1-3 |
||||
4 – 5 |
||||
Consolidated Financial Statements |
||||
6 |
||||
7 |
||||
8 |
||||
9 |
||||
10 –11 |
||||
12 – 69 |
• |
The data used as the basis for the adjustments relating to qualitative general reserve factors. |
• |
Management’s determination of loans excluded from qualitative general reserve factors calculation. |
• |
Management’s review of the qualitative and quantitative conclusions related to the qualitative general reserve factors and the resulting allocation to the allowance. |
• |
Evaluation of the completeness and accuracy of data inputs used as a basis for the adjustments relating to the qualitative general reserve factors. |
• |
Evaluation of loans excluded from the qualitative general reserve calculation for propriety of classification. |
/s/ Greg L. McKee |
/s/ Phillip R. Branch | |
Greg L. McKee |
Phillip R. Branch | |
President and Chief Executive Officer |
Treasurer and Chief Financial Officer |
CITIZENS HOLDING COMPANY |
||||||||
Consolidated Statements of Financial Condition | ||||||||
December 31, 2021 and 2020 | ||||||||
(in thousands, except share data) |
||||||||
ASSETS |
2021 |
2020 |
||||||
Cash and due from banks |
$ | $ | ||||||
Interest bearing deposits with other banks |
||||||||
|
|
|
|
|||||
Cash and cash equivalents |
||||||||
Securities available for sale, at fair value |
||||||||
Loans held for investment (LHFI), net of unearned income |
||||||||
Less allowance for loan losses, LHFI |
||||||||
|
|
|
|
|||||
Net LHFI |
||||||||
Bank premises, furniture, fixtures and equipment, net |
||||||||
Other real estate owned, net |
||||||||
Accrued interest receivable |
||||||||
Cash surrender value of life insurance |
||||||||
Deferred tax assets, net |
||||||||
Identifiable intangible assets, net |
||||||||
Other assets |
||||||||
|
|
|
|
|||||
Total assets |
$ | |
$ | |
||||
|
|
|
|
|||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
Deposits |
||||||||
Non-interest bearing deposits |
$ | $ | ||||||
Interest bearing deposits |
||||||||
|
|
|
|
|||||
Total deposits |
||||||||
Securities sold under agreement to repurchase |
||||||||
Federal Home Loan Bank (FHLB) advances |
— | |||||||
Borrowings on secured line of credit |
— | |||||||
Accrued interest payable |
||||||||
Deferred compensation payable |
||||||||
Other liabilities |
||||||||
|
|
|
|
|||||
Total liabilities |
||||||||
|
|
|
|
|||||
Shareholders’ equity |
||||||||
Common stock, $ December 31, 2021 and |
||||||||
Additional paid-in capital |
||||||||
Accumulated other comprehensive (loss) income, net of tax benefit (expense) of $ |
( |
) | ||||||
Retained earnings |
||||||||
|
|
|
|
|||||
Total shareholders’ equity |
||||||||
|
|
|
|
|||||
Total liabilities and shareholders’ equity |
$ | $ | ||||||
|
|
|
|
|||||
The accompanying notes are an integral part of these statements. |
CITIZENS HOLDING COMPANY |
||||||||||||
Consolidated Statements of Income |
||||||||||||
Years Ended December 31, 2021, 2020, and 2019 |
||||||||||||
(in thousands, except share and per share data) |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Interest income |
||||||||||||
Interest and fees on loans |
$ | $ | $ | |||||||||
Interest on securities |
||||||||||||
Taxable |
||||||||||||
Non-taxable |
||||||||||||
Other interest |
||||||||||||
|
|
|
|
|
|
|||||||
Total interest income |
||||||||||||
Interest expense |
||||||||||||
Deposits |
||||||||||||
Other borrowed funds |
||||||||||||
|
|
|
|
|
|
|||||||
Total interest expense |
||||||||||||
|
|
|
|
|
|
|||||||
Net interest income |
||||||||||||
Provision for loan losses |
||||||||||||
|
|
|
|
|
|
|||||||
Net interest income after provision for loan losses |
||||||||||||
Non-interest income |
||||||||||||
Service charges on deposit accounts |
||||||||||||
Other service charges and fees |
||||||||||||
Net gains on sales of securities |
||||||||||||
Other income |
||||||||||||
|
|
|
|
|
|
|||||||
Total non-interest income |
||||||||||||
Non-interest expense |
||||||||||||
Salaries and employee benefits |
||||||||||||
Occupancy expense |
||||||||||||
Equipment expense |
||||||||||||
Other real estate expense |
— | |||||||||||
Other expense |
||||||||||||
|
|
|
|
|
|
|||||||
Total non-interest expense |
||||||||||||
|
|
|
|
|
|
|||||||
Income before income taxes |
||||||||||||
Income tax expense |
||||||||||||
|
|
|
|
|
|
|||||||
Net income |
$ | $ | $ | |||||||||
|
|
|
|
|
|
|||||||
Net income per share – basic |
$ | $ | $ | |||||||||
|
|
|
|
|
|
|||||||
Net income per share – diluted |
$ | $ | $ | |||||||||
|
|
|
|
|
|
|||||||
Weighted average shares outstanding |
||||||||||||
Basic |
||||||||||||
|
|
|
|
|
|
|||||||
Diluted |
||||||||||||
|
|
|
|
|
|
|||||||
The accompanying notes are an integral part of these statements. |
CITIZENS HOLDING COMPANY |
||||||||||||
Consolidated Statements of Comprehensive (Loss) Income |
||||||||||||
Years Ended December 31, 2021, 2020, and 2019 |
||||||||||||
(in thousands) |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Net income |
$ | $ | $ | |||||||||
Other comprehensive (loss) income |
||||||||||||
Unrealized holding (losses) gains on available-for-sale |
( |
) | ||||||||||
Income tax effect |
( |
) | ( |
) | ||||||||
Net unrealized (losses) gains |
( |
) | ||||||||||
Reclassification adjustment for gains included in net income |
||||||||||||
Income tax effect |
( |
) | ( |
) | ( |
) | ||||||
Net gains included in net income |
||||||||||||
Total other comprehensive (loss) income |
( |
) | ||||||||||
Comprehensive (loss) income |
$ | ( |
) | $ | |
$ | |
|||||
The accompanying notes are an integral part of these statements. |
CITIZENS HOLDING COMPANY |
||||||||||||||||||||||||
Consolidated Statements of Changes in Shareholders’ Equity | ||||||||||||||||||||||||
Years Ended December 31, 2021, 2020, and 2019 | ||||||||||||||||||||||||
(in thousands, except share data) | ||||||||||||||||||||||||
Accumulated |
||||||||||||||||||||||||
Number |
Additional |
Other |
||||||||||||||||||||||
of Shares |
Common |
Paid-In |
Comprehensive |
Retained |
||||||||||||||||||||
Issued |
Stock |
Capital |
(Loss) Income |
Earnings |
Total |
|||||||||||||||||||
Balance, January 1, 2019 |
$ | $ | $ | ( |
) | $ | |
$ | ||||||||||||||||
Net income |
— | — | — | — | ||||||||||||||||||||
Dividends paid ($ |
— | — | — | — | ( |
) | ( |
) | ||||||||||||||||
Common stock issued in connection with acquisition |
— | — | ||||||||||||||||||||||
Restricted stock granted |
( |
) | — | — | — | |||||||||||||||||||
Stock compensation expense |
— | — | — | — | ||||||||||||||||||||
Other comprehensive income, net |
— | — | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance, December 31, 2019 |
( |
) | ||||||||||||||||||||||
Net income |
— | — | — | — | ||||||||||||||||||||
Dividends paid ($ |
— | — | — | — | ( |
) | ( |
) | ||||||||||||||||
Options exercised |
— | — | ||||||||||||||||||||||
Restricted stock granted |
( |
) | — | — | — | |||||||||||||||||||
Restricted stock forfeited |
( |
) | ( |
) | — | — | — | |||||||||||||||||
Stock compensation expense |
— | — | — | — | ||||||||||||||||||||
Other comprehensive income, net |
— | — | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance, December 31, 2020 |
||||||||||||||||||||||||
Net income |
— | — | — | — | ||||||||||||||||||||
Dividends paid ($ |
— | — | — | — | ( |
) | ( |
) | ||||||||||||||||
Restricted stock granted |
( |
) | — | — | — | |||||||||||||||||||
Stock compensation expense |
— | — | — | — | ||||||||||||||||||||
Other comprehensive loss, net |
— | — | — | ( |
) | — | ( |
) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance, December 31, 2021 |
$ | |
$ | |
$ | ( |
) | $ | $ | |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
The accompanying notes are an integral part of these statements. |
CITIZENS HOLDING COMPANY |
||||||||||||
Consolidated Statements of Cash Flows |
||||||||||||
Years Ended December 31, 2021, 2020, and 2019 |
||||||||||||
1 of 2 |
||||||||||||
(in thousands) |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Cash flows from operating activities |
||||||||||||
Net income |
$ | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities |
||||||||||||
Depreciation and amortization |
||||||||||||
Amortization of premiums and accretion of discounts on investment securities, net |
||||||||||||
Stock compensation expense |
||||||||||||
Provision for loan losses |
||||||||||||
Gain on sale of securities |
( |
) | ( |
) | ( |
) | ||||||
Gain from death benefit proceeds on BOLI |
( |
) | — | ( |
) | |||||||
Loss (gain) on sale of fixed assets |
( |
) | — | |||||||||
Net gain on sale of other real estate owned |
( |
) | ( |
) | ( |
) | ||||||
Deferred income tax expense |
||||||||||||
Writedown on other real estate owned |
— | |||||||||||
Decrease (increase) in accrued interest receivable |
( |
) | ||||||||||
Increase in cash surrender value life insurance |
( |
) | ( |
) | ( |
) | ||||||
(Decrease) increase in accrued interest payable |
( |
) | ( |
) | ||||||||
(Decrease) increase in deferred compensation liability |
( |
) | ||||||||||
Net change in other operating assets and liabilities |
||||||||||||
|
|
|
|
|
|
|||||||
Net cash provided by operating activities |
||||||||||||
|
|
|
|
|
|
|||||||
Cash flows from investing activities |
||||||||||||
Proceeds from calls, paydowns and maturities of securities available-for-sale |
||||||||||||
Proceeds from sales of securities available-for-sale |
||||||||||||
Proceeds from sale of FHLB stock |
— | |||||||||||
Purchases of investment securities available-for-sale |
