Note J - Shareholders' Equity

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

NOTE J - SHAREHOLDERS' EQUITY:

Shareholders’ equity of the Company includes the undistributed earnings of the bank subsidiary. Dividends to the Company’s shareholders can generally be paid only from dividends paid to the Company by its bank subsidiary. Consequently, dividends are dependent upon the earnings, capital needs, regulatory policies and statutory limitations affecting the bank subsidiary. Dividends paid by the bank subsidiary are subject to the written approval of the Commissioner of Banking and Consumer Finance of the State of Mississippi and the Federal Deposit Insurance Corporation (the “FDIC”). At

December 31, 2019,

$13,703,377

of undistributed earnings of the bank subsidiary included in consolidated surplus and retained earnings was available for future distribution to the Company as dividends with regulatory approval. Dividends paid by the Company are subject to the written approval of the Federal Reserve Bank (“FRB”).

On

December 8, 2017,

the Board approved the repurchase of up to

110,000

of the outstanding shares of the Company’s common stock. As a result of this repurchase plan,

110,000

shares have been repurchased for approximately

$1,477,000

and retired through

December 31, 2018.

On

September 26, 2018,

the Board approved the repurchase of up to

70,000

of the outstanding shares of the Company’s common stock. As a result of this repurchase plan,

70,000

shares have been repurchased for approximately

$933,000

and retired through

December 31, 2018.

On

November 8, 2019,

the Board approved the repurchase of up to

65,000

of the outstanding shares of the Company’s common stock. As a result of this repurchase plan,

no

shares have been repurchased and retired through

December 31, 2019.

On

April 25, 2018

,

the Board declared a dividend of

$.01

per share payable

May 10, 2018

to shareholders of record as of

May 7, 2018.

On

September 26, 2018

,

the Board declared a dividend of

$.01

per share payable on

October 15, 2018

to shareholders of record as of

October 9, 2018

.

On

April 24, 2019

,

the Board declared a dividend of

$.01

per share payable

May 10, 2019

to shareholders of record as of

May 6, 2019

.

On

November 8, 2019

,

the Board declared a dividend of

$.02

per share payable on

November 25, 2019

to shareholders of record as of

November 20, 2019

.

The Company and the bank subsidiary are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by the regulators that, if undertaken, could have a direct material effect on the financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, specific capital guidelines must be met that involve quantitative measures of the assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification of the bank subsidiary and the Company are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

As of

December 31, 2019,

the most recent notification from the FDIC categorized the bank subsidiary as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the bank subsidiary must have a Total risk-based capital ratio of

10.00%

or greater, a Common equity tier

1

capital ratio of

6.50%

or greater, a Tier

1

risk-based capital ratio of

8.00%

or greater and a Leverage capital ratio of

5.00%

or greater. As of

January 1, 2019,

the Company must have a capital conservation buffer above these requirements of

2.50%.

There are

no

conditions or events since that notification that Management believes have changed the bank subsidiary’s category.

The Company’s actual capital amounts and ratios and required minimum capital amounts and ratios for

2019

and

2018,

are as follows (in thousands):

	Actual					For Capital Adequacy Purposes
	Amount		Ratio			Amount		Ratio
December 31, 2019:
Total Capital (to Risk Weighted Assets)	$	96,632		26.22	%	$	29,487		8.00	%
Common Equity Tier 1 Capital (to Risk Weighted Assets)		92,425		25.08	%		16,586		4.50	%
Tier 1 Capital (to Risk Weighted Assets)		92,425		25.08	%		22,115		6.00	%
Tier 1 Capital (to Average Assets)		92,425		15.26	%		24,230		4.00	%
December 31, 2018:
Total Capital (to Risk Weighted Assets)	$	95,627		25.30	%	$	30,240		8.00	%
Common Equity Tier 1 Capital (to Risk Weighted Assets)		90,894		24.05	%		17,010		4.50	%
Tier 1 Capital (to Risk Weighted Assets)		90,894		24.05	%		22,680		6.00	%
Tier 1 Capital (to Average Assets)		90,894		14.35	%		25,344		4.00	%

The bank subsidiary’s actual capital amounts and ratios and required minimum capital amounts and ratios and capital amounts and ratios to be well capitalized for

2019

and

2018,

are as follows (in thousands):

						For Capital					To Be Well
	Actual					Adequacy Purposes					Capitalized
	Amount		Ratio			Amount		Ratio			Amount		Ratio
December 31, 2019:
Total Capital (to Risk Weighted Assets)	$	93,228		25.48	%	$	29,274		8.00	%	$	36,592		10.00	%
Common Equity Tier 1 Capital (to Risk Weighted Assets)		89,021		24.33	%		16,466		4.50	%		23,785		6.50	%
Tier 1 Capital (to Risk Weighted Assets)		89,021		24.33	%		21,955		6.00	%		29,274		8.00	%
Tier 1 Capital (to Average Assets)		89,021		14.72	%		24,198		4.00	%		30,248		5.00	%
December 31, 2018:
Total Capital (to Risk Weighted Assets)	$	92,485		24.61	%	$	30,062		8.00	%	$	37,577		10.00	%
Common Equity Tier 1 Capital (to Risk Weighted Assets)		87,780		23.36	%		16,910		4.50	%		24,425		6.50	%
Tier 1 Capital (to Risk Weighted Assets)		87,780		23.36	%		22,546		6.00	%		30,062		8.00	%
Tier 1 Capital (to Average Assets)		87,780		14.11	%		24,884		4.00	%		31,105		5.00	%