COMMUNITY FIRST BANCSHARES, INC.

FORM S-1/A
(Securities Registration Statement)

Filed 02/09/17

Address 3175 HIGHWAY 278

COVINGTON, GA 30014
Telephone (770) 786-7088
CIK 0001691507
SIC Code 6035 - Savings Institutions, Federally Chartered
Fiscal Year 09/30

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As filed with the Securities and Exchange Commission on February 9, 2017

Registration No. 333-215041

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

PRE-EFFECTIVE AMENDMENT NO. 2

TO THE
FORM S-1
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933

Community First Bancshares, Inc.

(Exact Name of Registrant as Specified in Its Charter)

Federal 6035 Being applied for

(State or other jurisdiction of (Primary Standard Industrial (I.R.S. Employer
incorporation or organization) Classification Code Number) Identification Number)

3175 Highway 278

Covington, Georgia 30014
(770) 786-7088
(Address, Including Zip Code, and Telephone Number, Including Area Code, of Registrant’s Principal Executive Offices)

Johnny S. Smith
President and Chief Executive Officer
3175 Highway 278
Covington, Georgia 30014
(770) 786-7088
(Address, Including Zip Code, and Telephone Number, Including Area Code, of Agent for Service)

Copies to:

Eric Luse, Esq. Raymond Tiernan, Esq.

Ned Quint, Esq. Ross Bevan, Esq.
Thomas P. Hutton, Esq. Silver, Freedman, Taff & Tiernan LLP
Luse Gorman, PC 3299 K Street, N.W., Suite 100
5335 Wisconsin Avenue, N.W., Suite 780 Washington, DC 20007
Washington, D.C. 20015 (202) 295-4500
(202) 274-2000
Approximate date of commencement of proposed sale to the public: As soon as practicable after this registration statement becomes effective.

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box: ☒

If this Form is filed to register additional shares for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration
statement number of the earlier effective registration statement for the same offering: ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the
earlier effective registration statement for the same offering: ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the
earlier effective registration statement for the same offering: ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large
accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer ☐ Accelerated filer ☐

Non-accelerated filer ☐ (Do not check if a smaller reporting company) Smaller reporting company ☒

CALCULATION OF REGISTRATION FEE

Proposed Proposed
maximum maximum
Amount offering price aggregate Amount of
Title of each class of securities to be registered to be registered per share (1) offering price (1) registration fee
Common Stock, $0.01 par value per share 3,467,595 $10.00 $34,675,950 $4,019 (2)
(1) Estimated solely for purposes of calculating the amount of the registration fee in accordance with Rule 457(o) of the Securities Act of 1933, as amended.
(2) Previously paid $3,596.

The registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment
which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until the registration
statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.
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PROSPECTUS

(Proposed Holding Company for Newton Federal Bank)

Up to 3,015,300 Shares of Common Stock
(Subject to increase to up to 3,467,595 shares)
Community First Bancshares, Inc. is offering up to 3,015,300 shares of its common stock for sale at $10.00 per share on a best efforts basis in connection with the reorganization of
Newton Federal Bank into the mutual holding company form of ownership. There is no established market for our common stock. We expect that our common stock will be traded on the
on the Nasdaq Capital Market under the symbol “CFBI” upon conclusion of the stock offering. We are an “emerging growth company” as defined in the Jumpstart Our Business Startups
Act of 2012.
The shares being offered represent 46% of the shares of common stock of Community First Bancshares, Inc. that will be outstanding following the offering. After the offering, 54%
of our outstanding common stock will be owned by Community First Bancshares, MHC, our federally chartered mutual holding company. These percentages will not be affected by the
number of shares we sell in the offering. We must sell a minimum of 2,228,700 shares in order to complete the offering. We may sell up to 3,467,595 shares to reflect demand for the shares
or changes in market conditions following the commencement of the offering, without resoliciting subscribers.
We are offering the shares of common stock in a “subscription offering” to eligible depositors and borrowers of Newton Federal Bank and to our tax-qualified employee benefit
plans. Depositors who had accounts with aggregate balances of at least $50 at the close of business on September 30, 2015 will have first priority to purchase shares of common stock of
Community First Bancshares, Inc. Shares of common stock not purchased in the subscription offering may be offered for sale to the general public in a “community offering.” To the extent
any shares offered for sale are not purchased in the subscription or community offerings, they may be sold in a “syndicated community offering” to be managed by BSP Securities, LLC.
The minimum number of shares of common stock you may order is 25 shares. The maximum number of shares of common stock that can be ordered by any person in the offering,
or persons exercising subscription rights through a single deposit account, is 30,000 shares, and no person together with an associate or group of persons acting in concert may purchase
more than 40,000 shares.
The offering is scheduled to expire at 4:00 p.m., Eastern Time on March 22, 2017. We may extend the expiration date without notice to you, until May 8, 2017, or such later date as
the Board of Governors of the Federal Reserve System may approve, which may not be beyond March 30, 2019. Once submitted, orders are irrevocable unless the offering is terminated or
extended beyond May 8, 2017, or the number of shares of common stock to be sold is increased to more than 3,467,595 shares or decreased to less than 2,228,700 shares. If the offering is
extended beyond May 8, 2017, all subscribers will be notified and given an opportunity to confirm, cancel or change their orders. If you do not respond to this notice, we will promptly
return your funds with interest or cancel your deposit account withdrawal authorization. If the number of shares to be sold in the offering is increased to more than 3,467,595 shares or
decreased to less than 2,228,700 shares, we will resolicit subscribers, and all funds delivered to us to purchase shares of common stock in the subscription and community offerings will be
returned promptly with interest. Funds submitted for the purchase of shares in the offering will be held in a segregated account at Newton Federal Bank and will earn interest at 0.10% per
annum until completion or termination of the offering.
BSP Securities, LLC will use its best efforts to assist us in selling our common stock, but is not obligated to purchase any of the common stock that is being offered for sale. In
addition, officers and directors may participate in the solicitation of offers to purchase common stock in reliance upon Rule 3a4-1 under the Securities Exchange Act of 1934, as amended.
Subscribers will not pay any commissions to purchase shares of common stock in the offering.

