FR
Y€
OMB Numb€r 710G0297 Approval expires September 30, 2018 Pago 1 ol 2
Board ofGovernors ofthe Federal Reserve System
Annua Report of Ho d ng Compan es-FR
Y-G
l.{AR 2
e 2017
Report at the close of business as of the end of fiscal year This report form This Report is required by law: Section S(cXtXA) of the Bank Holding Company Act (12 U.S.C. S t8++(cX1XA)); sections 8(a) and 13(a) of the lnternational Banking Act (12 U.S.C. SS 3106(a) and 3108(a)); sections 11(a)(1), 25, and 25A ol the Federal Reserve Ac/.(12 U.S.C. SS 2a8@)(1),602, and 61'la); and sections 113, 165,312,618, and 809 of the Dodd-FrankAct (12 U.S.C. SS 5361,5365,5412, 1850a(cX1), and 5468(b)(1)). Return to the appropriate Federal Reserve Bank the original and the number of copies specified.
is to be filed by all top-tier bank holding companies, top-tier savings and loan holding companies, and U.S. intermediate holding companies organized under U.S. law, and by
any foreign banking organization that does not meel the require ments of and is not treated as a qualifying foreign banking orga-
nization under Section 211.23
of
Regulation
K (12 C.F.R. S
(See page one of the general instructions for more detail of who must file.) The Federal Reserve may not conduct or sponsor, and an organization (or a person) is not required to respond to, an information collection unless it displays a cunently valid OMB control number. 211 .23).
NOTE: The Annual Repoft of Holding Companies must be signed by one director of the top-tier holding company. This individual should also be a senior ofiicial of the top-tier holding company. ln the event
Date of Report (top{ier holding company's fiscal year-end):
that the top-tier holding company does not have an individual who is a senior ofiicial and is also a director, the chairman of the board must sign the report. lf the holding company is an ESOP/ESOT formed as a corporation or is an LLC, see the General lnstructions for the authorized individual who must sign the report.
Month/Day/Year
l,
December 31,2016 LEI: None Reportefs Legal Entity ldentiffer (LEl) (20-Characler LEI Code)
Reporter's Name, Street, and Mailing Address
Chadwick E. McClung Name of the Holdlng Company Dlrector and Official
Communitv Bancshares Comoanv
President & CEO
Legal Title of Holding Company
P.O. Box 247
'lltle of the Holding Company Director and Offlcial
attest that lhe Annual Report of Holding Companies (including the supporting attachments) for this report date has been pr+ pared in conformance with the instructions issued by the Federal Reserve System and are true and correct to the best of my knowledge and belief.
Wth respect to information regarding individuals contained in this repod, the Reporter ceftifies that it has the authoity to provide this information to the Federal Reserve. The Repoder also ceftifies that it has the authority, on behalf of each individual, to consent or object to public release of information regarding that individual. The Federal Reserve may assume, in the absence of a request for anfidential treatment submifted in accordance with the Boad's 'Rules Regarding Availability of lnformation,' 12 C.F.R. Part 261, release of all that the and individual consent to that details
(Mailing Address of the Holding Company) Street / P.O. Box
Colfax
LA
71423
City
State
Zip Code
625 8th Street, Colfax,
LA 71417
Physical Locatlon (if dlfierent from mailing address)
Person to whom questions about this report should be directed:
Chadwick E.
McClung
Name
President & CEO Title
318-627-3161 Area Code / Phone Number / Extension
318627-5904 Area code / FAx Number
[email protected] E-mailAddress
N/A
of Holding Company Director
3-z*-
Address (URL) for the Holdlng Company's web page
Date of
For holding companies not registered with the
SE(-
lndicate status ofAnnual Report to Shareholders:
I E n
is included with the FR Y-6 report
will be sent under separate cover ir not prepared
For Federal Reserve Bank Use Onlv
RSSD,D c.l.
)44225V
Office of Management and Budget. Pap€rwork R€duction Project (7100{297), Washington, DC
ls confidentia! troatment requested for any portlon 1=Yes of this report submission? ,.. ln accordance with the General lnstructions for this report (check only one), 1. a letter justifying this roquest is being provided along with the report .......... 2. a letterjustifying this request has been provided
separately,,...
0
tr tr
NOTE: lnformation for which confidentia! treatment is being requested mus.t be provided separately and labeled
as 'confidential."
20503.
1Pj2}l6
FR
Y+
Pags2ot2
For Use By Tiered Holding Companies Top-tiered holding companies must list the names, mailing address, and physical locations of each of their subsidiary holding companies below.
