CKB Annual Report 2021

2021 Annual Report

check your personal credit and watch for identity theft with My Credit Score monitoring. Cross Keys Bank is proud to announce that Zelle will soon be available for free through our CKB Online and Mobile Apps. Other exciting enhancements to be added soon are online account opening, the ability to access the CKB App on your Apple Watch, and additional options for mobile wallets. We also provide the very best debit card security, as we offer the SecurLOCK Equip mobile app. This app will allow you to manage and monitor the use of your Cross Keys Bank debit card with your smartphone. We continue to offer all types of insurance through Cross Keys Insurance Agency. Lastly, we always provide the personal service that will make business transition 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! Once again, our management team, Board of Directors, and staff remain committed to safeguarding your interest by maintaining a safe, high-performance community bank. On behalf of our employees and the Board of Directors, we wish you, your family, and our friends’ happiness, health, and prosperity as we pray for peace and soon put the worst of the Covid-19 pandemic behind us.

Message to our Shareholders and Customers

Dear Friends,

For the year ended December 31, 2021, BSJ Bancshares, Inc. had record total earnings of $8,491,122 with taxable income expected to equal $6,215,000 approximately. Total assets as of that date were $477,747,856, representing a growth of just under seven percent in the last year. We acknowledge, however, that our tremendous success in helping over 700 borrowers obtain Round 2 Paycheck Protection Program loans to mitigate financial damage to their businesses from the continuing COVID-19 pandemic made this much income and deposit growth attainable. That is almost 300 more borrowers than we helped in 2020’s Round 1 Paycheck Protection Program! We are also happy to report that our 2021 Provision for Loan Losses expense was only $75,000, and we continued to reduce the volume of non-performing loans in our portfolio. 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 can provide residential property financing just about anywhere, and the current environment of low rates should make this product line especially attractive to all residential borrowers. Through our CKB Mobile Banking App, we provide you with a virtual branch that gives you access to your accounts and the ability to deposit checks. You can also As always, we ask that you encourage your friends and associates to use our services. We provide additional

Sincerely,

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

pg. 14 Cross Keys Bank 2022

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

Patricia Ardis – VP, CollectionOfficer Justin Gambill – VP, Lending, Shreveport Shelly Harrell – VP, BoardSecretary, ExecutiveAdministrative Assistant , PortfolioManager Claire Rosenzweig – VP, AssistantController Megan Smith – VP, ComplianceOfficer Babbette Adcock – AVP, HudsonLaneLeasing&Properties Manager Jessica Chapman – AVP, BSA,OFAC, &SecurityOfficer Sherry Darnell – AVP, ElectronicBankingOfficer Robin McVay –AVP,OperationsAssistant

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) Pete Hays – Market President, Caddo 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

Sharon O’Briant – AVP,MortgageDepartment Marcella Vinson – AVP, ExecutiveAssistant

Josh Copes – LoanOfficer, Tallulah Taylor Hoffman – LoanOfficer, Tallulah

William Handy – SVP, Lending, Sterlington Beverly Joiner – SVP,MortgageLoanOfficer Chad Monsour – SVP, CrossKeys Insurance

Landon Joiner – MortgageLoanOfficer,Monroe Jeremy Lowe – MortgageLoanOfficer,WestMonroe Tammy McKee – MortgageLoanOfficer, Shreveport

Lee Riordan – S VP,MarketManager, CRAOfficer, Sterlington Tracey Robinson – S VP,MortgageDepartmentManager

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

Greg Scallan – SVP, Lending,WestMonroe William Brooks Watson – SVP, Legal Counsel

Cross Keys Bank 2022 pg. 15

2021 Annual Reports Comparative Statement of Condition

RESOURCES AT YEAR END

2017

2018

2019

2020

2021

(Audited)

(Audited)

(Audited)

(Audited)

(Unaudited)