OFFERING SUMMARY
Price: $10.00 per share
Minimum Midpoint Maximum Adjusted Maximum
Number of shares 2,228,700 2,622,000 3,015,300 3,467,595
Gross offering proceeds $ 22,287,000 $ 26,220,000 $ 30,153,000 $ 34,675,950
Estimated offering expenses, excluding selling agent fees and expenses $ 975,000 $ 975,000 $ 975,000 $ 975,000
Estimated selling agent fees and expenses (1) $ 308,878 $ 344,856 $ 380,834 $ 422,210
Estimated net proceeds (1) $ 21,003,122 $ 24,900,144 $ 28,797,166 $ 33,278,740
Estimated net proceeds per share (1) $ 9.42 $ 9.50 $ 9.55 $ 9.60

(1) The figures shown assume that all shares are sold in the subscription and the community offering, and include reimbursable expenses and stock information center fees. See “The Reorganization and Offering—Plan of
Distribution and Marketing Arrangements” for a discussion of BSP Securities, LLC’s compensation for this offering and the compensation to be received by BSP Securities, LLC and the other broker-dealers who may
participate in a syndicated community offering. If all shares of common stock were sold in the syndicated community offering, excluding shares expected to be purchased by our insiders and by our employee stock
ownership plan, for which no selling agent fee will be paid, the maximum selling agent fees and expenses would be $1.1 million, $1.3 million, $1.5 million and $1.7 million at the minimum, midpoint, maximum and
adjusted maximum levels of the offering, respectively.

This investment involves a degree of risk, including the possible loss of principal.
Please read the “ Risk Factors ” beginning on page 19.
These securities are not deposits or savings accounts and are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency.
None of the Securities and Exchange Commission, the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the Federal Deposit
Insurance Corporation nor any state securities regulator has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any
representation to the contrary is a criminal offense.

For assistance, please contact the Stock Information Center at (678) 729-9788.
The date of this prospectus is February 13, 2017.
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TABLE OF CONTENTS

SUMMARY 1
RISK FACTORS 19
SELECTED FINANCIAL AND OTHER DATA 32
RECENT DEVELOPMENTS 34
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS 38
HOW WE INTEND TO USE THE PROCEEDS FROM THE OFFERING 41
OUR POLICY REGARDING DIVIDENDS 42
MARKET FOR THE COMMON STOCK 43
HISTORICAL AND PRO FORMA REGULATORY CAPITAL COMPLIANCE 45
CAPITALIZATION 46
PRO FORMA DATA 48
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS OF NEWTON FEDERAL BANK 52
BUSINESS OF COMMUNITY FIRST BANCSHARES, INC. 66
BUSINESS OF COMMUNITY FIRST BANCSHARES, MHC 67
BUSINESS OF NEWTON FEDERAL BANK 67
TAXATION 85
REGULATION AND SUPERVISION 86
MANAGEMENT 96
SUBSCRIPTIONS BY DIRECTORS AND EXECUTIVE OFFICERS 104
THE REORGANIZATION AND OFFERING 105
RESTRICTIONS ON THE ACQUISITION OF COMMUNITY FIRST BANCSHARES, INC. AND NEWTON FEDERAL BANK 125
DESCRIPTION OF CAPITAL STOCK OF COMMUNITY FIRST BANCSHARES, INC. 128
TRANSFER AGENT AND REGISTRAR 129
LEGAL AND TAX MATTERS 130
EXPERTS 130
WHERE YOU CAN FIND MORE INFORMATION 130
REGISTRATION REQUIREMENTS 131
INDEX TO FINANCIAL STATEMENTS OF NEWTON FEDERAL BANK F-1

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SUMMARY

The following summary explains material information regarding the reorganization, the offering of common stock by Community First Bancshares, Inc. and the business of Newton
Federal Bank. The summary may not contain all the information that is important to you. For additional information, you should read this entire prospectus carefully, including the
financial statements and the notes to the financial statements of Newton Federal Bank. In certain circumstances, where appropriate, the terms “we, “us” and “our” refer collectively to
Community First Bancshares, MHC, Community First Bancshares, Inc. and Newton Federal Bank or to any of those entities, depending on the context.

The Companies
Community First Bancshares, MHC
Upon completion of the reorganization and the offering, Community First Bancshares, MHC will become the federally chartered mutual holding company of Community First
Bancshares, Inc. Community First Bancshares, MHC is not currently an operating company and has not engaged in any business to date. Community First Bancshares, MHC will be formed
upon completion of the reorganization. As a mutual holding company, Community First Bancshares, MHC will be a non-stock company that will have as its members all holders of the
deposit accounts at Newton Federal Bank, and borrowers of Newton Federal Bank as of January 19, 1984 whose borrowings remain outstanding. As a mutual holding company, Community
First Bancshares, MHC is required by law to own a majority of the voting stock of Community First Bancshares, Inc.

Community First Bancshares, Inc.

Community First Bancshares, Inc. will be chartered under federal law and will own 100% of the common stock of Newton Federal Bank following the reorganization and offering.
This offering is being made by Community First Bancshares, Inc. Community First Bancshares, Inc. is not currently an operating company and will be formed upon completion of the
reorganization. Our executive office will be located at 3175 Highway 278, Covington, Georgia 30014, and our telephone number will be (770) 786-7088.

