NBC BANCORP, INC. NBC BANCORP, INC. AND SUBSIDIARY
Consolidated Financial Statements as of
December 31, 2020 and 2019
Together with
Independent Auditor's Report
NBC BANCORP, INC. AND SUBSIDIARY
TABLE OF CONTENTS
DECEMBER 31, 2020 AND 2019
Page | |
INDEPENDENT AUDITOR'S REPORT | 1 - 2 |
CONSOLIDATED FINANCIAL STATEMENTS | |
Consolidated Balance Sheet | 3 |
Consolidated Statements of Comprehensive Income | 4 |
Consolidated Statements of Changes in Stockholders' Equity | 5 |
Consolidated Statements of Cash Flows | 6 |
Notes to Consolidated Financial Statements | 7 - 39 |
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INDEPENDENT AUDITOR'S REPORT
February 24, 2021
To the Board of Directors and Stockholders of
NBC Bancorp, Inc. and Subsidiary:
We have audited the accompanying consolidated financial statements of NBC Bancorp, Inc and its wholly owned subsidiary, (the "Company"), which comprise the consolidated balance sheet as of December 31, 2020, and the related consolidated statements of comprehensive income, changes in stockholders' equity, and cash flows for the year then ended, and the related notes to the financial statements.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2020, and the results of their operations and their cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Continued
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ALBANY • BATAVIA • BUFFALO • DALLAS • EAST AURORA • NY METRO AREA • ROCHESTER • RUTLAND • SYRACUSE • UTICA
INDEPENDENT AUDITOR'S REPORT (Continued)
Adjustments to Prior Period Financial Statements
The consolidated financial statements of NBC Bancorp, Inc. and Subsidiary as of December 31, 2019, were audited by other auditors whose opinion dated March 10, 2020, on those statements was unqualified. As discussed in Note 1, the Company has restated its 2019 consolidated financial statements during the current year to correct an error related to the adoption on an accounting standard. As a PBE, the corporation was required to adopt ASU 2016-02, Leases (Topic 842) and its subsequent amendments on January 1, 2019. The effect of the restatement was to increase right of use asset by $713,555, increase lease liability by $717,022, increase premises expense by $3,467 and decrease retained earnings by $3,467, in accordance with accounting principles generally accepted in the United States of America. The other auditors reported on the 2019 consolidated financial statements before the restatement.
As part of our audit of the 2020 financial statements, we also audited adjustments described in Note 1 that were applied to restate the 2019 financial statements. In our opinion, such adjustments are appropriate and have been properly applied. We were not engaged to audit, review, or apply any procedures to the 2019 financial statements of the Company other than with respect to the adjustments and, accordingly, we do not express an opinion or any other form of assurance on the 2019 consolidated financial statements as a whole.
2
NBC BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2020 AND 2019
2020 | 2019 | |||||
ASSETS | (As restated) | |||||
Cash and due from banks | $ | 8,097,034 | $ | 7,586,436 | ||
Federal funds sold | 918,386 | 685,880 | ||||
Total cash and cash equivalents | 9,015,420 | 8,272,316 | ||||
Interest bearing deposits in other banks | 3,691,000 | 6,370,000 | ||||
Debt securities available-for-sale, at fair value | 109,421,425 | 101,792,778 | ||||
Debt securities held-to-maturity (fair value of $30,165,440 and | ||||||
$5,397,438, respectively) | 30,165,440 | 5,397,438 | ||||
Federal Reserve Bank stock | 685,350 | 595,350 | ||||
Federal Home Loan Bank stock | 920,000 | 218,700 | ||||
Loans, less allowance for loan losses of $2,754,857 and | ||||||
$1,948,210 at December 31, 2020 and 2019, respectively | 251,296,785 | 195,552,688 | ||||
Premises, furniture and fixtures, net | 5,552,014 | 5,226,928 | ||||
Right of use asset | 685,795 | 713,555 | ||||
Foreclosed real estate | 315,560 | 503,462 | ||||
Other assets | 1,756,126 | 1,362,587 | ||||
Total assets | $ | 413,504,915 | $ | 326,005,802 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Deposits: | ||||||
Noninterest bearing deposit accounts | $ | 98,650,196 | $ | 67,716,153 | ||
Interest bearing deposit accounts | 261,077,798 | 227,781,244 | ||||
Total deposits | 359,727,994 | 295,497,397 | ||||
Federal Home Loan Bank advances | 15,000,000 | - | ||||
Subordinated debentures | 5,000,000 | - | ||||
Lease liability | 696,197 | 717,022 | ||||
Accrued interest payable | 13,809 | 43,985 | ||||
Other liabilities | 1,106,247 | 968,055 | ||||
Total liabilities | 381,544,247 | 297,226,459 | ||||
STOCKHOLDERS' EQUITY: | ||||||
Common stock, $5 par value; 473,239 and | ||||||
473,239 shares authorized, issued, and outstanding | ||||||
at December 31, 2020 and 2019, respectively | 2,366,195 | 2,366,195 | ||||
Additional paid-in capital | 17,491,445 | 17,491,445 | ||||
Retained earnings | 10,579,336 | 8,734,177 | ||||
Accumulated other comprehensive income | 1,523,692 | 187,526 | ||||
Total stockholders' equity | 31,960,668 | 28,779,343 | ||||
Total liabilities and stockholders' equity | $ | 413,504,915 | $ | 326,005,802 |
The accompanying notes are an integral part of these consolidated financial statements.
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National Bank of Coxsackie published this content on 13 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 January 2022 21:50:50 UTC.
