20.

PARENT COMPANY

Following are condensed financial statements for the Company.

CONDENSED BALANCE SHEET


(Dollar amounts in thousands)	December 31,
	2015		2014
ASSETS
Cash and due from banks	$	1,329	$	466
Investment securities available for sale		814		783
Investment in nonbank subsidiary		2,418		2,534
Investment in subsidiary bank		73,061		69,514
Other assets		2,475		1,981

TOTAL ASSETS	$	80,097	$	75,278

LIABILITIES
Trust preferred securities	$	8,248	$	8,248
Short-term borrowings		9,499		3,136
Other liabilities		43		27

TOTAL LIABILITIES		17,790		11,411

STOCKHOLDERS’ EQUITY		62,307		63,867

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	80,097	$	75,278

CONDENSED STATEMENT OF INCOME AND COMPREHENSIVE INCOME


	Year Ended December 31,
(Dollar amounts in thousands)	2015			2014			2013
INCOME
Dividends from subsidiary bank	$	4,023		$	3,142		$	2,198
Other		19			8			5

Total income		4,042			3,150			2,203

EXPENSES
Interest expense		290			304			361
Other		860			816			475

Total expenses		1,150			1,120			836

Income before income tax benefit		2,892			2,030			1,367

Income tax benefit		(386	)		(378	)		(283	)

Income before equity in undistributed net income of subsidiaries		3,278			2,408			1,650

Equity in undistributed net income of subsidiaries		3,587			4,772			5,378

NET INCOME	$	6,865		$	7,180		$	7,028

Comprehensive Income (Loss)	$	6,712		$	11,965		$	(600	)

CONDENSED STATEMENT OF CASH FLOWS


	Year Ended December 31,
(Dollar amounts in thousands)	2015			2014			2013
OPERATING ACTIVITIES
Net income	$	6,865		$	7,180		$	7,028
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed net income of Middlefield Banking Company		(3,703	)		(4,798	)		(4,884	)
Equity in undistributed net income of Emerald Bank		—			—			(598	)
Equity in undistributed net loss of EMORECO		116			26			104
Stock-based compensation expense		18			10			—
Other		(503	)		(409	)		(253	)

Net cash provided by operating activities		2,793			2,009			1,397

FINANCING ACTIVITIES
Net increase (decrease) in short-term borrowings		6,363			(759	)		(976	)
Purchase of treasury stock		(6,784	)		—			—
Common stock issued		—			—			74
Stock options exercised		(7	)		(50	)		(77	)
Proceeds from dividend reinvestment plan		651			590			736
Cash dividends		(2,153	)		(2,121	)		(2,097	)

Net cash used for financing activities		(1,930	)		(2,340	)		(2,340	)

Increase (decrease) in cash		863			(331	)		(943	)

CASH AT BEGINNING OF YEAR		466			797			1,740

CASH AT END OF YEAR	$	1,329		$	466		$	797