Condensed Parent Company Financial Statements

12 Months Ended

Dec. 31, 2021

Condensed Financial Information Of Parent Company Only Disclosure [Abstract]

Condensed Parent Company Financial Statements

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 Balance Sheet

(Dollars in thousands)

December 31,	2021		2020
ASSETS
Cash on deposit with subsidiary	$	376	$	3,754
Investment in subsidiary		215,858		177,634
Other assets		2,138		1,560
Total Assets	$	218,372	$	182,948
Liabilities:
Other liabilities	$	290	$	449
Subordinated debt, net of debt issuance costs		29,294		14,834
Stockholders’ equity		188,788		167,665
Total Liabilities and Stockholders’ Equity	$	218,372	$	182,948

Condensed Statement of Income

(Dollars in thousands)

For the Year Ended December 31,	2021			2020
Income
Dividends from subsidiary	$	2,156		$	635
Expenses
Subordinated debt interest expense		1,884			966
Non-interest expense		—			4
Total expenses		1,884			970
Undistributed earnings of subsidiary		21,504			15,848
Net income before income taxes		21,776			15,513
Income tax benefit		(395	)		(204	)
Net income	$	22,171		$	15,717
Less: preferred stock dividends		(2,156	)		(635	)
Net income available to common shareholders	$	20,015		$	15,082

Condensed Statement of Cash Flows

(Dollars in thousands)

Year Ended December 31,	2021			2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	22,171		$	15,717
Adjustments to reconcile net income to net cash provided by    operating activities:
Equity in undistributed earnings of subsidiary		(21,504	)		(15,848	)
Stock based compensation		1,888			1,529
Subordinated debt amortization expense		223			29
Decrease (increase) in other assets		(578	)		212
Increase (decrease) in other liabilities		(159	)		449
Net cash provided by operating activities		2,041			2,088
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in bank subsidiary		(17,500	)		(12,500	)
Net cash used in investing activities		(17,500	)		(12,500	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repurchase of common stock		—			(13,797	)
Issuance of preferred stock, net		—			27,263
Cash dividends paid on preferred stock		(2,156	)		(635	)
Net increase in subordinated debt		14,237			—
Net cash provided by financing activities		12,081			12,831
NET INCREASE (DECREASE) IN CASH AND CASH    EQUIVALENTS		(3,378	)		2,419
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR		3,754			1,335
CASH AND CASH EQUIVALENTS, END OF YEAR	$	376		$	3,754