Note 29 - Parent Company Financial Statements

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Condensed Financial Information of Parent Company Only Disclosure [Text Block]

NOTE

29

. PARENT COMPANY FINANCIAL STATEMENTS

Condensed Balance Sheets

Year ended

December

31

,

(Amounts in thousands)	2016		2015
Assets:
Cash	$	493	$	985
Investment in:
Bank subsidiary		122,707		119,807
Nonbank subsidiary		310		310
Other assets		60		66
Total Assets	$	123,570	$	121,168
Liabilities and shareholders' equity:
Term debt:
Senior debt, net	$	8,904	$	9,902
Subordinated debt, net		9,829		9,792
Junior subordinated debentures		10,310		10,310
Other liabilities		421		642
Total liabilities		29,464		30,646
Shareholders’ equity		94,106		90,522
Total liabilities and shareholders’ equity	$	123,570	$	121,168

Condensed Statements of Income

Year Ended

December

31

,

(Amounts in thousands)	2016		2015		2014
Income:
Other income	$	7	$	6	$	482
Dividends from subsidiaries		4,200		2,850		10,100
Total income		4,207		2,856		10,582
Expenses:
Management fees paid to subsidiaries		259		229		208
Interest expense		1,409		267		363
Noninterest expense		345		337		1,719
Total expenses		2,013		833		2,290
Income before income taxes and equity in undistributed net income of subsidiaries		2,194		2,023		8,292
Income tax expense		1		1		1
Income before equity in undistributed net income of subsidiaries		2,193		2,022		8,291
Equity (deficit) in undistributed net income of subsidiaries		3,066		6,564		(2,564	)
Net income	$	5,259	$	8,586	$	5,727
Less: Preferred stock extinguishment costs		—		102		—
Less: Preferred dividends		—		189		200
Income available to common shareholders	$	5,259	$	8,295	$	5,527

Condensed Statements of Cash Flows

Year Ended

December

31

,

(Amounts in thousands)	2016			2015			2014
Operating activities:
Net income	$	5,259		$	8,586		$	5,727
Adjustments to reconcile net income to net cash provided by operating activities:
Compensation associated with stock options		—			1			1
Gain on termination of debt		—			—			(406	)
(Deficit) equity in undistributed net income of subsidiaries		(3,066	)		(6,564	)		2,564
Amortization of debt issuance costs		40			—			—
Decrease other assets		6			371			1,209
Increase (decrease) other liabilities		(137	)		229			55
Net cash provided by operating activities		2,102			2,623			9,150
Investing activities:
Promissory note repayments		—			—			292
Proceeds from settlement of note to former mortgage subsidiary		—			—			686
Net cash provided by investing activities		—			—			978
Financial activities:
Advances of term debt		—			20,000			—
Repayment of term debt		(1,001	)		(83	)		—
Debt issuance costs paid net of amortization		—			(223	)		—
Redemption of preferred stock		—			(20,000	)		—
Preferred stock extinguishment costs		—			(33	)		—
Cash dividends paid on preferred stock		—			(189	)		(200	)
Cash dividends paid on common stock		(1,603	)		(1,601	)		(1,626	)
Proceeds from stock options exercised		10			156			23
Repayment of junior subordinated debentures		—			—			(4,629	)
Repurchase of common stock		—			—			(4,562	)
Net cash used in financing activities		(2,594	)		(1,973	)		(10,994	)
Changes in cash and cash equivalents		(492	)		650			(866	)
Cash and cash equivalents, beginning of year		985			335			1,201
Cash and cash equivalents, end of year	$	493		$	985		$	335
Supplemental disclosures of non cash financing activities:
Vested restricted stock issued under employee plans	$	84		$	36		$	66