Note 23 - Condensed Financial Statements of Parent Company

12 Months Ended

Dec. 31, 2023

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, 2023 and 2022 and the related statements of income and cash flows for the years ended December 31, 2023, 2022 and 2021, are presented as follows:

Balance Sheets
	December 31,
Dollars in thousands	2023			2022
Assets
Cash	$	31,459		$	11,043
Investment in subsidiaries		531,138			445,048
Equity investments (at fair value)		6,436			25,858
Other investments		82			—
Premises and equipment		115			92
Other assets		1,905			1,802
Total assets	$	571,135		$	483,843
Liabilities and Shareholders' Equity
Subordinated debentures, net	$	103,782		$	103,296
Subordinated debentures owed to unconsolidated subsidiary trusts		19,589			19,589
Other liabilities		7,556			6,428
Total liabilities		130,927			129,313
Preferred stock, $1.00 par value, authorized 250,000 shares; issued: 2023 and 2022 - 1,500 shares		14,920			14,920
Common stock and related surplus, $2.50 par value; authorized 20,000,000 shares; issued and oustanding: 2023 - 14,683,457 shares, 2022 - 12,783,646 shares		129,990			90,696
Retained earnings		302,783			260,393
Accumulated other comprehensive loss		(7,485	)		(11,479	)
Total shareholders' equity		440,208			354,530
Total liabilities and shareholders' equity	$	571,135		$	483,843

Statements of Income
	For the Year Ended December 31,
Dollars in thousands	2023			2022			2021
Income
Dividends from subsidiaries	$	17,300		$	15,800		$	12,100
Other dividends and interest income		500			26			16
Net gains on equity investments		740			265			202
Management and service fees from subsidiaries		1,776			2,088			1,920
Total income		20,316			18,179			14,238
Expense
Interest expense		5,937			5,256			2,497
Operating expenses		3,812			3,283			3,736
Total expenses		9,749			8,539			6,233
Income before income taxes and equity in undistributed income of subsidiaries		10,567			9,640			8,005
Income tax (benefit)		(1,345	)		(1,251	)		(830	)
Income before equity in undistributed income of subsidiaries		11,912			10,891			8,835
Equity in undistributed income of subsidiaries		43,327			42,325			36,903
Net income	$	55,239		$	53,216		$	45,738
Preferred stock dividends		900			900			589
Net income applicable to common shares	$	54,339		$	52,316		$	45,149

Statements of Cash Flows
	For the Year Ended December 31,
Dollars in thousands	2023			2022			2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	55,239		$	53,216		$	45,738
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed net income of subsidiaries		(43,327	)		(42,325	)		(36,903	)
Deferred tax benefit		(112	)		(14	)		(164	)
Depreciation		39			37			46
Gain on equity investments		(740	)		(265	)		(202	)
Share-based compensation expense		274			231			244
Earnings on bank owned life insurance		10			17			4
Decrease in other assets		131			432			163
Increase in other liabilities		1,614			1,209			584
Net cash provided by operating activities		13,128			12,538			9,510
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of equity investments		(744	)		(5,384	)		(20,000	)
Redemption of equity investments		21,413			—			—
Investment in bank subsidiary		—			—			(55,000	)
Purchases of premises and equipment		(62	)		—			(124	)
Proceeds from transfer of premises and equipment		—			—			47
Net cash provided by (used in) investing activities		20,607			(5,384	)		(75,077	)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid on preferred stock		(900	)		(900	)		(589	)
Dividends paid on common stock		(11,949	)		(9,693	)		(9,022	)
Exercise of stock options		—			—			16
Proceeds from issuance of subordinated debt		—			—			75,000
Purchase and retirement of common stock		—			—			(6,710	)
Purchase of minority interest		(714	)		—			—
Proceeds from issuance of preferred stock, net of issuance costs		—			—			14,920
Proceeds from issuance of common stock, net of issuance costs		244			203			294
Net cash (used in) provided by financing activities		(13,319	)		(10,390	)		73,909
Increase (decrease) in cash		20,416			(3,236	)		8,342
Cash:
Beginning		11,043			14,279			5,937
Ending	$	31,459		$	11,043		$	14,279
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash payments for:
Interest	$	5,048		$	4,786		$	2,195