Cash and Due from Banks

$21,068,098

$28,732,377

$48,807,494

$37,975,736

$25,140,065

Investment Securities*

$91,260,612

$88,090,934

$111,443,557

$128,888,027

$179,314,851

Loans

$227,047,190

$233,461,570

$223,304,475

$261,350,604

$247,920,958

Provision For Loan Loss

$2,151,607

$1,639,860

$1,741,510

$2,514,147

$1,881,214

Loans Net of Provisions For Loss

$224,895,583

$235,101,430

$221,562,965

$258,836,457

$246,039,744

Fed Funds Sold

$0

$15,000,000

$0

$0

$0

Bank Buildings/Equipment

$5,584,527

$7,357,763

$8,497,225

$8,173,883

$8,214,633

Interest Earned —Not Collected

$1,981,367

$2,163,298

$2,329,379

$2,843,406

$2,379,760

Other Assets

$9,377,344

$9,638,322

$10,339,854

$10,367,134

$16,411,032

Total Assets

$354,167,531

$386,084,124

$402,980,474

$447,084,643

$477,500,085

LIABILITIES AT YEAR END

2017

2018

2019

2020

2021

Deposits

$268,079,293

$300,654,366

$321,357,534

$362,194,017

$396,254,533

Repurchase Agreements

$1,143,166

$1,620,989

$2,364,522

$3,082,577

$3,380,998

FHLB Borrowings

$38,574,152

$33,710,418

$28,911,163

$27,006,405

$21,164,844

Other Liabilities

$2,922,361

$2,272,253

$2,128,756

$2,315,507

$2,730,065

Total Liabilities

$310,718,972

$338,258,026

$354,761,975

$394,598,506

$423,530,440

Capital

$42,596,509

$44,641,028

$46,268,382

$48,502,214

$52,458,261

Treasury Stock

$0

$0

$0

$0

$0

Number of Shares Treasury Stock

0

0

0

0

0

Unrealized Gain (Loss) on Sec

$852,049

($94,650)

$1,950,117

$3,983,923

$1,511,384

Total Stockholders Equity

$43,448,559

$44,546,3768

$48,218,499

$52,486,137

$53,969,645

Total Liabilities and Capital

$354,167,531

$382,804,404

$402,980,474

$447,084,643

$477,500,085

LOANS & DEPOSITS

$450,000,000

$396,254,533

$400,000,000

Loans Deposits

$362,194,017

$350,000,000

$321,357,534

$300,654,366

$300,000,000

$268,079,293

$261,350,604

$247,920,958

$233,461,570

$250,000,000

$227,047,190

$223,304,475

$200,000,000

$150,000,000

$100,000,000

$50,000,000

0 2017 (audited) 2018 (audited) 2019 (audited) 2020 (audited) 2021 (unaudited)

pg. 16 Cross Keys Bank 2022

Comparative Statement of Earnings

OPERATING INCOME

2017

2018

2019

2020

2021

(Audited)

(Audited)

(Audited)

(Audited)

(Unaudited)

Interest Income

$14,765,980

$16,424,812

$16,989,892

$16,986,102

$17,315,216

Interest Expense

$2,204,711

$3,337,858

$4,320,654

$2,362,689

$1,106,179

Net Interest Margin

$12,561,269

$13,086,954

$12,669,238

$14,623,413

$16,209,037

Other Income

$4,419,046

$4,104,789

$4,623,498

$6,465,430

$7,870,537

Total Income

$16,980,315

$17,191,743

$17,292,736

$21,088,843

$24,079,574

Operating Expenses

$11,908,224

$11,929,803

$12,123,669

$14,289,830

$15,572,284

Provision For Bad Debts

$757,963

$1,222,914

$1,408,803

$2,248,225

$75,000

Total Operating Expenses

$12,666,187

$13,152,717

$13,532,472

$16,538,055

$15,647,284

Federal Income Taxes

$0*

$0*

$0*

$0*

$0*

Earnings After Taxes

$4,314,128

$4,039,026

$3,760,264

$4,550,788

$8,432,290

Earnings Per Share (BSJ Bancshares, Inc.) $12.87

$11.98

$11.15

$13.41

$24.75

Shares Outstanding

335,200

337,095

337,391

339,301

340,665

Return on Average Assets

1.25%

1.11%

0.98%

1.07%

1.82%

Return on Equity

10.38%

9.30%

8.30%

9.52%

16.36%

Dividend Per Share

$7.30

$6.65

$6.45

$7.65

$13.75

*No income tax due to 2012 Subchapter S conversion.

RETURN ON AVERAGE ASSETS & RETURN ON EQUITY

18.00%

16.36%

16.00%

Return on Average Assets Return on Equity

14.00%

12.00%

10.38%

9.52%

9.30%

10.00%

8.30%

8.00%

6.00%

4.00%

1.82%

2.00%

1.25%

1.11%

1.07%

0.98%

0.00%

2017 (audited) 2018 (audited) 2019 (audited) 2020 (audited) 2021 (unaudited)

Cross Keys Bank 2022 pg. 17

*ATM located at branch

Monroe* 1401 Hudson Lane, Suite 100 318.361.9500 Newellton* (ATM Only) 3144 Highway 65 318.766.3246

Rayville* 1913 Julia Street 318.728.6380 Shreveport* 4855 Line Avenue 318.698.3246

Sterlington* 167 Keystone Road

Tallulah* 115 North Chestnut 318.574.3210 West Monroe* 400 McMillan Road 318.362.0023

318.665.4511 St. Joseph* 307 Plank Road 318.766.3246