NOTE 20 — PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION

The following tables present parent company only condensed financial information.

Condensed Parent Company Only Balance Sheets:

	December 31,		December 31,
(Dollars in thousands)	2017		2016
ASSETS
Cash and cash equivalents	$	47,826	$	10,222
Securities - held to maturity		8,557		3,380
Loans		11,046		984
Investment in bank subsidiary		407,050		320,629
Investment in non-bank subsidiaries		12,650		15,634
Other assets		4,880		29,149
Total assets	$	492,009	$	379,998
LIABILITIES AND EQUITY
Subordinated notes	$	48,828	$	48,734
Junior subordinated debentures		38,623		32,740
Intercompany payables		10,169		8,500
Accrued expenses and other liabilities		2,691		1,351
Total liabilities		100,311		91,325
Stockholders' equity⁽¹⁾		391,698		288,673
Total liabilities and equity	$	492,009	$	379,998

Condensed Parent Company Only Statements of Income:

	Years Ended December 31,
(Dollars in thousands)	2017			2016			2015
Interest income	$	1,415		$	793		$	718
Interest expense		(5,300	)		(2,262	)		(291	)
Provision for loan losses		(91	)		—			—
Gain on sale of subsidiary		20,860			—			—
Other income		1,572			2,991			1,040
Loss on intercompany sale of loans⁽¹⁾		—			(794	)		—
Salaries and employee benefits		(5,686	)		(581	)		(2,781	)
Other expense		(3,138	)		(1,940	)		(3,099	)
Income (loss) before income tax and undistributed subsidiary income		9,632			(1,793	)		(4,413	)
Income tax (expense) benefit		(3,087	)		(487	)		700
Equity in undistributed subsidiary income		30,347			22,308			32,846
Net income		36,892			20,028			29,133
Dividends on preferred stock		(774	)		(887	)		(780	)
Net income available to common stockholders	$	36,118		$	19,141		$	28,353
Comprehensive income attributable to Parent	$	35,900		$	20,147		$	28,459

Condensed Parent Company Only Statements of Cash Flows:

	Years Ended December 31,
(Dollars in thousands)	2017			2016			2015
Cash flows from operating activities:
Net income	$	36,892		$	20,028		$	29,133
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Equity in undistributed subsidiary income		(30,347	)		(22,308	)		(32,846	)
Net accretion of securities		(800	)		(174	)		—
Amortization of junior subordinated debentures		413			325			67
Amortization of subordinated notes issuance costs		94			23			—
Loss on intercompany sale of loans⁽¹⁾		—			794			—
Loss on sale of loans		—			80			—
Income from CLO warehouse investments		(2,226	)		(3,184	)		(1,151	)
Change in other assets		6,689			3,293			980
Change in accrued expenses and other liabilities		2,950			(5,279	)		10,316
Net cash provided by (used in) operating activities		13,665			(6,402	)		6,499
Cash flows from investing activities:
Investment in subsidiaries		(6,199	)		14,295			325
Purchases of securities held to maturity		(5,092	)		(3,342	)		—
Proceeds from maturities, calls, and pay downs of securities held to maturity		715			136			—
Purchases of loans (shared national credits)		—			—			(18,601	)
Proceeds from sale of loans		—			16,058			—
Net change in loans		(10,062	)		539			146
Net cash paid for CLO warehouse investments		(10,000	)		(25,000	)		(20,500	)
Net proceeds from CLO warehouse investments		30,000			25,500			2,450
Cash used in acquisition of subsidiaries, net		(40,075	)		(69,946	)		—
Net cash provided by (used in) investing activities		(40,713	)		(41,760	)		(36,180	)
Cash flows from financing activities:
Proceeds from issuance of subordinated notes, net		—			48,676			—
Issuance of common stock, net of expenses		65,509			—			—
Dividends on preferred stock		(774	)		(887	)		(780	)
Redemption of TARP preferred stock		—			(10,500	)		—
Purchase of Treasury Stock		(366	)		(654	)		(343	)
Stock option exercises		283			—			—
Net cash provided by (used in) financing activities		64,652			36,635			(1,123	)
Net increase (decrease) in cash and cash equivalents		37,604			(11,527	)		(30,804	)
Cash and cash equivalents at beginning of period		10,222			21,749			52,553
Cash and cash equivalents at end of period	$	47,826		$	10,222		$	21,749

⁽¹⁾

During the year ended December 31, 2016, a loss was recorded by the parent company as the result of an intercompany sale of loans to its subsidiary, TBK Bank, at the loans’ fair value. The discount on the purchase of the loans recorded by TBK Bank was fully amortized during the year ended December 31, 2017. The parent company loss on sale of the loans and the TBK Bank discount were eliminated in consolidation. The following table presents a reconciliation of parent company stockholders’ equity to consolidated stockholders’ equity at for the year ended December 31, 2016:

	Year Ended December 31,
(Dollars in thousands)	2016
Parent company stockholders' equity	$	288,673
Parent company loss on intercompany sale of loans		794
TBK Bank discount accretion		(122	)
Consolidated stockholders' equity	$	289,345