PARENT COMPANY ONLY FINANCIAL STATEMENTS (Tables)

12 Months Ended

Dec. 31, 2017

PARENT COMPANY ONLY FINANCIAL STATEMENTS

Balance sheet

BALANCE SHEETS

December 31, 2017 and 2016

(Dollars in Thousands)

	2017		2016
ASSETS
Cash and cash equivalents	$	198	$	106
Investment in subsidiaries		97,984		97,407
Other assets		3,263		4,014
TOTAL ASSETS	$	101,445	$	101,527
LIABILITIES AND SHAREHOLDERS’ EQUITY
Line of Credit	$	—	$	750
Other borrowing		18,999		21,199
Other liabilities		1,046		969
Total liabilities		20,045		22,918
Shareholders’ equity:
Common stock and additional paid in capital - no par value
Authorized 18,000,000 shares
Issued and outstanding - 6,294,930 and 6,263,371  shares respectively		61,981		61,583
Retained earnings		19,711		17,206
Accumulated other comprehensive income		(292)		(180)
Total shareholders’ equity		81,400		78,609
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	101,445	$	101,527

Statements of operations

STATEMENTS OF OPERATIONS

Years Ended December 31, 2017, 2016, and 2015

(Dollars in Thousands)

	2017		2016		2015
INCOME:
Interest income	$	—	$	2	$	—
Total income	$	—	$	2	$	—
EXPENSES:
Interest expense on borrowings		868		707		453
Salaries and benefits		698		900		876
Professional service fees		279		173		256
Transaction related expenses		50		443		—
Other		294		152		184
Total expenses		2,189		2,375		1,769
Loss before income taxes and equity in net income of subsidiaries		(2,189)		(2,373)		(1,769)
Provision for (benefit of) income taxes		(27)		(807)		(602)
Loss before equity in net income of subsidiaries		(2,162)		(1,566)		(1,167)
Equity in net income of subsidiaries		7,641		6,049		6,763
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	5,479	$	4,483	$	5,596

Statements of cash flows

STATEMENTS OF CASH FLOWS

Years Ended December 31, 2017, 2016, and 2015

(Dollars in Thousands)

	2017		2016		2015
Cash Flows from Operating Activities:
Net income	$	5,479	$	4,483	$	5,596
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in net (income) of subsidiaries		(7,641)		(6,049)		(6,763)
Increase in capital from stock based compensation		398		600		576
Change in other assets		751		(1,033)		2,903
Change in other liabilities		77		(132)		(4,907)
Net cash provided by (used in) operating activities		(936)		(2,131)		(2,595)
Cash Flows from Investing Activities:
Investments in subsidiaries		7,000		11,825		5,839
Net cash paid in acquisitions		—		(19,825)		—
Net cash provided by (used in) investing activities		7,000		(8,000)		5,839
Cash Flows from Financing Activities:
Increase on term borrowing		—		19,799		—
Principal payments on term borrowings		(2,200)		(100)		(100)
Net activity on line of credit		(750)		(7,800)		(550)
Repurchase of common stock		—		(150)		(1,122)
Dividend on common stock		(3,022)		(2,498)		(2,179)
Net cash provided by (used in) financing activities		(5,972)		9,251		(3,951)
Net increase (decrease) in cash and cash equivalents		92		(880)		(707)
Cash and cash equivalents at beginning of period		106		986		1,693
Cash and cash equivalents at end of period	$	198	$	106	$	986