Legal Title of Subsidlary Holding Company
Legal Trtle of Subsidiary Holding Company
(Mailing Addr€ss of the Subsidiary Holding Company) Street / P.O. Box
(Meillng Address of the Subsidiary Holding Company) Strcet / P.O. Box
City
State
Zip Code
Clty
State
Zp Code
Physical Locatlon (if diff€r€nt from maillng address)
Physlcal Locetion (if dlffergnt ftom mailing address)
Lsgal TrUe of Subsidiary Holding Company
Legal Tltle of Subsidiary Holding Company
(Malling Address of the Subsidiary Holding Company) Street / P.O. Box
(Mailing Addrcss of the Subsidlary Holding Company) Slreet / P.O. Box
City
State
Zlp Cod€
City
Stats
Zip Code
Physical Location (if difiersnt from mailing address)
Physical Location (if differentfr,om maillng address)
LegalTltle of Subsidiary Holding Company
Legal Title of Subsidlary Holding Company
(Mailing Addr€ss of the Subsidiary Holding Company) StrEet/ P.O. Box
(Mailing Address of the Subsldlary Holding Company) Street / P.O. Box
City
StEte
Zp Code
City
State
Zip Code
Physicel Location (if difiel€ntfrom maillng addr€ss)
Physlcal Location (if difierent ftom mailing address)
Legal Trtle of Subsidiary Holding Company
LegalTrUe of Subsldiary Holding Company
(Malllng AddrBss of the Subsidiary Holding Company) Sre€t / P.O. Box
(Mailing Address of lhe Subsidiary Holding Company) St ,e€t / P.O. Box
City
State
Physicel Location (if diferent from malling address)
Zp Code
Clty
Stats
Zip Code
Physical Location (if difrelent from malllng address)
122012
Form FR Y-6
Community Bancshares Gompany Colfax, Louisiana Fisca! Year Ending December 31, 2016 Report ltem
1
The BHC does prepare an annual report for its shareholders. The information for this year is consolidated with the information for Colfax Banking Company. Enclosed are two copies of the annual report.
2a.
OrganizationalChart
Community Bancshares Golfax, LA (LEl: None) in Louisiana
pany
1O0o/o
Colfax, LA (LEl: None) in Louisiana
River To River Real Estate Company Colfax, LA (LEl: None) lncorporated in Louisiana
2b
Domestic Branch Listing. There are no changes. Worksheet emailed 0312012017
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Form FR Y-6 Community Bancehares Company Fiscal Year Ending December 31, 2016 Report ltem
3: Shareholderc
(1)(a) (1)(b) (1Xc) (1Xa) Name & Address (City, State, Gountry) Samuel J. Bonnette Colfax, LA
(1Xb)
(1Xc)
Country of Citizenship or lncorporation
Number and Percentage of Voting Shares
Mary Louise Walters Harkins Shreveport, L{
Stephen Robert Tumminello Alexandria, lA
3,355 USA
2,104 USA
5.1 5olo
2,170 USA
Community Bancshares Company has only one class of stock
Items (2XaX2XbX2Xc) are not applicable
8.22o/o
5.32o/o
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*€ E! $3,774
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>$4,717
$9,34s
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>$2,830
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>$3,774
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Tier I Capital to Risk Weighted Assets Common Equity/Tier I Capital to tusk Weighted Assets
Tier I Capital to Average Assets:
$9,345
L4. Concentration of Credit Risk The Bank's hade area is primarily all of Grant Parish Louisiana and adjaceot areas in Rapides Parish. The Bank does not believe that it has an abnormal concentation of loans to any particular type industry, but a significant portion ofits loans are secured by residential real property located in such trade areas. The Bank's ability to fully collect such loans could depend upon the real estate market in its trade area, which at present is considered to be a norrnal market.
Additionally, attimes, the Bank maintains deposis and federalfunds sold in federally insured financial institutions in excess of federally insured limits. Management monitors the soundness of these financial instin:tions and feels the Bank's risk is negligible.
15. Condensed Individual Companv Financial Information The following provides condensed and selected financial data of the companies included in tlese consolidated financial statements at December 31,2016 on an unconsolidated basis as follows:
Community
Bancshares Companv
TotalAssets
__9-063170 103^504t40 Community
Total Stockholder Equity
Company 28 214
River to
Company 408.310
94.8s 1.346
8.655.260
8.652.994
28.2t4
4.s72.506
12.600
3.533.589
3.533
Total Operating Revenue Total Operating Expenses
River to Real Estate
Colfax Banking Company
Bancshares
Total Liabilities
Colfax Banking Company
4.632
Real Estate Company
23
15. Condensed Individual Comoanv Financial Information (Continued) All amounts
and related disclosures in these consolidated financial statements regarding Federal Funds Sold, Time Deposits with other Banks, Investment Securities, Loans, Accrued lnterest Receivable, Deposits, and Accrued Interest Payable are comprised of amounts of Colfax Banking Company.
