United National Bank : Annual Report

FINANCIAL STATEMENTS

DECEMBER 31, 2020 AND 2019

UNITED NATIONAL BANK

TABLE OF CONTENTS

DECEMBER 31, 2020 AND 2019

Independent Auditor's Report .....................................................................................................................	1
Financial Statements
Balance Sheets .........................................................................................................................................	2
Statements of Income ..............................................................................................................................	3
Statements of Comprehensive Income....................................................................................................	4
Statements of Changes in Stockholders' Equity.......................................................................................	5
Statements of Cash Flows ....................................................................................................................	6-7
Notes to the Financial Statements.....................................................................................................	8-36

NICHOLS, CAULEY & ASSOCIATES, LLC

1300 Bellevue Avenue

Dublin, Georgia 31021

478-275-1163 FAX [phone]

[e-mail]

INDEPENDENT AUDITOR'S REPORT

Board of Directors

United National Bank

Cairo, Georgia

We have audited the accompanying financial statements of United National Bank, which comprise the balance sheets as of December 31, 2020 and 2019, and the related statements of income, comprehensive income, changes in stockholders' equity, and cash flows for the years then ended, and the related notes to the financial statements.

Management's Responsibility for the Financial Statements

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

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements 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 the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of United National Bank as of December 31, 2020 and 2019, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Dublin, Georgia

March 12, 2021

Atlanta | Calhoun | Canton | Dalton | Dublin

Fayetteville | Kennesaw | Rome | Warner Robins

UNITED NATIONAL BANK

BALANCE SHEETS

DECEMBER 31, 2020 AND 2019

		2020			2019
ASSETS
Cash and due from banks	$	32,872,270	$	7,690,652
Securities available for sale (at fair value)		14,505,089			13,371,771
Other restricted stock, at cost		810,100			747,700
Loans, less allowance for loan losses of $5,184,364 and $4,699,426,		192,765,632			187,884,020
respectively
Accrued interest receivable		2,319,222			2,668,892
Premises and equipment, net		2,495,345			2,601,576
Foreclosed real estate		15,065			376,857
Other assets		1,196,419			1,123,424
Total assets	$	246,979,142	$	216,464,892
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Non-interest-bearing demand	$	29,375,249	$	20,684,301
Interest-bearing		173,683,526			155,203,167
Total deposits		203,058,775			175,887,468
Federal Reserve Bank (FRB) borrowings		-			1,300,000
Federal Home Loan Bank (FHLB) borrowings		8,170,622			5,546,300
Accrued interest payable		337,712			418,070
Accrued expenses and other liabilities		1,114,896			1,189,688
Total liabilities		212,682,005			184,341,526
Stockholders' equity
Common stock, $5 par value, 10,000,000 shares authorized;
804,842 shares issued and outstanding		4,024,210			4,024,210
Additional paid-in capital		4,254,465			4,163,265
Undivided profits		25,982,510			23,905,211
Accumulated other comprehensive income		35,952			30,680
Total stockholders' equity		34,297,137			32,123,366
Total liabilities and stockholders' equity	$	246,979,142	$	216,464,892

See accompanying independent auditor's report and notes to the financial statements.

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UNITED NATIONAL BANK

STATEMENTS OF INCOME

YEARS ENDED DECEMBER 31, 2020 AND 2019

		2020			2019
Interest and dividend income
Loans, including fees	$	11,731,583	$	11,899,232
Securities available for sale		161,481			312,437
Other interest and dividends		51,752			173,210
		11,944,816			12,384,879
Interest expense
Deposits		1,654,302			1,917,183
Other borrowings		191,363			200,668
		1,845,665			2,117,851
Net interest income		10,099,151			10,267,028
Provision for loan losses		930,000			760,000
Net interest income after
provision for loan losses		9,169,151			9,507,028
Noninterest income
Service charges on deposit accounts		326,300			436,787
Other service charges, commissions and fees		561,692			442,618
Other		18,050			20,936
Gain on sale of premises and equipment		15,380			1,659
Gain on sale of foreclosed real estate		299,264			6,759
		1,220,686			908,759
Noninterest expense
Salaries and employee benefits		3,510,855			3,735,973
Occupancy		694,548			691,169
Other operating		1,738,894			1,666,313
		5,944,297			6,093,455
Income before provision
for income taxes		4,445,540			4,322,332
Provision for income taxes		1,201,220			1,182,976
Net income	$	3,244,320	$	3,139,356

See accompanying independent auditor's report and notes to the financial statements.

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