CKB Annual Report 2018

2018 Annual Report

Cross Keys Bank

2019 Newsletter

and the ability to deposit checks. We also provide the very best in debit card security , as we offer the SecurLOCK Equip mobile app. This handy app lets you turn your Cross Keys Bank debit card on and off, and monitor its use from the palm of your hand with your smart phone. All of our newly issued cards come with EMV chip technology to provide greater security of your account information. We continue to offer all types of insurance through Cross Keys Insurance Agency and investment opportunities with Cross Keys Investment Services. Lastly, we always provide the personal service that will make the transition of business to Cross Keys Bank from other institutions smooth and easy. There is really no reason why you shouldn’t do all of your banking with Cross Keys Bank ! Our management team, Board of Directors, and staff remain committed to safeguarding your interest. On behalf of our employees and the Board of Directors, we wish you, your family, and friends a healthy and prosperous 2019.

Message to our Shareholders and Customers

Dear Friends,

For the year ended December 31, 2018, BSJ Bancshares, Inc. had total earnings of $4,038,274. Total assets as of that date were $382,864,403, which represents growth of just over eight percent in the last year.

As always, we’d like to remind you that as an owner, you can help to improve the value of your investment by utilizing your bank for all of your business and personal needs as a depositor and as a borrower. We also ask that you encourage your friends and associates to utilize our services. We provide additional value with state of the art technology that gives you quick and easy access to your accounts, and we have a top notch lending team that actively seeks loans to financially sound borrowers. Our Mortgage Department is capable of providing residential property financing just about anywhere. Through our CKB Mobile Banking App , we provide you with a virtual branch at home and work that gives you both access to your accounts

Sincerely,

Benjamin M. Watson , President, BSJ Bancshares, Inc.

CKB Board of Directors (left to right) Shane Bridges, Darrell VandeVen, Brooks Watson, Ben Watson, Jan Johnston, Kevin Bryan, Michael Vizard, and Bo Shaw Not pictured: Scott Franklin

BSJ Bancshares, Inc. Board (left to right) Tru Goldman, Michael Vizard, Bill Watson, Ben Watson, Becky Vizard, and Scott Watson

pg. 28 Cross Keys Bank 2019

2018 Board of Directors of Cross Keys Bank Michael R. Vizard – Chairman Shane Bridges – Banker Kevin Bryan – Architect Scott Franklin – Businessman Jan Bagwell Johnston – DDS E.D. Shaw, III – Businessman Darrell VandeVen – Planter Benjamin M. Watson – Banker William Brooks Watson – Attorney

2018 Board of Directors of BSJ Bancshares, Inc.

Rebecca Vizard , Chairman Harry Truman Goldman, III Benjamin M. Watson Scott Watson

WilliamW. Watson Michael R. Vizard

Cross Keys Bank Officers

Claire Rosenzweig – VP, AssistantController Megan Smith – VP, ComplianceOfficer Merrill Wautlet – VP, BusinessDevelopmentOfficer, Shreveport Babbette Adcock – AVP, HudsonLaneLeasing&Properties Manager Fred Clark – AVP, Lending,WestMonroe Kelly Coates – AVP, BSA,OFAC, &SecurityOfficer Sherry Darnell – AVP, Electronic (E) BankingOfficer Kandy George – AVP, BranchManager, Lending, Rayville Robin McVay – AVP, BranchManager, St. JosephandOperations Assistant Sharon O’Briant – AVP,MortgageDepartment

Michael R. Vizard – Chief Executive Officer (CEO) Shane Bridges – President & Chief Credit Officer (CCO) Mandy Smart – Executive VP & Chief Operations Officer (COO) BenjaminM.Watson – ExecutiveVP&Chief FinancialOfficer (CFO) Chris Fuller – Market President,Monroe&Sterlington Walter Hillman – Market President, Richland&Madison Mike Thompson – Market President, Tensas

Samuel C. Feldhaus – SVP, IT& InformationSecurityOfficer Linda Green – SVP, CreditDepartmentManager

Beverly Joiner – SVP,MortgageLending Chad Monsour – SVP, CrossKeys Insurance William Brooks Watson – SVP, Legal Counsel

Sydney Booth – CRAOfficer, CreditAnalyst Pam Essex – Asst BranchManager, Lending, Tallulah Landon Joiner – MortgageLoanOfficer,Monroe George Matthews – LoanOfficer, St. Joseph Brooke Spillars – LoanOfficer, St. Joseph

Patricia Ardis – VP, CollectionOfficer Bradley Bridges – VP, Lending,WestMonroe Justin Gambill – VP, Lending, Shreveport Shelly Harrell – VP, BoardSecretary, ExecutiveAdministrative Assistant Pete Hays – VP, Lending, Shreveport Lee Riordan – VP, BranchManager, Lending, Sterlington Tracey Robinson – VP,MortgageDepartmentManager Jeremy Rodden – VP,MarketManager,MadisonParish

