Condensed Parent Company Financial Statements

12 Months Ended

Dec. 31, 2022

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 2022 and 2021, totaling $7.5 million and $7.6 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, 2022		December 31, 2021
ASSETS
Cash and due from banks	$	1,807	$	1,417
Investment securities		63		64
Investments in subsidiaries		134,068		163,712
Other assets		941		603
Total assets	$	136,879	$	165,796
LIABILITIES & SHAREHOLDERS' EQUITY
Junior subordinated debt	$	3,413	$	3,367
Other liabilities		50		442
Stockholders' equity		133,416		161,987
Total liabilities and stockholders' equity	$	136,879	$	165,796

STATEMENTS OF INCOME
(Dollars in thousands)	For the years ended
	December 31, 2022			December 31, 2021
Dividends from subsidiary	$	7,500		$	7,600
Net interest expense		(190	)		(148	)
Noninterest expense		1,418			2,325
Income before income taxes	$	5,892		$	5,127
Income tax (benefit)		(313	)		(353	)
Income before equity in undistributed earnings of    subsidiaries	$	6,205		$	5,480
Equity in undistributed earnings of subsidiaries		17,233			4,591
Net income	$	23,438		$	10,071

Condensed Parent Company Only (Continued)

STATEMENTS OF CASH FLOWS
(Dollars in thousands)	For the years ended
	December 31, 2022			December 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	23,438		$	10,071
Adjustments to reconcile net income to net cash    provided by operating activities:
Equity in undistributed earnings of subsidiaries		(17,233	)		(4,591	)
Net accretion of certain acquisition-related adjustments		46			33
Amortization		55			-
Deferred tax expense		298			28
Stock option & restricted stock grant expense		687			521
Increase in other assets		(140	)		(365	)
Increase (decrease) in other liabilities		(392	)		411
Net cash provided by operating activities	$	6,759		$	6,108
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from stock options exercised		23			30
Cash paid in lieu for fractional shares at acquisition		-			(4	)
Dividends paid		(6,392	)		(6,408	)
Net cash used in financing activities	$	(6,369	)	$	(6,382	)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS		390			(274	)
CASH AND CASH EQUIVALENTS
Beginning of period		1,417			1,691
End of period	$	1,807		$	1,417