Parent Company Only Financial Statements

12 Months Ended

Dec. 31, 2016

PARENT COMPANY ONLY FINANCIAL STATEMENTS

PARENT COMPANY ONLY FINANCIAL STATEMENTS

20. PARENT COMPANY ONLY FINANCIAL STATEMENTS

The following balance sheets, statements of income, statements of comprehensive income and statements of cash flows for Green Bancorp, Inc. should be read in conjunction with the consolidated financial statements and the notes thereto.

GREEN BANCORP, INC.

(Parent Company Only)

CONDENSED BALANCE SHEETS

(Dollars in thousands)

	December 31,
	2016		2015
ASSETS
CASH AND DUE FROM BANKS	$	4,534	$	3,911
INTEREST-BEARING DEPOSITS IN FINANCIAL INSTITUTIONS		6,461		6,411
Cash and cash equivalents		10,995		10,322
DEFERRED TAX ASSET, Net		-		-
INVESTMENT IN GREEN BANK, N.A.		422,802		420,966
INVESTMENT IN PATRIOT BANCSHARES CAPITAL TRUST I AND II		666		666
LOANS HELD FOR SALE		6,598		-
LOANS HELD FOR INVESTMENT		26,221		-
GOODWILL		12,673		12,673
OTHER ASSETS		1,277		1,236
TOTAL	$	481,232	$	445,863
LIABILITIES AND SHAREHOLDERS’ EQUITY
SUBORDINATED DEBENTURES		47,492		13,187
DEFERRED TAX LIABILITY, Net		2,907		3,037
LIABILITIES—Other liabilities	$	351	$	237
Total liabilities		50,750		16,461
SHAREHOLDERS’ EQUITY:
Common stock		372		368
Capital surplus		382,961		378,518
Retained earnings		49,127		50,099
Accumulated other comprehensive income, net		(725)		417
Less treasury shares, at cost		(1,253)		-
Total shareholders’ equity		430,482		429,402
TOTAL	$	481,232	$	445,863

GREEN BANCORP, INC.

(Parent Company Only)

CONDENSED STATEMENT OF OPERATIONS

(Dollars in thousands)

		For the Years ended December 31,
		2016		2015		2014
INCOME—Interest income	$	67	$	39	$	26
Total income		67		39		26
EXPENSE—Subordinated debentures		1,182		227		-
General and administrative		2,806		3,293		1,894
Total expense		3,988		3,520		1,894
LOSS BEFORE EQUITY IN UNDISTRIBUTED EARNINGS OF SUBSIDIARY AND INCOME TAXES		(3,921)		(3,481)		(1,868)
EQUITY IN UNDISTRIBUTED EARNINGS OF SUBSIDIARY, NET OF TAX		1,577		17,995		15,957
INCOME (LOSS) BEFORE INCOME TAXES		(2,344)		14,514		14,089
BENEFIT FOR INCOME TAXES		1,372		925		654
NET INCOME (LOSS)	$	(972)	$	15,439	$	14,743

GREEN BANCORP, INC.

(Parent Company Only)

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

(Dollars in thousands)

		For the Years ended December 31,
		2016		2015		2014
NET INCOME (LOSS)	$	(972)	$	15,439	$	14,743
OTHER COMPREHENSIVE INCOME BEFORE TAX:
Change in unrealized (loss) gain on securities available-for-sale		(1,757)		(992)		1,830
Total other comprehensive income		(1,757)		(992)		1,830
DEFERRED TAX (BENEFIT) EXPENSE RELATED TO OTHER COMPREHENSIVE INCOME (LOSS)		(615)		(347)		641
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX		(1,142)		(645)		1,189
COMPREHENSIVE INCOME (LOSS)	$	(2,114)	$	14,794	$	15,932

GREEN BANCORP, INC.

(Parent Company Only)

CONDENSED STATEMENTS OF CASH FLOWS

(Dollars in thousands)

		For the Years ended December 31,
		2016		2015		2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	(972)	$	15,439	$	14,743
Adjustments to reconcile net income (loss) to net cash used by operating activities:
Equity in undistributed earnings of subsidiary		(1,577)		(17,995)		(15,957)
Amortization of debt valuation allowance		420		105		-
Amortization of issuance costs for subordinated notes		9		-		-
Deferred income tax (expense) benefit		(130)		(18)		17
Increase in other assets, net		(41)		(295)		(332)
Increase in other liabilities, net		114		146		34
Net cash used by operating activities		(2,177)		(2,618)		(1,495)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of loans from subsidiary		(32,819)		-		-
Capital contributed to subsidiary		-		-		(67,508)
Net cash and cash equivalents paid in connection with acquisitions		-		2,740		-
Net cash (used by) provided by investing activities		(32,819)		2,740		(67,508)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of subordinated notes, net		33,876		-		-
Common stock issued in connection with the exercise of stock options		3,046		1,534		125
Purchase of treasury stock		(1,253)		-		-
Proceeds from issuance of common stock, net of issuance expenses		-		-		72,591
Net cash provided by financing activities		35,669		1,534		72,716
NET INCREASE IN CASH AND CASH EQUIVALENTS		673		1,656		3,713
CASH AND CASH EQUIVALENTS:
Beginning of year		10,322		8,666		4,953
End of year	$	10,995	$	10,322	$	8,666

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