CKB Annual Report 2019

2019 Annual Report

2020 Newsletter

Message to our Shareholders and Customers Dear Friends,

not require the recipient of the payment to be a customer, so it’s an extremely effective and efficient method of making a personal payment and it’s FREE to all of our consumer banking customers. We also provide the very best in debit card security, as we offer the SecurLOCK Equip mobile app. This app will allow you to switch your debit card on and off and monitor the use of your Cross Keys Bank debit card with your smart phone. An added convenience of doing your business with us is the availability of business, personal, life and health insurance through Cross Keys Insurance Agency. Most importantly, we strive to provide you the personal service that will make the transition of business to Cross Keys Bank from other institutions so smooth and easy that you will wonder why you aren’t doing all of your banking with Cross Keys Bank! Once again, our management team, Board of Directors, and staff remain committed to safeguarding your investment. On behalf of our employees and the Board of Directors, we wish you, your family, and friends a healthy and prosperous 2020.

For the year ended December 31, 2019, BSJ Bancshares, Inc. had total earnings of $3,805,073. Total assets as of that date were $403,188,318, which represents growth of just over five percent in the last year.

Whether you are a depositor or a borrower or both, Cross Keys Bank has a fabulous staff of very capable community bankers with a fantastic line of products and services to help you with all of your business and personal banking needs. We 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 and the ability to deposit checks. Key Pay is our very own P2P product (person to person payments)! Key Pay allows any of Cross Keys Bank personal checking account customers with a debit card to send money both safely and conveniently through your mobile device or online internet banking. It does

Sincerely,

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

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

Board of Directors of BSJ Bancshares, Inc. Benjamin M. Watson – Chairman Harry Truman Goldman, III Michael R. Vizard Rebecca Vizard Scott Watson William Brooks Watson

Cross Keys Bank Officers

Justin Gambill – VP, Lending, Shreveport Shelly Harrell – VP, BoardSecretary, ExecutiveAdministrative Assistant Tracey Robinson – VP,MortgageDepartmentManager Claire Rosenzweig – VP, AssistantController Megan Smith – VP, ComplianceOfficer Babbette Adcock – AVP, HudsonLaneLeasing&Properties Manager Kelly Coates – AVP, BSA,OFAC, &SecurityOfficer Sherry Darnell – AVP, Electronic (E) BankingOfficer 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 – ExecutiveVP,Market President&WesternDivision Chief LendingOfficer (CLO) Walter Hillman – Market President, Richland&Madison Mike Thompson – Controller, HumanResourcesDirector& Market President, Tensas

Bradley Bridges – S VP,MarketManager,WestMonroe Samuel C. Feldhaus – SVP, IT& InformationSecurityOfficer

Linda Green – SVP, CreditDepartmentManager Pete Hays – SVP,MarketManager, Shreveport William Handy – SVP, Lending, Sterlington Beverly Joiner – SVP,MortgageLoanOfficer Chad Monsour – SVP, CrossKeys Insurance Lee Riordan – S VP,MarketManager, Sterlington Jeremy Rodden – SVP,MarketManager, Tallulah Greg Scallan – SVP, Lending,WestMonroe William Brooks Watson – SVP, Legal Counsel

Sydney Booth – CRAOfficer, CreditAnalyst Kelly Burt – MortgageLoanOfficer, Shreveport Pam Essex – Asst BranchManager, Lending, Tallulah Landon Joiner – MortgageLoanOfficer,Monroe Jeremy Lowe – MortgageLoanOfficer,WestMonroe Tammy McKee – MortgageLoanOfficer, Shreveport

Brooke Spillars – LoanOfficer, St. Joseph JohnnyWilliams – LoanOfficer, Rayville

Patricia Ardis – VP, CollectionOfficer Fred Clark – VP, Lending,Monroe

2019 Annual Reports Comparative Statement of Condition

RESOURCES AT YEAR END

2015

2016

2017

2018

2019

(Audited)

(Audited)

(Audited)

(Audited)

(Unaudited)

Cash and Due from Banks

$11,117,109

$22,183,952

$21,068,098

$28,732,377

$48,807,494

Investment Securities*

$112,478,712 $108,923,049

$91,260,612

$88,090,934

$111,443,557

Loans

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

$223,304,475

Provision For Loan Loss

($1,179,112)

($1,604,303)

