NOTE 19 — PARENT COMPANY FINANCIAL INFORMATION

Condensed financial information for the Corporation (parent company only) is as follows (dollars in thousands):

Condensed Balance Sheets


	At December 31,
	2018		2017
Assets
Cash and due from banks	$	3,547	$	6,761
Loans, net of allowance for loan losses		776		776
Investments		620		620
Investment in subsidiary bank, at equity		304,141		274,190
Other assets		1,380		596
Total assets	$	310,464	$	282,943

Liabilities and Stockholders’ Equity
Trust preferred securities payable		20,620		20,620
Subordinated debt payable, net of issuance costs		24,545		24,489
Other liabilities		782		950
Total liabilities		45,947		46,059

Stockholders’ equity:
Preferred stock		3		3
Common stock		82		81
Surplus		213,490		211,145
Retained earnings		51,415		25,861
Accumulated other comprehensive loss, net of tax		(473)		(206)
Total equity		264,517		236,884
Total liabilities and stockholders’ equity	$	310,464	$	282,943

Condensed Statements of Income


	Year Ended December 31,
	2018		2017
Income:
Loans	$	17	$	17
Total interest income		17		17
Interest expense:
Trust preferred securities payable		846		636
Subordinated debt interest expense		1,619		1,322
Total interest expense		2,465		1,958
Net interest expense		(2,448)		(1,941)
Provision for loan losses		—		—
Net interest income after provision for loan losses		(2,448)		(1,941)
Other expense		1,275		33
Loss before undistributed earnings of subsidiary bank		(3,723)		(1,974)
Equity in undistributed earnings of subsidiary bank		28,094		13,560
Income before income tax expense		24,371		11,586
Income tax benefit		1,183		783
Net income	$	25,554	$	12,369

Comprehensive income	$	25,287	$	12,328

Condensed Statement of Cash Flows


	Year Ended December 31,
	2018		2017
Cash Flows From Operating Activities:
Net income	$	25,554	$	12,369
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Undistributed earnings of subsidiary bank		(28,094)		(13,560)
Non-employee stock based compensation		440		—
Amortization of trust preferred issuance costs		56		46
Stock based compensation expense		1,711		412
Decrease (increase) in other assets		(2,910)		(585)
Increase (decrease) in other liabilities		(167)		165
Net cash used in operating activities		(3,410)		(1,153)

Cash Flows From Investing Activities:
Investments in subsidiary bank		—		(132,000)
Net cash used in Investing activities		—		(132,000)

Cash Flows From Financing Activities:
Proceeds from issuance of common stock, net		(33)		114,773
Proceeds from exercise of stock options		229		(120)
Net proceeds from issuance of subordinated debt, net of issuance cost		—		24,443
Net cash provided by financing activities		196		139,096
Net (decrease) increase in cash and cash equivalents		(3,214)		5,943
Cash and cash equivalents, beginning of year		6,761		818
Cash and cash equivalents, end of year	$	3,547	$	6,761