PARENT COMPANY ONLY FINANCIAL STATEMENTS

12 Months Ended

Dec. 31, 2019

PARENT COMPANY ONLY FINANCIAL STATEMENTS

PARENT COMPANY ONLY FINANCIAL STATEMENTS

NOTE 23 — PARENT COMPANY ONLY FINANCIAL STATEMENTS

BALANCE SHEETS

December 31, 2019 and 2018

(Dollars in Thousands)

	2019		2018
ASSETS
Cash and cash equivalents	$	490	$	2,470
Investment in subsidiaries		157,156		146,516
Other assets		5,764		4,306
TOTAL ASSETS	$	163,410	$	153,292
LIABILITIES AND SHAREHOLDERS’ EQUITY
Other borrowing		—		—
Other liabilities		1,491		1,223
Total liabilities		1,491		1,223
Shareholders’ equity:
Common stock and additional paid in capital - no par value
Authorized 18,000,000 shares
Issued and outstanding - 10,748,712 and 10,712,745  shares respectively		129,564		129,066
Retained earnings		31,740		23,466
Accumulated other comprehensive income		615		(463)
Total shareholders’ equity		161,919		152,069
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	163,410	$	153,292

STATEMENTS OF OPERATIONS

Years Ended December 31, 2019 and 2018

(Dollars in Thousands)

	2019		2018
INCOME:
Interest income	$	—	$	1
Miscellaneous income		1		17
Total income	$	1	$	18
EXPENSES:
Interest expense on borrowings		—		320
Salaries and benefits		858		835
Professional service fees		301		242
Transaction related expenses		—		814
Other		376		350
Total expenses		1,535		2,561
Loss before income taxes and equity in net income of subsidiaries		(1,534)		(2,543)
Provision for (benefit of) income taxes		(322)		(534)
Loss before equity in net income of subsidiaries		(1,212)		(2,009)
Equity in net income of subsidiaries		15,062		10,376
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	13,850	$	8,367

STATEMENTS OF CASH FLOWS

Years Ended December 31, 2019 and 2018

(Dollars in Thousands)

	2019		2018
Cash Flows from Operating Activities:
Net income	$	13,850	$	8,367
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in net (income) of subsidiaries		(15,062)		(10,376)
Increase in capital from stock based compensation		498		533
Change in other assets		(1,458)		1,043
Change in other liabilities		268		365
Net cash provided by (used in) operating activities		(1,904)		(68)
Cash Flows from Investing Activities:
Investments in subsidiaries		5,500		2,000
Net cash paid in acquisitions		—		(8,500)
Net cash provided by (used in) investing activities		5,500		(6,500)
Cash Flows from Financing Activities:
Increase on term borrowing		—		—
Principal payments on term borrowings		—		(18,999)
Net activity on line of credit		—		—
Repurchase of common stock		—		—
Dividend on common stock		(5,576)		(4,612)
Net cash from capital raise		—		32,451
Net cash provided by (used in) financing activities		(5,576)		8,840
Net increase (decrease) in cash and cash equivalents		(1,980)		2,272
Cash and cash equivalents at beginning of period		2,470		198
Cash and cash equivalents at end of period	$	490	$	2,470