Note 21 - Parent Corporation Only Financial Statements

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Condensed Financial Information of Parent Company Only Disclosure [Text Block]

Note 21 – Parent Corporation Only Financial Statements

The Parent Corporation operates its wholly-owned subsidiary, the Bank. The earnings of this subsidiary are recognized by the Parent Corporation using the equity method of accounting. Accordingly, earnings are recorded as increases in the Parent Corporation’s investment in the subsidiaries and dividends paid reduce the investment in the subsidiaries. The ability of the Parent Corporation to pay dividends will largely depend upon the dividends paid to it by the Bank. Dividends payable by the Bank to the Parent Corporation are restricted under supervisory regulations (see Note 18 of the Notes to Consolidated Financial Statements).

Condensed financial statements of the Parent Corporation only are as follows:

Condensed Statements of Condition

	As of December 31,
	2022		2021
	(dollars in thousands)
ASSETS
Cash and cash equivalents	$	117,162	$	133,648
Investment in subsidiaries		1,179,342		1,111,520
Investment securities		32,405		32,405
Equity securities		4,218		725
Other assets		699		699
Total assets	$	1,333,826	$	1,278,997
LIABILITIES AND STOCKHOLDERS’ EQUITY
Other liabilities		1,820		1,834
Subordinated debentures, net		153,255		152,951
Stockholders’ equity		1,178,751		1,124,212
Total liabilities and stockholders’ equity	$	1,333,826	$	1,278,997

                                                                                                                                                                             Condensed Statements of Income

	For Years Ended December 31,
	2022			2021			2020
	(dollars in thousands)
Income:
Dividend income from subsidiaries	$	36,475		$	24,071		$	15,200
Other income		1,638			1,627			1,683
Total Income		38,113			25,698			16,883
Expenses		(8,928	)		(8,741	)		(9,263	)
Income before equity in undistributed earnings of subsidiaries		29,185			16,957			7,620
Equity in undistributed earnings of subsidiaries		96,026			113,396			63,669
Net Income		125,211			130,353			71,289
Preferred dividends		6,037			1,717			-
Net income available to common stockholders	$	119,174		$	128,636		$	71,289

Condensed Statements of Cash Flows

	For Years Ended December 31
	2022			2021			2020
	(dollars in thousands)
Cash flows from operating activities:
Net income	$	125,211		$	130,353		$	71,289
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed earnings of subsidiary		(96,026	)		(113,396	)		(63,669	)
Loss on equity securities, net		45			55			-
Amortization of subordinated debt issuance costs		304			303			323
Decrease (increase) in other assets		-			50,590			(50,001	)
Decrease in other liabilities		(14	)		(287	)		(391	)
Net cash provided by (used in) operating activities		29,520			67,618			(42,449	)
Cash flows from investing activities:
Sale of equity securities		(3,538	)		(780	)		-
Repayment of short-term borrowing		-			-			(3,000	)
Net cash used in investing activities		(3,538	)		(780	)		(3,000	)
Cash flows from financing activities:
Proceeds from (repayment of) proceeds from subordinated debt		-			(50,000	)		73,440
Cash dividends paid on preferred stock		(6,037	)		(1,717	)		-
Cash dividends paid on common stock		(23,428	)		(17,493	)		(14,317	)
Purchase of treasury stock		(13,127	)		(9,401	)		(911	)
Proceeds from preferred stock offering		-			110,927			-
Proceeds from exercise of stock options		124			106			233
Net cash (used in) provided by financing activities		(42,468	)		32,422			58,445
Decrease (increase) in cash and cash equivalents		(16,486	)		99,260			12,996
Cash and cash equivalents as of January 1,		133,648			34,388			21,392
Cash and cash equivalents as of December 31,	$	117,162		$	133,648		$	34,388