( |
) | ( |
) | ( |
) | ||||||
Decrease (increase) in federal funds sold |
— | ( |
) | |||||||||
Death benefit proceeds from bank-owned life insurance |
— | |||||||||||
Purchases of bank premises, furniture, fixtures and equipment |
( |
) | ( |
) | ( |
) | ||||||
Proceeds from sales of bank premises, furniture, fixtures and equipment |
— | |||||||||||
Proceeds from sale of other real estate owned |
CITIZENS HOLDING COMPANY |
||||||||||||
Consolidated Statements of Cash Flows |
||||||||||||
Years Ended December 31, 2021, 2020, and 2019 |
||||||||||||
2 of 2 |
||||||||||||
(in thousands) |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Net cash paid in acquisition of business |
— | — | ( |
) | ||||||||
Purchases of FHLB stock |
( |
) | ( |
) | — | |||||||
Net change in loans |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
Net cash provided by (used in) investing activities |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
Cash flows from financing activities |
||||||||||||
Net change in deposits |
$ | $ | $ | |||||||||
Net (decrease) increase in securities sold under agreement to repurchase |
( |
) | ||||||||||
Proceeds from borrowings on secured line of credit |
— | — | ||||||||||
Proceeds from exercise of stock options |
— | — | ||||||||||
Dividends paid to shareholders |
( |
) | ( |
) | ( |
) | ||||||
Net (decrease) increase in FHLB advances |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
Net cash (used in) provided by financing activities |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Net increase (decrease) in cash and due from banks |
( |
) | ||||||||||
Cash and cash equivalents, beginning of year |
||||||||||||
|
|
|
|
|
|
|||||||
Cash and cash equivalents, end of year |
$ | $ | $ | |||||||||
|
|
|
|
|
|
|||||||
Supplemental disclosures of cash flow information |
||||||||||||
Cash paid for Interest |
$ | $ | $ | |||||||||
|
|
|
|
|
|
|||||||
Income taxes |
$ | $ | $ | |||||||||
|
|
|
|
|
|
|||||||
Noncash disclosures Issuance of common stock for acquisition of business |
$ | — | $ | — | $ | |||||||
|
|
|
|
|
|
|||||||
Real estate acquired by foreclosure |
$ | $ | $ | |||||||||
|
|
|
|
|
|
2021 | 2020 | 2019 | ||||||||||
Basic weighted average shares outstanding |
||||||||||||
Dilutive effect of stock options |
||||||||||||
Dilutive weighted average shares outstanding |
||||||||||||
Net income |
$ | $ | $ | |||||||||
Net income per share-basic |
$ | $ | $ | |||||||||
Net income per share-diluted |
$ | $ | $ |
2021 |
Amortized Cost |
Gross Unrealized Gains |
Gross Unrealized Losses |
Fair Value |
||||||||||||
Securities available-for-sale |
||||||||||||||||
Obligations of U.S. Government agencies |
$ | $ | |
$ | $ | |||||||||||
Mortgage-backed securities |
||||||||||||||||
State, County, Municipals |
||||||||||||||||
Other securities |
||||||||||||||||
Total |
$ | |
$ | $ | |
$ | |
|||||||||
2020 |
Amortized Cost |
Gross Unrealized Gains |
Gross Unrealized Losses |
Fair Value |
||||||||||||
Securities available-for-sale |
||||||||||||||||
Obligations of U.S. Government agencies |
$ | $ | $ | $ | ||||||||||||
Mortgage-backed securities |
||||||||||||||||
State, County, Municipals |
||||||||||||||||
Other securities |
||||||||||||||||
Total |
$ | |
$ | |
$ | |
$ | |
||||||||
December 31, 2021 |
Less than 12 months |
12 months or more |
Total |
|||||||||||||||||||||
Description of Securities |
Fair Value |
Unrealized Losses |
Fair Value |
Unrealized Losses |
Fair Value |
Unrealized Losses |
||||||||||||||||||
Obligations of U.S. Government agencies |
$ | $ | $ | $ | |
$ | $ | |||||||||||||||||
Mortgage backed securities |
||||||||||||||||||||||||
State, County, Municipal |
||||||||||||||||||||||||
Total |
$ | |
$ | |
$ | |
$ | $ | |
$ | |
|||||||||||||
December 31, 2020 |
Less than 12 months |
12 months or more |
Total |
|||||||||||||||||||||
Description of Securities |
Fair Value |
Unrealized Losses |
Fair Value |
Unrealized Losses |
Fair Value |
Unrealized Losses |
||||||||||||||||||
Mortgage backed securities |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||||
State, County, Municipal |
||||||||||||||||||||||||
Total |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Amortized Cost |
Fair Value |
|||||||
Securities AFS |
||||||||
Due in one year or less |
$ | $ | ||||||
Due after one year through five years |
||||||||
Due after five years through ten years |
||||||||
Due after ten years |
||||||||
Residential mortgage backed securities |
||||||||
Commercial mortgage backed securities |
||||||||
Total |
$ | $ | ||||||
2021 |
2020 |
2019 |
||||||||||
Gross realized gains |
$ | $ | $ | |||||||||
Gross realized losses |
||||||||||||
Net realized gains |
$ | $ | $ | |||||||||
2021 (1) |
2020 | |||||||
Real Estate: |
||||||||
Land Development and Construction |
$ | $ | ||||||
Farmland |
||||||||
1-4 Family Mortgages |
||||||||
Commercial Real Estate |
||||||||
Total Real Estate Loans |
||||||||
Business Loans: |
||||||||
Commercial and Industrial Loans (2) |
||||||||
Farm Production and Other Farm Loans |
||||||||
Total Business Loans |
||||||||
Consumer Loans: |
||||||||
Credit Cards |
||||||||
Other Consumer Loans |
||||||||
Total Consumer Loans |
||||||||
Total Gross Loans |
||||||||
Unearned Income |
( |
) | ||||||
Allowance for Loan Losses |
( |
) | ( |
) | ||||
Loans, net |
$ | $ | ||||||
(1) | Reclassifications from acquired loans to loans held for investment. |
(2) | Includes Paycheck Protection Program (“PPP”) loans of $ |
Balance outstanding at December 31, 2020 |
$ | |||
Principal additions |
||||
Principal reductions |
( |
) | ||
Balance outstanding at December 31, 2021 |
$ | |
||
2021 | 2020 | |||||||
Real Estate: |
||||||||
Land Development and Construction |
$ | $ | ||||||
Farmland |
||||||||
1-4 Family Mortgages |
||||||||
Commercial Real Estate |
||||||||
Total Real Estate Loans |
||||||||
Business Loans: |
||||||||
Commercial and Industrial Loans |
||||||||
Farm Production and Other Farm Loans |
||||||||
Total Business Loans |
||||||||
Consumer Loans: |
||||||||
Other Consumer Loans |
||||||||
Total Consumer Loans |
||||||||
Total non-accrual Loans |
$ | $ | ||||||
Loans 30-89 Days Past Due |
Loans 90 or more Days Past Due |
Total Past Due Loans |
Current Loans |
Total Loans |
Accruing Loans 90 or more Days Past Due |
|||||||||||||||||||
Real Estate: |
||||||||||||||||||||||||
Land Development and Construction |
$ | $ | — | $ | $ | $ | $ | — | ||||||||||||||||
Farmland |
— | |||||||||||||||||||||||
1-4 Family Mortgages |
||||||||||||||||||||||||
Commercial Real Estate |
— | |||||||||||||||||||||||
Total Real Estate Loans |
||||||||||||||||||||||||
Business Loans: |
||||||||||||||||||||||||
Commercial and Industrial Loans |
— | |||||||||||||||||||||||
Farm Production and Other Farm Loans |
— | — | ||||||||||||||||||||||
Total Business Loans |
— | |||||||||||||||||||||||
Consumer Loans: |
||||||||||||||||||||||||
Credit Cards |
||||||||||||||||||||||||
Other Consumer Loans |
||||||||||||||||||||||||
Total Consumer Loans |
||||||||||||||||||||||||
Total Loans |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Loans 30-89 Days Past Due |
Loans 90 or more Days Past Due |
Total Past Due Loans |
Current Loans |
Total Loans |
Accruing Loans 90 or more Days Past Due |
|||||||||||||||||||
Real Estate: |
||||||||||||||||||||||||
Land Development and Construction |
$ | $ | — | $ | $ | $ | $ | — | ||||||||||||||||
Farmland |
— | |||||||||||||||||||||||
1-4 Family Mortgages |
— | |||||||||||||||||||||||
Commercial Real Estate |
— | |||||||||||||||||||||||
Total Real Estate Loans |
— | |||||||||||||||||||||||
Business Loans: |
||||||||||||||||||||||||
Commercial and Industrial Loans |
||||||||||||||||||||||||
Farm Production and Other Farm Loans |
— | — | ||||||||||||||||||||||
Total Business Loans |
||||||||||||||||||||||||
Consumer Loans: |
||||||||||||||||||||||||
Credit Cards |
||||||||||||||||||||||||
Other Consumer Loans |
— | — | ||||||||||||||||||||||
Total Consumer Loans |
||||||||||||||||||||||||
Total Loans |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
2021 | Unpaid Principal Balance |
Recorded Investment With No Allowance |
Recorded Investment With Allowance |
Total Recorded Investment |
Related Allowance |
Average Recorded Investment |
||||||||||||||||||
Real Estate: |
||||||||||||||||||||||||
Land Development and Construction |
$ | $ | $ | — | $ | $ | — | $ | ||||||||||||||||
Farmland |
— | — | ||||||||||||||||||||||
1-4 Family Mortgages |
— | — | ||||||||||||||||||||||
Commercial Real Estate |
||||||||||||||||||||||||
Total Real Estate Loans |
||||||||||||||||||||||||
Business: |
||||||||||||||||||||||||
Commercial and Industrial |
||||||||||||||||||||||||
Total Business Loans |
||||||||||||||||||||||||
Total Loans |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
2020 | Unpaid Principal Balance |
Recorded Investment With No Allowance |
Recorded Investment With Allowance |
Total Recorded Investment |
Related Allowance |
Average Recorded Investment |
||||||||||||||||||
Real Estate: |
||||||||||||||||||||||||
Land Development and Construction |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Farmland |
— | — | ||||||||||||||||||||||
1-4 Family Mortgages |
||||||||||||||||||||||||
Commercial Real Estate |
||||||||||||||||||||||||
Total Real Estate Loans |
||||||||||||||||||||||||
Business: |
||||||||||||||||||||||||
Commercial and Industrial |
||||||||||||||||||||||||
Total Business Loans |
||||||||||||||||||||||||
Total Loans |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Number of Loans |
