Parent Company Only Financial Statements (Tables)

12 Months Ended

Dec. 31, 2020

PARENT COMPANY ONLY CONDENSED BALANCE SHEETS

As of December 31, 2020 and 2019

(dollars in thousands)

Assets	2020		2019
Cash and due from banks	$	2,174	$	934
Investment in subsidiary		121,808		100,330
Securities available for sale, at fair value		6,312		—
Restricted equity investments, at cost		2,274		911
Accrued interest receivable		119		—
Other assets		354		336
Total assets	$	133,041	$	102,511
Liabilities
Accrued expenses	$	204	$	374
Accrued interest payable		131	$	—
Subordinated debentures, net of issuance costs		24,506		9,800
Total liabilities		24,841		10,174
Stockholders' equity	$	108,200	$	92,337
Total liabilities and stockholders' equity	$	133,041	$	102,511

PARENT COMPANY ONLY CONDENSED STATEMENTS OF INCOME

For the Years ended December 31, 2020 and 2019

(dollars in thousands)

Income	2020			2019
Dividends from subsidiary	$	800		$	—
Interest income		126			5
Gains on securities		—			110
Total Income	$	926		$	115
Expenses
Interest on subordinated debentures	$	1,265		$	709
Professional fees		455			294
Merger expenses		1,732			1,250
Other operating expenses		166			27
Total expenses	$	3,618		$	2,280
Net loss before income tax benefit and equity in undistributed earnings of subsidiary	$	(2,692	)	$	(2,165	)
Income tax benefit		(699	)		(372	)
Equity in undistributed earnings of subsidiary		19,689			6,373
Net income	$	17,696		$	4,580

PARENT COMPANY ONLY CONDENSED STATEMENTS OF CASH FLOWS

For the Years ended December 31, 2020 and 2019

(dollars in thousands)

Cash flows from operating activities	2020			2019
Net income	$	17,696		$	4,580
Equity in undistributed earnings of subsidiary		(19,689	)		(6,373	)
Deferred income tax (benefit) expense		(62	)		(19	)
Amortization of subordinated debt issuance costs		54			33
Realized gains on securities sales		—			110
Increase in other assets		(139	)		(206	)
Decrease in accrued expenses		(39	)		—
Net cash used in operating activities		(2,179	)		(1,875	)
Cash flows from investing activities
Purchases of securities available-for-sale		(6,000	)		(161	)
Net change in investments		(1,363	)		—
Proceeds from sales of securities available for sale		—			66
Cash contributed to Bank		(2,000	)		(17,000	)
Net cash used in investing activities		(9,363	)		(17,095	)
Cash flows from financing activities
Common stock issuance, net of fees		567			22,350
Issuance of subordinated debt		15,000			—
Payment of subordinated debt issuance costs		(349	)		—
Common stock dividends paid		(2,436	)		(2,473	)
Net cash provided by financing activities		12,782			19,877
Net increase in cash and cash equivalents		1,240			907
Cash and cash equivalents, beginning of year		934			27
Cash and cash equivalents, end of year	$	2,174		$	934
Cash paid for:
Interest	$	1,190		$	709
Income taxes	$	2,000		$	1,020
Non-cash investing and financing activities:
Unrealized gain on available-for-sale securities	$	358		$	217
Issuance of restricted stock awards, net of forfeitures	$	567		$	230