PARENT ONLY FINANCIAL STATEMENTS

12 Months Ended

Dec. 31, 2023

PARENT ONLY FINANCIAL STATEMENTS

PARENT ONLY FINANCIAL STATEMENTS

NOTE 27:  PARENT ONLY FINANCIAL STATEMENTS

BALANCE SHEETS

	December 31,
(dollars in thousands)	2023		2022
ASSETS
Cash and cash equivalents	$	15,263	$	24,083
Premises and equipment, net		136		136
Deferred taxes		2,042		4,449
Investment in subsidiaries		1,082,456		1,285,949
Intercompany receivable		—		1,972
Other assets		25,210		28,732
Total Assets	$	1,125,107	$	1,345,321
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Borrowings	$	—	$	20,000
Subordinated debt		173,397		173,335
Intercompany payable		6,475		—
Accounts payable and other liabilities		19,892		17,608
Total Liabilities		199,764		210,943
Shareholders’ Equity
Common Stock		56		56
Additional paid-in-capital		720,899		719,606
Retained earnings		218,575		426,659
Accumulated other comprehensive loss, net of tax		(14,187)		(11,943)
Total Shareholders’ Equity		925,343		1,134,378
Total Liabilities and Shareholders’ Equity	$	1,125,107	$	1,345,321

STATEMENTS OF OPERATIONS

	For the Year Ended
	December 31,
(dollars in thousands)	2023		2022		2021
Interest expense—borrowings and subordinated debt	$	7,076	$	6,422	$	246
Noninterest income:
(Loss) earnings from investment in subsidiaries		(189,737)		123,407		112,550
Other (loss) income		(1)		(6,251)		1,271
Total noninterest (loss) income		(189,738)		117,156		113,821
Noninterest expense:
Compensation and benefits		1,135		1,331		972
Occupancy and depreciation		9		12		1
Professional services and marketing costs		3,617		2,946		3,329
Other expenses		1,120		1,000		863
Total noninterest expense		5,881		5,289		5,165
(Loss) income before income taxes		(202,695)		105,445		108,410
Income tax (benefit) expense		(3,631)		(5,067)		(1,101)
Net (loss) income	$	(199,064)	$	110,512	$	109,511

STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

	For the Year Ended
	December 31,
(dollars in thousands)	2023		2022		2021
Net (loss) income	$	(199,064)	$	110,512	$	109,511
Other comprehensive loss:
Unrealized holding losses on securities arising during the period		(5,959)		(18,702)		(16,696)
Credit loss expense		1,402		—		—
Other comprehensive loss before tax		(4,557)		(18,702)		(16,696)
Income tax benefit related to items of other comprehensive loss		21		4,484		4,884
Other comprehensive loss		(4,536)		(14,218)		(11,812)
Add: Reclassification adjustment for gain included in net earnings		2,304		—		—
Income tax expense related to reclassification adjustment		(12)		—		—
Reclassification adjustment for gain included in net earnings, net of tax		2,292		—		—
Other comprehensive loss, net of tax		(2,244)		(14,218)		(11,812)
Total comprehensive (loss) income	$	(201,308)	$	96,294	$	97,699

STATEMENTS OF CASH FLOWS

	For the Year Ended
	December 31,
(dollars in thousands)	2023		2022		2021
Cash Flows from Operating Activities:
Net (loss) income	$	(199,064)	$	110,512	$	109,511
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Loss (Earnings) from investment in subsidiaries		189,737		(123,407)		(112,550)
Stock–based compensation expense		148		153		115
Deferred tax liability (benefit)		2,407		(4,497)		(198)
Decrease (increase) in other assets		3,522		(5,140)		(26,308)
Increase in accounts payable and other liabilities		2,283		4,425		3,400
Net cash used in operating activities		(967)		(17,954)		(26,030)
Cash Flows from Investing Activities:
Investment in subsidiaries		(35,000)		(95,000)		(10)
Dividend from subsidiary		47,500		—		22,000
Net cash provided by (used in) investing activities		12,500		(95,000)		21,990
Cash Flows from Financing Activities:
Net (decrease) increase in line of credit		(20,000)		1,500		30,197
Net increase in subordinated debt		62		147,639		—
Proceeds from the sale of stock, net		158		18		2,514
Repurchase of stock		—		(3,482)		—
Intercompany accounts, net decrease (increase)		8,447		(5,571)		4,573
Dividends paid		(9,020)		(24,830)		(16,173)
Net cash (used in) provided by financing activities		(20,353)		115,274		21,111
(Decrease) increase in cash and cash equivalents		(8,820)		2,320		17,071
Cash and cash equivalents at beginning of year		24,083		21,763		4,692
Cash and cash equivalents at end of year	$	15,263	$	24,083	$	21,763