Note 25 - Condensed Parent Company Financial Statements

12 Months Ended

Dec. 31, 2024

Notes to Financial Statements

Condensed Financial Statements [Text Block]

Note 25. Condensed Parent Company Financial Statements

Condensed financial statements pertaining only to the Company are presented below. The investment in subsidiary is accounted for using the equity method of accounting.

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.

Condensed Parent Company Only

Condensed Statements of Financial Condition

(Dollars in thousands)

December 31,	2024		2023
ASSETS
Cash on deposit with subsidiary	$	5,356	$	3,616
Restricted securities, at cost		5,362		3,123
Investment in subsidiary		269,239		287,075
Other assets		1,902		1,190
Total Assets	$	281,859	$	295,004
Liabilities:
Other liabilities	$	829	$	845
Subordinated debt, net of debt issuance costs		73,039		72,642
Stockholders’ equity		207,991		221,517
Total Liabilities and Stockholders’ Equity	$	281,859	$	295,004

Condensed Statements of Income (Loss)

(Dollars in thousands)

For the Year Ended December 31,	2024			2023			2022
Income
Dividends from subsidiary	$	5,203		$	5,166		$	4,038
Expenses
Subordinated debt interest expense		3,255			3,288			2,936
Non-interest expense		103			42			26
Total expenses		3,358			3,330			2,962
Undistributed earnings of subsidiary		(12,733	)		23,546			24,797
Net income (loss) before income taxes	$	(10,888	)	$	25,382		$	25,873
Income tax (benefit) expense		(908	)		1,203			801
Net income (loss)	$	(9,980	)	$	26,585		$	26,674
Less: preferred stock dividends		(2,156	)		(2,156	)		(2,156	)
Net income (loss) available to common shareholders	$	(12,136	)	$	24,429		$	24,518

Condensed Statements of Cash Flows

(Dollars in thousands)

Year Ended December 31,	2024			2023			2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	(9,980	)	$	26,585		$	26,674
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Equity in undistributed earnings (losses) of subsidiary		12,733			(23,546	)		(24,797	)
Stock based compensation		2,838			2,491			2,519
Depreciation, amortization, and accretion, net		1,308			397			328
Decrease (increase) in other assets		295			(1,063	)		2,014
Increase (decrease) in other liabilities		(16	)		829			(274	)
Net cash provided by operating activities		7,178			5,693			6,464
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of restricted equities		(3,504	)		(1,944	)		(1,430	)
Investment in bank subsidiary		4,000			—			(32,000	)
Net cash (used in) provided by investing activities		496			(1,944	)		(33,430	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repurchase of common stock		(732	)		(43	)		(6,918	)
Cash dividends paid on preferred stock		(2,156	)		(2,156	)		(2,156	)
Cash dividend paid on common stock		(3,046	)		(3,011	)		(1,882	)
Net increase in subordinated debt		—			—			42,623
Net cash provided by (used in) financing activities		(5,934	)		(5,210	)		31,667
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		1,740			(1,461	)		4,701
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR		3,616			5,077			376
CASH AND CASH EQUIVALENTS, END OF YEAR	$	5,356		$	3,616		$	5,077