Condensed Parent Company Financial Statements

12 Months Ended

Dec. 31, 2023

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 2023 and 2022, totaling $6.0 million and $7.5 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, 2023		December 31, 2022
ASSETS
Cash and due from banks	$	251	$	1,807
Investment securities		63		63
Investments in subsidiaries		155,409		134,068
Other assets		803		941
Total assets	$	156,526	$	136,879
LIABILITIES & SHAREHOLDERS' EQUITY
Junior subordinated debt	$	3,459	$	3,413
Other liabilities		27		50
Stockholders' equity		153,040		133,416
Total liabilities and stockholders' equity	$	156,526	$	136,879

STATEMENTS OF INCOME
(Dollars in thousands)	For the years ended
	December 31, 2023			December 31, 2022
Dividends from subsidiary	$	6,000		$	7,500
Net interest expense		(309	)		(190	)
Noninterest income		463			-
Noninterest expense		1,375			1,418
Income before income taxes	$	4,779		$	5,892
Income tax (benefit)		(233	)		(313	)
Income before equity in undistributed earnings of    subsidiaries	$	5,012		$	6,205
Equity in undistributed earnings of subsidiaries		14,251			17,233
Net income	$	19,263		$	23,438

Condensed Parent Company Only (Continued)

STATEMENTS OF CASH FLOWS
(Dollars in thousands)	For the years ended
	December 31, 2023			December 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	19,263		$	23,438
Adjustments to reconcile net income to net cash    provided by operating activities:
Equity in undistributed earnings of subsidiaries		(14,251	)		(17,233	)
Net accretion of certain acquisition-related adjustments		46			46
Amortization		-			55
Deferred tax expense (benefit)		(275	)		298
Stock option & restricted stock grant expense		727			687
Increase (decrease) in other assets		138			(140	)
Decrease in other liabilities		(23	)		(392	)
Net cash provided by operating activities	$	5,625		$	6,759
CASH FLOWS FROM FINANCING ACTIVITIES
Gain on termination of swap		460			-
Liquidation of swap collateral		(585	)		-
Proceeds from stock options exercised		18			23
Dividends paid		(7,074	)		(6,392	)
Net cash used in financing activities	$	(7,181	)	$	(6,369	)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS		(1,556	)		390
CASH AND CASH EQUIVALENTS
Beginning of period		1,807			1,417
End of period	$	251		$	1,807