Cross Keys Bank 2019 pg. 29

2018 Annual Reports Comparative Statement of Condition

RESOURCES AT YEAR END

2014

2015

2016

2017

2018

(Audited)

(Audited)

(Audited)

(Audited)

(Unaudited)

Cash and Due from Banks

$9,824,213

$11,117,109

$22,183,952

$21,068,098

$28,732,375

Investment Securities*

$137,557,254 $112,478,712 $108,923,049

$91,260,612

$88,090,935

Loans

$166,309,457 $186,728,820 $196,451,052 $227,047,190 $233,461,570

Provision For Loan Loss

($1,192,343)

($1,179,112)

($1,604,303)

$2,151,607

$1,639,860

Loans Net of Provisions For Loss

$165,117,114 $185,549,708 $194,846,749 $224,895,583 $231,821,710

Fed Funds Sold

$0

$0

$0

$0

$15,000,000

Bank Buildings/Equipment

$5,366,833

$5,359,314

$5,111,211

$5,584,527

$7,314,628

Interest Earned —Not Collected

$1,982,899

$1,710,101

$2,006,431

$1,981,367

$2,163,299

Other Assets

$4,251,756

$4,575,863

$4,326,864

$9,377,344

$9,741,456

Total Assets

$324,100,069 $320,790,807 $337,398,256

$354,167,531 $382,864,403

LIABILITIES AT YEAR END

2014

2015

2016

2017

2018

Deposits

$250,735,248 $242,858,812 $256,580,851

$268,079,293

$300,920,897

Repurchase Agreements

$0

$0 $1,435,811 $1,143,166 $1,620,989

FHLB Borrowings

$31,959,130

$34,375,806

$36,542,513

$38,574,152

$33,710,418

Other Liabilities

$954,313

$1,549,663

$1,511,430

$2,922,361

$2,065,723

Total Liabilities

$283,648,691 $278,784,281 $296,070,605 $310,718,972

$338,318,027

Capital

$42,100,119

$39,672,945

$40,561,062

$42,596,509

$44,641,027

Treasury Stock

($4,269,059)

$0

$0

$0

$0

Number of Shares Treasury Stock

55,669

0

0

0

0

Unrealized Gain (Loss) on Sec

$2,620,318

$2,333,581

$766,589

$852,049

($94,651)

Total Stockholders Equity

$40,451,378

$42,006,526

$41,327,651

$43,448,559

$44,546,376

Total Liabilities and Capital

$324,100,069 $320,790,807 $337,398,256 $354,167,531 $382,864,403

RETURN ON AVERAGE ASSETS & RETURN ON EQUITY

14.00% 12.00% 10.00%

Return On Average Assets Return On Equity

11.21%

10.38%

8.00% 6.00% 4.00% 2.00% 0.00%

9.30%

1.25%

1.11%

2014

2015

2016

2017

2018

pg. 30 Cross Keys Bank 2019

Comparative Statement of Earnings

OPERATING INCOME

2014

2015

2016

2017

2018

(Audited)

(Audited)

(Audited)

(Audited)

(Unaudited)

Interest Income

$12,744,019

$13,176,089

$13,890,594

$14,765,980

$16,424,778

Interest Expense

$1,439,376

$1,474,608

$1,622,625

$2,204,711

$3,334,736

Net Interest Margin

$11,304,643

$11,701,481

$12,267,969

$12,561,269

$13,090,042

Other Income

$3,121,254

$3,531,281

$4,054,832

$4,419,046

$4,096,263

Total Income

$14,425,897

$15,232,762

$16,322,801

$16,980,315

$17,186,305

Operating Expenses

$10,396,374

$10,894,947

$11,785,390

$11,908,224

$11,925,117

Provision For Bad Debts

($112,176)

$0

$670,117

$757,963

$1,222,914

Total Operating Expenses

$10,284,198

$10,894,947

$12,455,507

$12,666,187

$13,148,031

Federal Income Taxes

$0*

$0*

$0*

$0*

$0*

Earnings After Taxes

$4,141,699

$4,337,815

$3,867,294

$4,314,128

$4,038,274

Earnings Per Share (BSJ Bancshares, Inc.)

$12.03

$12.73

$11.59

$12.87

$11.98

Shares Outstanding

344,331

340,835

333,630

335,200

337,095

Return on Average Assets

1.32%

1.35%

1.16%

1.25%

1.11%

Return on Equity

11.33%

11.21%

9.63%

10.38%

9.30%

Dividend Per Share

$5.45

$6.40 $6.65 $7.30

$6.65

*No income tax due to 2012 Subchapter S conversion.

DISTRIBUTIONS & EARNINGS PER SHARE

$14.00 $12.00 $10.00

$12.87

Distributions Per Share Earnings Per Share

$12.73

$11.98

$8.00 $6.00 $4.00 $2.00 $0.00

$7.30

$6.65

2014

2015

2016

2017

2018

Cross Keys Bank 2019 pg. 31

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