EX-99.2 3 ex992-bthclose8xka.htm EX-99.2

Exhibit 99.2

B.T. HOLDINGS, INC. INDEX TO

CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Balance Sheets at June 30, 2022, and December 31, 2021			F-2
Consolidated Statements of Income for the three and six months ended June 30, 2022 and 2021			F-3
Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2022 and 2021			F-4
Consolidated Statements of Changes in Stockholders' Equity for the three and six months ended June 30, 2022 and 2021			F-5
Consolidated Statements of Cash Flows for the six months ended June 30, 2022 and 2021			F-6

F-1

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B.T. HOLDINGS, INC.

Consolidated Balance Sheets

(Dollars in thousands, except per share amounts)

			June 30, 2022						December 31, 2021
Assets			(Unaudited)						(Audited)
Cash and cash equivalents (1)			$	113,891					$	260,619
Investment securities available for sale			455,764						457,980
Loans, net of allowance for loan credit losses of $14,418 and $17,194 at June 30, 2022, and December 31, 2021, respectively			1,230,893						1,233,669
Loans held for sale			204						609
Premises and equipment, net			28,441						17,704
Other real estate owned			200						200
Restricted equity securities, at cost			5,873						5,873
Accrued interest receivable			8,923						8,320
Goodwill			14,191						14,191
Other assets (1)			13,891						2,890
Total assets			$	1,872,271					$	2,002,055
Liabilities and Stockholders' Equity
Noninterest-bearing deposits			$	384,875					$	381,418
Interest-bearing deposits			1,228,968						1,343,289
Total deposits			1,613,843						1,724,707
Securities sold under repurchase agreements			7,535						4,419
Junior subordinated debentures			7,217						7,217
Notes payable			37,650						45,576
Accrued interest payable			793						787
Other liabilities			16,776						3,371
Total liabilities			1,683,814						1,786,077
Stockholders' equity:
Common stock ($1.00 par value; 15,000,000 shares authorized; 12,037,909 and 12,036,777 shares issued at June 30, 2022, and December 31, 2021, respectively, 10,430,813 and 10,429,681 shares outstanding at June 30, 2022, and December 31, 2021, respectively)			12,038						12,037
Additional paid‑in capital			147,598						147,173
Retained earnings (1)			92,760						88,047
Treasury stock, 1,607,096 shares at both June 30, 2022, and December 31, 2021, respectively, at cost			(35,852)						(35,852)
KSOP commitment			(3,288)						(4,058)
Accumulated other comprehensive income			(24,799)						8,631
Total stockholders' equity			188,457						215,978
Total liabilities and stockholders' equity			$	1,872,271					$	2,002,055

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(1)Assumes BT Holdings expenses of $10.2 million, net of taxes, related to the acquisition were incurred.

F-2

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B.T. HOLDINGS, INC.

Consolidated Statements of Income

(Unaudited)

(Dollars in thousands, except per share amounts)

			Three Months Ended June 30,												Six Months Ended June 30,
			2022						2021						2022						2021
Interest and dividend income
Interest and fees on loans			$	15,166					$	14,349					$	30,209					$	29,213
Interest on investment securities
Investment securities-taxable			615						232						1,180						360
Investment securities-tax-exempt			1,505						1,367						2,926						2,718
Dividend income on restricted equity securities			76						100						154						151
Other			301						64						373						111
Total interest and dividend income			17,663						16,112						34,842						32,553
Interest expense
Interest on deposits			1,508						1,964						2,955						4,294
Interest on promissory notes			459						494						901						984
Interest on junior subordinated debentures			47						33						83						67
Interest on other borrowings			13						130						61						260
Total interest expense			2,027						2,621						4,000						5,605
Net interest income			15,636						13,491						30,842						26,948
Provision for credit losses			—						2,500						400						5,300
Net interest income after provision for credit losses			15,636						10,991						30,442						21,648
Noninterest income
Service charges and fees on deposits			653						614						1,276						1,161
Other income			109						87						242						224
Total noninterest income			762						701						1,518						1,385
Noninterest expense
Salaries and employee benefits			3,604						3,427						7,281						6,770
Occupancy and equipment expenses			957						973						1,913						1,948
Other expenses			2,074						1,801						4,451						3,516
Total noninterest expense			6,635						6,201						13,645						12,234
Income before income tax expense			9,763						5,491						18,315						10,799
Income tax expense			1,819						951						3,396						1,874
Net income			$	7,944					$	4,540					$	14,919					$	8,925
Basic earnings per common share			$	0.76					$	0.44					$	1.43					$	0.86
Diluted earnings per common share			0.72						0.42						1.36						0.82

F-3

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B.T. HOLDINGS, INC.

Consolidated Statements of Comprehensive Income

(Unaudited)

(Dollars in thousands)

			Three Months Ended June 30,												Six Months Ended June 30,
			2022						2021						2022						2021
Net income			$	7,944					$	4,540					$	14,919					$	8,925
Other comprehensive (loss) income, net of tax:
Unrealized holding (losses) gains on available-for-sale securities arising during the period			(16,385)						2,129						(33,430)						(1,640)
Other comprehensive (loss) income, net of tax			(16,385)						2,129						(33,430)						(1,640)
Comprehensive (loss) income			$	(8,441)					$	6,669					$	(18,511)					$	7,285

F-4

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B.T. HOLDINGS, INC.