Recorded Investment |
|||||||
Total at January 1, 2019 |
$ | |||||||
Reductions due to: |
||||||||
Principal paydowns |
( |
) | ||||||
Total at December 31, 2019 |
||||||||
Reductions due to: |
||||||||
Principal paydowns |
( |
) | ||||||
Total at December 31, 2020 |
||||||||
Reductions due to: |
||||||||
Reclassification to OREO |
( |
) | ||||||
Principal paydowns |
( |
) | ||||||
Total at December 31, 2021 |
$ | |||||||
Satisfactory 1,2,3,4 |
Special Mention 5,6 |
Substandard 7 |
Doubtful 8 |
Loss 9 |
Total Loans |
|||||||||||||||||||
Real Estate: |
||||||||||||||||||||||||
Land Development and Construction |
$ | $ | $ | $ | — | $ | — | $ | ||||||||||||||||
Farmland |
— | — | ||||||||||||||||||||||
1-4 Family Mortgages |
— | — | ||||||||||||||||||||||
Commercial Real Estate |
— | — | ||||||||||||||||||||||
Total Real Estate Loans |
— | — | ||||||||||||||||||||||
Business Loans: |
||||||||||||||||||||||||
Commercial and Industrial Loans |
— | |||||||||||||||||||||||
Farm Production and Other Farm Loans |
— | — | ||||||||||||||||||||||
Total Business Loans |
— | |||||||||||||||||||||||
Consumer Loans: |
||||||||||||||||||||||||
Credit Cards |
— | — | — | |||||||||||||||||||||
Other Consumer Loans |
||||||||||||||||||||||||
Total Consumer Loans |
||||||||||||||||||||||||
Total Loans |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Satisfactory 1,2,3,4 |
Special Mention 5,6 |
Substandard 7 |
Doubtful 8 |
Loss 9 |
Total Loans |
|||||||||||||||||||
Real Estate: |
||||||||||||||||||||||||
Land Development and Construction |
$ | $ | $ | $ | — | $ | — | $ | ||||||||||||||||
Farmland |
— | — | ||||||||||||||||||||||
1-4 Family Mortgages |
— | — | ||||||||||||||||||||||
Commercial Real Estate |
— | — | ||||||||||||||||||||||
Total Real Estate Loans |
— | — | ||||||||||||||||||||||
Business Loans: |
||||||||||||||||||||||||
Commercial and Industrial Loans |
— | |||||||||||||||||||||||
Farm Production and Other Farm Loans |
— | — | ||||||||||||||||||||||
Total Business Loans |
— | |||||||||||||||||||||||
Consumer Loans: |
||||||||||||||||||||||||
Credit Cards |
— | — | — | |||||||||||||||||||||
Other Consumer Loans |
— | |||||||||||||||||||||||
Total Consumer Loans |
— | |||||||||||||||||||||||
Total Loans |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
2020 | ||||
Real Estate: |
||||
Land Development and Construction |
$ | |||
Farmland |
||||
1-4 Family Mortgages |
||||
Commercial Real Estate |
||||
Total Real Estate Loans |
||||
Business Loans: |
||||
Commercial and Industrial Loans |
||||
Farm Production and Other Farm Loans |
||||
Total Business Loans |
||||
Consumer Loans: |
||||
Other Consumer Loans |
||||
Total Consumer Loans |
||||
Total Gross Loans |
||||
Total Purchased Loans |
$ | |||
Loans 30-89 Days Past Due |
Loans 90 or more Days Past Due |
Total Past Due Loans |
Current Loans |
Total Loans |
Accruing Loans 90 or more Days Past Due |
|||||||||||||||||||
Real Estate: |
||||||||||||||||||||||||
Land Development and Construction |
$ | $ | — | $ | $ | $ | $ | — | ||||||||||||||||
Farmland |
— | — | — | |||||||||||||||||||||
1-4 Family Mortgages |
— | — | ||||||||||||||||||||||
Commercial Real Estate |
— | — | ||||||||||||||||||||||
Total Real Estate Loans |
— | — | ||||||||||||||||||||||
Business Loans: |
||||||||||||||||||||||||
Commercial and Industrial Loans |
— | |||||||||||||||||||||||
Farm Production and Other Farm Loans |
— | — | — | |||||||||||||||||||||
Total Business Loans |
— | |||||||||||||||||||||||
Consumer Loans: |
||||||||||||||||||||||||
Other Consumer Loans |
— | |||||||||||||||||||||||
Total Consumer Loans |
— | |||||||||||||||||||||||
Total Loans |
$ | $ | $ | $ | $ | $ | — | |||||||||||||||||
1,2,3,4 | 5,6 | 7 | 8 | 9 | Loans | |||||||||||||||||||
Real Estate: |
||||||||||||||||||||||||
Land Development and Construction |
$ | $ | $ | $ | — | $ | — | $ | ||||||||||||||||
Farmland |
— | — | — | |||||||||||||||||||||
1-4 Family Mortgages |
— | — | ||||||||||||||||||||||
Commercial Real Estate |
— | — | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Real Estate Loans |
— | — | ||||||||||||||||||||||
Business Loans: |
||||||||||||||||||||||||
Commercial and Industrial Loans |
— | — | ||||||||||||||||||||||
Farm Production and Other Farm Loans |
— | — | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Business Loans |
— | — | ||||||||||||||||||||||
Consumer Loans: |
||||||||||||||||||||||||
Other Consumer Loans |
— | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Consumer Loans |
— | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Loans |
$ | $ | $ | $ | — | $ | $ | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
2020 | ||||
Real Estate: |
||||
Land Development and Construction |
$ | |||
1-4 Family Mortgages |
||||
|
|
|||
Total Real Estate Loans |
||||
Business Loans: |
||||
Commercial and Industrial Loans |
||||
|
|
|||
Total Business Loans |
||||
Total PCD Loans |
$ | |||
|
|
Total Purchased Credit Deteriorated Loans | ||||
Contractually-required principal |
$ | |||
Nonaccretable difference |
( |
) | ||
|
|
|||
Cash flows expected to be collected |
||||
Accretable yield |
( |
) | ||
|
|
|||
Fair Value |
$ | |||
|
|
2021 |
Real Estate |
Business Loans |
Consumer | Total | ||||||||||||
Beginning Balance |
$ | $ | $ | $ | ||||||||||||
Provision for loan losses |
||||||||||||||||
Chargeoffs |
||||||||||||||||
Recoveries |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net chargeoffs |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Ending Balance |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Period end allowance allocated to: |
||||||||||||||||
Loans individually evaluated for impairment |
$ | $ | $ | — | $ | |||||||||||
Loans collectively evaluated for impairment |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Ending Balance |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
2020 |
Real Estate |
Business Loans |
Consumer | Total | ||||||||||||
Beginning Balance |
$ | $ | $ | $ | ||||||||||||
Provision for (reversal of) loan losses |
( |
) | ||||||||||||||
Chargeoffs |
||||||||||||||||
Recoveries |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net chargeoffs |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Ending Balance |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Period end allowance allocated to: |
||||||||||||||||
Loans individually evaluated for impairment |
$ | $ | $ | — | $ | |||||||||||
Loans collectively evaluated for impairment |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Ending Balance |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
2019 |
Real Estate |
Business Loans |
Consumer | Total | ||||||||||||
Beginning Balance |
$ | $ | $ | $ | ||||||||||||
Provision for loan losses |
||||||||||||||||
Chargeoffs |
||||||||||||||||
Recoveries |
||||||||||||||||
Net chargeoffs |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Ending Balance |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Period end allowance allocated to: |
||||||||||||||||
Loans individually evaluated for impairment |
$ | $ | $ | — | $ | |||||||||||
Loans collectively evaluated for impairment |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Ending Balance |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
2021 |
Real Estate |
Business Loans |
Consumer | Total | ||||||||||||
Loans individually evaluated for impairment |
$ | $ | $ | — | $ | |||||||||||
Loans collectively evaluated for impairment |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | $ | $ | $ | |||||||||||||
|
|
|
|
|
|
|
|
2020 |
Real Estate |
Business Loans |
Consumer | Total | ||||||||||||
Loans individually evaluated for impairment |
$ | $ | $ | — | $ | |||||||||||
Loans collectively evaluated for impairment |
||||||||||||||||
Acquired with deteriorated credit quality |
— | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | $ | $ | $ | |||||||||||||
|
|
|
|
|
|
|
|
2021 | 2020 | 2019 | ||||||||||
Real Estate: |
||||||||||||
Land Development and Construction |
$ | $ | ( |
) | $ | ( |
) | |||||
Farmland |
( |
) | ||||||||||
1-4 Family Mortgages |
( |
) | ||||||||||
Commercial Real Estate |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Total Real Estate Loans |
||||||||||||
|
|
|
|
|
|
|||||||
Business Loans: |
||||||||||||
Commercial and Industrial Loans |
||||||||||||
|
|
|
|
|
|
|||||||
Total Business Loans |
||||||||||||
|
|
|
|
|
|
|||||||
Consumer Loans: |
||||||||||||
Credit Cards |
||||||||||||
Other Consumer Loans |
||||||||||||
|
|
|
|
|
|
|||||||
Total Consumer Loans |
||||||||||||
|
|
|
|
|
|
|||||||
Total Net Chargeoffs |
$ | $ | $ | |||||||||
|
|
|
|
|
|
2021 |
2020 |
|||||||
Land and buildings |
$ | $ | ||||||
Furniture, fixtures and equipment |
||||||||
Less accumulated depreciation |
||||||||
Total |
$ | $ | ||||||
December 31, 2021 |
December 31, 2020 |
|||||||
(in thousands) |
||||||||
Operating lease cost |
$ | $ | ||||||
Short-term lease cost |
||||||||
$ | $ | |||||||
December 31, 2021 |
||||
Lease payments due: |
||||
Within one year |
$ | |||
After one year but within two years |
||||
After two years but within three years |
||||
After three year but within four years |
||||
After four years but within five years |
||||
After five years |
||||
Total undiscounted cash flows |
||||
Discount on cash flows |
( |
) | ||
liability |
$ | |||
Total |
||||
Balance at December 31, 2019 |
$ | |||
Measurement period adjustment to goodwill from acquisition |
( |
) | ||
Balance at December 31, 2020 |
||||
