Parent Company Financial Information (Tables)

12 Months Ended

Dec. 31, 2019

Parent Company Financial Information

Summary of comparative balance sheets of the parent company

BALANCE SHEETS

December 31, 2019 and 2018

	2019		2018
ASSETS
Cash	$	4,105	$	354
Investment in subsidiaries, at equity		131,397		71,642
Other assets		1,753		902
Total assets	$	137,255	$	72,898
LIABILITIES
Other liabilities	$	616	$	410
Note payable		6,500		6,500
Total liabilities	$	7,116	$	6,910
STOCKHOLDERS' EQUITY
Common stock, par value $.01 per share, authorized 20,000,000 shares; issued and outstanding 2019 17,790,181 and 2018 9,985,321	$	178	$	100
Surplus		87,437		29,470
Retained earnings		41,785		37,149
Accumulated other comprehensive loss, net of deferred tax benefits		739		(731)
Total stockholders' equity		130,139		65,988
Total liabilities and stockholders' equity	$	137,255	$	72,898

Summary of statement of income of the parent company

STATEMENTS OF INCOME

Years Ended December 31, 2019 and 2018

	2019		2018
Stock‑based compensation expense	$	—	$	—
Interest expense on borrowings		(450)		(428)
Merger related expenses		(900)		(248)
Other expenses, net		(1,541)		(141)
Loss before income taxes and equity in undistributed net income of subsidiaries		(2,891)		(817)
Income tax benefits(1)		527		223
Equity in undistributed net income of subsidiaries		8,247		6,076
Net income	$	5,883	$	5,482

(1) Benefits from filing consolidated Federal income tax return.

Summary of statement of cash flows of the parent company

STATEMENTS OF CASH FLOWS

Years Ended December 31, 2019 and 2018

	2019		2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	5,883	$	5,482
Adjustments to reconcile net income to net cash used in operating activities:
Equity in undistributed net income of subsidiaries		(8,247)		(6,076)
Stock‑based compensation expense		—		—
Changes in assets and liabilities:
Increase in other assets		(851)		(326)
Increase in other liabilities		206		205
Net cash used in operating activities		(3,009)		(715)
CASH FLOWS FROM INVESTING ACTIVITIES:
Cash paid to shareholders of Liberty Bell Bank		—		(4,471)
Cash paid to shareholders of Virginia Partners Bank		(2)		—
Net cash used by investing activities		(2)		(4,471)
CASH FLOWS FROM FINANCING ACTIVITIES:
Dividends paid		(1,193)		(948)
Proceeds from long‑term borrowings		—		4,500
Dividends received from subsidary		2,563		1,956
Cash received for the exercise of warrants		5,342		—
Cash received for the exercise of stock options		50		31
Issuance of restricted stock		—		—
Redemption of preferred stock		—		—
Net cash provided by (used in) financing activities		6,762		5,539
Net increase (decrease) in cash		3,751		353
Cash, beginning of year		354		1
Cash, end of year	$	4,105	$	354