| Condensed Parent Information |
Note 21. Condensed Parent Information CONDENSED BALANCE SHEETS December 31, 2025 and 2024 (Dollars in thousands) | | | | | | | | | 2025 | | 2024 | ASSETS: | | | | | | | Cash | | $ | 8,028 | | $ | 3,064 | Investment in subsidiary | | | 631,573 | | | 522,891 | Other assets | | | 14,589 | | | 9,482 | | | | | | | | Total assets | | $ | 654,190 | | $ | 535,437 | | | | | | | | LIABILITIES AND SHAREHOLDERS’ EQUITY: | | | | | | | Other liabilities | | $ | 3,134 | | $ | 405 | Borrowings | | | — | | | 4,000 | Subordinated debt | | | 98,662 | | | 39,684 | | | | | | | | Total liabilities | | | 101,796 | | | 44,089 | | | | | | | | Shareholders’ equity | | | 552,394 | | | 491,348 | | | | | | | | Total liabilities and shareholders’ equity | | $ | 654,190 | | $ | 535,437 |
CONDENSED STATEMENTS OF INCOME Years ended December 31, 2025, 2024 and 2023 (Dollars in thousands) | | | | | | | | | | | | 2025 | | 2024 | | 2023 | INCOME: | | | | | | | | | | Dividends from SmartBank | | $ | 8,000 | | $ | 22,500 | | $ | 10,000 | Interest income | | | — | | | 9 | | | — | Total income | | | 8,000 | | | 22,509 | | | 10,000 | | | | | | | | | | | EXPENSES: | | | | | | | | | | Interest expense | | | 5,119 | | | 3,924 | | | 3,597 | Other operating expenses | | | 1,482 | | | 1,029 | | | 937 | Total expense | | | 6,601 | | | 4,953 | | | 4,534 | | | | | | | | | | | Income before equity in undistributed earnings of subsidiaries and income tax benefit | | | 1,399 | | | 17,556 | | | 5,466 | Income tax benefit | | | 1,524 | | | 1,207 | | | 1,059 | Income before equity in undistributed net income of subsidiaries | | | 2,923 | | | 18,763 | | | 6,525 | Equity in undistributed earnings of subsidiaries | | | 47,424 | | | 17,378 | | | 22,068 | Net income | | $ | 50,347 | | $ | 36,141 | | $ | 28,593 | Comprehensive income | | $ | 64,699 | | $ | 38,377 | | $ | 38,010 |
STATEMENTS OF CASH FLOWS For the years ended December 31, 2025, 2024 and 2023 (Dollars in thousands) | | | | | | | | | | | | 2025 | | 2024 | | 2023 | Cash flows from operating activities: | | | | | | | | | | Net income | | $ | 50,347 | | $ | 36,141 | | $ | 28,593 | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | Equity in undistributed income of subsidiary | | | (47,424) | | | (17,378) | | | (22,068) | Other assets | | | (5,074) | | | (1,591) | | | (1,726) | Other liabilities | | | 3,143 | | | (586) | | | 340 | Net cash provided by operating activities | | | 992 | | | 16,586 | | | 5,139 | | | | | | | | | | | Cash flows from investing activities: | | | | | | | | | | Equity contribution to subsidiary | | | (45,000) | | | — | | | — | Net cash used in investing activities | | | (45,000) | | | — | | | — | | | | | | | | | | | Cash flows from financing activities: | | | | | | | | | | Redemption of subordinated debt | | | (40,000) | | | — | | | — | Issuance of subordination debt, net of issuance cost | | | 98,566 | | | — | | | — | Issuance of common stock | | | 153 | | | 68 | | | 165 | Restricted shares withheld for taxes | | | (308) | | | (223) | | | (57) | Proceeds from other borrowings | | | — | | | 2,000 | | | — | Repayment borrowings | | | (4,000) | | | (8,500) | | | (4,500) | Cash dividends paid | | | (5,439) | | | (5,422) | | | (5,427) | Repurchase of common stock | | | — | | | (2,967) | | | — | Net cash (used in) provided by financing activities | | | 48,972 | | | (15,044) | | | (9,819) | | | | | | | | | | | Net change in cash and cash equivalents | | | 4,964 | | | 1,542 | | | (4,680) | | | | | | | | | | | Cash and cash equivalents, beginning of year | | | 3,064 | | | 1,522 | | | 6,202 | | | | | | | | | | | Cash and cash equivalents, end of period | | $ | 8,028 | | $ | 3,064 | | $ | 1,522 |
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