Thomasville Bancshares : Annual Report of Audited Financial Statements as of December 31, 2021

THOMASVILLE BANCSHARES, INC.

AND SUBSIDIARY

CONSOLIDATED FINANCIAL REPORT

DECEMBER 31, 2021

THOMASVILLE BANCSHARES, INC.

AND SUBSIDIARY

CONSOLIDATED FINANCIAL REPORT

DECEMBER 31, 2021

TABLE OF CONTENTS

Page

INDEPENDENT AUDITOR'S REPORT ................................................................................................................... 1 and 2

CONSOLIDATED FINANCIAL STATEMENTS

Consolidated balance sheets ............................................................................................................................................. 3

Consolidated statements of income .................................................................................................................................. 4

Consolidated statements of comprehensive income ....................................................................................................... 5

Consolidated statements of stockholders' equity ............................................................................................................ 6

Consolidated statements of cash flows ............................................................................................................................ 7

Notes to consolidated financial statements .............................................................................................................. 8 - 46

INDEPENDENT AUDITOR'S REPORT

Board of Directors and Stockholders

Thomasville Bancshares, Inc. Thomasville, Georgia

Opinion

We have audited the accompanying consolidated financial statements of Thomasville Bancshares, Inc. and Subsidiary, which comprise the consolidated balance sheets as of December 31, 2021 and 2020, and the related consolidated statements of income, comprehensive income, stockholders' equity, and cash flows for the years then ended, and the related notes to the consolidated financial statements.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Thomasville Bancshares, Inc. and Subsidiary as of December 31, 2021 and 2020, and the results of their operations and their cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of Thomasville Bancshares, Inc. and Subsidiary and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about Thomasville Bancshares, Inc. and Subsidiary's ability to continue as a going concern within one year after the date that the consolidated financial statements are available to be issued.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements, including omissions, are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the consolidated financial statements.

2303 DAWSON ROAD • POST OFFICE BOX 71549 • ALBANY, GEORGIA 31708-1549 • 229-446-3600 • FAX [phone] •www.mjcpa.com

Members of The American Institute of Certified Public Accountants

In performing an audit in accordance with generally accepted auditing standards, we:

•  Exercise professional judgment and maintain professional skepticism throughout the audit.

•  Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements.

•  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Thomasville Bancshares, Inc. and its Subsidiary's internal control. Accordingly, no such opinion is expressed.

•  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the consolidated financial statements.

•  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about Thomasville Bancshares, Inc. and its Subsidiary's ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.

Albany, Georgia

March 18, 2022

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THOMASVILLE BANCSHARES, INC.

AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

DECEMBER 31, 2021 AND 2020

Assets

2021

2020

Cash and due from banks Interest-bearing deposits in other banks Securities available for sale, at fair value Restricted equity securities, at cost Other equity securities, at cost Loans held for sale

Loans

Less allowance for loan losses

Loans, net

Premises and equipment, net Bank owned life insurance Goodwill

Accrued interest receivable Other assets

Deposits

Noninterest-bearing Interest-bearing

Total deposits

Liabilities and Stockholders' Equity

Federal Home Loan Bank borrowings Note payable

Accrued interest payable Other liabilities

Total liabilities

Commitments and contingencies (Note 14)

Stockholders' equity

Preferred stock, par value $1.00; 2,000,000 shares authorized; 348,822 and 353,120 issued and outstanding, respectively Common stock, par value $1.00; 10,000,000 shares authorized; 6,035,572 and 6,024,918 issued and outstanding, respectively Paid-in capital

Retained earnings

Accumulated other comprehensive income (loss)

Total stockholders' equity

See Notes to Consolidated Financial Statements.

$

7,786,447 $ 5,690,953

175,793,418 96,843,325

137,334,819 96,994,177

2,907,550 3,934,150

240,000 1,461,157 1,126,262,513 25,497,516

240,000 2,613,659 1,016,502,979 22,464,318

1,100,764,997 994,038,661

14,305,553 11,615,285

5,000,000

-4,009,759 4,009,759

4,198,444 3,965,561

9,309,274 7,553,045

• $ 1,463,111,418

• $ 269,683,195

  $ 1,227,498,575

  $ 203,166,669

  1,025,215,621 858,040,161

  1,294,898,816

  1,061,206,830

  48,923,608 60,350,210

  1,600,000 1,600,000

  166,766 1,557,103 1,347,146,293

  250,796 1,324,945 1,124,732,781

  348,822

  353,120

  6,035,572 6,024,918

  13,656,182 12,920,510

  96,338,579 83,457,994

  (414,030) 115,965,125

• $ 1,463,111,418

9,252 102,765,794 $ 1,227,498,575

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