Additions to goodwill and other adjustments |
||||
Balance at December 31, 2021 |
$ | |||
2021 |
2020 |
|||||||
Core deposit intangible |
$ | $ | ||||||
Accumulated amortization |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Total finite-lived intangible assets |
$ | $ | ||||||
|
|
|
|
Year Ending December 31, |
Amount |
|||
2022 |
$ | |||
2023 |
||||
2024 |
||||
2025 |
||||
2026 |
||||
Thereafter |
||||
|
|
|||
$ | ||||
|
|
2021 |
2020 |
|||||||
Non-interest bearing |
$ | $ | ||||||
NOW and money market accounts |
||||||||
Savings deposits |
||||||||
Time deposits, $ 250,000 or more |
||||||||
Other time deposits |
||||||||
|
|
|
|
|||||
Total |
$ | $ | ||||||
|
|
|
|
Year Ending December 31, |
Amount |
|||
2022 |
$ | |||
2023 |
||||
2024 |
||||
2025 |
||||
2026 |
||||
|
|
|||
$ |
||||
|
|
2021 |
2020 |
|||||||
Securities sold under agreements to repurchase |
$ | |
$ | |
||||
Federal funds purchased |
— | — | ||||||
Federal Home Loan Bank short-term advances |
— | |||||||
|
|
|
|
|||||
Total short-term borrowings |
$ | $ | ||||||
|
|
|
|
Average Balances |
Cost of Funds |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
Securities sold under agreements to repurchase |
$ | |
$ | |
% | % | ||||||||||
Federal funds purchased |
% | % | ||||||||||||||
Federal Home Loan Bank short-term advances |
% | % | ||||||||||||||
Total short-term borrowings |
$ | $ | % | % | ||||||||||||
2021 |
2020 |
|||||||
Secured line of credit |
$ | |
$ | |
||||
Total long-term debt |
$ | $ | ||||||
Year Ending December 31, |
Amount |
|||
2022 |
$ | |||
2023 |
||||
2024 |
||||
2025 |
||||
2026 |
||||
Thereafter |
||||
$ |
||||
Other Income |
2021 | 2020 | 2019 | |||||||||
BOLI Insurance |
$ | $ | $ | |||||||||
Mortgage Loan Origination Income |
||||||||||||
Other Income |
||||||||||||
Total Other Income |
$ | $ | $ | |||||||||
Other Operating Expense |
2021 | 2020 | 2019 | |||||||||
Advertising |
$ | $ | $ | |||||||||
Office supplies |
||||||||||||
Professional fees |
||||||||||||
FDIC and state assessment |
||||||||||||
Technology expense |
||||||||||||
Postage and freight |
( |
) | ||||||||||
Loan collection expense |
||||||||||||
Other losses |
||||||||||||
Debit card/ATM expense |
||||||||||||
Write down on OREO |
||||||||||||
Other expenses |
||||||||||||
Total Other Expense |
$ | $ | $ | |||||||||
2021 |
2020 |
2019 |
||||||||||
Current payable (benefit) |
||||||||||||
Federal |
$ | $ | $ | |||||||||
State |
||||||||||||
Deferred tax expense |
||||||||||||
Income tax expense |
$ | $ | $ | |||||||||
2021 |
2020 |
2019 |
||||||||||
Federal taxes based on statutory rate |
$ | $ | $ | |||||||||
State income taxes, net of federal benefit |
||||||||||||
Tax-exempt investment interest |
( |
) | ( |
) | ( |
) | ||||||
Income related to bank-owned life insurance |
( |
) | ( |
) | ||||||||
Other, net |
( |
) | ||||||||||
Income tax expense |
$ | $ | $ | |||||||||
2021 |
2020 |
|||||||
Deferred tax assets |
||||||||
Allowance for loan losses |
$ | $ | ||||||
Deferred compensation liability |
||||||||
Net operating loss carryforward |
||||||||
Other real estate owned |
||||||||
Acquisition fair value adjustments |
||||||||
Unrealized loss on securities available-for-sale |
||||||||
Other |
||||||||
Total |
||||||||
Deferred tax liabilities |
||||||||
Premises and equipment |
||||||||
Unrealized gain on securities available-for-sale |
||||||||
Core deposit intangible |
||||||||
Other |
||||||||
Total |
||||||||
Net deferred tax asset |
$ | $ | ||||||
2021 |
2020 |
|||||||
Assets |
||||||||
Cash (1) |
$ | $ | ||||||
Investment in bank subsidiary (1) |
||||||||
Other assets (1) |
||||||||
|
|
|
|
|||||
Total assets |
$ | $ | ||||||
|
|
|
|
|||||
Liabilities |
||||||||
Secured line of Credit |
$ | $ | ||||||
Shareholders’ equity |
||||||||
|
|
|
|
|||||
Total liabilities and shareholders’ equity |
$ | $ | ||||||
|
|
|
|
(1) |
Fully or partially eliminates in consolidation. |
2021 |
2020 |
2019 |
||||||||||
Interest income (1) |
$ | $ | $ | |||||||||
|
|
|
|
|
|
|||||||
Other income |
||||||||||||
Dividends from bank subsidiary (1) |
||||||||||||
Equity in undistributed earnings gain(loss) of bank subsidiary (1) |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Total other income |
||||||||||||
|
|
|
|
|
|
|||||||
Other expense |
||||||||||||
|
|
|
|
|
|
|||||||
Income before income taxes |
||||||||||||
Income tax benefit |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Net income |
$ | $ | $ | |||||||||
|
|
|
|
|
|
(1) |
Eliminates in consolidation. |
2021 |
2020 |
2019 |
||||||||||
Cash flows from operating activities |
||||||||||||
Net income |
$ | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities |
||||||||||||
Equity in undistributed (earnings) loss of the Bank |
( |
) | ( |
) | ||||||||
Stock compensation expense |
||||||||||||
(Increase) decrease in other assets |
( |
) | ( |
) | ||||||||
Net cash provided by operating activities |
||||||||||||
Cash flows from investing activities |
||||||||||||
Net cash paid in acquisition activities |
$ | — | $ | — | $ | ( |
) | |||||
Increase in ownership in subsidiary |
( |
) | — | — | ||||||||
Net cash used in investing activities |
( |
) | — | ( |
) | |||||||
Cash flows from financing activities |
||||||||||||
Dividends paid to shareholders |
$ | ( |
) | $ | ( |
) | $ | ( |
) | |||
Proceeds from borrowings on secured line of credit |
— | — | ||||||||||
Proceeds from stock options |
— | — | ||||||||||
Net cash provided by (used in) financing activities |
( |
) | ( |
) | ||||||||
Net (decrease) increase in cash |
( |
) | ||||||||||
Cash, beginning of year |
||||||||||||
Cash, end of year |
$ | $ | $ | |||||||||
• | Create a new requirement to maintain a ratio of common equity Tier 1 capital to total risk-weighted assets of not less than |
• | Increase the minimum leverage ratio to |
• | Increase the minimum Tier 1 risk-based capital ratio from |
• | Maintain the minimum total risk-based capital ratio at |
Actual | Minimum Capital Requirement to be Well Capitalized |
Minimum Capital Requirement to be Adequately Capitalized |
||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
December 31, 2021 |
||||||||||||||||||||||||
Citizens Holding Company |
||||||||||||||||||||||||
Tier 1 leverage ratio |
$ | % | $ | % | $ | % | ||||||||||||||||||
Common Equity tier 1 capital ratio |
% | % | % | |||||||||||||||||||||
Tier 1 risk-based capital ratio |
% | % | % | |||||||||||||||||||||
Total risk-based capital ratio |
% | % | % | |||||||||||||||||||||
The Citizens Bank of Philadelphia |
||||||||||||||||||||||||
Tier 1 leverage ratio |
$ | % | $ | % | $ | % | ||||||||||||||||||
Common Equity tier 1 capital ratio |
% | % | % | |||||||||||||||||||||
Tier 1 risk-based capital ratio |
% | % | % | |||||||||||||||||||||
Total risk-based capital ratio |
% | % | % | |||||||||||||||||||||
December 31, 2020 |
||||||||||||||||||||||||
Citizens Holding Company |
||||||||||||||||||||||||
Tier 1 leverage ratio |
$ | % | $ | % | $ | % | ||||||||||||||||||
Common Equity tier 1 capital ratio |
% | % | % | |||||||||||||||||||||
Tier 1 risk-based capital ratio |
% | % | % | |||||||||||||||||||||
Total risk-based capital ratio |
% | % | % | |||||||||||||||||||||
The Citizens Bank of Philadelphia |
||||||||||||||||||||||||
Tier 1 leverage ratio |
$ | % | $ | % | $ | % | ||||||||||||||||||
Common Equity tier 1 capital ratio |
% | % | % | |||||||||||||||||||||
Tier 1 risk-based capital ratio |
% | % | % | |||||||||||||||||||||
Total risk-based capital ratio |
% | % | % |
Level 1 |
Quoted prices in active markets for identical assets or liabilities; | |
Level 2 |
Quoted prices in active markets for similar assets and liabilities and inputs that are observable for the asset or liability; or | |
Level 3 |
Unobservable inputs, such as discounted cash flow models or valuations. |
Quoted Prices in Active Markets for Identical Assets |
Significant Other Observable Inputs |
Significant Unobservable Inputs |
||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Totals | |||||||||||||
Securities available for sale |
||||||||||||||||
Obligations of U.S. Government agencies |
$ | — | $ | $ | — | $ | ||||||||||
Mortgage-backed securities |
— | — | ||||||||||||||
State, County, Municipals |
— | — | ||||||||||||||
Other securities |
— | — | ||||||||||||||
$ | — | $ | $ | — | $ | |||||||||||
Quoted Prices in Active Markets for Identical Assets |
Significant Other Observable Inputs |
Significant Unobservable Inputs |
||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Totals | |||||||||||||
Securities available for sale |
||||||||||||||||
Obligations of U.S. Government agencies |
$ | — | $ | $ | — | $ | ||||||||||
Mortgage-backed securities |
— | — | ||||||||||||||
State, County, Municipals |
— | — | ||||||||||||||
Other securities |
— | — | ||||||||||||||
$ | — | $ | $ | — | $ | |||||||||||
Quoted Prices in Active Markets for Identical Assets |
Significant Other Observable Inputs |
Significant Unobservable Inputs |
||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Totals | |||||||||||||
December 31, 2021 |
||||||||||||||||
Impaired loans |
$ | — | $ | — | $ | $ | ||||||||||
Other real estate owned |
— | — | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | — | $ | — | $ | $ | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
December 31, 2020 |
||||||||||||||||
Impaired loans |
$ | — | $ | — | $ | $ | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | — | $ | — | $ | $ | |||||||||||
|
|
|
|
|
|
|
|
Carrying Value |
Quoted Prices in Active Markets for Identical Assets |
