PARENT COMPANY ONLY FINANCIAL STATEMENTS

12 Months Ended

Dec. 31, 2017

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

PARENT COMPANY ONLY FINANCIAL STATEMENTS

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,
	2017			2016
ASSETS
Cash and due from banks	$	734		$	4,534
Interest-bearing deposits in financial institutions	208			6,461
Cash and cash equivalents	942			10,995
Investment in Green Bank, N.A.	489,336			422,802
Investment in Patriot Bancshares Capital Trust I and II	666			666
Loans held for sale	—			6,598
Loans held for investment	3,062			26,221
Goodwill	12,673			12,673
Other assets	6,692			1,277
TOTAL	$	513,371		$	481,232
LIABILITIES AND SHAREHOLDERS’ EQUITY
Subordinated debentures	47,737			47,492
Deferred tax liability, net	1,100			2,907
Other liabilities	$	739		$	351
Total liabilities	49,576			50,750
SHAREHOLDERS’ EQUITY:
Common stock	373			372
Capital surplus	387,891			382,961
Retained earnings	83,263			49,127
Accumulated other comprehensive income, net	(6,479		)	(725		)
Less treasury shares, at cost	(1,253		)	(1,253		)
Total shareholders’ equity	463,795			430,482
TOTAL	$	513,371		$	481,232

GREEN BANCORP, INC.

(Parent Company Only)

CONDENSED STATEMENT OF OPERATIONS

(Dollars in thousands)

	For the Years ended December 31,
	2017			2016			2015
INCOME—Interest income	$	138		$	67		$	39
Loss on held-for-sale loans	(138		)	—			—
Dividends from bank subsidiary	1,000			—			—
Total income	1,000			67			39
EXPENSE — Subordinated debentures	4,216			1,182			227
Provision for loan losses	10,536			—			—
General and administrative	3,746			2,806			3,293
Total expense	18,498			3,988			3,520
LOSS BEFORE EQUITY IN UNDISTRIBUTED EARNINGS OF SUBSIDIARY AND INCOME TAXES	(17,498		)	(3,921		)	(3,481		)
EQUITY IN UNDISTRIBUTED EARNINGS OF SUBSIDIARY, NET OF TAX	44,427			1,577			17,995
INCOME (LOSS) BEFORE INCOME TAXES	26,929			(2,344		)	14,514
BENEFIT FOR INCOME TAXES	7,207			1,372			925
NET INCOME (LOSS)	$	34,136		$	(972	)	$	15,439

GREEN BANCORP, INC.

(Parent Company Only)

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

(Dollars in thousands)

	For the Years ended December 31,
	2017			2016			2015
NET INCOME (LOSS)	$	34,136		$	(972	)	$	15,439
OTHER COMPREHENSIVE INCOME BEFORE TAX:
Change in unrealized (loss) gain on securities available-for-sale	(8,853		)	(1,757		)	(992		)
Total other comprehensive income	(8,853		)	(1,757		)	(992		)
DEFERRED TAX (BENEFIT) EXPENSE RELATED TO OTHER COMPREHENSIVE INCOME (LOSS)	(3,099		)	(615		)	(347		)
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX	(5,754		)	(1,142		)	(645		)
COMPREHENSIVE INCOME (LOSS)	$	28,382		$	(2,114	)	$	14,794

GREEN BANCORP, INC.

(Parent Company Only)

CONDENSED STATEMENTS OF CASH FLOWS

(Dollars in thousands)

	For the Years ended December 31,
	2017			2016			2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	34,136		$	(972	)	$	15,439
Adjustments to reconcile net income (loss) to net cash used by operating activities:
Equity in undistributed earnings of subsidiary	(44,427		)	(1,577		)	(17,995		)
Accretion of loan discounts, net	(7		)	—			—
Amortization of debt valuation allowance	420			420			105
Amortization of issuance costs for subordinated notes	145			9			—
Provision for loan losses	10,536			—			—
Net loss on loans held-for-sale	138			—			—
Proceeds from sales of held-for-sale loans	12,560			—			—
Deferred income tax expense	(1,074		)	(130		)	(18		)
Increase in other assets, net	(6,148		)	(41		)	(295		)
Increase in other liabilities, net	68			114			146
Net cash used by operating activities	6,347			(2,177		)	(2,618		)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of loans from subsidiary	—			(32,819		)	—
Capital contributed to subsidiary	(12,000		)	—			—
Net increase in loans held for investment and held-for-sale	(4,886		)	—			—
Net cash and cash equivalents paid in connection with acquisitions	—			—			2,740
Net cash (used by) provided by investing activities	(16,886		)	(32,819		)	2,740
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	486			3,046			1,534
Purchase of treasury stock	—			(1,253		)	—
Net cash provided by financing activities	486			35,669			1,534
NET INCREASE IN CASH AND CASH EQUIVALENTS	(10,053		)	673			1,656
CASH AND CASH EQUIVALENTS:
Beginning of year	10,995			10,322			8,666
End of year	$	942		$	10,995		$	10,322

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