Condensed Parent Company Financial Statements

12 Months Ended

Dec. 31, 2015

Condensed Parent Company Financial Statements [Abstract]

Condensed Parent Company Financial Statements

Note 21 - 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.

A quarterly cash dividend payment has been authorized by the Bank's Board of Directors and paid to the Parent Company each quarter in 2015 and 2014 for a total of $965,000 and $788,000, respectively.

The payment of dividends by the subsidiary 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 13 – Dividend Restrictions.

BALANCE SHEETS

	December 31, 2015		December 31, 2014
ASSETS
Cash and due from banks	$	1,099	$	7,713
Investment securities		64		64
Investments in subsidiary		54,921		52,549
Other assets		488		541
Total assets	$	56,572	$	60,867
LIABILITIES & SHAREHOLDERS' EQUITY
Other liabilities	$	275	$	235
Stockholders' equity		56,297		60,632
Total liabilities and stockholders' equity	$	56,572	$	60,867

STATEMENTS OF INCOME
		For the years ended
	December 31, 2015			December 31, 2014
Dividends from subsidiary	$	965		$	788
Noninterest expense		558			449
Income before income taxes	$	407		$	339
Income tax (benefit)		(180	)		(202)
Income before equity in undistributed
earnings of subsidiary	$	587		$	541
Equity in undistributed earnings
of subsidiary		2,534			1,357
Net income	$	3,121		$	1,898

STATEMENTS OF CASH FLOWS
	For the years ended
	December 31, 2015		December 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	3,121	$	1,898
Adjustments to reconcile net income to
net cash provided by operating activities:
Equity in undistributed earnings
of subsidiary		(2,534)		(1,357)
Deferred tax benefit		(79)		(375)
Stock option & stock grant expense		30		52
Decrease (increase) in other assets		57		(122)
Increase in other liabilities		2		1
Net cash provided from operating activities		597		97
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of restricted securities		-		(64)
Net cash used in investing activities		-		(64)
CASH FLOWS FROM FINANCING ACTIVITIES
Stock options exercised or expired		22		180
Stock purchased under stock repurchase plan		(6,342)		(262)
Dividends paid		(891)		(674)
Net cash used in financing activities		(7,211)		(756)
NET DECREASE IN CASH AND CASH EQUIVALENTS		(6,614)		(723)
CASH AND CASH EQUIVALENTS
Beginning of period		7,713		8,436
End of period	$	1,099	$	7,713