Condensed Financial Information (Parent Company Only)

Presented below is condensed financial information as to financial position, results of operations, and cash flows of the Company on a non-consolidated basis:

Condensed Balance Sheets



	Year Ended December 31,
	2019		2018
Assets
Cash and cash equivalents	$	38,303	$	45,281
Investment in common stock of subsidiaries	332,352		274,158
Premises and equipment, net	6,515		6,158
Accrued income and other assets	2,156		1,554
Total assets	$	379,326	$	327,151

Liabilities and shareholders’ equity
Subordinated debt, net of unamortized discounts and debt issuance costs of $2,472 in 2019 and $1,125 in 2018	$	69,528	$	33,875
Note payable to the Bank	3,000		3,300
Accrued expenses and other liabilities	1,885		1,241
Total liabilities	74,413		38,416

Shareholders’ equity	304,913		288,735
Total liabilities and shareholders’ equity	$	379,326	$	327,151

Condensed Statements of Income



	Year Ended December 31,
	2019			2018			2017
Expenses
Interest on borrowings	$	3,804		$	2,616		$	2,724
Salaries and employee benefits	804			564			354
Consulting and professional fees	1,610			958			664
Premises and equipment	285			285			302
Other	408			315			258
Total expenses	6,911			4,738			4,302

Loss before income tax and equity in undistributed net income of subsidiaries	(6,911		)	(4,738		)	(4,302		)

Income tax benefit	(1,783		)	(1,172		)	(1,539		)

Loss before equity in undistributed net income of subsidiaries	(5,128		)	(3,566		)	(2,763		)

Equity in undistributed net income of subsidiaries	30,367			25,466			17,989

Net income	$	25,239		$	21,900		$	15,226

Condensed Statements of Comprehensive Income



	Year Ended December 31,
	2019			2018			2017
Net income	$	25,239		$	21,900		$	15,226
Other comprehensive income (loss)
Net unrealized holding gains (losses) on securities available-for-sale recorded within other comprehensive income before income tax	12,072			(10,466		)	6,280
Reclassification adjustment for losses realized	458			—			8
Net unrealized holding losses on cash flow hedging derivatives recorded within other comprehensive income before income tax	(9,071		)	(4,358		)	—
Other comprehensive income (loss) before tax	3,459			(14,824		)	6,288
Income tax provision (benefit)	1,109			(4,365		)	2,039
Other comprehensive income (loss) - net of tax	2,350			(10,459		)	4,249
Comprehensive income	$	27,589		$	11,441		$	19,475

Condensed Statements of Cash Flows



	Year Ended December 31,
	2019			2018			2017
Operating activities
Net income	$	25,239		$	21,900		$	15,226
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed net income of subsidiaries	(30,367		)	(25,466		)	(17,989		)
Depreciation and amortization	647			568			572
Share-based compensation expense	288			243			175
Net change in other assets	(508		)	1,769			(1,453		)
Net change in other liabilities	(87		)	79			(326		)
Net cash used in operating activities	(4,788		)	(907		)	(3,795		)

Investing activities
Capital contribution to the Bank	(25,000		)	(35,000		)	(42,000		)
Purchase of premises and equipment	(13		)	—			(148		)
Net cash used in investing activities	(25,013		)	(35,000		)	(42,148		)

Financing activities
Cash dividends paid	(2,418		)	(2,230		)	(1,675		)
Net proceeds from issuance of subordinated debt	35,418			—			—
Repayment of subordinated debt	—			(3,000		)	—
Principal payment on loan from the Bank	(300		)	(300		)	(400		)
Net proceeds from common stock issuance	—			54,334			51,636
Repurchase of common stock	(9,784		)	(216		)	—
Other, net	(93		)	(210		)	(173		)
Net cash provided by financing activities	22,823			48,378			49,388

Net (decrease) increase in cash and cash equivalents	(6,978		)	12,471			3,445

Cash and cash equivalents at beginning of year	45,281			32,810			29,365

Cash and cash equivalents at end of year	$	38,303		$	45,281		$	32,810