Note 24 - Parent Company Only Condensed Financial Information

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

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

NOTE

2

4

– PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION

Condensed financial information of Limestone Bancorp Inc. is presented as follows:

CONDENSED BALANCE SHEETS

	December 31,
	201 9		201 8
	(in thousands)
ASSETS
Cash and cash equivalents (1)	$	4,769	$	5,369
Investment in banking subsidiary		138,321		114,042
Investment in and advances to other subsidiaries		776		776
Deferred taxes, net		5,138		3,142
Other assets		1,083		682
Total assets	$	150,087	$	124,011
LIABILITIES AND SHAREHOLDERS’ EQUITY
Debt	$	43,775	$	31,775
Accrued expenses and other liabilities		562		139
Shareholders’ equity		105,750		92,097
Total liabilities and shareholders’ equity	$	150,087	$	124,011

( 1 ) $88,000 is held in escrow by the senior note lender to be used exclusively for interest payments on senior debt.

CONDENSED STATEMENTS OF

OPERATIONS

	Years ended December 31,
	201 9			201 8			201 7
	(in thousands)
Interest income	$	83		$	45		$	4
Dividends from subsidiaries		36			35			26
Other income		19			38			—
Interest expense		(1,803	)		(1,370	)		(973	)
Other expense		(1,179	)		(1,290	)		(1,137	)
Loss before income tax and undistributed subsidiary income		(2,844	)		(2,542	)		(2,080	)
Income tax expense (benefit)		(1,997	)		(645	)		(2,497	)
Equity in undistributed subsidiary income		11,365			10,691			38,036
Net income	$	10,518		$	8,794		$	38,453

CONDENSED STATEMENTS OF CASH FLOWS

	Years ended December 31,
	201 9			201 8			20 1 7
	(in thousands)
Cash flows from operating activities
Net income	$	10,518		$	8,794		$	38,453
Adjustments:
Equity in undistributed subsidiary (income) loss		(11,365	)		(10,691	)		(38,036	)
Deferred taxes, net		(1,996	)		(645	)		(2,497	)
Stock-based compensation expense		535			524			400
Net change in other assets		(401	)		30			805
Net change in other liabilities		423			(1,093	)		(128	)
Net cash used in operating activities		(2,286	)		(3,081	)		(1,003	)
Cash flows from investing activities
Investments in subsidiaries		(10,000	)		(5,000	)		(9,000	)
Net cash used in investing activities		(10,000	)		(5,000	)		(9,000	)
Cash flows from financing activities
Proceeds from issuance of common stock		—			14,910			—
Redemption of preferred stock		—			(3,505	)		—
Proceeds from issuance of subordinated capital note		17,000			—			—
Proceeds from senior debt		—			—			10,000
Repayment of senior debt		(5,000	)		—			—
Common shares withheld for taxes		(314	)		—			—
Net cash provided by financing activities		11,686			11,405			10,000
Net change in cash and cash equivalents		(600	)		3,324			(3	)
Beginning cash and cash equivalents		5,369			2,045			2,048
Ending cash and cash equivalents	$	4,769		$	5,369		$	2,045