Significant Other Observable Inputs |
Significant Unobservable Inputs |
Total Fair Value |
||||||||||||||||
2021 |
|
(Level 1) | (Level 2) | (Level 3) | |
|||||||||||||||
Financial assets |
||||||||||||||||||||
Cash and due from banks |
$ | $ | $ | — | $ | — | $ | |||||||||||||
Interest bearing deposits with banks |
— | — | ||||||||||||||||||
Securities available-for-sale |
— | — | ||||||||||||||||||
Net loans |
— | — | ||||||||||||||||||
Financial liabilities |
||||||||||||||||||||
Deposits |
— | |||||||||||||||||||
Securities Sold under Agreement to Repurchase |
— | — | ||||||||||||||||||
Borrowings on secured line of credit |
— | — |
Carrying Value |
Quoted Prices in Active Markets for Identical Assets |
Significant Other Observable Inputs |
Significant Unobservable Inputs |
Total Fair Value |
||||||||||||||||
2020 |
|
(Level 1) | (Level 2) | (Level 3) | |
|||||||||||||||
Financial assets |
||||||||||||||||||||
Cash and due from banks |
$ | $ | $ | — | $ | — | $ | |||||||||||||
Interest bearing deposits with banks |
— | — | ||||||||||||||||||
Securities available-for-sale |
— | — | ||||||||||||||||||
Net loans |
— | — | ||||||||||||||||||
Financial liabilities |
||||||||||||||||||||
Deposits |
— | |||||||||||||||||||
Securities Sold under Agreement to Repurchase |
— | — | ||||||||||||||||||
Federal Home Loan |
||||||||||||||||||||
Bank advances |
— | — |
Directors’ Plan |
||||||||
Number of Shares |
Weighted Average Exercise Price |
|||||||
Outstanding at January 1, 2019 |
$ | |||||||
Granted |
||||||||
Exercised |
||||||||
Expired |
( |
) | ||||||
Outstanding at December 31, 2019 |
$ | |||||||
Granted |
||||||||
Exercised |
( |
) | ||||||
Expired |
( |
) | ||||||
Outstanding at December 31, 2020 |
$ | |||||||
Granted |
||||||||
Exercised |
||||||||
Expired |
( |
) | ||||||
Outstanding at December 31, 2021 |
$ | |||||||
Options exercisable at: |
||||||||
December 31, 2021 |
$ | |||||||
Range of Exercise Prices |
Options Outstanding |
Weighted Average Price |
Weighted Average Life Remaining |
|||||||||
$ |
$ | |||||||||||
Total |
$ | |||||||||||
• | expectations about the movement of interest rates, including actions that may be taken by the Federal Reserve Board in response to changing economic conditions; |
• | adverse changes in asset quality and loan demand, and the potential insufficiency of the allowance for loan losses and our ability to foreclose on delinquent mortgages; |
• | the risk of adverse changes in business conditions in the banking industry generally and in the specific markets in which the Company operates including, but not limited to, the negative impacts and disruptions resulting from the COVID-19 pandemic; |
• | extensive regulation, changes in the legislative and regulatory environment that negatively impact the Company and the Bank through increased operating expenses and the potential for regulatory enforcement actions, claims, or litigation; |
• | increased competition from other financial institutions and the risk of failure to achieve our business strategies; |
• | events affecting our business operations, including the effectiveness of our risk management framework, the accuracy of our estimates, our reliance on third party vendors, the risk of security breaches and potential fraud, and the impact of technological advances; |
• | our ability to maintain sufficient capital and to raise additional capital when needed; |
• | our ability to maintain adequate liquidity to conduct business and meet our obligations; |
• | events affecting our ability to compete effectively and achieve our strategies, such as the risk of failure to achieve the revenue increases expected to result from our acquisitions, branch additions and in new product and service offerings, our ability to control expenses and our ability to attract and retain skilled people; |
• | events that adversely affect our reputation, and the resulting potential adverse impact on our business operations; |
• | risks arising from owning our common stock, such as the volatility and trading volume, our ability to pay dividends, the regulatory limitations on stock ownership, and provisions in our governing documents that may make it more difficult for another party to obtain control of us; and |
• | other risks detailed from time-to-time |
Average Balance | Income/Expense | Average Yield/Rate | ||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 | 2020 | 2019 | 2021 | 2020 | 2019 | ||||||||||||||||||||||||||||
Loans: |
||||||||||||||||||||||||||||||||||||
Loans, net of unearned (1) |
$ | 628,618 | $ | 622,309 | $ | 560,888 | $ | 31,327 | $ | 30,980 | $ | 29,427 | 4.98 | % | 4.98 | % | 5.25 | % | ||||||||||||||||||
Investment Securities |
||||||||||||||||||||||||||||||||||||
Taxable |
496,946 | 498,016 | 388,490 | 4,440 | 7,837 | 7,993 | 0.89 | % | 1.57 | % | 2.06 | % | ||||||||||||||||||||||||
Tax-exempt |
148,977 | 69,591 | 78,843 | 3,499 | 2,027 | 2,423 | 2.35 | % | 2.91 | % | 3.07 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total Investment Securities |
645,923 | 567,607 | 467,333 | 7,939 | 9,864 | 10,416 | 1.23 | % | 1.74 | % | 2.23 | % | ||||||||||||||||||||||||
Federal Funds Sold and Other |
44,451 | 45,305 | 50,666 | 55 | 250 | 854 | 0.12 | % | 0.55 | % | 1.69 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total Interest Earning Assets (1)(2) |
1,318,992 | 1,235,221 | 1,078,887 | 39,321 | 41,094 | 40,697 | 2.98 | % | 3.33 | % | 3.77 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Non-Earning Assets |
92,813 | 101,292 | 85,683 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Total Assets |
$ | 1,411,805 | $ | 1,336,513 | $ | 1,164,570 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Deposits: |
||||||||||||||||||||||||||||||||||||
Interest-bearing Demand Deposits (3) |
$ | 487,894 | $ | 449,828 | $ | 381,635 | $ | 1,324 | $ | 3,062 | $ | 3,468 | 0.27 | % | 0.68 | % | 0.91 | % | ||||||||||||||||||
Savings |
118,063 | 93,886 | 79,886 | 120 | 111 | 130 | 0.10 | % | 0.12 | % | 0.16 | % | ||||||||||||||||||||||||
Time |
245,886 | 231,832 | 274,597 | 2,783 | 3,351 | 5,226 | 1.13 | % | 1.45 | % | 1.90 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total Deposits |
851,843 | 775,546 | 736,118 | 4,227 | 6,524 | 8,824 | 0.50 | % | 0.84 | % | 1.20 | % | ||||||||||||||||||||||||
Borrowed Funds |
||||||||||||||||||||||||||||||||||||
Short-term Borrowings |
135,282 | 192,017 | 121,951 | 402 | 871 | 1,976 | 0.30 | % | 0.45 | % | 1.62 | % | ||||||||||||||||||||||||
Long-term Borrowings |
9692 | — | — | 353 | — | — | 3.64 | % | 0.00 | % | 0.00 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total Borrowed Funds |
144,974 | 192,017 | 121,951 | 755 | 871 | 1,976 | 0.52 | % | 0.45 | % | 1.62 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total Interest-Bearing Liabilities (3) |
996,817 | 967,563 | 858,069 | 4,982 | 7,395 | 10,800 | 0.50 | % | 0.76 | % | 1.26 | % | ||||||||||||||||||||||||
Non-Interest Bearing Liabilities |
||||||||||||||||||||||||||||||||||||
Demand Deposits |
291,248 | 236,881 | 192,672 | |||||||||||||||||||||||||||||||||
Other Liabilities |
14,179 | 14,294 | 17,534 | |||||||||||||||||||||||||||||||||
Shareholders’ Equity |
119,253 | 117,775 | 96,295 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Total Liabilities and Shareholders’ Equity |
$ | 1,421,497 | $ | 1,336,513 | $ | 1,164,570 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Interest Rate Spread |
2.48 | % | 2.56 | % | 2.51 | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Net Interest Margin |
$ | 34,339 | $ | 33,699 | $ | 29,897 | 2.60 | % | 2.72 | % | 2.77 | % | ||||||||||||||||||||||||
Less |
||||||||||||||||||||||||||||||||||||
Tax Equivalent Adjustment |
845 | 565 | 654 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Net Interest Income |
$ | 33,494 | $ | 33,134 | $ | 29,243 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
(1) |
Overdrafts on demand deposit accounts are not included in the average volume calculation as they are not considered interest earning assets by the Company. They are included in the “Non-Earning Assets” balance above. |
(2) |
Earning Assets in Table 1 does not include the dividend paying stock of the Federal Home Loan Bank. |
(3) |
Demand deposits are not included in the average volume calculation as they are not interest bearing liabilities. They are included within the non-interest bearing liabilities section above. |
(in thousands) | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Average interest earning assets |
$ | 1,318,992 | $ | 1,235,221 | $ | 1,078,887 | ||||||
Average interest bearing liabilities |
996,817 | 967,563 | 858,069 | |||||||||
|
|
|
|
|
|
|||||||
Net average interest earning assets |
$ | 322,175 | $ | 267,658 | $ | 220,818 | ||||||
|
|
|
|
|
|
(in thousands) | ||||||||||||||||||||||||
2021 Change from 2020 | 2020 Change from 2019 | |||||||||||||||||||||||
Volume | Rate | Total | Volume | Rate | Total | |||||||||||||||||||
INTEREST INCOME |
||||||||||||||||||||||||
Loans |
$ | 314 | 33 | $ | 347 | $ | 6,959 | $ | 2,181 | $ | 9,140 | |||||||||||||
Taxable securities |
(17 | ) | (3,380 | ) | (3,397 | ) | 268 | (620 | ) | (352 | ) | |||||||||||||
Non-Taxable securities |
2,312 | (840 | ) | 1,472 | (928 | ) | (94 | ) | (1,022 | ) | ||||||||||||||
Federal funds sold and other |
(5 | ) | (190 | ) | (195 | ) | 703 | (6 | ) | 697 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
TOTAL INTEREST INCOME |
