Note 22 - Condensed Parent Company Financial Information

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

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

Note

22.

Condensed Parent Company Financial Information

Financial information pertaining only to HomeTown Bankshares Corporation follows.

CONDENSED BALANCE SHEETS
Dollars In Thousands	December 31, 2018		December 31, 2017
Assets
Cash and due from banks	$	70	$	313
Investment in bank subsidiary		60,492		57,333
Other assets		98		3
Total assets	$	60,660	$	57,649
Liabilities and Stockholders’ Equity
Other liabilities	$	25	$	12
Subordinated notes		7,285		7,254
Total liabilities		7,310		7,266
Stockholders’ equity:
Total stockholders’ equity		53,350		50,383
Total liabilities and stockholders’ equity	$	60,660	$	57,649

CONDENSED STATEMENTS OF INCOME
Dollars In Thousands	For the year ended December 31, 2018		For the year ended December 31, 2017
Dividend from Bank subsidiary	$	1,650	$	511
Income		1,650		511
Interest expense		536		537
Other expenses		1,064		272
Expenses		1,600		809
Net income (loss) before income taxes		50		(298	)
Income tax benefit		276		275
Net income (loss) before equity in undistributed net income of subsidiary		326		(23	)
Undistributed net income of subsidiary		3,628		2,519
Net Income	$	3,954	$	2,496

CONDENSED STATEMENTS OF CASH FLOWS
Dollars In Thousands	For the year ended December 31, 2018			For the year ended December 31, 2017
Cash flows from operating activities:
Net income	$	3,954		$	2,496
Equity in undistributed net income of subsidiary bank		(3,628	)		(2,519	)
Amortization expense on subordinated notes		31			30
Equity compensation expense		114
Increase in other assets		(95	)		(3	)
Increase in other liabilities		13			—
Net cash flows provided by operating activities		389			4
Cash flows from financing activities:
Common stock dividend		(697	)		—
Exercise of stock options		85			31
Net settlement of vested restricted stock		(20	)		(20	)
Net cash flows provided by (used in) financing activities		(632	)		11
Net increase (decrease) in cash and cash equivalents		(243	)		15
Cash and cash equivalents, beginning		313			298
Cash and cash equivalents, ending	$	70		$	313
Supplemental disclosure of cash flow information:
Cash payments for interest	$	506		$	506