PARENT COMPANY ONLY FINANCIAL STATEMENTS (Tables)

12 Months Ended

Dec. 31, 2018

PARENT COMPANY ONLY FINANCIAL STATEMENTS

Balance sheet

BALANCE SHEETS

December 31, 2018 and 2017

(Dollars in Thousands)

	2018		2017
ASSETS
Cash and cash equivalents	$	2,470	$	198
Investment in subsidiaries		146,516		97,984
Other assets		4,306		3,263
TOTAL ASSETS	$	153,292	$	101,445
LIABILITIES AND SHAREHOLDERS’ EQUITY
Other borrowing		—		18,999
Other liabilities		1,223		1,046
Total liabilities		1,223		20,045
Shareholders’ equity:
Common stock and additional paid in capital - no par value
Authorized 18,000,000 shares
Issued and outstanding - 10,712,745 and 6,294,930  shares respectively		129,066		61,981
Retained earnings		23,466		19,711
Accumulated other comprehensive income		(463)		(292)
Total shareholders’ equity		152,069		81,400
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	153,292	$	101,445

Statements of operations

STATEMENTS OF OPERATIONS

Years Ended December 31, 2018 and 2017

(Dollars in Thousands)

	2018		2017
INCOME:
Interest income	$	1	$	—
Miscellaneous income		17		—
Total income	$	18	$	—
EXPENSES:
Interest expense on borrowings		320		868
Salaries and benefits		835		698
Professional service fees		242		279
Transaction related expenses		814		50
Other		350		294
Total expenses		2,561		2,189
Loss before income taxes and equity in net income of subsidiaries		(2,543)		(2,189)
Provision for (benefit of) income taxes		(534)		(27)
Loss before equity in net income of subsidiaries		(2,009)		(2,162)
Equity in net income of subsidiaries		10,376		7,641
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	8,367	$	5,479

Statements of cash flows

STATEMENTS OF CASH FLOWS

Years Ended December 31, 2018 and 2017

(Dollars in Thousands)

	2018		2017
Cash Flows from Operating Activities:
Net income	$	8,367	$	5,479
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in net (income) of subsidiaries		(10,376)		(7,641)
Increase in capital from stock based compensation		533		398
Change in other assets		1,043		751
Change in other liabilities		365		77
Net cash provided by (used in) operating activities		(68)		(936)
Cash Flows from Investing Activities:
Investments in subsidiaries		2,000		7,000
Net cash paid in acquisitions		(8,500)		—
Net cash provided by (used in) investing activities		(6,500)		7,000
Cash Flows from Financing Activities:
Increase on term borrowing		—		—
Principal payments on term borrowings		(18,999)		(2,200)
Net activity on line of credit		—		(750)
Repurchase of common stock		—		—
Dividend on common stock		(4,612)		(3,022)
Net cash from capital raise		32,451		—
Net cash provided by (used in) financing activities		8,840		(5,972)
Net increase (decrease) in cash and cash equivalents		2,272		92
Cash and cash equivalents at beginning of period		198		106
Cash and cash equivalents at end of period	$	2,470	$	198