$ | 2,605 | $ | (4,378 | ) | $ | (1,773 | ) | $ | 7,002 | $ | 1,461 | $ | 8,463 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
INTEREST EXPENSE |
||||||||||||||||||||||||
Interest-bearing demand deposits |
$ | 259 | (1,997 | ) | (1,738 | ) | $ | 196 | $ | 2,141 | 2,337 | |||||||||||||
Savings deposits |
29 | (20 | ) | 9 | 1 | 16 | 17 | |||||||||||||||||
Time deposits |
203 | (771 | ) | (568 | ) | 663 | 3,027 | 3,690 | ||||||||||||||||
Short-term borrowings |
(257 | ) | (212 | ) | (469 | ) | 73 | 255 | 328 | |||||||||||||||
Long-term borrowings |
— | 353 | 353 | — | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
TOTAL INTEREST EXPENSE |
$ | 233 | $ | (2,646 | ) | (2,413 | ) | $ | 933 | $ | 5,439 | 6,372 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
NET INTEREST INCOME |
$ | 2,371 | $ | (1,731 | ) | $ | 640 | $ | 6,070 | $ | (3,979 | ) | $ | 2,091 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
• | to make loans after sound and thorough credit analysis; |
• | to properly document all loans; |
• | to eliminate loans from the portfolio that are underpriced, high risk or difficult and costly to administer; |
• | to seek good relationships with the customer; |
• | to avoid undue concentrations of loans; and |
• | to keep non-accrual loans to a minimum by aggressive collection policies. |
AT DECEMBER 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Commercial, financial and agricultural |
$ | 387,475 | $ | 472,094 | $ | 357,789 | $ | 285,420 | $ | 267,767 | ||||||||||
Real estate - construction |
71,898 | 48,831 | 81,197 | 41,134 | 25,923 | |||||||||||||||
Real estate - mortgage |
98,525 | 117,584 | 122,014 | 88,747 | 95,925 | |||||||||||||||
Consumer |
13,949 | 13,748 | 16,075 | 14,021 | 15,990 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
TOTAL LOANS |
$ | 571,847 | $ | 652,257 | $ | 577,075 | $ | 429,322 | $ | 405,605 | ||||||||||
|
|
|
|
|
|
|
|
|
|
1 YEAR | 1 - 5 | 5 - 15 | AFTER 15 | |||||||||||||||||
OR LESS | YEARS | YEARS | YEARS | Total | ||||||||||||||||
Commercial, financial and agricultural |
$ | 56,190 | $ | 242,719 | $ | 68,793 | $ | 19,773 | $ | 387,475 | ||||||||||
Real estate - construction |
16,242 | 35,438 | 12,357 | 7,861 | $ | 71,898 | ||||||||||||||
Real estate - mortgage |
14,146 | 68,314 | 16,065 | — | $ | 98,525 | ||||||||||||||
Consumer |
4,805 | 8,324 | 820 | — | $ | 13,949 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total loans |
$ | 91,383 | $ | 354,795 | $ | 98,035 | $ | 27,634 | $ | 571,847 | ||||||||||
|
|
|
|
|
|
|
|
|
|
1 - 5 | OVER 5 | |||||||
YEARS | YEARS | |||||||
Fixed rates |
$ | 401,699 | $ | 64,897 | ||||
Variable rates |
44,479 | 60,772 | ||||||
|
|
|
|
|||||
Total loans |
$ | 446,178 | $ | 125,669 | ||||
|
|
|
|
(in thousands except for percentage amounts) | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
BALANCE AT BEGINNING OF YEAR |
$ | 4,735 | $ | 3,755 | $ | 3,372 | $ | 3,019 | $ | 3,903 | ||||||||||
LOANS CHARGED-OFF |
||||||||||||||||||||
Commercial, financial and agricultural |
775 | 272 | 176 | 35 | 166 | |||||||||||||||
Real estate—construction |
36 | 37 | — | 74 | 112 | |||||||||||||||
Real estate—mortgage |
— | 304 | 46 | 133 | 57 | |||||||||||||||
Consumer |
1,327 | 104 | 138 | 146 | 102 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
TOTAL CHARGE-OFFS |
2,138 | 717 | 360 | 388 | 437 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
CHARGE-OFFS RECOVERED |
||||||||||||||||||||
Commercial, financial and agricultural |
67 | 65 | 91 | 219 | 2 | |||||||||||||||
Real estate—construction |
9 | 43 | 18 | 19 | 14 | |||||||||||||||
Real estate—mortgage |
76 | 61 | 14 | 81 | 16 | |||||||||||||||
Consumer |
355 | 43 | 47 | 88 | 64 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
TOTAL RECOVERIES |
507 | 212 | 170 | 407 | 96 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net loans charged-off |
1,631 | 505 | 190 | (19 | ) | 341 | ||||||||||||||
Additions charged to operating expense |
1,409 | 1,485 | 573 | 334 | (543 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
BALANCE AT END OF YEAR |
$ | 4,513 | $ | 4,735 | $ | 3,755 | $ | 3,372 | $ | 3,019 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Loans, net of unearned, at year end |
$ | 571,847 | $ | 652,256 | $ | 577,067 | $ | 429,277 | $ | 406,605 | ||||||||||
Ratio of allowance to loans at year end |
0.79 | % | 0.73 | % | 0.65 | % | 0.79 | % | 0.74 | % | ||||||||||
Average loans—net of unearned |
$ | 629,186 | $ | 622,805 | $ | 561,483 | $ | 418,136 | $ | 395,217 | ||||||||||
Ratio of net loans charged-off to average loans |
0.26 | % | 0.08 | % | 0.03 | % | 0.00 | % | 0.09 | % |
(in thousands) | ||||||||||||||||||||
AT DECEMBER 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Commercial, financial and agricultural |
$ | 3,009 | $ | 3,576 | $ | 2,692 | $ | 2,295 | $ | 1,550 | ||||||||||
Real estate—construction |
464 | 267 | 192 | 139 | 120 | |||||||||||||||
Real estate—mortgage |
794 | 653 | 566 | 417 | 821 | |||||||||||||||
Consumer |
246 | 239 | 305 | 521 | 528 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
$ | 4,513 | $ | 4,735 | $ | 3,755 | $ | 3,372 | $ | 3,019 | ||||||||||
|
|
|
|
|
|
|
|
|
|
AT DECEMBER 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Commercial, financial and agricultural |
67.76 | % | 72.38 | % | 62.00 | % | 66.48 | % | 66.02 | % | ||||||||||
Real estate—construction |
12.57 | % | 7.49 | % | 14.07 | % | 9.58 | % | 6.39 | % | ||||||||||
Real estate—mortgage |
17.23 | % | 18.03 | % | 21.14 | % | 20.67 | % | 23.65 | % | ||||||||||
Consumer |
2.44 | % | 2.11 | % | 2.79 | % | 3.27 | % | 3.94 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
100.00 | % | 100.00 | % | 100.00 | % | 100.00 | % | 100.00 | % | |||||||||||
|
|
|
|
|
|
|
|
|
|
(in thousands, except percentages) | ||||||||||||||||||||
As of December 31, |
||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
PRINCIPAL BALANCE |
||||||||||||||||||||
Non-accrual |
$ | 3,826 | $ | 8,484 | $ | 12,026 | $ | 9,839 | $ | 7,582 | ||||||||||
Accruing loans 90 days or more past due |
154 | 14 | 274 | 73 | 807 | |||||||||||||||
Troubled debt restructurings |
213 | 2,113 | 2,495 | 2,782 | 3,047 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
TOTAL NON-PERFORMING LOANS |
$ | 4,193 | $ | 10,611 | $ | 14,795 | $ | 12,694 | $ | 11,436 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income on non-accrual loans not recorded |
$ | 281 | $ | 395 | $ | 555 | $ | 429 | $ | 413 | ||||||||||
Non-performing as a percent of loans |
0.73 | % | 1.63 | % | 2.56 | % | 2.96 | % | 2.81 | % | ||||||||||
Non-accrual as a percent of loans |
0.67 | % | 1.30 | % | 2.08 | % | 2.29 | % | 1.86 | % | ||||||||||
Other real estate owned |
$ | 2,475 | $ | 3,073 | $ | 3,552 | $ | 3,440 | $ | 3,980 | ||||||||||
OREO as a percent of loans |
0.43 | % | 0.47 | % | 0.62 | % | 0.80 | % | 0.98 | % | ||||||||||
Allowance as a percent of non-performing loans |
107.63 | % | 44.62 | % | 25.38 | % | 26.56 | % | 26.40 | % | ||||||||||
Allowance as a percent of non-accrual loans |
117.96 | % | 55.81 | % | 31.22 | % | 34.27 | % | 39.82 | % |
AT DECEMBER 31, |
||||||||||||
2021 | 2020 | 2019 | ||||||||||
Commercial, financial and agricultural |
$ | 1,396 | $ | 6,659 | $ | 10,296 | ||||||
Real estate—construction |
171 | — | — | |||||||||
Real estate—mortgage |
767 | 1,016 | 839 | |||||||||
|
|
|
|
|
|
|||||||
Total loans |
$ | 2,334 | $ | 7,675 | $ | 11,135 | ||||||
|
|
|
|
|
|
(in thousands) | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
SECURITIES AVAILABLE-FOR-SALE |
||||||||||||
U. S. Government Agencies |
$ | 4,969 | $ | 11,870 | $ | 97,400 | ||||||
Mortgage Backed Securities |
411,729 | 560,033 | 308,310 | |||||||||
State, County and Municipal Obligations |
230,359 | 100,823 | 59,724 | |||||||||
Other Securities |
500 | 500 | — | |||||||||
|
|
|
|
|
|
|||||||
TOTAL SECURITIES AVAILABLE-FOR-SALE |
$ | 647,557 | $ | 673,226 | $ | 465,434 | ||||||
|
|
|
|
|
|
1 year or less | 1 to 5 years | 5 to 10 years | over 10 years | |||||||||||||||||||||||||||||
Actual Balance |
Average Yield |
Actual Balance |
Average Yield |
Actual Balance |
Average Yield |
Actual Balance |
Average Yield |
|||||||||||||||||||||||||
AVAILABLE-FOR-SALE |
||||||||||||||||||||||||||||||||
U. S. Government Agencies |
$ | — | — | $ | — | — | $ | — | — | $ | 4,969 | 1.74 | % | |||||||||||||||||||
Mortgage Backed Securities (1) |
— | — | — | — | 21,964 | 1.39 | % | 389,765 | 1.36 | % | ||||||||||||||||||||||
State, County and Municipal (2) |
216 | 1.73 | % | 1,895 | 3.10 | % | 4,228 | 3.44 | % | 224,020 | 2.38 | % | ||||||||||||||||||||
Other Securities |
— | — | — | — | — | — | 500 | — | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
TOTAL AVAILABLE-FOR-SALE |
$ | 216 | 1.73 | % | $ | 1,895 | 3.10 | % | $ | 26,192 | 1.72 | % | $ | 619,254 | 1.73 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
The maturities for the mortgage backed securities included in this line item are based on final maturity. |
(2) |
Average yields were calculated on tax equivalent basis using a marginal federal income tax rate of 21% and a state tax rate of 5%. |
2021 | 2020 | 2019 | ||||||||||||||||||||||
Average | Average | Average | Average | Average | Average | |||||||||||||||||||
Balance | Rate | Balance | Rate | Balance | Rate | |||||||||||||||||||
Noninterest-bearing |
$ | 291,248 | $ | 236,881 | $ | 192,672 | ||||||||||||||||||
Interest-bearing demand |
487,894 | 0.27 | % | 449,828 | 0.68 | % | 381,635 | 0.91 | % | |||||||||||||||
Savings |
118,063 | 0.10 | % | 93,886 | 0.12 | % | 79,886 | 0.16 | % | |||||||||||||||
