Note 23 - Condensed Financial Statements of Parent Company

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

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

NOTE 23.  CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY

Information relative to our parent company balance sheets at December 31, 2022 and 2021 and the related statements of income and cash flows for the years ended December 31, 2022, 2021 and 2020, are presented as follows:

Balance Sheets
	December 31,
Dollars in thousands	2022			2021
Assets
Cash	$	11,043		$	14,279
Investment in subsidiaries		445,048			419,557
Equity investments (at fair value)		25,858			20,209
Other investments		—			—
Premises and equipment		92			129
Other assets		1,802			1,971
Total assets	$	483,843		$	456,145
Liabilities and Shareholders' Equity
Subordinated debentures, net	$	103,296		$	102,891
Subordinated debentures owed to unconsolidated subsidiary trusts		19,589			19,589
Other liabilities		6,428			6,192
Total liabilities		129,313			128,672
Preferred stock, $1.00 par value, authorized 250,000 shares; issued: 2022 and 2021 - 1,500 shares		14,920			14,920
Common stock and related surplus, $2.50 par value, authorized 20,000,000 shares; issued: 12,783,646 shares 2022, 12,763,827 shares 2021; outstanding: 12,783,646 shares 2022, 12,743,125 shares 2021		90,696			89,525
Unallocated common stock held by Employee Stock Ownership Plan - 2021 - 20,702 shares		—			(224	)
Retained earnings		260,393			217,770
Accumulated other comprehensive (loss) income		(11,479	)		5,482
Total shareholders' equity		354,530			327,473
Total liabilities and shareholders' equity	$	483,843		$	456,145

Statements of Income
	For the Year Ended December 31,
Dollars in thousands	2022			2021			2020
Income
Dividends from subsidiaries	$	15,800		$	12,100		$	10,000
Other dividends and interest income		26			16			33
Net gains on equity investments		265			202			—
Management and service fees from subsidiaries		2,088			1,920			1,856
Total income		18,179			14,238			11,889
Expense
Interest expense		5,256			2,497			1,109
Operating expenses		3,283			3,736			3,306
Total expenses		8,539			6,233			4,415
Income before income taxes and equity in undistributed income of subsidiaries		9,640			8,005			7,474
Income tax (benefit)		(1,251	)		(830	)		(519	)
Income before equity in undistributed income of subsidiaries		10,891			8,835			7,993
Equity in undistributed income of subsidiaries		42,325			36,903			23,333
Net income	$	53,216		$	45,738		$	31,326
Preferred stock dividends		900			589			—
Net income applicable to common shares	$	52,316		$	45,149		$	31,326

Statements of Cash Flows
	For the Year Ended December 31,
Dollars in thousands	2022			2021			2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	53,216		$	45,738		$	31,326
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed net income of subsidiaries		(42,325	)		(36,903	)		(23,333	)
Deferred tax benefit		(14	)		(164	)		(141	)
Depreciation		37			46			57
Gain on equity investments		(265	)		(202	)		—
Share-based compensation expense		231			244			211
Earnings on bank owned life insurance		17			4			1
Decrease (increase) in other assets		432			163			(285	)
Increase in other liabilities		1,209			584			977
Net cash provided by operating activities		12,538			9,510			8,813
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of equity investments		(5,384	)		(20,000	)		—
Investment in bank subsidiary		—			(55,000	)		(25,000	)
Purchases of premises and equipment		—			(124	)		(9	)
Proceeds from transfer of premises and equipment		—			47			—
Net cash used in investing activities		(5,384	)		(75,077	)		(25,009	)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid on preferred stock		(900	)		(589	)		—
Dividends paid on common stock		(9,693	)		(9,022	)		(8,786	)
Exercise of stock options		—			16			—
Proceeds from issuance of subordinated debt		—			75,000			30,000
Purchase and retirement of common stock		—			(6,710	)		(1,444	)
Proceeds from issuance of preferred stock, net of issuance costs		—			14,920			—
Proceeds from issuance of common stock, net of issuance costs		203			294			178
Net cash (used in) provided by financing activities		(10,390	)		73,909			19,948
(Decrease) increase in cash		(3,236	)		8,342			3,752
Cash:
Beginning		14,279			5,937			2,185
Ending	$	11,043		$	14,279		$	5,937
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash payments for:
Interest	$	4,786		$	2,195		$	1,145