Upon completion of the offering, public stockholders will own a minority of Community First Bancshares, Inc.’s common stock and will not be able to exercise voting control over
most matters put to a vote of stockholders. In addition, as a “controlled corporation” following the offering, Community First Bancshares, Inc. will be exempt from certain corporate
governance requirements, including that a majority of our board of directors be independent under applicable standards, and that executive compensation and director nominations be
overseen by independent directors. However, at the present time, a majority of our directors would be considered independent under applicable corporate governance listing standards.

Newton Federal Bank

Newton Federal Bank is a federally chartered savings association headquartered in Covington, Georgia. Newton Federal Bank was originally chartered in 1928 as a Georgia-
chartered mutual building and loan association under the name Newton County Building and Loan Association. In 1947, we converted to a federal charter and changed our name to
“Newton Federal Savings and Loan Association.” In 2004 we changed our name to “Newton Federal Bank.”

We conduct our business from our main office, two branch offices and a loan production office. All of our banking offices are located in Covington, Georgia, which is located in
Newton County, southeast of Atlanta, Georgia. Our loan production office is located in Bogart, Georgia, which is in the Athens, Georgia market in Oconee County. Our primary market area
currently consists of Newton County, Georgia and the contiguous counties.

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At September 30, 2016, we had total assets of $232.8 million, total deposits of $181.7 million and retained earnings of $45.1 million. We had net income of $1.2 million for the
fiscal year ended September 30, 2016.

Our business consists primarily of taking deposits from the general public and investing those deposits, together with funds generated from operations, in one- to four-family
residential real estate loans, and, to a lesser extent, commercial real estate loans, commercial and industrial loans, construction and land loans and consumer loans. Subject to market
conditions, we expect to increase our focus on originating commercial real estate loans, commercial and industrial loans, and construction loans in an effort to diversify our overall loan
portfolio, increase the overall yield earned on our loans and assist in managing interest rate risk. We also invest in securities, which have historically consisted primarily of mortgage-backed
securities issued by U.S. government sponsored enterprises and Federal Home Loan Bank stock. We offer a variety of deposit accounts, including checking accounts, savings accounts and
certificate of deposit accounts. We have not used borrowings in recent years to fund our operations.

Newton Federal Bank is subject to comprehensive regulation and examination by its primary federal regulator, the Office of the Comptroller of the Currency.

Our executive office is located at 3175 Highway 278, Covington, Georgia 30014, and our telephone number at this address is (770) 786-7088. Our website address is
www.newtonfederal.com. Information on our website is not and should not be considered a part of this prospectus.

Our Reorganization into a Mutual Holding Company and the Offering

We do not have stockholders in our current mutual form of ownership. Our depositors and borrowers as of January 19, 1984 whose borrowings remain outstanding currently have
the right to vote on certain matters pertaining to Newton Federal Bank, such as the election of directors and the proposed mutual holding company reorganization. The mutual holding
company reorganization is a series of transactions by which we will reorganize our corporate structure from our current status as a mutual savings association to the mutual holding
company form of ownership. The reorganization will be conducted pursuant to a plan of reorganization and stock issuance plan, which we refer to as the plan of reorganization. Following
the reorganization, Newton Federal Bank will become a federal stock savings bank subsidiary of Community First Bancshares, Inc., and Community First Bancshares, Inc. will be a
majority-owned subsidiary of Community First Bancshares, MHC. After the reorganization, our depositors and certain borrowers will become members of Community First Bancshares,
MHC, and will continue to have the same voting rights in Community First Bancshares, MHC as they had in Newton Federal Bank prior to the reorganization.

In connection with the reorganization, we are offering shares of common stock of Community First Bancshares, Inc. for sale in the offering. All investors will pay the same price per
share in the offering. The $10.00 per share price was selected primarily because it is the price most commonly used in mutual holding company reorganizations and stock offerings. See “—
Terms of the Offering.”

The primary reasons for our decision to reorganize into a mutual holding company and conduct the offering are to establish an organizational structure that will enable us to:
• increase our capital to support future growth and profitability, although we currently have capital well in excess of all applicable regulatory requirements;
• compete more effectively in the financial services marketplace;
• offer our depositors, employees, management and directors an equity ownership interest in Newton Federal Bank, and thereby an economic interest in our future success;
• attract and retain qualified personnel by establishing stock-based benefit plans; and

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• increase our flexibility to structure and finance the expansion of our operations, including potential acquisitions of other financial institutions and establishing de novo
branches.

The reorganization and the capital raised in the offering are expected to provide us with additional capital to support new loans and higher lending limits, support the growth of our
banking franchise, provide an additional cushion against unforeseen risks and expand our asset and deposit base. The reorganization and offering also will allow us to establish stock benefit
plans for management and other employees that we believe will permit us to attract and retain qualified personnel.

Unlike a standard mutual-to-stock conversion transaction in which all of the common stock of the holding company of the converting savings association is sold to the public, only a
minority of the stock is sold to the public in a mutual holding company reorganization. In a mutual holding company structure, federal law and regulations require that a majority of the
outstanding common stock of Community First Bancshares, Inc. must be held by our mutual holding company. Consequently, the shares that we are permitted to sell in the offering
represent a minority of the shares of Community First Bancshares, Inc. that will be outstanding upon the closing of the reorganization. As a result, a mutual holding company offering raises
less than half the capital that would be raised in a standard conversion offering. Based on these restrictions and an evaluation of our capital needs, our board of directors has decided that
46% of our outstanding shares of common stock will be offered for sale in the offering, and 54% of our shares will be retained by Community First Bancshares, MHC. Our board of
directors has determined that offering 46% of our outstanding shares of common stock for sale in the offering will enable management to effectively invest the capital raised in the offering.
See “—Possible Conversion of Community First Bancshares, MHC to Stock Form.”

The following chart shows our corporate structure following the reorganization and offering:

Business Strategy
Our goal is to provide long-term value to our stockholders, customers, employees and the communities we serve by executing a safe and sound business strategy that produces
increasing earnings. We believe there is a significant opportunity for a community-focused bank to provide a full range of financial services to commercial and retail customers in our
market area, and the increased capital we will have after the completion of the offering will enable us to compete more effectively with other financial institutions.