Time deposits |
245,886 | 1.13 | % | 231,832 | 1.45 | % | 274,597 | 1.90 | % | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
$ | 1,143,091 | 0.50 | % | $ | 1,012,427 | 0.84 | % | $ | 928,790 | 1.20 | % | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
AS OF DECEMBER 31, 2021 | ||||
3 months or less |
$ | 26,641 | ||
3 through 12 months |
21,516 | |||
1 year to 3 years |
11,072 | |||
over 3 years |
9,041 | |||
|
|
|||
$ | 68,270 | |||
|
|
As of December 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Short-term borrowings |
||||||||||||
Year-end balance |
$ | 112,760 | $ | 221,272 | $ | 170,410 | ||||||
Weighted average rate |
0.36 | % | 0.39 | % | 1.05 | % | ||||||
Maximum month-end balance |
$ | 219,876 | $ | 265,177 | $ | 181,347 | ||||||
Year to date average balance |
$ | 135,282 | $ | 192,017 | $ | 121,951 | ||||||
Weighted average rate |
0.30 | % | 0.45 | % | 1.62 | % |
(in thousands) | ||||
2021 | ||||
Less than one year |
$ | — | ||
One year to three years |
18,000 | |||
Over three years |
— | |||
|
|
|||
Total long-term borrowings |
$ | 18,000 | ||
|
|
% CHANGE | % CHANGE | |||||||||||||||||||
2021 | FROM ‘20 | 2020 | FROM ‘19 | 2019 | ||||||||||||||||
NON-INTEREST INCOME |
||||||||||||||||||||
Service charges on deposit accounts |
$ | 3,499 | 4.39 | % | $ | 3,352 | -24.04 | % | $ | 4,413 | ||||||||||
Other operating income |
8,689 | 22.24 | % | 7,108 | 33.23 | % | 5,335 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
TOTAL NON-INTEREST INCOME |
$ | 12,188 | 16.52 | % | $ | 10,460 | 7.30 | % | $ | 9,748 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
NON-INTEREST EXPENSE |
||||||||||||||||||||
Salaries and employee benefits |
$ | 18,460 | 5.63 | % | $ | 17,476 | 17.42 | % | $ | 14,883 | ||||||||||
Occupancy expense, including equipment |
7,135 | -3.06 | % | 7,360 | 40.32 | % | 5,245 | |||||||||||||
Other operating expense |
9,753 | 13.54 | % | 8,590 | 15.61 | % | 7,430 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
TOTAL NON-INTEREST EXPENSE |
$ | 35,348 | 5.75 | % | $ | 33,426 | 21.29 | % | $ | 27,558 | ||||||||||
|
|
|
|
|
|
|
|
|
|
2021 | 2020 | |||||||||||||||||||||||
Average | Increase/(decrease) | Average | Increase/(decrease) | |||||||||||||||||||||
Balance | Amount | Percent | Balance | Amount | Percent | |||||||||||||||||||
FUNDING USES |
||||||||||||||||||||||||
Loans, net of unearned income |
$ | 628,618 | $ | 6,309 | 1.01 | % | $ | 622,309 | $ | 61,421 | 10.95 | % | ||||||||||||
Taxable securities |
496,946 | (1,070 | ) | -0.21 | % | 498,016 | 109,526 | 28.19 | % | |||||||||||||||
Tax-exempt securities |
148,977 | 79,386 | 114.08 | % | 69,591 | (9,252 | ) | -11.73 | % | |||||||||||||||
Federal funds sold and other |
44,451 | (854 | ) | -1.89 | % | 45,305 | (5,361 | ) | -10.58 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
TOTAL USES |
$ | 1,318,992 | $ | 83,771 | 6.78 | % | $ | 1,235,221 | $ | 156,334 | 14.49 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
FUNDING SOURCES |
||||||||||||||||||||||||
Noninterest-bearing deposits |
$ | 291,248 | $ | 54,367 | 22.95 | % | $ | 236,881 | $ | 44,209 | 22.95 | % | ||||||||||||
Interest-bearing demand and savings deposits |
605,957 | 62,243 | 11.45 | % | 543,714 | 82,193 | 17.81 | % | ||||||||||||||||
Time deposits |
245,886 | 14,054 | 6.06 | % | 231,832 | (42,765 | ) | -15.57 | % | |||||||||||||||
Short-term borrowings |
6,075 | (4,243 | ) | -41.12 | % | 10,318 | 8,835 | 595.75 | % | |||||||||||||||
Commercial repo |
129,207 | (52,492 | ) | -28.89 | % | 181,699 | 57,355 | 46.13 | % | |||||||||||||||
Long-term debt |
9,692 | 9,692 | — | — | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
TOTAL SOURCES |
$ | 1,288,065 | $ | 83,621 | 6.94 | % | $ | 1,204,444 | $ | 149,827 | 14.21 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
At December 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Tier 1 capital |
||||||||||||
Shareholders’ equity |
$ | 105,900 | $ | 119,548 | $ | 112,800 | ||||||
Less: Intangibles |
(13,420 | ) | (13,502 | ) | (13,856 | ) | ||||||
Less: DTA related to NOLs |
(94 | ) | (267 | ) | (1,000 | ) | ||||||
Add/less: Unrealized loss/(gain) on securities |
11,795 | (4,139 | ) | 789 | ||||||||
|
|
|
|
|
|
|||||||
TOTAL TIER 1 CAPITAL |
$ | 104,181 | $ | 101,640 | $ | 98,733 | ||||||
|
|
|
|
|
|
|||||||
Total capital |
||||||||||||
Tier 1 capital |
$ | 104,181 | $ | 101,640 | $ | 98,733 | ||||||
Allowable allowance for loan losses |
4,513 | 4,735 | 3,755 | |||||||||
|
|
|
|
|
|
|||||||
TOTAL CAPITAL |
$ | 108,694 | $ | 106,375 | $ | 102,488 | ||||||
|
|
|
|
|
|
|||||||
RISK WEIGHTED ASSETS |
$ | 791,529 | $ | 809,754 | $ | 712,154 | ||||||
|
|
|
|
|
|
|||||||
AVERAGE ASSETS (FOURTH QUARTER) |
$ | 1,335,780 | $ | 1,406,885 | $ | 1,185,397 | ||||||
|
|
|
|
|
|
|||||||
TIER 1 LEVERAGE RATIO |
7.80 | % | 7.22 | % | 8.33 | % | ||||||
|
|
|
|
|
|
|||||||
COMMON EQUITY TIER 1 CAPITAL RATIO |
7.80 | % | 7.22 | % | 8.33 | % | ||||||
|
|
|
|
|
|
|||||||
TIER 1 RISK-BASED CAPITAL RATIO |
13.16 | % | 12.55 | % | 13.86 | % | ||||||
|
|
|
|
|
|
|||||||
TOTAL RISK-BASED CAPITAL RATIO |
13.73 | % | 13.14 | % | 14.39 | % | ||||||
|
|
|
|
|
|
Interest Sensitive Within | ||||||||
90 days | One year | |||||||
Total rate sensitive assets |
$ | 181,344 | $ | 138,005 | ||||
Total rate sensitive liabilities |
247,514 | 72,765 | ||||||
|
|
|
|
|||||
Net gap |
$ | (66,170 | ) | $ | 65,240 | |||
|
|
|
|
2022 | 2023 | 2024 | 2025 | 2026 | Thereafter | Carrying Value |
Fair Value |
|||||||||||||||||||||||||
Loans |
||||||||||||||||||||||||||||||||
Fixed Rate |
$ | 86,477 | $ | 70,633 | $ | 72,739 | $ | 84,030 | $ | 87,820 | $ | 64,897 | $ | 466,596 | $ | 453,886 | ||||||||||||||||
Average Int Rate |
4.50 | % | 4.61 | % | 5.01 | % | 4.05 | % | 3.77 | % | 3.96 | % | 4.30 | % | ||||||||||||||||||
Floating Rate |
$ | 4,892 | $ | 6,893 | $ | 22,578 | $ | 1,737 | $ | 8,379 | $ | 60,772 | $ | 105,251 | $ | 105,251 | ||||||||||||||||
Average Int Rate |
4.31 | % | 3.62 | % | 3.96 | % | 4.24 | % | 3.90 | % | 4.57 | % | 4.31 | % | ||||||||||||||||||
Investment securities |
||||||||||||||||||||||||||||||||
Fixed Rate |
$ | 217 | $ | 225 | — | $ | 1,535 | $ | 136 | $ | 644,947 | $ | 647,060 | $ | 631,835 | |||||||||||||||||
Average Int Rate |
1.73 | % | 1.87 | % | — | 4.66 | % | 2.78 | % | 2.39 | % | 2.40 | % | |||||||||||||||||||
Floating Rate |
||||||||||||||||||||||||||||||||
Average Int Rate |
||||||||||||||||||||||||||||||||
Other earning assets |
||||||||||||||||||||||||||||||||
Fixed Rate |
||||||||||||||||||||||||||||||||
Average Int Rate |
||||||||||||||||||||||||||||||||
Floating Rate |
$ | 68,563 | $ | 68,563 | $ | 68,563 | ||||||||||||||||||||||||||
Average Int Rate |
0.08 | % | 0.08 | % | ||||||||||||||||||||||||||||
Interest-bearing deposits |
||||||||||||||||||||||||||||||||
Fixed Rate |
$ | 731,503 | $ | 37,498 | $ | 32,734 | $ | 3,057 | $ | 4,393 | $ | 809,185 | $ | 809,276 | ||||||||||||||||||
Average Int Rate |
0.32 | % | 0.78 | % | 1.00 | % | 0.66 | % | 0.48 | % | 0.37 | % | ||||||||||||||||||||
Floating Rate |
||||||||||||||||||||||||||||||||
Average Int Rate |
||||||||||||||||||||||||||||||||
Other int-bearing liabilities |
||||||||||||||||||||||||||||||||
Fixed Rate |
||||||||||||||||||||||||||||||||
Average Int Rate |
||||||||||||||||||||||||||||||||
Floating Rate |
$ | 112,760 | $ | 18,000 | $ | 130,760 | $ | 130,760 | ||||||||||||||||||||||||
Average Int Rate |
0.36 | % | 3.59 | % | 0.80 | % |
2021 | 2022 | 2023 | 2024 | 2025 | Thereafter | Carrying Value |
Fair Value |
|||||||||||||||||||||||||
Loans |
||||||||||||||||||||||||||||||||
Fixed Rate |
$ | 91,241 | $ | 85,106 | $ | 88,745 | $ | 100,155 | $ | 122,545 | $ | 75,479 | $ | 563,271 | $ | 557,032 | ||||||||||||||||
Average Int Rate |
4.74 | % | 3.48 | % | 4.63 | % | 5.14 | % | 4.01 | % | 4.00 | % | 4.35 | % | ||||||||||||||||||
Floating Rate |
$ | 12,223 | $ | 7,700 | $ | 4,469 | $ | 13,150 | $ | 2,027 | $ | 49,417 | $ | 88,986 | $ | 88,986 | ||||||||||||||||
Average Int Rate |
3.52 | % | 4.63 | % | 3.88 | % | 4.57 | % | 4.49 | % | 4.62 | % | 4.42 | % | ||||||||||||||||||
Investment securities |
||||||||||||||||||||||||||||||||
Fixed Rate |
$ | 5,375 | $ | 228 | $ | 240 | $ | 2,501 | $ | 664,882 | $ | 673,226 | $ | 678,749 | ||||||||||||||||||
Average Int Rate |
2.41 | % | 1.80 | % | 1.99 | % | 3.89 | % | 0.56 | % | 2.30 | % | ||||||||||||||||||||
Floating Rate |
||||||||||||||||||||||||||||||||
Average Int Rate |
||||||||||||||||||||||||||||||||
Other earning assets |
||||||||||||||||||||||||||||||||
Fixed Rate |
||||||||||||||||||||||||||||||||
Average Int Rate |
||||||||||||||||||||||||||||||||
Floating Rate |
$ | 25,468 | $ | 25,468 | $ | 25,468 | ||||||||||||||||||||||||||
Average Int Rate |
0.98 | % | 0.98 | % | ||||||||||||||||||||||||||||
Interest-bearing deposits |
||||||||||||||||||||||||||||||||
Fixed Rate |
$ | 736,611 | $ | 48,684 | $ | 17,603 | $ | 13,069 | $ | 3,189 | $ | 819,156 | $ | 820,487 | ||||||||||||||||||
Average Int Rate |
0.67 | % | 1.67 | % | 1.42 | % | 2.04 | % | 0.68 | % | 1.16 | % | ||||||||||||||||||||
Floating Rate |
||||||||||||||||||||||||||||||||
Average Int Rate |
||||||||||||||||||||||||||||||||
Other int-bearing liabilities |
||||||||||||||||||||||||||||||||
Fixed Rate |
||||||||||||||||||||||||||||||||
Average Int Rate |
||||||||||||||||||||||||||||||||
Floating Rate |
$ | 221,272 | $ | 221,272 | $ | 221,272 | ||||||||||||||||||||||||||
Average Int Rate |
0.39 | % | 0.39 | % |
1 - 90 Days |
91 - 365 Days |
1 - 5 Years |