Consolidated Statements of Changes in Stockholders' Equity

(Unaudited)

(Dollars in thousands, except per share amounts)

									Common Stock						Additional Paid-In Capital						Retained Earnings						Treasury Stock						KSOP Commitment						Accumulated Other Comprehensive Income (loss)						Total Stockholders' Equity
Balance at March 31, 2022									$	12,037					$	147,389					$	95,022					$	(35,852)					$	(3,439)					$	(8,414)					$	206,743
Net income									—						—						7,944						—						—						—						7,944
KSOP commitment									—						—						—						—						151						—						151
Exercise of stock options									1						(1)						—						—						—						—						—
Stock based compensation expenses									—						210						—						—						—						—						210
Other comprehensive (loss), net of tax									—						—						—						—						—						(16,385)						(16,385)
Balance at June 30, 2022									$	12,038					$	147,598					$	102,966					$	(35,852)					$	(3,288)					$	(24,799)					$	198,663
Balance at March 31, 2021									$	11,962					$	145,785					$	80,197					$	(35,852)					$	(3,784)					$	8,750					$	207,058
Net income									—						—						4,540						—						—						—						4,540
KSOP commitment									—						—						—						—						(541)						—						(541)
Exercise of stock options									8						84						—						—						—						—						92
Stock based compensation expenses									—						208						—						—						—						—						208
Other comprehensive income, net of tax									—						—						—						—						—						2,129						2,129
Balance at June 30, 2021									$	11,970					$	146,077					$	84,737					$	(35,852)					$	(4,325)					$	10,879					$	213,486
Balance at December 31, 2021									$	12,037					$	147,173					$	88,047					$	(35,852)					$	(4,058)					$	8,631					$	215,978
Net income									—						—						14,919						—						—						—						14,919
KSOP commitment									—						—						—						—						770						—						770
Exercise of stock options									1						5						—						—						—						—						6
Stock based compensation expenses									—						420						—						—						—						—						420
Other comprehensive (loss), net of tax									—						—						—						—						—						(33,430)						(33,430)
Balance at June 30, 2022									$	12,038					$	147,598					$	102,966					$	(35,852)					$	(3,288)					$	(24,799)					$	198,663
Balance at December 31, 2020									$	11,958					$	145,530					$	75,812					$	(34,604)					$	(4,368)					$	12,519					$	206,847
Net income									—						—						8,925						—						—						—						8,925
KSOP commitment									—						—						—						—						43						—						43
Exercise of stock options									12						133						—						—						—						—						145
Purchase of 56,738 shares of treasury stock									—						—						—						(1,248)						—						—						(1,248)
Stock based compensation expenses									—						414						—						—						—						—						414
Other comprehensive (loss), net of tax									—						—						—						—						—						(1,640)						(1,640)
Balance at June 30, 2021									$	11,970					$	146,077					$	84,737					$	(35,852)					$	(4,325)					$	10,879					$	213,486

F-5

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B.T. HOLDINGS, INC.

Consolidated Statements of Cash Flows

(Dollars in thousands)

			Six Months Ended June 30,
Cash flows from operating activities:			2022						2021
Net income			$	14,919					$	8,925
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			685						736
Net loss on disposals of premises and equipment			—						(31)
Provision for credit losses			400						5,300
Net amortization on securities			2,957						1,968
Stock-based compensation expense			420						414
Originations of mortgage loans held for sale			(99,503)						(99,400)
Proceeds from sale of loans			99,809						98,287
Net gains included in earnings, from loans held for sale			99						416
(Increase)/decrease in other assets			(365)						(824)
Decrease/(increase) in federal income tax receivable			643						(979)
(Increase)/decrease in accrued interest receivable			(603)						(652)
Decrease/(increase) in accrued interest payable			6						(250)
Increase in other liabilities			2,053						4,107
Net cash provided by operating activities			21,520						18,017
Cash flows from investing activities:
Acquisition of premises and equipment			(68)						(69)
Proceeds from sales of premises and equipment			—						36
Purchases of investment securities available for sale			(2,049,003)						(3,967,627)
Proceeds from sales, maturities, calls and pay downs of securities available for sale			2,005,946						3,994,450
Net decrease/(increase) in loans			2,376						(30,085)
Net cash used in investing activities			(40,749)						(3,295)
Cash flows from financing activities:
Net increase in non-interest bearing deposits			$	3,457					$	7,398
Net (decrease) in interest-bearing deposits			(114,321)						(33,433)
Net increase in securities sold under agreements to repurchase			3,116						(1,735)
Repayments of KSOP note payable			(383)						(196)
Change in KSOP commitment			770						43
Repayments of other notes payable			(4,994)						—
Proceeds from exercise of stock options			6						145
Retirement of subordinated promissory notes			(2,550)						(25)
Purchase of treasury stock			—						(1,248)
Net cash used in financing activities			(114,899)						(29,051)
Net decrease in cash and cash equivalents			(134,128)						(14,329)
Cash and cash equivalents at beginning of period			260,619						282,499
Cash and cash equivalents at end of period (1)			$	126,491					$	268,170
Interest paid			$	4,000					$	5,605
Income taxes paid			2,752						2,853

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(1)Cash and cash equivalents at June 30, 2022, is shown gross of BT Holdings expense of $12.6 million related to the acquisition. Cash and cash equivalents at June 30, 2022, net of BT Holdings acquisition expenses, was $113.9 million.

F-6