Our current business strategy consists of the following:

• Grow our loan portfolio prudently with a focus on diversifying the portfolio, particularly in commercial real estate, commercial and industrial and construction and land
lending . Our principal business activity historically has been the origination of residential mortgage loans for retention in our portfolio, and we intend to retain our presence
as a mortgage lender in our market area. As part of our strategy of diversifying our loan portfolio by increasing our commercial real estate loans, commercial and industrial
loans and construction and land loans, we opened a loan

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production office in Bogart, Georgia (in the Athens, Georgia market area) in 2016, added a commercial loan officer, and enhanced our credit function and our sales culture.
Commercial real estate loans increased $4.6 million, or 18.6%, to $29.2 million at September 30, 2016 from $24.6 million at September 30, 2015, commercial and industrial
loans increased $1.9 million, or 13.2%, to $16.2 million at September 30, 2016 from $14.3 million at September 30, 2015, and construction and land loans increased $11.1
million to $13.3 million at September 30, 2016 from $2.3 million at September 30, 2015. We may also expand our commercial lending activities through participation in
government-sponsored loan programs, such as the Small Business Administration (“SBA”) and the U.S. Department of Agriculture, as a way to generate government-
guaranteed loans with the opportunity to sell the guaranteed portion of the loan at a premium and retain the non-guaranteed portion as well as the servicing rights. The capital
we are raising in the offering will support an increase in our lending limits, which will enable us to originate larger loans to new and existing customers.
Increasing our commercial real estate loans, commercial and industrial loans and construction and land loans involves risk, as described in “Risk Factors—Risks Related to
Our Business—We have increased our commercial real estate, commercial and industrial, and construction and land loans, and intend to continue to increase originations of
these types of loans. These loans involve credit risks that could adversely affect our financial condition and results of operations” and “—Our portfolio of loans with a higher
risk of loss is increasing and the unseasoned nature of our commercial loan portfolio may result in errors in judging its collectability, which may lead to additional provisions
for loan losses or charge-offs, which would hurt our profits.”

• Continue to increase core deposits, with an emphasis on low cost commercial demand deposits, and add non-core funding opportunities. We seek core deposits to provide
a stable source of funds to support loan growth, at costs consistent with improving our interest rate spread and margin. Core deposits also help us maintain loan-to-deposit
ratios at levels consistent with regulatory expectations. We consider our core deposits to include passbook savings accounts, negotiable orders of withdrawal (NOW)
accounts, other savings deposits and checking accounts. As part of our focus on commercial loan growth, our lenders are expected to source business checking accounts from
our borrowers. In prior years, we allowed higher-cost certificates of deposit to run off at maturity to improve our deposit mix and reduce our cost of funds. As a result of these
efforts, core deposits increased to $96.2 million, or 52.9% of our total deposits at September 30, 2016, from $80.4 million, or 45.5% of our total deposits at September 30,
2015. However, we will also explore adding non-core funding sources, such as QwickRate (online deposits) and brokered deposits, and may use borrowings, as needed, to
fund future loan growth and our operations.

• Manage credit risk to maintain a low level of nonperforming assets. We believe strong asset quality is a key to our long-term financial success. Our strategy for credit risk
management focuses on having an experienced team of credit professionals, well-defined policies and procedures, appropriate loan underwriting criteria and active credit
monitoring. Our non-performing assets to total assets ratio was 1.39% at September 30, 2016 and 1.37% at September 30, 2015, compared to 7.45% at September 30, 2012.
The majority of our non-performing assets have related to one- to four-family residential real estate loans, as our residential borrowers experienced difficulties repaying their
loans during the past recession. We intend to increase our investment in our credit review function, both in personnel as well as ancillary systems, in order to be able to
evaluate more complex loans and better manage credit risk, which will also support our intended loan growth.

• Grow organically and through opportunistic bank or branch acquisitions. We expect to consider both organic growth as well as acquisition opportunities that we believe
would enhance the value of our franchise and yield potential financial benefits for our stockholders. Although we believe opportunities exist to increase our market share in
our historical markets, we expect to

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continue to expand into nearby markets, primarily Clarke and Oconee Counties, Georgia, as well as contiguous counties. We will consider expanding our branch network and
adding additional loan production offices. The capital we are raising in the offering will also provide us the opportunity to acquire smaller institutions located in our market
area, and will help fund improvements in our operating facilities, credit reporting and customer delivery services in order to enhance our competitiveness.
• Expand our employee base to support future growth. The additional capital we will raise in the offering will provide us with the ability to expand our employee base to
support increased lending, deposit activities and enhanced information technology. The potential to offer equity awards in the future following the offering will also allow us
to be more competitive when hiring experienced banking personnel.

A full description of our products and services can be found under “Business of Newton Federal Bank.”

Terms of the Offering

We are offering between 2,228,700 and 3,015,300 shares of common stock of Community First Bancshares, Inc. to eligible depositors and borrowers, our tax-qualified employee
benefit plans and to the public to the extent shares remain available. The amount of capital we are raising in the offering is based on an appraisal of the pro forma market value of
Community First Bancshares, Inc. We may increase the maximum number of shares that we sell in the offering by up to 15%, to 3,467,595 shares, as a result of demand for the shares of
common stock in the offering or changes in market conditions, including those for financial institutions stocks. Subscription priorities have been established for the allocation of common
stock to the extent the subscription offering is oversubscribed. See “The Reorganization and Offering—Offering of Common Stock—Subscription Rights” for a description of allocation
procedures in the event of an oversubscription.

