Parent Company Condensed Financial Statements

12 Months Ended

Dec. 31, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Financial Information of Parent Company Only Disclosure [Text Block]

(20) Parent Company Condensed Financial Statements

The following is condensed financial information of the parent company as of December 31, 2015 and 2014, and for the years ended December 31, 2015, 2014 and 2013:

Condensed Balance Sheets

Cash and cash equivalents	$	139	$	19
Investment securities		1,737		1,540
Investment in Bank		99,529		91,769
Other		474		495
Total assets	$	101,879	$	93,823
Liabilities and stockholders' equity:
Subordinated debentures	$	21,084	$	20,884
Other borrowings		-		1,140
Other		225		154
Stockholders' equity		80,570		71,645
Total liabilities and stockholders' equity	$	101,879	$	93,823

Condensed Statements of Earnings

(Dollars in thousands)	Years ended December 31,
	2015		2014		2013
Dividends from Bank	$	3,723	$	588	$	1,180
Interest income		50		31		27
Other non-interest income		7		7		7
Interest expense		(770)		(698)		(446)
Other expense, net		(297)		(307)		(309)
Earnings before equity in undistributed earnings of Bank		2,713		(379)		459
Increase in undistributed equity of Bank		7,442		8,096		3,948
Earnings before income taxes		10,155		7,717		4,407
Income tax benefit		(351)		(332)		(248)
Net earnings		10,506		8,049		4,655
Other comprehensive income (loss)		357		2,744		(4,384)
Total comprehensive income	$	10,863	$	10,793	$	271

Condensed Statements of Cash Flows

(Dollars in thousands)	Years ended December 31,
	2015		2014		2013
Cash flows from operating activities:
Net earnings	$	10,506	$	8,049	$	4,655
Increase in undistributed equity of Bank		(7,442)		(8,096)		(3,948)
Amortization of purchase accounting adjustment on subordinated debentures		200		200		33
Other		20		(22)		36
Net cash provided by operating activities		3,284		131		776

Cash flows from investing activities:
Proceeds from sales and maturities of investment securities		14		20		17
Net cash provided by investing activities		14		20		17

Cash flows from financing activities:
Proceeds from exercise of stock options		509		494		1,244
Proceeds from other borrowings		2,605		4,515		-
Repayments on other borrowings		(3,745)		(3,375)		-
Payment of dividends		(2,547)		(2,415)		(2,243)
Net cash used in financing activities		(3,178)		(781)		(999)
Net increase (decrease) in cash		120		(630)		(206)
Cash at beginning of year		19		649		855
Cash at end of year	$	139	$	19	$	649

Dividends paid by the Company are provided through dividends from the Bank. At December 31, 2015, the Bank could distribute dividends of up to $19.5 million without regulatory approvals. The primary source of funds for the Company is dividends from the Bank. Under the National Bank Act, a national bank may pay dividends out of its undivided profits in such amounts and at such times as the bank’s board of directors deems prudent. Without prior OCC approval, however, a national bank may not pay dividends in any calendar year that, in the aggregate, exceed the bank’s year-to-date net income plus the bank’s retained net income for the two preceding years. The payment of dividends by any financial institution is affected by the requirement to maintain adequate capital pursuant to applicable capital adequacy guidelines and regulations, and a financial institution generally is prohibited from paying any dividends if, following payment thereof, the institution would be undercapitalized.