2021 Annual Report

Condensed Statements of Cash Flows

December 31, December 31, December 31,

2021

2020

2019

(dollars in thousands)

CASH FLOWS FROM OPERATING ACTIVITIES Net Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 45,687 $ 27,194 $ 31,403 Adjustments to Reconcile Net Income to Net Cash Provided (Used) by Operating Activities: Equity in Undistributed Earnings of Subsidiaries . . . . . . . . . . . . . . . . . . . (49,036) (29,332) (32,454) Changes in Other Assets and Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . 634 234 311 Net Cash Used by Operating Activities . . . . . . . . . . . . . . . . . . . . . . . . . . (2,715) (1,904) (740) CASH FLOWS FROM INVESTING ACTIVITIES Net (Increase) Decrease in Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 742 (742) Investment in Subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (25,000) (25,000) — Net Cash Used in Investing Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . (25,000) (24,258) (742) CASH FLOWS FROM FINANCING ACTIVITIES Principal Payments on Notes Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (11,000) (2,000) (2,000) Proceeds from Issuance of Subordinated Debt . . . . . . . . . . . . . . . . . . . . . . . 29,309 48,783 — Redemption of Subordinated Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (11,250) — — Stock Options Exercised . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 724 317 258 Stock Repurchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,740) (10,373) (14,959) Issuance of Preferred Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66,514 — — Preferred Stock Dividends Paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,171) — — Issuance of Common Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — Net Cash Provided (Used) by Financing Activities . . . . . . . . . . . . . . . . . 70,386 36,727 (16,701) NET CHANGE IN CASH AND CASH EQUIVALENTS . . . . . . . . . . . . . . 42,671 10,565 (18,183) Cash and Cash Equivalents Beginning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,880 27,315 45,498 Cash and Cash Equivalents Ending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 80,551 $ 37,880 $ 27,315 Note 25: Subsequent Events On January 27, 2022, the Company’s Board of Directors declared a quarterly cash dividend of $36.72 per share ($0.3672 per depositary share) on the Series A Preferred Stock, payable on March 1, 2022, to shareholders of record on the Series A Preferred Stock at the close of business on February 15, 2022.

131