Citizens National Bancshares of Bossier : Audited Financial Statements YE 2021

CITIZENS NATIONAL BANCSHARES OF BOSSIER, INC.

AND SUBSIDIARY

BOSSIER CITY, LOUISIANA

DECEMBER 31, 2021 AND 2020

CITIZENS NATIONAL BANCSHARES OF BOSSIER, INC. AND SUBSIDIARY
BOSSIER CITY, LOUISIANA
TABLE OF CONTENTS
AUDITED FINANCIAL STATEMENTS
Page
Management's Assessment of Internal Control over Financial Reporting	1‐2
Independent Auditor's Report	3‐5
Consolidated Balance Sheets	6
Consolidated Statements of Income	7
Consolidated Statements of Comprehensive Income	8
Consolidated Statements of Changes in Stockholders' Equity	9
Consolidated Statements of Cash Flows	10‐11
Notes to Consolidated Financial Statements	12‐40
Independent Auditor's Report on Other Financial Information	41
Details of Consolidated Balance Sheet	42
Details of Consolidated Statement of Income	43

OTHER FINANCIAL INFORMATIONAUDITED FINANCIAL STATEMENTS

Report on Effectiveness of Internal Control Ove Financial Reporting

To the Audit Committee and Board of Directors of Citizens National Bancshares of Bossier, Inc.

The Internal Audit Department (Internal Audit) has examined the implementation of internal control over financial reporting for Citizens National Bancshares of Bossier, Inc. (the Company) as of December 31, 2021. The purpose of the review is to provide management with an assessment of the Company's effectiveness of internal control over financial reporting pursuant to Title 12, Chapter Ill, Subchapter B, Part 363 (Part 363) of the Code of Federal Regulations.

The Company's internal control over financial reporting is a process designed and effected by those charged with governance, management, and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of reliable financial statements in accordance with accounting principles generally accepted in the United States of America and financial statements for regulatory reporting purposes, i.e., Federal Financial Institutions Examination Council 051, Consolidated Reports of Condition and Income and the Board of Governors of the Federal Reserve System FR Y-9SP Parent Company Only Financial Statements for Small Bank Holding Companies. The Company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States of America and financial statements for regulatory reporting purposes, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention, or timely detection and correction, of unauthorized acquisition, use, or disposition of the Company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent, or detect and correct, misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies and procedures may deteriorate.

Management is responsible for establishing and maintaining effective internal control over financial reporting including controls over the preparation of regulatory financial statements. Based on the evaluation provided by Internal Audit, management assessed the effectiveness of the Company's internal control over financial reporting, including controls over the preparation of regulatory financial statements in accordance with the instructions for the Federal Financial Institutions Examination Council 051, Consolidated Reports of Condition and Income and the Board of Governors of the Federal Reserve System FR Y-9SP Parent Company Only Financial Statements for Small Bank Holding Companies, as of December 31, 2021. The evaluation and management's assessment are based on the framework set forth by the Committee of

Section I

Report on Effectiveness of Internal Control Over Financial Reporting

Sponsoring Organizations of the Treadway Commission inInteal Control-Integrated Framework. Based on that assessment, management concluded that, as of December 31, 2021, the Company's internal control over financial reporting, including controls over the preparation of regulatory financial statements in accordance with the instructions for the Federal Financial Institutions Examination Council 051, Consolidated Reports of Condition and Income and the Board of Governors of the Federal Reserve System FR Y-9SP Parent Company Only Financial Statements for Small Bank Holding Companies, is effective based on the criteria established in Internal Control-Integrated Framework. The following subsidiary institutions of the Company that are subject to Part 363 are included in this assessment of the effectiveness of internal control over financial reporting: Citizens National Bank, N.A., Bossier City, LA.

Management's assessment of the effectiveness of internal control over financial reporting, including controls over the preparation of regulatory financial statements in accordance with the instructions for the Federal Financial Institutions Examination Council 051, Consolidated Reports of Condition and Income and the Board of Governors of the Federal Reserve System FR Y-9SP Parent Company Only Financial Statements for Small Bank Holding Companies, as of December 31, 2021, has been audited by Heard, McElroy, & Vestal, LLC, an independent public accounting firm, as stated in their report dated March 17, 2022.

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.·smith, Chief Executive OfficerCitizens National Bancshares of Bossier, Inc. and Citizens National Bank, N.A.

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x, Chilf Financial Officer

Citizens National Bancshares of Bossier, Inc. and Citizens National Bank, N.A.

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Section I

2