Unless the pro forma market value of Community First Bancshares, Inc. decreases below $48.5 million or increases above $75.4 million, or the offering is extended beyond May 8,
2017, you will not have the opportunity to change or cancel your stock order. The offering price of the shares of common stock is $10.00 per share. All investors will pay the same $10.00
purchase price per share. Investors will not be charged a commission to purchase shares of common stock. BSP Securities, LLC, our financial advisor in connection with the reorganization
and offering, will use its best efforts to assist us in selling our shares of common stock, but BSP Securities, LLC is not obligated to purchase any shares in the offering.

Persons Who May Order Stock in the Offering

We are offering the shares of common stock of Community First Bancshares, Inc. in a “subscription offering” in the following descending order of priority:
(1) depositors who had accounts at Newton Federal Bank with aggregate balances of at least $50 at the close of business on September 30, 2015;
(2) the tax-qualified employee benefit plans of Newton Federal Bank (including our employee stock ownership plan);
(3) depositors who had accounts at Newton Federal Bank with aggregate balances of at least $50 at the close of business on December 31, 2016; and
(4) other depositors of Newton Federal Bank at the close of business on February 1, 2017 and borrowers from Newton Federal Bank as of January 19, 1984 who maintained such
borrowings as of the close of business on February 1, 2017.

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Any shares of our common stock that remain unsold in the subscription offering will be offered for sale in a community offering that may commence concurrently with, during or
promptly after, the subscription offering. The community offering must be completed within 45 days of the end of the subscription offering, unless extended with Federal Reserve Board
approval. Natural persons (including trusts of natural persons) residing in the Georgia Counties of Barrow, Butts, Clarke, Greene, Gwinnett, Hall, Henry, Jackson, Jasper, Morgan, Newton,
Oconee, Putnam, Rockdale and Walton will have a purchase preference in any community offering. Shares also may be offered to the general public. We also may offer shares of common
stock not purchased in the subscription offering or the community offering through a syndicate of brokers in what is referred to as a syndicated community offering managed by BSP
Securities, LLC. We have the right to accept or reject, in our sole discretion, any orders received in the community offering or the syndicated community offering.

To ensure proper allocation of stock, each eligible account holder must list on his or her stock order form all deposit accounts in which he or she had an ownership interest at
September 30, 2015, December 31, 2016 or February 1, 2017, as applicable, or any loan account as of January 19, 1984 that remained outstanding at February 1, 2017. Failure to list an
account or providing incorrect information could result in the loss of all or part of a subscriber’s stock allocation. We will attempt to identify your ownership in all accounts, but cannot
guarantee we will identify all accounts in which you had an ownership interest. Our interpretations of the terms and conditions of the stock issuance plan and of the acceptability of the
order forms will be final.

If we receive orders for more shares than we are offering, we may not be able to fully or partially fill your order. Shares of common stock will be allocated first to categories in the
subscription offering in accordance with our plan of reorganization. A detailed description of share allocation procedures can be found in the section entitled “The Reorganization and
Offering—Offering of Common Stock.”

How We Determined the Offering Range and the $10.00 Price Per Share
Our decision to offer between 2,228,700 shares and 3,015,300 shares, which is our offering range, is based on an independent appraisal of our pro forma market value prepared by
RP Financial, LC., a firm experienced in appraisals of financial institutions. RP Financial, LC. is of the opinion that as of February 3, 2017, and assuming we sell a minority of our shares in
the stock offering, the estimated pro forma market value of the common stock of Community First Bancshares, Inc. was $57.0 million. Based on applicable regulations, this market value
forms the midpoint of a valuation range with a minimum of $48.5 million and a maximum of $65.6 million.

Our board of directors determined that the common stock should be sold at $10.00 per share and that 46% of the shares of Community First Bancshares, Inc. common stock should
be offered for sale in the offering and 54% should be held by Community First Bancshares, MHC. Therefore, based on the valuation range, the number of shares of Community First
Bancshares, Inc. common stock that will be sold in the offering will range from 2,228,700 shares to 3,015,300 shares. If demand for the shares or market conditions warrant, our appraised
value can be increased by up to 15%, which would result in an appraised value of $75.4 million and an offering of 3,467,595 shares of common stock.

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The appraisal is based in part on our financial condition and results of operations, the pro forma effect of the additional capital raised by the sale of shares of common stock in the
offering, and an analysis of a peer group of 10 publicly traded savings and loan holding companies that RP Financial, LC. considers comparable to Community First Bancshares, Inc. on a
pro forma basis. The appraisal peer group consists of the following companies, all of which are traded on the Nasdaq Stock Market. Total assets are as of September 30, 2016.

Ticker
Company Name Symbol Headquarters Total Assets
(In millions)
IF Bancorp, Inc. IROQ Watseka, IL $ 589
Prudential Bancorp, Inc. PBIP Philadelphia, PA 559
United Community Bancorp UCBA Lawrenceburg, IN 528
Poage Bankshares, Inc. PBSK Ashland, KY 449
Anchor Bancorp ANCB Lacey, WA 436
MSB Financial Corp. MSBF Millington, NJ 433
Wolverine Bancorp, Inc. WBKC Midland, MI 369
Jacksonville Bancorp, Inc. JXSB Jacksonville, IL 331
Melrose Bancorp, Inc. MELR Melrose, MA 267
Equitable Financial Corp. EQFN Grand Island, NE 228

The independent appraisal will be updated before we complete the reorganization and offering. If the pro forma market value of the common stock at that time is either below $48.5
million or above $75.4 million, then Community First Bancshares, Inc., after consulting with the Federal Reserve Board, may terminate the plan of reorganization and return all funds
promptly with interest; extend or hold a new subscription or community offering, or both; establish a new offering range and commence a resolicitation of subscribers; or take such other
actions as may be permitted by the Federal Reserve Board and the Securities and Exchange Commission. If we resolicit subscribers in this instance, then all funds delivered to us to
purchase shares of common stock in the subscription and community offerings will be returned promptly with interest.

