501)		—
Investment in subsidiaries		(2,913)		(10,453)
Loan and note receivable originations and principal collections		43		70
Net cash used in investing activities		(14,371)		(10,383)
Cash flows from financing activities
Proceeds from subordinated notes		14,667		17,719
Repurchase of common stock		—		(377)
Settlement of restricted stock		(501)		(261)
Proceeds from the exercise of stock options		1,706		—
Net cash provided by financing activities		15,872		17,081
Net change in cash and cash equivalents		3,854		4,969
Cash and cash equivalents, beginning of year		14,270		9,301
Cash and cash equivalents, end of year	$	18,124	$	14,270
Supplemental cash flow information:
Interest paid on borrowed funds	$	1,549	$	854
Supplemental noncash disclosures:
Common stock issued for Teton acquisition		39,818		—
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