PRIMARY BANK Primary Bank
Consolidated Financial Statements
Years Ended December 31, 2021 and 2020
Table of Contents
Independent Auditor's Report | 1-2 |
Consolidated Balance Sheets | 3 |
Consolidated Statements of Operations | 4 |
Consolidated Statements of Changes in Stockholders' Equity | 5 |
Consolidated Statements of Cash Flows | 6 |
Notes to Consolidated Financial Statements | 7-33 |
Independent Auditor's Report
To the Audit Committee of Primary Bank:
Opinion
We have audited the consolidated financial statements of Primary Bank and subsidiary (the Bank), which comprise the consolidated balance sheets as of December 31, 2021 and 2020, the related consolidated statements of operations, changes in stockholders' equity, and cash flows for the years then ended, and the related notes to the consolidated financial statements (collectively, the financial statements).
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Bank as of December 31, 2021 and 2020, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Bank and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Bank's ability to continue as a going concern within one year after the date that the financial statements are issued.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS, we:
- Exercise professional judgment and maintain professional skepticism throughout the audit.
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
- Obtain an understanding of internal control relevant to the audit 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 Bank's internal control. Accordingly, no such opinion is expressed.
- Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
- Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Bank's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Boston, Massachusetts
March 7, 2022
2
Primary Bank
Consolidated Balance Sheets
December 31, 2021 and 2020
2021 | 2020 | |||
Assets | ||||
Cash and due from banks | $ | 2,213,411 | $ | 1,935,277 |
Interest-bearing deposits | 151,708,350 | 128,264,346 | ||
Total cash and cash equivalents | 153,921,761 | 130,199,623 | ||
Securities held to maturity, at amortized cost | 10,737,464 | 1,185,675 | ||
Federal Home Loan Bank stock, at cost | 119,100 | 91,400 | ||
Loans, net | 497,932,946 | 429,195,303 | ||
Premises and equipment, net | 1,319,750 | 950,458 | ||
Operating lease right-of-use assets | 1,996,654 | 1,050,401 | ||
Accrued interest receivable | 1,123,710 | 1,810,929 | ||
Deferred tax asset | 1,255,883 | 839,146 | ||
Other assets | 2,370,380 | 234,545 | ||
$ | 670,777,648 | $ | 565,557,480 | |
Liabilities and Stockholders' Equity | ||||
Deposits | $ | 603,811,934 | $ | 509,966,510 |
Operating lease liabilities | 2,017,937 | 1,119,733 | ||
Accrued expenses and other liabilities | 1,102,303 | 1,369,780 | ||
Total liabilities | 606,932,174 | 512,456,023 | ||
Commitments and contingencies (Notes 6 and 11) | ||||
Stockholders' equity: | ||||
Common stock, $0.01 par value; 10,000,000 shares authorized; | ||||
4,495,302 shares issued and outstanding at December 31, 2021; | ||||
4,387,732 shares issued and outstanding at December 31, 2020 | 44,953 | 43,877 | ||
Additional paid-in capital | 53,254,606 | 50,900,953 | ||
Retained earnings | 10,545,915 | 2,156,627 | ||
Total stockholders' equity | 63,845,474 | 53,101,457 | ||
$ | 670,777,648 | $ | 565,557,480 |
The accompanying notes are an integral part of these consolidated financial statements.
3
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Primary Bank published this content on 23 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 March 2022 21:47:05 UTC.