Two measures investors use to analyze an issuer’s stock are the ratio of the offering price to the issuer’s book value and the ratio of the offering price to the issuer’s annual net
income. RP Financial, LC. considered these ratios, among other factors, in preparing its independent appraisal. Book value is the same as total equity, and represents the difference between
the issuer’s assets and liabilities. We had no intangible assets at September 30, 2016. Therefore, ratios that are presented related to book value are the same ratios that would be presented
related to tangible book value.

The following table presents a summary of selected pricing ratios for the peer group companies and for us on a non-fully converted basis (i.e. the table assumes that 46% of our
outstanding shares of common stock is sold in the offering, as opposed to 100% of our outstanding shares of common stock). These figures are from the RP Financial, LC. appraisal report.
Compared to the average pricing ratios of the peer group, and based upon the information in the following table, our pro forma pricing ratios at the midpoint of the offering range indicated
a premium of 148.9% on a non-fully converted price-to-earnings basis and a discount of 21.0% on a non-fully converted price-to-book value basis.

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Non-Fully Converted Non-Fully Converted

Pro Forma Pro Forma
Price-to- Price-to-Book
Earnings Multiple (1) Value Ratio (1)
Community First Bancshares, Inc.
Adjusted Maximum 71.57x 101.58%
Maximum 60.72x 93.24%
Midpoint 51.71x 85.19%
Minimum 43.06x 76.28%
Valuation of peer group companies as of February 3, 2017
Averages 20.78x 107.88%
Medians 18.24x 105.48%

(1) Information for the peer group companies is based upon actual earnings for the 12 months ended September 30, 2016, while information for Community First Bancshares, Inc. is
based upon actual earnings for the 12 months ended December 31, 2016. These ratios are different from the ratios in “Pro Forma Data.”

The following table presents a summary of selected pricing ratios for the peer group companies, with such ratios adjusted to their fully converted equivalent basis, and the resulting
pricing ratios for Community First Bancshares, Inc. on a fully converted equivalent basis. Compared to the average fully converted pricing ratios of the peer group, Community First
Bancshares, Inc.’s pro forma fully converted pricing ratios at the midpoint of the offering range indicated a premium of 183.1% on a fully converted price-to-earnings basis and a discount
of 43.8% on a fully converted price-to-book value basis.

Fully Converted Fully Converted

Pro Forma Pro Forma
Price-to- Price-to-Book
Earnings Multiple Value Ratio
Community First Bancshares, Inc.
Adjusted Maximum 85.99x 68.49%
Maximum 70.79x 64.60%
Midpoint 58.83x 60.64%
Minimum 47.88x 55.96%
Valuation of peer group companies as of February 3, 2017
Averages 20.78x 107.88%
Medians 18.24x 105.48%

The pro forma fully converted calculations for Community First Bancshares, Inc. include the following assumptions:
• 8% of the shares sold in a full conversion offering would be purchased by an employee stock ownership plan, with the expense to be amortized over 25 years;
• 4% of the shares sold in a full conversion offering would be purchased by a stock-based benefit plan, with the expense to be amortized over five years;
• Options equal to 10% of the shares sold in a full conversion offering would be granted under a stock-based benefit plan, with option expense of $2.34 per option, and with the
expense to be amortized over five years; and
• stock offering expenses would equal 3.04% of the stock offering amount at the midpoint of the offering range.

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The independent appraisal does not indicate market value. Do not assume or expect that Community First Bancshares, Inc.’s valuation as indicated above means that the
common stock will trade at or above the $10.00 purchase price after the reorganization and offering. Furthermore, the pricing ratios presented in the appraisal were used by RP
Financial, LC. to estimate our pro forma appraised value for regulatory purposes and not to compare the relative value of shares of our common stock with the value of the
capital stock of the peer group. The value of the capital stock of a particular company may be affected by a number of factors such as financial performance, asset size and
market location.

For a more complete discussion of the amount of common stock we are offering for sale and the independent appraisal, see “The Reorganization and Offering—How We
Determined the Stock Pricing and the Number of Shares to be Issued.”

How We Intend to Use the Proceeds from the Offering

We intend to invest at least 50% of the net proceeds from the stock offering in Newton Federal Bank, fund the loan to our employee stock ownership plan to finance its purchase of
shares of common stock in the stock offering, contribute $100,000 to Community First Bancshares, MHC as its initial capitalization, and retain the remainder of the net proceeds from the
offering at Community First Bancshares, Inc. Therefore, assuming we sell 3,015,300 shares of common stock at the maximum of the offering range, and we have net proceeds of $28.8
million, we intend to invest $14.4 million in Newton Federal Bank, loan $2.6 million to our employee stock ownership plan to fund its purchase of an amount of the common stock equal to
up to 3.92% of our outstanding shares (including shares issued to Community First Bancshares, MHC), contribute $100,000 to Community First Bancshares, MHC and retain the remaining
$11.7 million of the net proceeds at Community First Bancshares, Inc.

Community First Bancshares, Inc. expects to initially invest the net proceeds of the offering in securities issued by the U.S. government and its agencies or government sponsored
enterprises, and as otherwise permitted under our investment policy. Community First Bancshares, Inc. may use a portion of the net proceeds to repurchase shares of our common stock in
the future, although we are generally not permitted to do so during the first year following our reorganization, and may use a portion of the net proceeds to finance the possible acquisition
of other financial institutions or other financial service businesses. We may also use the net proceeds for other general corporate purposes. Newton Federal Bank generally intends to use the
proceeds it receives to originate loans. It may also purchase securities as permitted under our investment policy, expand its banking franchise internally through de novo branching or
establishing loan production offices, or expand through acquisitions of other financial institutions, branch offices, or other financial service businesses. Newton Federal Bank may also use
the proceeds it receives to support new loan, deposit or other financial products and services, and for general corporate purposes.

