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Parent Company Condensed Financial Statements
 12 Months Ended
Dec. 31, 2024
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, 2024 and 2023

and for the years ended December 31, 2024, 2023 and 2022:

 

Condensed Balance Sheets

 

   2024   2023 
(Dollars in thousands)  As of December 31, 
   2024   2023 
Assets:          
Cash and cash equivalents  $395   $286 
Interest-bearing deposits at other banks   151    215 
Investment in subsidiaries   160,634    153,813 
Other   960    990 
Total assets  $162,140   $155,304 
Liabilities and stockholders’ equity:          
Subordinated debentures  $21,651   $21,651 
Other borrowings   4,200    6,649 
Other   74    90 
Stockholders’ equity   136,215    126,914 
Total liabilities and stockholders’ equity  $162,140   $155,304 

 

Condensed Statements of Earnings

 

   2024   2023   2022 
(Dollars in thousands)  Years ended December 31, 
   2024   2023   2022 
Dividends from Bank  $8,500   $8,000   $29,350 
Dividends from nonbank subsidiary   975    1,000    490 
Interest income   55    51    26 
Other non-interest income   8    8    8 
Interest expense   (2,013)   (2,113)   (998)
Other expense, net   (637)   (620)   (412)
Earnings before equity in undistributed earnings   6,888    6,326    28,464 
Increase (decrease) in undistributed equity of Bank   5,122    5,252    (19,030)
Increase (decrease) in undistributed equity of nonbank subsidiary   450    102    155 
Earnings before income taxes   12,460    11,680    9,589 
Income tax benefit   (543)   (556)   (289)
Net earnings   13,003    12,236    9,878 
Other comprehensive  income (loss)   728    8,510    (28,946)
Total comprehensive income  $13,731   $20,746   $(19,068)

 

 

Condensed Statements of Cash Flows

 

   2024   2023   2022 
(Dollars in thousands)  Years ended December 31, 
   2024   2023   2022 
Cash flows from operating activities:               
Net earnings  $13,003   $12,236   $9,878 
(Increase) decrease in undistributed equity of subsidiaries   (5,572)   (5,354)   18,875 
Other   12    1    79 
Net cash provided by operating activities   7,443    6,883    28,832 
                
Cash flows from investing activities:               
Net change in interest-bearing deposits at banks   64    1    - 
Acquisition of Freedom Bancshares, Inc.   -    -    (33,350)
Net cash (used in) provided by investing activities   64    1    (33,350)
                
Cash flows from financing activities:               
Proceeds from exercise of stock options   -    52    - 
Payment of dividends   (4,612)   (4,390)   (4,198)
Purchase of treasury stock   (338)   (75)   (1,239)
Issuances of outstanding debt   360    -    10,065 
Payment on outstanding debt   (2,808)   (2,351)   (1,065)
Net cash (used in) provided by financing activities   (7,398)   (6,764)   3,563 
Net increase (decrease) in cash   109    120    (955)
Cash at beginning of year   286    166    1,121 
Cash at end of year  $395   $286   $166 

 

Dividends paid by the Company are provided through dividends from the Bank and dividends from nonbank subsidiaries. At December 31, 2024, the Bank could distribute dividends of up to $4.9 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.