Parent Company Financial Statements

9 Months Ended

Sep. 30, 2020

PARENT COMPANY FINANCIAL STATEMENTS

Balance Sheets—Parent Company


(Dollars in thousands)	September 30, 2020		December 31, 2019
Assets
Cash and cash equivalents	$	29,105	$	35,210
Investment in banking subsidiary	223,624		178,240
Investment in captive insurance subsidiary	2,306		1,668
Income tax benefit	158		520
Other assets	41		99
Total assets	$	255,234	$	215,737
Liabilities
Subordinated notes	$	44,555	$	44,440
Accrued expenses and other liabilities	1,211		594
Total liabilities	45,766		45,034
Shareholders' equity	209,468		170,703
Total liabilities and shareholders' equity	$	255,234	$	215,737

Statements of Income and Comprehensive Income—Parent Company


	For the three months ended September 30,				For the nine months ended September 30,
(Dollars in thousands)	2020		2019		2020		2019
Income
Dividend income from bank subsidiary	$	5,000	$	—	$	41,500	$	—
Total income	$	5,000	$	—	$	41,500	$	—
Expenses
Interest on borrowed funds	11		—		33		—
Interest on subordinated notes	632		256		1,903		759
Other expenses	302		516		1,017		902
Total expenses	$	945	$	772	$	2,953	$	1,661
Income (loss) before income taxes and equity in (overdistributed) undistributed net earnings of subsidiaries	4,055		(772)		38,547		(1,661)
Income tax benefit	228		181		383		272
Equity in (overdistributed) undistributed earnings of subsidiaries	926		5,000		(26,890)		12,820
Net income	$	5,209	$	4,409	$	12,040	$	11,431
Other comprehensive income	783		1,238		4,451		7,120
Total comprehensive income, net of tax	$	5,992	$	5,647	$	16,491	$	18,551

Statements of Cash Flows—Parent Company


	For the nine months ended September 30,
(Dollars in thousands)	2020		2019
Cash flows from operating activities
Net income	$	12,040	$	11,431
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in over (under) distributed earnings of subsidiaries	26,890		(12,820)
Stock based compensation expense	72		54
(Increase) Decrease in other assets, net	420		(115)
Increase in other liabilities, net	654		411
Net cash provided by (used in) operating activities	40,076		(1,039)
Cash flows from investing activities
Cash used in acquisitions	(67,944)		—


Net cash used in investing activities	(67,944)		—
Cash flows from financing activities
Preferred stock offering, net of issuance costs	23,370		—

Share buyback - redeemed stock	(620)		(2,108)
Common stock dividends paid	(1,082)		(852)
Proceeds from exercised stock options	95		219
Net cash provided by (used in) financing activities	21,763		(2,741)
Net decrease in cash and cash equivalents	(6,105)		(3,780)
Beginning cash and cash equivalents	35,210		9,690
Ending cash and cash equivalents	$	29,105	$	5,910