Neither Newton Federal Bank nor Community First Bancshares, Inc. has any plans or agreements for any specific acquisition transactions at this time. See “How We Intend to Use
the Proceeds from the Offering.”

Limits on the Amount of Common Stock You May Purchase

The minimum purchase is 25 shares of common stock. Generally, no individual, or individuals through a single account held jointly, may purchase more than $300,000 of common
stock. If any of the following persons purchase shares of common stock, their purchases when combined with your purchases cannot exceed $400,000 of common stock:
• Any person who is related by blood or marriage to you and who either lives in your home or who is a director or officer of Newton Federal Bank;
• Companies or other entities in which you are an officer or partner or have a 10% or greater beneficial ownership interest; and

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• Trusts or other estates in which you have a substantial beneficial interest or as to which you serve as a trustee or in another fiduciary capacity.

Persons having the same address and persons exercising subscription rights through qualifying accounts registered to the same address will be subject to this overall purchase
limitation. We have the right to determine, in our sole discretion, whether prospective purchasers are associates or acting in concert.

We may, in our sole discretion and without further notice to or solicitation of subscribers or other prospective purchasers, increase the maximum purchase limitation to 9.9% of the
number of shares sold in the offering, provided that the total number of shares purchased by persons, their associates and those persons with whom they are acting in concert, to the extent
such purchases exceed 5% of the shares sold in the offering, shall not exceed, in the aggregate, 10% of the total number of the shares sold in the offering.

Subject to regulatory approval, we may increase or decrease the purchase limitations in the offering at any time. A detailed discussion of the limitations on purchases of common
stock by an individual and persons acting in concert is set forth under the caption “The Reorganization and the Offering—Offering of Common Stock—Limitations on Purchase of Shares.”

We expect that the employee stock ownership plan will purchase 3.92% of our outstanding shares (including shares issued to Community First Bancshares, MHC). Subject to the
approval of the Federal Reserve Board, the employee stock ownership plan may purchase some or all of these shares in the open market following the completion of the offering. Our
employee stock ownership plan purchases will range from 189,924 shares to 295,499 shares of common stock, respectively, at the minimum and adjusted maximum of the offering range.

How You May Purchase Shares of Common Stock in the Subscription and Community Offering
In the subscription offering and the community offering you may pay for your shares only by:
• personal check, bank check or money order payable to Community First Bancshares, Inc. (cash and third party checks will not be accepted); or
• authorizing us to withdraw available funds (without any early withdrawal penalty) from your deposit account(s) maintained with Newton Federal Bank, other than checking
accounts or retirement accounts, including individual retirement accounts (IRAs).

Newton Federal Bank is not permitted to knowingly lend funds for the purpose of purchasing shares of common stock in the offering. You may not pay by wire transfer, use a check
drawn on a Newton Federal Bank line of credit, or use a third-party check to pay for shares of common stock. Please do not submit cash.

You can subscribe for shares of common stock in the offering by delivering a signed and completed original stock order form, together with full payment, before the expiration date
of the subscription offering. You may submit your stock order form in one of three ways: by mail, using the reply envelope provided; by overnight courier to the address indicated on the
stock order form; or by bringing your stock order form and payment to our Stock Information Center, which is located at Newton Federal Bank’s main office located at 3175 Highway 278,
Covington, Georgia. The Stock Information Center will be open Monday through Friday, between 10:00 a.m. and 4:00 p.m., Eastern Time. The Stock Information Center will not be open
on bank holidays. Once submitted, your order is irrevocable. We will not to accept incomplete stock order forms, unsigned stock order forms, or copies or facsimiles of stock order forms.
For orders paid for by check or money order, the funds must be available in the account. Funds received prior to the completion of the offering will be held in a segregated account at
Newton Federal Bank. Subscription funds will earn interest at 0.10% per annum, which is our current passbook savings rate. If the offering is terminated, we will promptly return your
subscription funds with interest.

On the stock order form, you may not designate withdrawal from Newton Federal Bank accounts with check-writing privileges; instead, please submit a check. If you request that
we directly withdraw the funds from an

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account with check writing privileges, we reserve the right to interpret that as your authorization to treat those funds as if we had received a check for the designated amount, and we will
immediately withdraw the amount from your checking account. You may not authorize direct withdrawal from a Newton Federal Bank IRA or other retirement account. See “—Using
Retirement Account Funds to Purchase Shares of Common Stock in the Subscription and Community Offerings.”

Withdrawals from certificates of deposit accounts at Newton Federal Bank for the purpose of purchasing common stock in the offering may be made without incurring an early
withdrawal penalty. All funds authorized for withdrawal from deposit accounts with Newton Federal Bank must be in the deposit accounts at the time the stock order form is received; no
credit to purchase shares will be given for future interest to be earned on the funds in your deposit account or submitted for payment for the shares. However, funds will not be withdrawn
from the accounts until the offering is completed and will continue to earn interest at the applicable deposit account rate until the completion of the offering. A hold will be placed on those
funds when your stock order is received, making the designated funds unavailable to you. If a withdrawal results in a certificate of deposit account with a balance less than the applicable
minimum balance requirement, the certificate of deposit will be canceled at the time of withdrawal without penalty, and the remaining balance will earn interest at 0.10% per annum
thereafter, until such funds are withdrawn. After we receive an order, the order cannot be revoked or changed.

By signing the stock order form, you are acknowledging receipt of this prospectus and that the shares of our common stock are not deposits or savings accounts that are federally
insured or otherwise guaranteed by Newton Federal Bank, the Federal Deposit Insurance Corporation or any other government agency.

