SOUTHERN COMMUNITY
BANCSHARES, INC.
AND SUBSIDIARY
CONSOLIDATED FINANCIAL REPORT
DECEMBER 31, 2020
SOUTHERN COMMUNITY BANCSHARES, INC. | |
AND SUBSIDIARY | |
CONSOLIDATED FINANCIAL REPORT | |
DECEMBER 31, 2020 | |
TABLE OF CONTENTS | |
Page | |
INDEPENDENT AUDITOR'S REPORT............................................................................................................................ | 1-2 |
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 .................................................................................................................. | 8-31 |
INDEPENDENT AUDITOR'S REPORT
To the Board of Directors
Southern Community Bancshares, Inc.
Cullman, Alabama
We have audited the accompanying consolidated financial statements of Southern Community Bancshares, Inc. and Subsidiary, which comprise the consolidated balance sheet as of December 31, 2020, and the related consolidated statements of income, comprehensive income, stockholders' equity, and cash flows for the year then ended, and the related notes to the consolidated financial statements.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated 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 consolidated financial statements based on our audit. We conducted our audit 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 consolidated financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated 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 consolidated 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 consolidated 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 consolidated financial statements referred to above present fairly, in all material respects, the financial position of Southern Community Bancshares, Inc. and Subsidiary as of December 31, 2020, and the results of their operations and their cash flows for the year then ended, in accordance with accounting principles generally accepted in the United States of America.
2000 SOUTHBRIDGE PARKWAY, SUITE 501 • BIRMINGHAM, AL 35209 • 205-445-2880 • 888-277-0020 • FAX 205-445-2940 • www.mjcpa.com
Members of The American Institute of Certified Public Accountants
Other Matters
Prior Year Financial Statements
The financial statements of Southern Community Bancshares, Inc. and Subsidiary, as of December 31, 2019 and for the year then ended, were audited by other auditors whose report dated February 25, 2020 expressed an unmodified opinion on those statements.
Birmingham, Alabama
February 26, 2021
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SOUTHERN COMMUNITY BANCSHARES, INC.
AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2020 AND 2019
Assets | 2020 | 2019 | |||
Cash and due from banks | $ | 947,274 | $ | 997,183 | |
Interest-bearing deposits in banks | 17,586,525 | 9,770,453 | |||
Cash and cash equivalents | 18,533,799 | 10,767,636 | |||
Investment securities available for sale | 1,320,614 | 4,460,300 | |||
Other investment securities | 753,500 | 870,300 | |||
Loans held for sale | 215,119 | - | |||
Loans | 95,634,475 | 103,747,010 | |||
Less allowance for loan losses | 1,567,684 | 1,183,923 | |||
Loans, net | 94,066,791 | 102,563,087 | |||
Property and equipment, net | 5,114,610 | 5,130,253 | |||
Accrued interest receivable | 416,614 | 427,536 | |||
Other real estate | - | 181,825 | |||
Bank-owned life insurance | 2,273,042 | 2,209,950 | |||
Other assets | 603,301 | 364,250 | |||
Total assets | $ | 123,297,390 | $ | 126,975,137 | |
Liabilities and Stockholders' Equity | |||||
Liabilities: | |||||
Deposits: | $ | 15,414,887 | |||
Noninterest-bearing | $ | 11,289,594 | |||
Interest-bearing | 82,936,779 | 86,418,978 | |||
Total deposits | 98,351,666 | 97,708,572 | |||
Other borrowings | 13,000,000 | 18,000,000 | |||
Accrued interest payable | 90,262 | 126,624 | |||
Other liabilities | 343,658 | 446,055 | |||
Total liabilities | 111,785,586 | 116,281,251 | |||
Stockholders' equity | |||||
Preferred stock, $.01 par value; 100,000 shares authorized; no shares issued | - | - | |||
Common stock, $.01 par value; 2,845,568 shares authorized; 982,918 shares | |||||
issued and 486,996 and 488,296 shares outstanding | |||||
at December 31, 2020 and 2019, respectively | 9,830 | 9,830 | |||
Additional paid-in capital | 9,188,905 | 9,203,905 | |||
Retained earnings | 8,640,105 | 7,834,267 | |||
Unearned compensation | (59,775) | (92,775) | |||
Treasury stock, at cost; 495,922 and 494,622 shares held at | |||||
December 31, 2020 and 2019, respectively | (6,284,474) | (6,273,074) | |||
Accumulated other comprehensive income | 17,213 | 11,733 | |||
Total stockholders' equity | 11,511,804 | 10,693,886 | |||
Total liabilities and stockholders' equity | $ | 123,297,390 | $ | 126,975,137 | |
See Notes to Consolidated Financial Statements.
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Southern Community Bancshares Inc. published this content on 07 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 January 2022 17:27:02 UTC.