16. Fair Value Measurements Fair value measurements are used to record fair value adjustments to certail assets and liabilitics and to determine fair value disclosures. In accordance with FASB ASC E20, "Fair Value Measurement and Disclosure,s," the fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash f'lows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instument.
The fair value guidance provides a consistent definition of fairvalue, which focuses on exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or t}re use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requircs the use of sipificant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions.
Fair Value Hierarchy - ln
accordance wittr this guidance, financial assets and financial liabilities, generally measured at fair value, are grouped in three Ievels, based on the markets in which the assets and liabilities are haded and the reliability of the assumptions used to determine fair value.
Level 1 - Valuation is based on quoted prices in active markets for identical asscts or liabilities that the reporting entity has the ability to access at the measurement date, Level 1 assets and liabilities generally include debt and equity securities that are taded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities.
Level 2 - Valuation is based on inputs other than quoted prices included within level I that are obsenable for the asset or liability, either directly or indirectly. The valuation may be based on quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or otber inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability.
- Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include Level 3
financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which determination of fair value requires sigrrificant management judgment or estimation.
24
16, Fair Value Measurements (Coutinued) A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Assets Measured at Fair Value on a Recurring Basig For the Bank, the only items recorded at fair value on a recurring basis are securities available for sale. These securities consist primarily of U.S. Government Agency (including mortgage-backed) securities and state and municipal securities. When available, the Bank uses quoted market prices of identical assets on active exchanges (Level measurements). Where such quoted market prices are not available, the Bank typically employs quoted market prices of similar instruments (including matrix pricing) and/or discounted cash flows to estimate a value of these securities (Level 2 measurements). Level 3 measurements include discounted cash flow analyses based on assumptions that are not readily
I
observable in the market place, including projections of future cash flows, loss assumptions, and discount rates.
Fair values of assets and liabilities measured on a recuring basis at December 31,2016 and 2015 are as
follows:
Level December 31.2016: Securities available-for-sale: U.S. Govemment securities MBS/CN{O's State and Municipal securities
Total securities available-for-sale
Fair
I
LevelZ
Level
3
Value
929,140 28,093,322 15.09r.549
929,140 28,093,322
44,114,011
44,|.4,011
I 5.091.549
December 31.2015: Securiti es avai lable-for-sa
I
e:
U.S, Government securities MBS/CMO'S State and Municipal securities Total securities available-for-sale
2,561,845
2,561,845
26,566,497 13.167.985 42,296,327
26,566,497 r 3.167.985 42,296,327
Assets Measured at Fair Value on a Nonrecurrinq Basis
Following is a description of the valuation methodologies used for assets and liabilities measured and recorded at fair value on a nonrecurring basis. These nonrecurring fair value adjustrnents typically are a result of lower of cost or fair value accounting or a write-down occurring during the period. In periods when there is no adjustnent, the asset or liability is generally not considered to be at fair value. Imgaired Loans. Loans for which it is probable that the Bank will not collect all principal and interest due according to contractud terms are measured for impairment. Write-downs of impaired loans are estimated using the present value of expected cash flows or the appraised value of the underlying collateral discount as necessary due to management's estimates of changes in economic conditions.
25
16. Fair Value Measurements (Continued) Other Real Estale. Other real estate is carried at the lower of the recorded investrnent in the loan or fair value less estimated costs to sell the property. Fair values are based on appraisals
(performed either by the Bank or by independent appraisers) on the subject property using market prices of similar real estate. Carrying values of assets and liabilities measured at fair value on a nonrecurring basis at December 3
I, 2016 and 20 15 are
as
follows: Level
1
Level2
Level3
Total
I)ecember 31,2016: Impaired loans Other real estate December 31, 2015: Impaired loans Other real estate
17.
859,196
859,196
1,576,273
1,576,273
SubsequentEvents ln accordance with FASB Accounting Standards Codilication Topic 8li,"Subsequent Events," lhe Company evaluated events and bansactions that occurred after the balance sheet date but before thc
financial statements were made available for potential recognition or disclosure in the financial statements. The Company evaluated such events through February 24,201'1, the date for which the financial statements were available for distribution, for potential recognition and disclosure. No subseguent events requiring potential recognition or disclosure were noted.
26