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Parent Company Condensed Financial Statements

12 Months Ended

Dec. 31, 2023

Condensed Financial Information Disclosure [Abstract]

Parent Company Condensed Financial Statements

(22) Parent Company Condensed Financial Statements

The following is condensed financial information of the parent company as of December 31, 2023 and 2022

and for the years ended December 31, 2023, 2022 and 2021:

Condensed Balance Sheets


(Dollars in thousands)		As of December 31,
		2023				2022
Assets:
Cash and cash equivalents		$	286			$	166
Interest-bearing deposits at other banks			215				214
Investment in subsidiaries			153,813				140,802
Other			990				959
Total assets		$	155,304			$	142,141
Liabilities and stockholders’ equity:
Subordinated debentures		$	21,651			$	21,651
Other borrowings			6,649				9,000
Other			90				57
Stockholders’ equity			126,914				111,433
Total liabilities and stockholders’ equity		$	155,304			$	142,141

Condensed Statements of Earnings


(Dollars in thousands)		Years ended December 31,
		2023				2022				2021
Dividends from Bank		$	8,000			$	29,350			$	4,600
Dividends from nonbank subsidiary			1,000				490				1,000
Interest income			51				26				16
Other non-interest income			8				8				7
Interest expense			(2,113	)			(998	)			(472	)
Other expense, net			(620	)			(412	)			(532	)
Earnings before equity in undistributed earnings			6,326				28,464				4,619
Increase (decrease) in undistributed equity of Bank			5,252				(19,030	)			13,599
Increase (decrease) in undistributed equity of nonbank subsidiary			102				155				(272	)
Earnings before income taxes			11,680				9,589				17,946
Income tax benefit			(556	)			(289	)			(65	)
Net earnings			12,236				9,878				18,011
Other comprehensive income (loss)			8,510				(28,946	)			(5,567	)
Total comprehensive income		$	20,746			$	(19,068	)		$	12,444

Condensed Statements of Cash Flows


(Dollars in thousands)		Years ended December 31,
		2023				2022				2021
Cash flows from operating activities:
Net earnings		$	12,236			$	9,878			$	18,011
Decrease (increase) in undistributed equity of subsidiaries			(5,354	)			18,875				(13,327	)
Other			1				79				130
Net cash provided by operating activities			6,883				28,832				4,814

Cash flows from investing activities:
Net change in interest-bearing deposits at banks			1				-				(2	)
Acquisition of Freedom Bancshares, Inc.			-				(33,350	)			-
Net cash (used in) provided by investing activities			1				(33,350	)			(2	)

Cash flows from financing activities:
Proceeds from exercise of stock options			52				-				22
Payment of dividends			(4,390	)			(4,198	)			(3,818	)
Purchase of treasury stock			(75	)			(1,239	)			-
Issuances of outstanding debt			-				10,065				-
Payment on outstanding debt			(2,351	)			(1,065	)			-
Net cash (used in) provided by financing activities			(6,764	)			3,563				(3,796	)
Net increase (decrease) in cash			120				(955	)			1,016
Cash at beginning of year			166				1,121				105
Cash at end of year		$	286			$	166			$	1,121

Dividends paid by the Company are provided through dividends from the Bank and dividends from nonbank subsidiaries. At December 31, 2023, the Bank could distribute dividends of up to $12.9 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.