| Condensed Financial Statements for Parent Company |
Condensed Financial Statements for Parent Company The parent company’s condensed statements of financial condition as of December 31, 2018 and 2017, and the related condensed statements of income and comprehensive income, and condensed statements of cash flows for the years ended December 31, 2018, 2017, and 2016 are presented below: Condensed Balance Sheets | | | | | | | | | | | | December 31, | ($ in thousands) | | 2018 | | 2017 | Assets | | | | | Cash | | $ | 1,254 |
| | $ | 990 |
| Investment in Pacific City Bank | | 209,012 |
| | 141,174 |
| Other assets | | 49 |
| | 20 |
| Total assets | | $ | 210,315 |
| | $ | 142,184 |
| Liabilities and Shareholders’ Equity | | | | | Other liabilities | | 19 |
| | — |
| Total liabilities | | 19 |
| | — |
| Total shareholders’ equity | | 210,296 |
| | 142,184 |
| Total liabilities and shareholders’ equity | | $ | 210,315 |
| | $ | 142,184 |
| | | | | |
Condensed Statements of Income and Comprehensive Income | | | | | | | | | | | | | | | | Year Ended December 31, | ($ in thousands) | | 2018 | | 2017 | | 2016 | Income: | | | | | | | Dividends from subsidiary | | $ | 1,694 |
| | $ | 1,566 |
| | $ | — |
| Other income | | — |
| | — |
| | 23 |
| Total income | | 1,694 |
| | 1,566 |
| | 23 |
| Expense: | | | | | | | Other expense | | 923 |
| | 454 |
| | 415 |
| Total expense | | 923 |
| | 454 |
| | 415 |
| Income (loss) before taxes and equity in undistributed subsidiary income | | 771 |
| | 1,112 |
| | (392 | ) | Income tax benefit | | (277 | ) | | (190 | ) | | (167 | ) | Income (loss) before equity in undistributed subsidiary income | | 1,048 |
| | 1,302 |
| | (225 | ) | Equity in undistributed subsidiary income | | 23,253 |
| | 15,101 |
| | 14,227 |
| Net income | | 24,301 |
| | 16,403 |
| | 14,002 |
| Other comprehensive loss, net of tax | | (424 | ) | | (450 | ) | | (135 | ) | Comprehensive income | | $ | 23,877 |
| | $ | 15,953 |
| | $ | 13,867 |
| | | | | | | |
Condensed Statements of Cash Flows | | | | | | | | | | | | | | | | Year Ended December 31, | ($ in thousands) | | 2018 | | 2017 | | 2016 | Cash flows from operating activities | | | | | | | Net income | | $ | 24,301 |
| | $ | 16,403 |
| | $ | 14,002 |
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | | | | | | | Equity in undistributed subsidiary income | | (23,253 | ) | | (15,101 | ) | | (14,227 | ) | Change in other assets | | (29 | ) | | 3 |
| | (12 | ) | Change in other liabilities | | 19 |
| | (28 | ) | | 28 |
| Net cash provided by (used in) operating activities | | 1,038 |
| | 1,277 |
| | (209 | ) | Cash flows from investing activities: | | | | | | | Capital contribution to subsidiary | | (44,361 | ) | | — |
| | (14,500 | ) | Net cash used in investing activities | | (44,361 | ) | | — |
| | (14,500 | ) | Cash flows from financing activities: | | | | | | | Stock issued under stock offering, net of expenses | | 45,037 |
| | — |
| | 15,194 |
| Stock options exercised | | 310 |
| | 134 |
| | 569 |
| Cash dividends paid on common stock | | (1,760 | ) | | (1,609 | ) | | (1,380 | ) | Net cash provided by (used in) financing activities | | 43,587 |
| | (1,475 | ) | | 14,383 |
| Net increase (decrease) in cash and cash equivalents | | 264 |
| | (198 | ) | | (326 | ) | Cash and cash equivalents at beginning of year | | 990 |
| | 1,188 |
| | 1,514 |
| Cash and cash equivalents at end of year | | $ | 1,254 |
| | $ | 990 |
| | $ | 1,188 |
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