PARENT COMPANY ONLY FINANCIAL STATEMENTS

12 Months Ended

Dec. 31, 2016

PARENT COMPANY ONLY FINANCIAL STATEMENTS

PARENT COMPANY ONLY FINANCIAL STATEMENTS

NOTE 22 — PARENT COMPANY ONLY FINANCIAL STATEMENTS

BALANCE SHEETS

December 31, 2016 and 2015

(Dollars in Thousands)

	2016		2015
ASSETS
Cash and cash equivalents	$	106	$	986
Investment in subsidiaries		97,407		83,786
Other assets		4,014		2,981
TOTAL ASSETS	$	101,527	$	87,753
LIABILITIES AND SHAREHOLDERS’ EQUITY
Line of Credit	$	750	$	7,750
Other borrowing		21,199		2,300
Other liabilities		969		1,101
Total liabilities		22,918		11,151
Shareholders’ equity:
Common stock and additional paid in capital - no par value
Authorized 18,000,000 shares
Issued and outstanding - 6,263,371 and 6,217,620 shares respectively		61,583		61,133
Retained earnings		17,206		15,221
Accumulated other comprehensive income		(180)		248
Total shareholders’ equity		78,609		76,602
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	101,527	$	87,753

STATEMENTS OF OPERATIONS

Years Ended December 31, 2016, 2015, and 2014

(Dollars in Thousands)

	2016		2015		2014
INCOME:
Interest income	$	2	$	—	$	—
Total income	$	2	$	—	$	—
EXPENSES:
Interest expense on borrowings		707		453		210
Salaries and benefits		900		876		609
Professional service fees		173		256		247
Transaction related expenses		443		—		1,284
Other		152		184		304
Total expenses		2,375		1,769		2,654
Loss before income taxes and equity in undistributed net income of subsidiaries		(2,373)		(1,769)		(2,654)
(Benefit of) income taxes		(807)		(602)		(726)
Loss before equity in undistributed net income of subsidiaries		(1,566)		(1,167)		(1,928)
Equity in undistributed net income of subsidiaries		6,049		6,763		3,628
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	4,483	$	5,596	$	1,700

STATEMENTS OF CASH FLOWS

Years Ended December 31, 2016, 2015, and 2014

(Dollars in Thousands)

	2016		2015		2014
Cash Flows from Operating Activities:
Net income	$	4,483	$	5,596	$	1,700
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed net (income) of subsidiaries		(6,049)		(6,763)		(3,628)
Increase in capital from stock based compensation		600		576		429
Change in other assets		(1,033)		2,903		(5,664)
Change in other liabilities		(132)		(4,907)		8,790
Net cash provided by (used in) operating activities		(2,131)		(2,595)		1,627
Cash Flows from Investing Activities:
Investments in subsidiaries		11,825		5,839		(4,000)
Net cash paid in acquisitions		(19,825)		—		(4,484)
Net cash (used in) investing activities		(8,000)		5,839		(8,484)
Cash Flows from Financing Activities:
Increase on term borrowing		19,799		—		3,000
Principal payments on term borrowings		(100)		(100)		(300)
Net activity on line of credit		(7,800)		(550)		6,000
Repurchase of common stock		(150)		(1,122)		(143)
Dividend on common stock		(2,498)		(2,179)		(1,308)
Net cash provided by (used in) financing activities		9,251		(3,951)		7,249
Net increase (decrease) in cash and cash equivalents		(880)		(707)		392
Cash and cash equivalents at beginning of period		986		1,693		1,301
Cash and cash equivalents at end of period	$	106	$	986	$	1,693