XML 55 R29.htm IDEA: XBRL DOCUMENT

Parent Company Condensed Financial Statements

12 Months Ended

Dec. 31, 2019

Condensed Financial Information Disclosure [Abstract]

Parent Company Condensed Financial Statements

(20) Parent Company Condensed Financial Statements

The following is condensed financial information of the parent company as of December 31, 2019 and 2018 and for the years ended December 31, 2019, 2018 and 2017:

Condensed Balance Sheets

(Dollars in thousands)		As of December 31,
		2019				2018
Assets:
Cash and cash equivalents		$	173			$	100
Investment securities			239				237
Investment in subsidiaries			129,049				112,394
Other			929				942
Total assets		$	130,390			$	113,673
Liabilities and stockholders’ equity:
Subordinated debentures		$	21,651			$	21,651
Other			132				121
Stockholders’ equity			108,607				91,901
Total liabilities and stockholders’ equity		$	130,390			$	113,673

Condensed Statements of Earnings

(Dollars in thousands)		Years ended December 31,
		2019				2018				2017
Dividends from Bank		$	4,500			$	3,200			$	3,700
Interest income			31				29				49
Gain on sale of investment			-				-				493
Other non-interest income			7				7				7
Interest expense			(970	)			(1,078	)			(898	)
Other expense, net			(304	)			(325	)			(470	)
Earnings before equity in undistributed earnings			3,264				1,833				2,881
Increase in undistributed equity of Bank			6,801				7,567				633
Increase in undistributed equity of Nonbank subsidiary			338				740				542
Earnings before income taxes			10,403				10,140				4,056
Income tax benefit			(259	)			(286	)			(313	)
Net earnings			10,662				10,426				4,369
Other comprehensive income (loss)			9,230				(3,579	)			1,010
Total comprehensive income		$	19,892			$	6,847			$	5,379

Condensed Statements of Cash Flows

(Dollars in thousands)		Years ended December 31,
		2019				2018				2017
Cash flows from operating activities:
Net earnings		$	10,662			$	10,426			$	4,369
Increase in undistributed equity of subsidiaries			(7,139	)			(8,307	)			(1,175	)
Amortization of purchase accounting adjustment on subordinated debentures			-				167				200
Gain on sale of investment			-				-				(493	)
Other			23				381				(543	)
Net cash provided by operating activities			3,546				2,667				2,358

Cash flows from investing activities:
Investment in subsidiary			-				-				(250	)
Purchase of investment securities			(1	)			-				-
Proceeds from sales of investments			-				7				967
Net cash (used in) provided by investing activities			(1	)			7				717

Cash flows from financing activities:
Proceeds from exercise of stock options			36				534				228
Proceeds from other borrowings			-				-				100
Repayments on other borrowings			-				-				(100	)
Payment of dividends			(3,508	)			(3,325	)			(3,108	)
Net cash used in financing activities			(3,472	)			(2,791	)			(2,880	)
Net increase (decrease) in cash			73				(117	)			195
Cash at beginning of year			100				217				22
Cash at end of year		$	173			$	100			$	217

Dividends paid by the Company are provided through dividends from the Bank. At December 31, 2019, the Bank could distribute dividends of up to $15.0 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.