$2,151,607

$1,639,860

$1,741,540

Loans Net of Provisions For Loss

$185,549,708 $194,846,749 $224,895,583 $235,101,430

$225,045,985

Fed Funds Sold

$0

$0

$0

$15,000,000

$0

Bank Buildings/Equipment

$5,359,314

$5,111,211

$5,584,527

$7,357,763

$8,497,225

Interest Earned —Not Collected

$1,710,101

$2,006,431

$1,981,367

$2,163,298

$2,329,379

Other Assets

$4,575,863

$4,326,864

$9,377,344

$9,638,322

$10,339,854

Total Assets

$320,790,807 $337,398,256

$354,167,531 $386,084,124 $406,463,494

LIABILITIES AT YEAR END

2015

2016

2017

2018

2019

Deposits

$242,858,812 $256,580,851

$268,079,293

$300,654,366 $321,357,534

Repurchase Agreements

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

$2,364,522

FHLB Borrowings

$34,375,806

$36,542,513

$38,574,152

$33,710,418

$28,911,163

Other Liabilities

$1,549,663

$1,511,430

$2,922,361

$2,272,253

$2,128,756

Total Liabilities

$278,784,281 $296,070,605 $310,718,972

$338,258,026 $354,761,975

Capital

$39,672,945

$40,561,062

$42,596,509

$44,641,028

$46,268,382

Treasury Stock

$0

$0

$0

$0

$0

Number of Shares Treasury Stock

0

0

0

0

0

Unrealized Gain (Loss) on Sec

$2,333,581

$766,589

$852,049

($94,650)

$1,950,117

Total Stockholders Equity

$42,006,526

$41,327,651

$43,448,559 $44,546,3768

$48,218,499

Total Liabilities and Capital

$320,790,807 $337,398,256 $354,167,531 $382,804,404 $402,980,474

ASSET GROWTH

$430,000,000 $410,000,000 $390,000,000 $370,000,000 $350,000,000 $350,000,000 $330,000,000 $310,000,000 $290,000,000 $270,000,000 $250,000,000

$406,463,494

Loans, Investments, and Other Assets Deposits and Other Liabilities

$386,084,124

$354,167,531

$354,761,975

$337,398,256

$338,258,026

$320,790,807

$310,718,972

$296,070,605

$278,784,281

2015 (audited) 2016 (audited) 2017 (audited) 2018 (audited) 2019 (unaudited)

Comparative Statement of Earnings

OPERATING INCOME

2015

2016

2017

2018

2019

(Audited)

(Audited)

(Audited)

(Audited)

(Unaudited)

Interest Income

$13,176,089

$13,890,594

$14,765,980

$16,424,812

$16,989,892

Interest Expense

$1,474,608

$1,622,625

$2,204,711

$3,337,858

$4,320,654

Net Interest Margin

$11,701,481

$12,267,969

$12,561,269

$13,086,954

$12,669,238

Other Income

$3,531,281

$4,054,832

$4,419,046

$4,104,789

$4,623,498

Total Income

$15,232,762

$16,322,801

$16,980,315

$17,191,743

$17,292,736

Operating Expenses

$10,894,947

$11,785,390

$11,908,224

$11,929,803

$12,123,669

Provision For Bad Debts

$0

$670,117

$757,963

$1,222,914

$1,408,803

Total Operating Expenses

$10,894,947

$12,455,507

$12,666,187

$13,152,717

$13,532,472

Federal Income Taxes

$0*

$0*

$0*

$0*

$0*

Earnings After Taxes

$4,337,815

$3,867,294

$4,314,128

$4,039,026

$3,760,264

Earnings Per Share (BSJ Bancshares, Inc.)

$12.73

$11.59

$12.87

$11.98

$11.15

Shares Outstanding

340,835

333,630

335,200

337,095

337,391

Return on Average Assets

1.35%

1.16%

1.25%

1.11%

0.98%

Return on Equity

11.21%

9.63%

10.38%

9.30%

8.30%

Dividend Per Share

$6.40 $6.65 $7.30

$6.65

$6.45

*No income tax due to 2012 Subchapter S conversion.

CAPITAL GROWTH

$48,000,000

$46,268,382

$46,000,000

$44,641,028

$44,000,000

$42,596,510

$42,000,000

$40,561,062

$40,000,000

$39,672,945

$38,000,000

$36,000,000

2015 (audited) 2016 (audited) 2017 (audited) 2018 (audited) 2019 (unaudited)