Cross Keys Bank Winter Newsletter - BSJ Bancshares, Inc. & Cross Keys Bank 2013 Annual Report

Letter from

The President

2013 was another challenging year for our country. It was also filled with personal sorrow from the passing of my father, Tony Vizard, and my mother-in-law, Ruth Harper Watson. Several of our employees lost family members as well. Though we are sad that they are no longer with us, we pause for a moment to remember them and all of our friends and loved ones who are departed, and we are grateful that they remain with us in spirit. You will notice that this is a new format for our newsletter in that we have included a section for our Annual Report of Condition (unaudited for the most recent year). In the past the Annual Report was a separate publication, but this way you can learn a little more about the bank and our employees, products, and services. And more importantly, feel secure in the knowledge that we are stronger than ever. You can also see this and previous publications on our web site at www.crosskeysbank.com .

With 2014 underway, all of us at Cross Keys Bank will be working to make it a great year for you. The theme of our annual employee day this year was, “The Best Employees are Like Four Leaf Clovers; Hard to Find and Lucky to Have.” It was easy to adopt an even more apropos message as illustrated on the cover page of this issue. THE BEST CUSTOMERS are like FOUR LEAF CLOVERS; HARDTO FIND and LUCKY to HAVE! For without YOU, our valued shareholders and customers, none of us would have much of a reason for coming to work at Cross Keys Bank. In the first few weeks of this new year we have already seen the announcement of two Louisiana community banks’ pending sales. There is every indication we will see more of this merger and acquisition activity in the near future as the banking industry continues to consolidate. In Louisiana alone the total number of Banks andThrifts is down from 162 to 140 or 13.59%. Of course it is the responsibility of the board of any institution to act in the best interest of its shareholders, and one can argue ad infinitum over the pros and cons of the conversion of an asset, or maybe a better way of saying it comes from an old favorite song, “You‘ve got to know when to hold’em and know when to fold’em…..” Truthfully, there are too many variables and considerations to illustrate in this short essay. Suffice it to say that it appears to us that one of the major drivers in this new round of bank consolidation will not come frombank failures, but from the ever growing burden of a zealous regulatory environment that aims to protect the consumers at all cost, and in so doing is having the exact opposite impact. More regulation in just about every industry is driving up the cost of providing goods and services to the American people. While well intended, and even a justified need for prudent regulation, there simply is no fathomable reason for our representatives in government to adopt and enact laws without reading them, much less understanding them. Like in the folk tale, Chicken Little shouts “the sky is falling” and promotes the impending end of the world, which results in panic and overreaction by the uninformed. Sound familiar? The phrase, “ Keep Calm and Carry On” was motivational propaganda for the English in early WWII and evokes solidarity and confidence in the face of danger. Rest assured our trademark, the “crossed keys” is a symbol of strength and confidence that inspires our mission of “Service with Honor and Integrity.” Cross Keys Bank has been in business for the last 112 years, survived wars and recessions, including the Great Depression as well as this latest Great Recession. Our formula for success is a balanced approach of running our bank so that it meets the needs of the COMMUNITIES we serve, which includes our employees and our shareholders, but most importantly, you, our valued customer, for without whom we would not be successful. We have no plans to change our formula!

Thanks for giving us the privilege of being your bank. We hope you enjoy our newsletter. Please remember to refer us to your family, friends, and acquaintances and from all of us may 2014 be a great year!

Sincerely,

Michael Vizard, President Cross Keys Bank

~2~