PARENT COMPANY

12 Months Ended

Dec. 31, 2021

PARENT COMPANY

NOTE 22: PARENT COMPANY

The following balance sheets, statements of income and statements of cash flows for CBTX, Inc. should be read in conjunction with the consolidated financial statements and the related notes.

Balance Sheets	December 31,
(Dollars in thousands)	2021		2020
Assets:
Cash and due from banks	$	28,795	$	35,645
Investment in subsidiary		534,790		513,012
Deferred tax asset, net		217		130
Other assets		2,298		548
Total assets	$	566,100	$	549,335
Liabilities:
Other liabilities	$	3,975	$	2,884
Total liabilities		3,975		2,884
Shareholders’ equity:
Common stock		253		255
Additional paid-in capital		335,846		339,334
Retained earnings		237,165		214,456
Treasury stock		(14,196)		(14,369)
Accumulated other comprehensive income		3,057		6,775
Total shareholders’ equity		562,125		546,451
Total liabilities and shareholders’ equity	$	566,100	$	549,335

Statements of Income	Years Ended December 31,
(Dollars in thousands)	2021		2020		2019
Interest income
Other	$	—	$	—	$	5
Interest expense
Note payable		17		15		15
Junior subordinated debt		—		—		4
Total interest expense		17		15		19
Net interest expense		(17)		(15)		(14)
Noninterest income
Dividend income from subsidiary		11,813		10,350		8,901
Total noninterest income		11,813		10,350		8,901
Noninterest expense
Salaries and employee benefits		706		698		673
Professional and director fees		879		1,107		652
Data processing		58		100		13
Advertising, marketing and business development		56		45		—
Other expenses		1,592		206		209
Total noninterest expense		3,291		2,156		1,547
Income before income tax benefit and equity in undistributed income of subsidiary		8,505		8,179		7,340
Income tax benefit		(608)		(465)		(341)
Income before equity in undistributed income of subsidiary		9,113		8,644		7,681
Equity in undistributed income of subsidiary		26,485		17,717		42,836
Net income	$	35,598	$	26,361	$	50,517

Statements of Cash Flows	Years Ended December 31,
(Dollars in thousands)	2021		2020		2019
Cash flows from operating activities:
Net income	$	35,598	$	26,361	$	50,517
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Equity in undistributed net income loss of subsidiary		(26,485)		(17,717)		(42,836)
Stock-based compensation expense		2,821		1,935		2,402
Deferred tax benefit		902		1		14
Change in operating assets and liabilities:
Other assets		(1,750)		(110)		473
Other liabilities		267		(23)		(180)
Total adjustments		(24,245)		(15,914)		(40,127)
Net cash provided by operating activities		11,353		10,447		10,390
Cash flows from investing activities:		—		—		—
Cash flows from financing activities:
Redemption of trust preferred securities		—		—		(1,571)
Dividends paid on common stock		(12,065)		(9,962)		(8,757)
Payments to tax authorities for stock-based compensation		(428)		(198)		(239)
Proceeds from exercise of stock options		115		133		121
Repurchase of common stock		(5,825)		(8,905)		(3)
Net cash used in financing activities		(18,203)		(18,932)		(10,449)
Net decrease in cash and cash equivalents		(6,850)		(8,485)		(59)
Cash and cash equivalents, beginning		35,645		44,130		44,189
Cash and cash equivalents, ending	$	28,795	$	35,645	$	44,130