PARENT COMPANY FINANCIAL INFORMATION

12 Months Ended

Dec. 31, 2020

PARENT COMPANY FINANCIAL INFORMATION

PARENT COMPANY FINANCIAL INFORMATION

NOTE 19 — PARENT COMPANY FINANCIAL INFORMATION

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

Condensed Statements of Financial Condition

	At December 31,
	2020		2019
Assets
Cash and due from banks	$	15	$	1,836
Loans, net of allowance for loan losses		776		776
Investments		620		620
Investment in subsidiary bank, at equity		385,510		340,733
Other assets		22		1,106
Total assets	$	386,943	$	345,071
Liabilities and Stockholders’ Equity
Trust preferred securities payable		20,620		20,620
Subordinated debt payable, net of issuance costs		24,657		24,601
Other liabilities		879		726
Total liabilities		46,156		45,947
Stockholders’ equity:
Preferred stock		3		3
Common stock		82		82
Surplus		218,899		216,468
Retained earnings		120,830		81,364
Accumulated other comprehensive loss, net of tax		973		1,207
Total equity		340,787		299,124
Total liabilities and stockholders’ equity	$	386,943	$	345,071

Condensed Statements of Operation

	Year Ended December 31,
	2020		2019
Income:
Loans	$	17	$	17
Securities and money market funds		18		27
Total interest income		35		44
Interest expense:
Trust preferred securities payable		590		908
Subordinated debt interest expense		1,618		1,618
Total interest expense		2,208		2,526
Net interest expense		(2,173)		(2,482)
Provision for loan losses		—		—
Net interest income after provision for loan losses		(2,173)		(2,482)
Other expense		2,338		3,865
Loss before undistributed earnings of subsidiary bank		(4,511)		(6,347)
Equity in undistributed earnings of subsidiary bank		42,844		35,209
Income before income tax expense		38,333		28,862
Income tax benefit		1,133		1,272
Net income	$	39,466	$	30,134
Comprehensive income	$	39,232	$	31,746

Condensed Statement of Cash Flows

	Year Ended December 31,
	2020		2019
Cash Flows From Operating Activities:
Net income	$	39,466	$	30,134
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Undistributed earnings of subsidiary bank		(42,844)		(35,209)
Non-employee stock based compensation		410		400
Amortization of trust preferred issuance costs		56		56
Stock based compensation expense		2,902		2,667
Decrease (increase) in other assets		(1,084)		274
Increase (decrease) in other liabilities		154		56
Net cash used in operating activities		(940)		(1,622)
Cash Flows From Investing Activities:
Net cash used in Investing activities		—		—
Cash Flows From Financing Activities:
Redemption of common stock for tax withholdings for restricted stock vesting		(881)		(89)
Net cash provided by financing activities		(881)		(89)
Net (decrease) increase in cash and cash equivalents		(1,821)		(1,711)
Cash and cash equivalents, beginning of year		1,836		3,547
Cash and cash equivalents, end of year	$	15	$	1,836