Condensed Parent Company Financial Statements

12 Months Ended

Dec. 31, 2021

Condensed Financial Information Disclosure [Abstract]

Condensed Parent Company Financial Statements

Note 25 – Condensed Parent Company Financial Statements

Condensed financial statements pertaining only to the Parent Company are presented below. The investment in subsidiary is accounted for using the equity method of accounting.

Cash dividend payments authorized by the Bank’s Board of Directors were paid to the Parent Company in 2021 and 2020, totaling $7.6 million and $4.4 million, respectively.

The payment of dividends by the Bank is restricted by various regulatory limitations. Banking regulations also prohibit extensions of credit to the parent company unless appropriately secured by assets. For more detail on dividends, see Note 16 – Dividend Restrictions.

Condensed Parent Company Only

BALANCE SHEETS
(Dollars in thousands)	December 31, 2021		December 31, 2020
ASSETS
Cash and due from banks	$	1,417	$	1,691
Investment securities		64		64
Investments in subsidiaries		163,712		81,455
Other assets		603		249
Total assets	$	165,796	$	83,459
LIABILITIES & SHAREHOLDERS' EQUITY
Junior subordinated debt	$	3,367	$	-
Other liabilities		442		861
Stockholders' equity		161,987		82,598
Total liabilities and stockholders' equity	$	165,796	$	83,459

STATEMENTS OF INCOME
(Dollars in thousands)	For the years ended
	December 31, 2021			December 31, 2020
Dividends from subsidiary	$	7,600		$	4,400
Net interest income		(148	)		-
Noninterest expense		2,325			1,171
Income before income taxes	$	5,127		$	3,229
Income tax (benefit)		(353	)		(164	)
Income before equity in undistributed earnings of    subsidiaries	$	5,480		$	3,393
Equity in undistributed earnings of subsidiaries		4,591			4,585
Net income	$	10,071		$	7,978

Condensed Parent Company Only (Continued)

STATEMENTS OF CASH FLOWS
(Dollars in thousands)	For the years ended
	December 31, 2021			December 31, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	10,071		$	7,978
Adjustments to reconcile net income to net cash    provided by operating activities:
Equity in undistributed earnings of subsidiaries		(4,591	)		(4,585	)
Net accretion of certain acquisition-related adjustments		33			-
Deferred tax expense		28			28
Stock option & restricted stock grant expense		521			264
Increase in other assets		(365	)		(16	)
Decrease in other liabilities		411			14
Net cash provided by operating activities		6,108			3,683
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from stock options exercised		30			-
Cash paid in lieu for fractional shares at acquisition		(4	)		-
Dividends paid		(6,408	)		(3,248	)
Net cash used in financing activities		(6,382	)		(3,248	)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS		(274	)		435
CASH AND CASH EQUIVALENTS
Beginning of period		1,691			1,256
End of period	$	1,417		$	1,691