Over 5 years |
Total | ||||||||||||||||
INTEREST EARNING ASSETS |
||||||||||||||||||||
Loans |
$ | 96,302 | $ | 99,117 | $ | 344,159 | $ | 27,950 | $ | 567,528 | ||||||||||
Investment securities |
16,479 | 38,888 | 145,764 | 447,687 | 648,818 | |||||||||||||||
Interest Bearing Due From Bank Accounts |
68,563 | — | — | — | 68,563 | |||||||||||||||
Federal funds sold |
— | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
TOTAL INTEREST BEARING ASSETS |
$ | 181,344 | $ | 138,005 | $ | 489,923 | $ | 475,637 | $ | 1,284,909 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
INTEREST BEARING LIABILITIES |
||||||||||||||||||||
Interest bearing demand deposits |
$ | 99,289 | $ | — | $ | 132,385 | $ | 165,482 | $ | 397,156 | ||||||||||
Savings and Money Market deposits |
57,311 | — | 93,606 | 31,380 | 182,297 | |||||||||||||||
Time deposits |
79,638 | 72,765 | 77,732 | — | 230,135 | |||||||||||||||
Short term borrowings |
11,276 | — | 67,656 | 33,828 | 112,760 | |||||||||||||||
Long term borrowings |
— | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
TOTAL INTEREST BEARING LIABILITIES |
$ | 247,514 | $ | 72,765 | $ | 371,379 | $ | 230,690 | $ | 922,348 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Rate sensitive gap |
$ | (66,170 | ) | $ | 65,240 | $ | 118,544 | $ | 244,947 | $ | 362,561 | |||||||||
Rate sensitive cumulative gap |
(66,170 | ) | (930 | ) | 117,614 | 362,561 | — | |||||||||||||
Cumulative gap as a percentage of total earning assets |
-5.15 | % | -0.07 | % | 9.15 | % | 28.22 | % |
2016 | 2017 | 2018 | 2019 | 2020 | 2021 | |||||||||||||||||||
Citizens Holding Company |
100.00 | 93.05 | 88.39 | 96.48 | 96.48 | 90.88 | ||||||||||||||||||
NASDAQ Market Index |
100.00 | 129.64 | 125.96 | 172.18 | 249.51 | 304.85 | ||||||||||||||||||
S&P 500 Regional Banks |
100.00 | 117.43 | 96.08 | 130.11 | 124.21 | 174.55 |
Pam Garrett | ||
Greg McKee | Network Services Manager | |
President and CEO | ||
Pat Stokes | ||
Phillip R. Branch | Assistant Vice President, Operations Officer | |
Senior Vice President, CFO | ||
Scott Lewis | ||
Mark Taylor | Assistant Vice President, Information Security Officer | |
Senior Vice President, COO, Trust Officer | ||
Sam Mars | ||
Ray Stone | Assistant Vice President | |
Senior Vice President, Chief Credit Officer | ||
Shon Kirkland | ||
Ledale Reynolds | Assistant Vice President, Security Officer/ Facilities Manager | |
Senior Vice President and CIO | ||
Liz Owen | Charles Wilkerson | |
Senior Vice President, Director of | Assistant Vice President, Loan Operations Officer | |
Human Resources, Chief Risk Officer | ||
Greg Jackson | ||
Jackie Hester | Accounting Officer | |
Vice President, Marketing Officer | ||
Reaghan Jenkins | ||
Pam Lewis | Accounting Officer | |
Assistant Vice President, Collections Manager | ||
Deborah Ladd | ||
Jean T. Fulton | Item Processing Officer | |
Vice President, Internal Auditor | ||
Sandra Curtis | ||
Brad Copeland | Assistant Cashier, Teller Administrator | |
Vice President, Branch Manager | ||
Temika Triplett | ||
Mark Majure | Assistant Cashier, Electronic Services Officer | |
Vice President, Loan Review Officer | ||
Grant Comans | ||
Bob Posey | Assistance Vice President, Branch Manager | |
Vice President | ||
Jamie Shotts | ||
Mike Chandler | Vice President, Appraisal Review Officer | |
Vice President | ||
Carthage Branch | ||
Stacy Arnold | ||
Vice President, Compliance Officer | Billy Cook | |
Vice President | ||
Tabbetha Calvert | ||
Vice President, BSA Officer | Tonya Dorman | |
Deposit Operations Officer | ||
Joshua Sullivan | ||
Vice President, Senior Credit Analyst | Sebastopol Branch | |
Ashley Peebles | Connie Comans | |
Vice President, Director of Deposit Services | Branch President | |
Sommer Vick | Union and Decatur Branches | |
Assistant Vice President, Assistant Trust Officer | ||
Susan Brown | ||
Mitch Peden | Deposit Operations Officer | |
Assistant Vice President, Information Services Manager | ||
Kosciusko Branch | ||
Teresa Patterson | ||
Vice President, Branch Manager |
Scooba and DeKalb Branches |
Biloxi Cedar Lake and Lemoyne Branches | |
Reggie Moore | Travis Moore | |
Assistant Vice President, Branch Manager | Vice President, Regional Commercial Lender | |
Jan White | Tammy Warren | |
Branch Operations Officer | Assistant Vice President, Mortgage Loan Officer | |
Forest Branch |
Katie Hancock | |
Vice President, Branch Manager | ||
Lawanda McCaughn | ||
Deposit Operation Officer | Mandy Dawson | |
Treasury Management Officer | ||
Louisville Branch |
||
Mortgage Loan Department | ||
Bruce Lee | ||
Market President – Winston County | Charlene Deweese | |
Assistant Vice President, Mortgage Loan Officer | ||
Lynn Graham | ||
Assistant Vice President, Branch Operations Officer | Oxford Branch | |
Starkville Branch |
Marion Boyd | |
Vice President, Regional Commercial Lender | ||
Rhonda Edmonson | ||
Assistant Vice President, Branch Manager | Pascagoula Branch | |
Collinsville Branch |
Gregory E. Cronin | |
Gulf Coast President | ||
Mike Shelby | ||
Vice President, Branch Manager | Ford Kinsey | |
Vice President, Senior Credit & Special Assets Officer | ||
Meridian Eastgate and Broadmoor Branches |
||
Paulette Roberts | ||
Jay Hines | Vice President, Senior Operations Officer | |
Vice President, Regional Commercial Lender | ||
Amber Thomas | ||
Tammara Hopson, | Vice President, Commercial Lender | |
Deposit Operations Officer | ||
Julius Bosco III | ||
Hattiesburg Branch |
Loan Compliance Officer | |
Chad Hill | Theresa Jenkins | |
Vice President, Branch Manager | Community Retail Officer | |
Tammy McAlpin | Ocean Springs Branch | |
Commercial Loan Portfolio Manager | ||
Melissa Ceasar | ||
Flowood Branch |
Community Retail Officer | |
George Gammon III | Sharon Wetzel | |
Metro Jackson President | Vice President, Information Technology Officer | |
Cory Bass | Reagan Bridley | |
Assistant Vice President, Accounting Officer | Vice President, Commercial Lender | |
Ridgeland Branch |
Thomas Graham | |
Vice President, Mortgage Loan Officer | ||
Daniel Webb | ||
Assistance Vice President | ||
Katrena Thompson | ||
Branch Operation Officer |
BOARD OF DIRECTORS |
||
Jason Voyles | Craig Dungan, MD | |
President & Chief Executive Officer | Physician | |
Spectrum Capital, LLC | Meridian Gastroenterology PLLC | |
Donald L. Kilgore | Greg L. McKee | |
Special Assistant Attorney General | President & Chief Executive Officer | |
State of Mississippi | Citizens Holding Company and The Citizens Bank | |
David A. King | ||
Proprietor | David P. Webb | |
Philadelphia Motor Company | Attorney | |
Baker, Donelson, Bearman, Caldwell & Berkowitz, PC | ||
Herbert A. King | ||
Civil Engineer | ||
King Engineering Associates, Inc. | Jane Crosswhite | |
Executive Vice President | ||
Adam Mars | Williams Brothers Inc. | |
Business Manager | ||
Mars, Mars & Mars | Terrell E. Winstead | |
Executive Vice President | ||
Gregory E. Cronin | Molpus Woodlands Group | |
Gulf Coast President | ||
Citizens Holding Company and The Citizens Bank | ||
CITIZENS HOLDING COMPANY OFFICERS |
||
Herbert A. King | ||
Chairman | ||
Greg L. McKee | ||
President and Chief Executive Officer | ||
Mark Taylor | ||
Secretary | ||
Phillip R. Branch | ||
Treasurer and Chief Financial Officer | ||
Gregory E. Cronin | ||
Gulf Coast President |
BANKING LOCATIONS |
||||
Philadelphia Main Office |
Collinsville Branch |
Decatur Branch | ||
521 Main Street | 9065 Collinsville Road | 15330 Hwy 15 South | ||
Philadelphia, MS 39350 | Collinsville, MS 39325 | Decatur, MS 39327 | ||
601.656.4692 | 601.626.7608 | 601.635.2321 | ||
Westside Branch |
Flowood Branch |
Forest Branch | ||
912 West Beacon Street | 2845 Lakeland Drive | 247 Woodland Drive North | ||
Philadelphia, MS 39350 | Flowood, MS 39232 | Forest, MS 39074 | ||
601.656.4692 | 601.992.7688 | 601.469.3424 | ||
Northside Branch |
Sebastopol Branch |
Louisville-Main Branch | ||
802 Pecan Avenue | 24 Pine Street | l00 East Main Street | ||
Philadelphia, MS 39350 | Sebastopol, MS 39359 | Louisville, MS 39339 | ||
601.656.4692 | 601.625.7447 | 662.773.6261 | ||
Eastside Branch |
DeKalb Branch |
Noxapater Branch | ||
599 East Main Street | 176 Main Avenue | 45 East Main Street | ||
Philadelphia, MS 39350 | DeKalb, MS 39328 | Noxapater, MS 39346 | ||
601.656.4692 | 601.743.2115 | 662.724.4261 | ||
Union Branch |
Kosciusko Branch |
Louisville-Industrial Branch | ||
502 Bank Street | 775 North Jackson Street | 803 South Church Street | ||
Union, MS 39365 | Kosciusko, MS 39090 | Louisville, MS 39339 | ||
601.774.9231 | 662.289.4356 | 662.773.6261 | ||
Starkville Branch |
Scooba Branch |
Biloxi Lemoyne Boulevard | ||
201 Highway 12 West | 27597 Highway 16 East | 15309 Lemoyne Boulevard | ||
Starkville, MS 39759 | Scooba, MS 39358 | Biloxi, MS 39532 | ||
662.323.1420 | 662.476.8431 | 228.207.2343 | ||
Carthage Main Office |
Meridian Eastgate |
Meridian Broadmoor | ||
301 West Main Street | 1825 Hwy 39 North | 5015 Highway 493 | ||
Carthage, MS 39051 | Meridian, MS 39301 | Meridian. MS 39305 | ||
601.257.4525 | 601.693.8367 | 601.581.1541 | ||
Biloxi Cedar Lakes |
Hattiesburg Branch |
Ridgeland Branch | ||
1830 Popps Ferry Road | 6222 Highway 98 | 320 Highway 51 North | ||
Biloxi, MS 39532 | Hattiesburg, MS 39402 | Ridgeland, MS 39157 | ||
228.594.6913 | 601.264.4425 | 601.519.4020 | ||
Oxford Branch |
Gulfport Branch |
Pascagoula Branch | ||
902 Sisk Avenue, Ste E | 12008 Hwy 49 | 1519 Jackson Ave | ||
Oxford, MS 38655 | Gulfport, MS 39503 | Pascagoula, MS 39567 |