Note

– Mergers and Acquisitions –

January 1, 2018,

the Company completed the acquisition of Minden Bancorp, Inc. (MBI), and its wholly-owned subsidiary, MBL Bank, located in Minden, Louisiana, further increasing its presence in the Northwest Louisiana region. The Company paid aggregate cash consideration equal to

$56.2

million, or approximately

$23.20

in exchange for each share of MBI common stock outstanding immediately prior to the effective time of the acquisition. At

December 31, 2017,

MBI had fair values of approximately

$317.4

million in total assets,

$192.7

million in net loans,

$264.0

million in total deposits, and

$30.6

million in total shareholders’ equity, and was the leading financial institution in Webster Parish, part of the Shreveport-Bossier City MSA, through its

two

banking center locations.

Cost and Allocation of Purchase Price for Minden Bancorp, Inc. (MBI):
(Dollars in thousands, except per share data)

Purchase Price:
MBI Shares Outstanding at December 31, 2017	2,407,627
MBI Restricted Stock Awards Outstanding at December 31, 2017	1,480
MBI Shares Cashed Out Under Terms of Merger			2,409,107
Exchange Ratio			23.20
Cash Paid to Shareholders for Shares of Common Stock		$	55,891
MBI Stock Options Outstanding at December 31, 2017
17,822 Shares at $31.50 Less Strike Price
Cash Paid on MBI Options			296
Total Purchase Price		$	56,187
Net Assets Acquired:
Cash and Cash Equivalents		$	15,891
Securities Available for Sale			99,867
Loans and Leases Receivable			192,714
Premises and Equipment, Net			2,678
Cash Value of Life Insurance			741
Core Deposit Intangible			2,494
Other Assets			3,055
Total Assets			317,440

Deposits			263,951
Borrowings			21,047
Other Liabilities			1,858
Total Liabilities			286,856
Net Assets Acquired			30,584
Goodwill Resulting from Merger		$	25,603

After the close of business on

November 30, 2018,

the Company completed the acquisition of Richland State Bancorp, Inc. (RSBI), and its wholly-owned subsidiary, Richland State Bank, located in Rayville, Louisiana. The Company issued

1,679,559

shares of its common stock to the RSBI shareholders for a purchase price of

$42.4

million. At

November 30, 2018,

RSBI had fair values of approximately

$316.4

million in total assets,

$190.8

million in net loans,

$290.0

million in total deposits, and

$25.4

million in total shareholders’ equity.

Cost and Allocation of Purchase Price for Richland State Bancorp, Inc. (RSBI):
(Dollars in thousands, except per share data)
Purchase Price:
Shares Issued to RSBI Shareholders on December 1, 2018		1,679,559
Closing Stock Price on November 30, 2018		25.29
Total Purchase Price	$	42,476
Net Assets Acquired:
Cash and Cash Equivalents	$	40,648
Securities Available for Sale		63,823
Loans and Leases Receivable		190,802
Premises and Equipment, Net		5,282
Cash Value of Life Insurance		7,260
Core Deposit Intangible		3,947
Other Assets		4,668
Total Assets		316,430

Deposits		289,979
Other Liabilities		1,074
Total Liabilities		291,053
Net Assets Acquired		25,377
Goodwill Resulting from Merger	$	17,099

June 28, 2019,

the Company sold a branch that was acquired in the RSBI acquisition. The sale resulted in a net gain of

$581,000

and reduced goodwill and core deposit intangible by

$1.3

million.

The following unaudited supplemental pro forma information is presented to reflect estimated results assuming MBI and RSBI were acquired as of

January 1, 2017.

These unaudited pro forma results are

not

necessarily indicative of the operating results that the Company would have achieved had the acquisitions been completed as of

January 1, 2017

and should

not

be considered representative of future operating results.

	For The Year Ended December 31,
	2018		2017
	(Dollars in thousands)
	(except per share data)

Interest Income	$	88,277	$	79,230
Interest Expense		15,132		9,308
Net Interest Income		73,145		69,922
Provision for Loan Losses		2,590		4,237
Net Interest Income after Provision for Loan Losses		70,555		65,685
Noninterest Income		11,496		8,705
Noninterest Expense		58,520		52,184
Income Before Income Taxes		23,531		22,206
Income Tax Expense		4,506		8,676
Net Income	$	19,025	$	13,530

Earnings Per Common Share
Basic	$	1.50	$	1.03
Diluted	$	1.45	$	1.01