Note 24 - Parent Company Financial Statements

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

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

NOTE

24

. PARENT COMPANY FINANCIAL STATEMENTS

Condensed Balance Sheets

Year ended

December 31,

(Amounts in thousands)	2019			2018
Assets:
Cash	$	6,814		$	19,425
Investment in:
Merchants Bank of Commerce		188,459			143,078
Bank of Commerce Mortgage		(64	)		(64	)
Bank of Commerce Holdings Trust II		310			310
Other assets		423			157
Total Assets	$	195,942		$	162,906
Liabilities and shareholders' equity:
Term debt:
Senior debt, net	$	—		$	3,494
Subordinated debt, net		9,957			9,911
Junior subordinated debentures		10,310			10,310
Other liabilities		1,197			870
Total liabilities		21,464			24,585
Shareholders’ equity		174,478			138,321
Total liabilities and shareholders’ equity	$	195,942		$	162,906

Condensed Statements of Income

Year Ended

December 31,

 

(Amounts in thousands)	2019		2018
Income:
Other income	$	13	$	12
Dividends from subsidiaries		12,500		4,000
Total income		12,513		4,012
Expenses:
Management fees paid to subsidiaries		310		303
Interest expense		1,233		1,461
Noninterest expense		844		1,433
Total expenses		2,387		3,197
Income before income taxes and equity in undistributed net income of subsidiaries		10,126		815
Income tax expense		1		1
Income before equity in undistributed net income of subsidiaries		10,125		814
Equity in undistributed net income of subsidiaries		4,836		14,916
Net income	$	14,961	$	15,730

Condensed Statements of Cash Flows

Year Ended

December 31,

(Amounts in thousands)	2019			2018
Cash flows from operating activities:
Net income	$	14,961		$	15,730
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed net income of subsidiaries		(4,836	)		(14,916	)
Amortization of debt issuance costs		48			49
Provision for depreciation and amortization		18			18
Decrease (increase) in other assets		13			(7	)
(Decrease) increase in other liabilities		(164	)		227
Net cash provided by operating activities		10,040			1,101
Cash flows from investing activities:
Cash received from acquisition of Merchants Holding Company		292			—
Cash paid for acquisition of Merchants Holding Company		(15,300	)		—
Net cash used by investing activities		(15,008	)		—
Cash flows from financing activities:
Repayment of term debt		(3,496	)		(3,602	)
Repurchase of common stock		(1,010	)		—
Cash dividends paid on common stock		(3,189	)		(2,274	)
Proceeds from stock options exercised		52			216
Net cash used in financing activities		(7,643	)		(5,660	)
Net decrease in cash and cash equivalents		(12,611	)		(4,559	)
Cash and cash equivalents at the beginning of year		19,425			23,984
Cash and cash equivalents at the end of year	$	6,814		$	19,425
Supplemental disclosures of non cash financing activities:
Stock issued under employee plans	$	58		$	45