Thomasville Bancshares : 2021 Annual Report Thomasville Bancshares

OUTSTANDING PERFORMANCE

THOMASVILLE BANCSHARES

OUR MISSION

The mission of Thomasville Bancshares, Inc. is to operate a sound and profitable company while serving the banking and investment needs of our community. Our goal is to protect our customers' deposits, conserve and enhance their investments, meet their credit needs, and promote economic development throughout our community. We strive to generate consistently strong returns on our shareholders' investment by employing the best bankers and providing an environment that encourages them to be decision makers and problem solvers. We intend to be the most successful financial institution in Georgia measured by long-term return to shareholders.

OUR HISTORY

Thomasville Bancshares, Inc., a Georgia corporation, was formed in March 1995 to act as the holding company for Thomasville National Bank. The Bank opened for business in October 1995, and presently operates two full-service banking offices in Thomasville, Georgia. In September 2010 the Bank opened a full service division in St. Simons Island, Georgia operating under the name St. Simons Bank & Trust. In April 2020 the Bank opened a full service division in Tallahassee, Florida operating under the name Tallahassee National Bank.

In 2021, Thomasville National Bank was ranked 4th nationally in American Banker Magazine's Top 200 Community Banks based on three year average return on average equity.

TABLE OF CONTENTS

LETTER TO SHAREHOLDERS 7

FINANCIAL HIGHLIGHTS 12

CONSOLIDATED STATEMENTS

BALANCE SHEETS 16

STATEMENTS OF INCOME 17

COMPREHENSIVE INCOME 18

STATEMENTS OF STOCKHOLDERS' EQUITY 19

STATEMENTS OF CASH FLOW 20

BOARD OF DIRECTORS AND OFFICERS 21

The Bank's Trust & Investment division, TNB Financial Services, was formed as an operating subsidiary in September 2001 as a Georgia corporation with trust powers. In July 2002 Thomasville Bancshares acquired Joseph Parker & Company, Inc., a Georgia corporation and federally registered investment advisory firm located in Thomasville. In March 2004 the two investment entities were merged and are now a division of Thomasville National Bank.

In 2010 TNBFS expanded its geographic footprint via "zero-cost" (revenue sharing) acquisition in College Station, Texas. Subsequent acquisitions were completed in Illinois, Ohio, South Carolina and Georgia.

Today, TNBFS has assets under review (trust, brokerage, custody, and investment management) totaling $3.9 billion, generating annual revenue of $15 million.

OUR BRANDS

While we have never had a defined expansion strategy,

we have been so fortunate to partner with talented and passionate bankers and investment professionals in other dynamic markets that strengthen the

TNB team and provide both product and market diversification. Today, TNB

Financial, St. Simons Bank & Trust and Tallahassee National Bank are all thriving, providing significant earnings in 2021 and providing our company

excellent opportunity for continued growth in the future.

At TNB, we believe our unique culture drives outstanding performance. From

A CULTURE OF EMPOWERMENT

FROM LEFT TO RIGHT:

HOLLIE W. LLOYD / EXECUTIVE VICE PRESIDENT, CFO JOEL W. BARRETT / PRESIDENT - TNBFS

CHARLES H. HODGES, III / PRESIDENT

the way that we make loans, to our work environment, we believe every

team member should be empowered to help the customer.

STEPHEN H. CHENEY / CHAIRMAN, CEO

PHILLIP H. DAVIS, Jr. / SENIOR VICE PRESIDENT - TNBFS HANK A. STONE / EXECUTIVE VICE PRESIDENT

TO OUR SHAREHOLDERS, CUSTOMERS, AND FRIENDS

After dealing with the unexpected challenges of 2020 we all hoped that things would return to normal in 2021, but many of the same issues persisted. Covid continued to impact our lives, both personally and professionally, interest rates remained at historically low levels, and unprecedented government stimulus presented an economy very challenging to navigate. Fortunately, our local economy remained strong and our talented TNB bankers - operating in our unique culture - once again generated outstanding results for our shareholders.

In order to out-perform our competitors consistently we must be willing to act and think differently. Most other banks today have identical processes and procedures and thus are basically indistinguishable. At TNB, we don't fit that mold. We empower our bankers at all levels to make decisions using their own good judgement in order to deliver exceptional customer service. Our loan officers make loan decisions using local knowledge and common sense. We are more committed than ever to keep unnecessary bureaucracy out of our business. This is our "culture". It is unique and it drives our success!

Below is a recap of our financial performance in 2021:

EARNINGS

WE DO THINGS DIFFERENTLY

At TNB, we don't fit a mold. We empower our bankers at all levels to make decisions and use judgement in order to deliver exceptional customer service. Our loan officers still make loan decisions using local knowledge and common sense. We are more committed than ever to keep unnecessary bureaucracy out of our business.

Net income for the year was up 19% to $23.1 million ($3.74 per share) compared to $19.4 million ($3.14 per share) in 2020. Return on average assets was 1.72% and return on equity was 21.11%. Historically low interest rates continued to negatively impact our net interest margin - our largest provider of earnings - negatively. Fortunately, the combination of significant growth in loans and deposits, no loan losses and excellent operating efficiency enabled us to overcome the margin compression and show a strong increase in earnings. We also generated record revenue and earnings from both our mortgage division and TNB Financial, our trust and investment subsidiary.

GROWTH

Year 2021 was a time of extraordinary growth for our Bank as it was for the most of the banking industry. Our total assets at year-end were $1.46 billion, compared to $1.23