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PARENT COMPANY FINANCIAL INFORMATION
 12 Months Ended
Dec. 31, 2017
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Condensed Financial Information of Parent Company Only Disclosure [Text Block]

24.  PARENT COMPANY FINANCIAL INFORMATION

The parent company functions primarily as a coordinating and servicing unit for all subsidiary entities. Provided services include general management, accounting and taxes, loan review, internal auditing, investment advisory, marketing, insurance risk management, general corporate services, and financial and strategic planning. The following financial information relates only to the parent company operations:

BALANCE SHEETS
 
 
AT DECEMBER 31,
  
 
2017
 
2016
  
 
(IN THOUSANDS)
ASSETS
 
 
  
 
 
 
  
 
Cash
 
$
100
 
 
$
100
 
Short-term investments in money market funds
 
 
4,521
 
 
 
5,397
 
Investment securities available for sale
 
 
5,307
 
 
 
6,041
 
Equity investment in banking subsidiary
 
 
99,408
 
 
 
97,158
 
Equity investment in non-banking subsidiaries
 
 
6,444
 
 
 
5,168
 
Other assets
 
 
499
 
 
 
2,665
 
TOTAL ASSETS
 
$
116,279
 
 
$
116,529
 
LIABILITIES
 
 
  
 
 
 
  
 
Guaranteed junior subordinated deferrable interest debentures
 
$
12,923
 
 
$
12,908
 
Subordinated debt
 
 
7,465
 
 
 
7,441
 
Other liabilities
 
 
789
 
 
 
785
 
TOTAL LIABILITIES
 
 
21,177
 
 
 
21,134
 
STOCKHOLDERS’ EQUITY
 
 
  
 
 
 
  
 
Total stockholders’ equity
 
 
95,102
 
 
 
95,395
 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
 
$
116,279
 
 
$
116,529
 
 
STATEMENTS OF OPERATIONS
 
 
YEAR ENDED DECEMBER 31,
  
 
2017
 
2016
 
2015
  
 
(IN THOUSANDS)
INCOME
 
 
  
 
 
 
  
 
 
 
  
 
Inter-entity management and other fees
 
$
2,315
 
 
$
2,305
 
 
$
2,432
 
Dividends from banking subsidiary
 
 
2,850
 
 
 
3,000
 
 
 
5,100
 
Dividends from non-banking subsidiaries
 
 
840
 
 
 
650
 
 
 
975
 
Interest, dividend and other income
 
 
163
 
 
 
214
 
 
 
669
 
TOTAL INCOME
 
 
6,168
 
 
 
6,169
 
 
 
9,176
 
EXPENSE
 
 
  
 
 
 
  
 
 
 
  
 
Interest expense
 
 
1,642
 
 
 
1,640
 
 
 
1,125
 
Salaries and employee benefits
 
 
2,416
 
 
 
2,314
 
 
 
2,302
 
Other expense
 
 
1,618
 
 
 
1,549
 
 
 
1,562
 
TOTAL EXPENSE
 
 
5,676
 
 
 
5,503
 
 
 
4,989
 
INCOME BEFORE INCOME TAXES AND EQUITY IN UNDISTRIBUTED EARNINGS OF SUBSIDIARIES
 
 
492
 
 
 
666
 
 
 
4,187
 
Benefit for income taxes
 
 
(1,114
) 
 
 
(1,015
) 
 
 
(642
) 
Equity in undistributed earnings of subsidiaries
 
 
1,687
 
 
 
629
 
 
 
1,168
 
NET INCOME
 
$
3,293
 
 
$
2,310
 
 
$
5,997
 
COMPREHENSIVE INCOME (LOSS)
 
$
4,051
 
 
$
(1,712
) 
 
$
5,344
 
STATEMENTS OF CASH FLOWS
 
 
YEAR ENDED DECEMBER 31,
  
 
2017
 
2016
 
2015
  
 
(IN THOUSANDS)
OPERATING ACTIVITIES
 
 
  
 
 
 
  
 
 
 
  
 
Net income
 
$
3,293
 
 
$
2,310
 
 
$
5,997
 
Adjustment to reconcile net income to net cash (used in) provided by operating activities:
 
 
  
 
 
 
  
 
 
 
  
 
Equity in undistributed earnings of subsidiaries
 
 
(1,687
) 
 
 
(629
) 
 
 
(1,168
) 
Stock compensation expense
 
 
13
 
 
 
20
 
 
 
29
 
Other – net
 
 
1,325
 
 
 
1,463
 
 
 
842
 
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
 
 
2,944
 
 
 
3,164
 
 
 
5,700
 
INVESTING ACTIVITIES
 
 
  
 
 
 
  
 
 
 
  
 
Purchase of investment securities – available for sale
 
 
(1,002
) 
 
 
(996
) 
 
 
(1,533
) 
Proceeds from maturity and sales of investment securities – available for sale
 
 
1,699
 
 
 
3,396
 
 
 
4,669
 
Proceeds from life insurance policies
 
 
—
 
 
 
—
 
 
 
719
 
NET CASH PROVIDED BY INVESTING ACTIVITIES
 
 
697
 
 
 
2,400
 
 
 
3,855
 
FINANCING ACTIVITIES
 
 
  
 
 
 
  
 
 
 
  
 
Subordinated debt issuance, net
 
 
—
 
 
 
—
 
 
 
7,418
 
Preferred stock redemption
 
 
—
 
 
 
(21,000
) 
 
 
—
 
Preferred stock dividends paid
 
 
—
 
 
 
(15
) 
 
 
(210
) 
Purchases of treasury stock
 
 
(3,404
) 
 
 
—
 
 
 
—
 
Common stock dividends paid
 
 
(1,113
) 
 
 
(945
) 
 
 
(754
) 
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES
 
 
(4,517
) 
 
 
(21,960
) 
 
 
6,454
 
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
 
 
(876
) 
 
 
(16,396
) 
 
 
16,009
 
CASH AND CASH EQUIVALENTS AT JANUARY 1
 
 
5,497
 
 
 
21,893
 
 
 
5,884
 
CASH AND CASH EQUIVALENTS AT DECEMBER 31
 
$
4,621
 
 
$
5,497
 
 
$
21,893
 
The ability of the subsidiary Bank to upstream cash to the parent company is restricted by regulations. Federal law prevents the parent company from borrowing from its subsidiary Bank unless the loans are secured by specified assets. Further, such secured loans are limited in amount to ten percent of the subsidiary Bank’s capital and surplus. In addition, the Bank is subject to legal limitations on the amount of dividends that can be paid to its shareholder. The dividend limitation generally restricts dividend payments to a bank’s retained net income for the current and preceding two calendar years. Cash may also be upstreamed to the parent company by the subsidiaries as an inter-entity management fee. The subsidiary Bank had a combined $110,300,000 of restricted surplus and retained earnings at December 31, 2017.