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Parent Company Condensed Financial Statements
 12 Months Ended
Dec. 31, 2021
Condensed Financial Information Disclosure [Abstract]  
Parent Company Condensed Financial Statements

(21) Parent Company Condensed Financial Statements

 

The following is condensed financial information of the parent company as of December 31, 2021 and 2020 and for the years ended December 31, 2021, 2020 and 2019:

 

Condensed Balance Sheets

 

         
(Dollars in thousands)  As of December 31, 
   2021   2020 
Assets:          
Cash and cash equivalents  $1,121   $105 
Interest-bearing deposits at other banks   214    212 
Investment in subsidiaries   154,978    146,896 
Other   1,074    1,217 
Total assets  $157,387   $148,430 
Liabilities and stockholders' equity:          
Subordinated debentures  $21,651   $21,651 
Other   93    107 
Stockholders' equity   135,643    126,672 
Total liabilities and stockholders' equity  $157,387   $148,430 

 

Condensed Statements of Earnings

 

             
(Dollars in thousands)  Years ended December 31, 
   2021   2020   2019 
Dividends from Bank  $4,600   $6,900   $4,500 
Dividends from nonbank subsidiary   1,000    -    - 
Interest income   16    21    31 
Other non-interest income   7    7    7 
Interest expense   (472)   (614)   (970)
Other expense, net   (532)   (352)   (304)
Earnings before equity in undistributed earnings   4,619    5,962    3,264 
Increase in undistributed equity of Bank   13,599    13,087    6,801 
(Decrease) increase in undistributed equity of nonbank subsidiary   (272)   248    338 
Earnings before income taxes   17,946    19,297    10,403 
Income tax benefit   (65)   (196)   (259)
Net earnings   18,011    19,493    10,662 
Other comprehensive (loss) income   (5,567)   4,208    9,230 
Total comprehensive income  $12,444   $23,701   $19,892 

 

 

Condensed Statements of Cash Flows

 

             
(Dollars in thousands)  Years ended December 31, 
   2021   2020   2019 
Cash flows from operating activities:               
Net earnings  $18,011   $19,493   $10,662 
Increase in undistributed equity of subsidiaries   (13,327)   (13,335)   (7,139)
Other   130    (312)   23 
Net cash provided by operating activities   4,814    5,846    3,546 
                
Cash flows from investing activities:               
Net change in interest-bearing deposits at banks   (2)   26    (1)
Net cash (used in) provided by investing activities   (2)   26    (1)
                
Cash flows from financing activities:               
Proceeds from exercise of stock options   22    42    36 
Payment of dividends   (3,818)   (3,633)   (3,508)
Purchase of treasury stock   -    (2,349)   - 
Net cash used in financing activities   (3,796)   (5,940)   (3,472)
Net increase (decrease) in cash   1,016    (68)   73 
Cash at beginning of year   105    173    100 
Cash at end of year  $1,121   $105   $173 

 

Dividends paid by the Company are provided through dividends from the Bank and dividends from nonbank subsidiaries. At December 31, 2021, the Bank could distribute dividends of up to $26.7 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.