Condensed Financial Information (Parent Company Only)

Presented below is condensed financial information as to financial position, results of operations, and cash flows of the Company on a non-consolidated basis:

Condensed Balance Sheets



	Year Ended December 31,
	2015		2014
Assets
Cash and cash equivalents	$	6,860	$	10,056
Investment in common stock of subsidiaries	107,925		87,929
Premises and equipment, net	5,793		4,542
Accrued income and other assets	750		1,678
Total assets	$	121,328	$	104,205

Liabilities and Shareholders’ Equity
Subordinated debt, net of unamortized discounts and debt issuance costs of $276 and $127 in 2015 and 2014, respectively	$	12,724	$	2,873
Note payable to the Bank	4,000		4,000
Accrued expenses and other liabilities	274		547
Total liabilities	16,998		7,420

Shareholders’ equity	104,330		96,785

Total liabilities and shareholders’ equity	$	121,328	$	104,205

Condensed Statements of Income



	Year Ended December 31,
	2015			2014			2013
Income
Dividends from subsidiaries	$	—		$	—		$	500
Total income	—			—			500

Expenses
Interest on borrowings	643			498			307
Salaries and employee benefits	425			298			320
Consulting and professional fees	930			777			859
Premises and equipment	200			239			87
Other	174			206			231
Total expenses	2,372			2,018			1,804

Loss Before Income Tax and Equity in Undistributed Net Income of Subsidiaries	(2,372		)	(2,018		)	(1,304		)

Income Tax Benefit	(813		)	(756		)	(596		)

Loss Before Equity in Undistributed Net Income of Subsidiaries	(1,559		)	(1,262		)	(708		)

Equity in Undistributed Net Income of Subsidiaries	10,488			5,586			5,301

Net Income	$	8,929		$	4,324		$	4,593

Condensed Statements of Comprehensive Income



	Year Ended December 31,
	2015			2014			2013
Net income	$	8,929		$	4,324		$	4,593
Other comprehensive income (loss)
Net unrealized holding gains (losses) on securities available for sale	(1,669		)	3,260			(6,462		)
Reclassification adjustment for (gains) losses realized	—			(538		)	63
Net unrealized holding gains (losses) on securities available for sale for which an other-than-temporary impairment has been recognized in income	—			751			(129		)
Reclassification adjustment for other-than-temporary impairment loss recognized in income	—			—			49
Other comprehensive income (loss) before tax	(1,669		)	3,473			(6,479		)
Income tax provision (benefit)	(595		)	1,236			(2,289		)
Other comprehensive income (loss) - net of tax	(1,074		)	2,237			(4,190		)
Comprehensive income	$	7,855		$	6,561		$	403

Condensed Statements of Cash Flows



	Year Ended December 31,
	2015			2014			2013
Operating Activities
Net income	$	8,929		$	4,324		$	4,593
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed net income of subsidiaries	(10,488		)	(5,586		)	(5,301		)
Depreciation and amortization	246			226			161
Share-based compensation expense	150			120			127
Net change in:
Accrued income and other assets	958			(641		)	(433		)
Accrued expenses and other liabilities	(275		)	(19		)	44
Net cash used in operating activities	(480		)	(1,576		)	(809		)

Investing Activities
Capital contribution to the Bank	(10,000		)	(5,000		)	(13,000		)
Purchase of premises and equipment	(1,407		)	(160		)	(4,641		)
Net cash used in investing activities	(11,407		)	(5,160		)	(17,641		)

Financing Activities
Cash dividends paid	(1,093		)	(1,080		)	(450		)
Net proceeds from issuance of subordinated debt and related warrants	9,761			—			3,000
Proceeds from loan from the Bank	—			—			4,000
Net proceeds from common stock issuance	—			—			29,101
Other, net	23			(111		)	—
Net cash provided by (used in) financing activities	8,691			(1,191		)	35,651

Net (Decrease) Increase in Cash and Cash Equivalents	(3,196		)	(7,927		)	17,201

Cash and Cash Equivalents at Beginning of Year	10,056			17,983			782

Cash and Cash Equivalents at End of Year	$	6,860		$	10,056		$	17,983