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PARENT COMPANY FINANCIAL INFORMATION

12 Months Ended

Dec. 31, 2022

PARENT COMPANY FINANCIAL INFORMATION

PARENT COMPANY FINANCIAL INFORMATION

25. 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,
​		2022			2021
​	​	(IN THOUSANDS)
ASSETS		​			​
Cash	​	$	100	​	$	100
Short-term investments	​		3,178	​		5,533
Cash and cash equivalents	​	​	3,278	​	​	5,633
Investment securities available for sale	​		6,334	​		3,692
Equity investment in banking subsidiary	​		117,432	​		127,874
Equity investment in non-banking subsidiaries	​		6,533	​		6,707
Other assets	​		1,008	​		866
TOTAL ASSETS	​	$	134,585	​	$	144,772
LIABILITIES	​			​
Subordinated debt	​	$	26,644	​	$	26,603
Other liabilities	​		1,763	​		1,620
TOTAL LIABILITIES	​		28,407	​		28,223
STOCKHOLDERS’ EQUITY	​			​
Total stockholders’ equity	​		106,178	​		116,549
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	​	$	134,585	​	$	144,772

​

STATEMENTS OF OPERATIONS

​

​ ​	​	​	​	​	​	​	​	​	​
​	​	YEAR ENDED DECEMBER 31,
​		2022			2021			2020
​	​	(IN THOUSANDS)
INCOME		​			​			​
Inter-entity management and other fees	​	$	2,566	​	$	2,520	​	$	2,708
Dividends from banking subsidiary	​		4,000	​		2,000	​		2,000
Dividends from non-banking subsidiaries	​		1,055	​		1,550	​		1,944
Interest, dividend and other income	​		146	​		115	​		106
TOTAL INCOME	​		7,767	​		6,185	​		6,758
EXPENSE	​		​	​		​	​		​
Interest expense	​		1,054	​		1,798	​		1,642
Salaries and employee benefits	​		2,811	​		2,871	​		2,667
Other expense	​		1,948	​		1,783	​		1,749
TOTAL EXPENSE	​		5,813	​		6,452	​		6,058
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN UNDISTRIBUTED EARNINGS OF SUBSIDIARIES	​		1,954	​		(267)	​		700
Benefit for income taxes	​		(652)	​		(802)	​		(681)
Equity in undistributed earnings of subsidiaries	​		4,842	​		6,537	​		3,217
NET INCOME	​	$	7,448	​	$	7,072	​	$	4,598
COMPREHENSIVE (LOSS) INCOME	​	$	(8,560)	​	$	13,758	​	$	7,571

​

STATEMENTS OF CASH FLOWS

​

​	​	​	​	​	​	​	​	​	​
​	​	YEAR ENDED DECEMBER 31,
​		2022			2021			2020
​	​	(IN THOUSANDS)
OPERATING ACTIVITIES		​			​			​
Net income	​	$	7,448	​	$	7,072	​	$	4,598
Adjustment to reconcile net income to net cash provided by operating activities:	​		​	​		​	​		​
Equity in undistributed earnings of subsidiaries	​		(4,842)	​		(6,537)	​		(3,217)
Stock compensation expense	​		50	​		43	​		3
Other – net	​		189	​		1,204	​		(133)
NET CASH PROVIDED BY OPERATING ACTIVITIES	​		2,845	​		1,782	​		1,251
INVESTING ACTIVITIES	​			​			​
Purchase of investment securities – available for sale	​		(3,994)	​		(1,008)	​		(1,254)
Proceeds from maturity and sales of investment securities – available for sale	​		655	​		991	​		1,246
Capital contribution to banking subsidiary	​		—	​		(3,500)	​		—
NET CASH USED IN INVESTING ACTIVITIES	​		(3,339)	​		(3,517)	​		(8)
FINANCING ACTIVITIES	​			​			​
Redemption of guaranteed junior subordinated deferrable interest debentures	​		—	​		(12,018)	​		—
Subordinated debt issuance, net	​		—	​		26,589	​		—
Redemption of subordinated debt	​		—	​		(7,650)	​		—
Stock options exercised	​		106	​		57	​		78
Purchases of treasury stock	​		—	​		—	​		(151)
Common stock dividends paid	​		(1,967)	​		(1,708)	​		(1,716)
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES	​		(1,861)	​		5,270	​		(1,789)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	​		(2,355)	​		3,535	​		(546)
CASH AND CASH EQUIVALENTS AT JANUARY 1	​		5,633	​		2,098	​		2,644
CASH AND CASH EQUIVALENTS AT DECEMBER 31	​	$	3,278	​	$	5,633	​	$	2,098

​

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. The subsidiary Bank had a combined $121,974,000 of restricted surplus and retained earnings at December 31, 2022. Cash may also be upstreamed to the parent company by the subsidiaries as an inter-entity management fee.

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- References

No definition available.

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- Definition

The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 10
-Section S99
-Paragraph 6
-Subparagraph (SX 210.5-04(Schedule I))
-URI https://asc.fasb.org/extlink&oid=126898705&loc=d3e5864-122674

Reference 2: http://www.xbrl.org/2003/role/recommendedDisclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 45
-Paragraph 11
-URI https://asc.fasb.org/extlink&oid=126929396&loc=d3e5283-111683

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 3
-Subparagraph (SX 210.12-04(a))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e24072-122690

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