Using Retirement Account Funds to Purchase Shares of Common Stock in the Subscription and Community Offerings
You may be able to subscribe for shares of common stock using funds in your IRA, or other retirement account. If you wish to use some or all of the funds in your IRA or other
retirement account held at Newton Federal Bank, the applicable funds must be transferred to a self-directed account maintained by an independent custodian or trustee, such as a brokerage
firm, before you place your stock order. If you do not have such an account, you will need to establish one. A one-time and/or annual administrative fee may be payable to the independent
custodian or trustee. Because individual circumstances differ and the processing of retirement fund orders takes additional time, we recommend that you contact our Stock Information
Center promptly, preferably at least two weeks before the March 22, 2017 offering deadline, for assistance with purchases using funds in your IRA or other retirement account held at
Newton Federal Bank or elsewhere. Whether you may use such funds for the purchase of shares in the stock offering may depend on timing constraints and, possibly, limitations imposed
by the institution where the funds are held.

For a complete description of how to use IRA funds to purchase shares in the stock offering, see “The Reorganization and Offering—Procedure for Purchasing Shares—Using
Retirement Account Funds.”

You May Not Sell or Transfer Your Subscription Rights

Applicable regulations prohibit you from selling, giving, or otherwise transferring your subscription rights. If you order shares of common stock in the subscription offering, you will
be required to state that you are purchasing the shares of common stock for yourself and that you have no agreement or understanding to sell or transfer your subscription rights. We intend
to take legal action, including reporting persons to federal or state regulatory agencies, against anyone who we believe has sold or given away his or her subscription rights. We will not
accept your order if we have reason to believe that you have sold or transferred your subscription rights. On the stock order form, you cannot add the names of others for joint stock
registration unless they are also named on the qualifying deposit or loan account, and you cannot delete names of others except in the case of certain orders placed through an IRA, Keogh,
401(k) or similar plan, and except in the event of the death of a named eligible depositor. In addition, the stock order form requires that you list all deposit or loan accounts, giving all names
on each account and the account number at the applicable eligibility record date. Your failure to provide this information, or providing incomplete or incorrect information, may result in a
loss of part or all of your share allocation, if there is an oversubscription. Eligible depositors or borrowers who enter into agreements to allow ineligible investors to participate in the
subscription offering may be violating federal and state law and may be subject to civil enforcement actions or criminal prosecution.

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Deadline for Orders of Common Stock

The deadline for submitting orders to purchase shares of the common stock in the subscription and community offerings is 4:00 p.m., Eastern Time, on March 22, 2017, unless we
extend this deadline. If you wish to purchase shares of common stock, your properly completed and signed original stock order form, together with full payment for the shares, must be
received (not postmarked) by this time. Orders received after 4:00 p.m., Eastern Time, on March 22, 2017 will be rejected unless the offering is extended.

Although we will make reasonable attempts to provide a prospectus and offering materials to holders of subscription rights, the subscription offering and all subscription rights will
expire at 4:00 p.m., Eastern Time, on March 22, 2017, whether or not we have been able to locate each person entitled to subscription rights.

See “The Reorganization and Offering—Procedure for Purchasing Shares—Expiration Date” for a complete description of the deadline for purchasing shares in the stock offering.

Once Submitted, Your Stock Purchase Order May Not Be Revoked Except Under Certain Circumstances
Funds that you use to purchase shares of our common stock in the offering will be held in a segregated account until the termination or completion of the offering, including any
extension of the expiration date. Because completion of the reorganization and offering is subject to the receipt of all required regulatory approvals, including an update of the independent
appraisal, among other factors, there may be one or more delays in the completion of the reorganization. Any orders that you submit to purchase shares of our common stock in the offering
are irrevocable, and you will not have access to subscription funds unless the offering is terminated, or extended beyond May 8, 2017, or the number of shares to be sold in the offering is
increased to more than 3,467,595 shares or decreased to fewer than 2,228,700 shares.

Termination of the Offering

The subscription offering will expire at 4:00 p.m., Eastern Time, on March 22, 2017. We expect that the community offering, if one is conducted, would expire at the same time. We
may extend this expiration date without notice to you until May 8, 2017, or such later date as the applicable regulators may approve. If the subscription offering and/or community offerings
are extended beyond May 8, 2017, we will be required to resolicit subscriptions before proceeding with the offering. In such event, all subscribers will be afforded the opportunity to
confirm, cancel or change their orders. If you choose to cancel your order or you do not respond to the resolicitation notice, your funds will be promptly returned to you with interest and
deposit account withdrawal authorizations will be cancelled. All further extensions, in the aggregate, may not last beyond March 30, 2019, which is two years after the special meeting of
members of Newton Federal Bank to be held on March 30, 2017 to vote on the plan of reorganization.

Steps We May Take If We Do Not Receive Orders for the Minimum Number of Shares
If we do not receive orders for at least 2,228,700 shares of common stock, we may take several steps in order to sell the minimum number of shares of common stock in the offering
range. Specifically, we may (a) increase the purchase limitations, (b) seek regulatory approval to extend the offering beyond the May 8, 2017 expiration date, and/or (c) reduce the valuation
and offering range, provided that any such extension or reduction will require us to resolicit subscriptions received in the offering and provide subscribers with the opportunity to increase,
decrease or cancel their subscriptions. If the offering is extended beyond May 8, 2017, subscribers will have the right to confirm, cancel or change their orders. If the number of shares to be
sold in the offering is increased to more than 3,467,595 shares or decreased to less than 2,228,700 shares, we will resolicit subscribers, and all funds delivered to us to purchase shares of
common stock in the subscription and community offerings will be returned promptly with interest.

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Market for the Common Stock

We have never issued capital stock and there is no established market for our common stock. We expect that our common stock will be traded on the on the Nasdaq Capital Market
under the symbol “CFBI” upon conclusion of the stock offering. See “Market for the Common Stock.”

Our Dividend Policy

We intend to pay cash dividends to our stockholders, beginning no earlier than the first calendar quarter of 2018. However, no decision has been made with respect to the amount of
any dividend payments. The payment and amount of any dividend payments will be subject to statutory and regulatory limitations, and will depend upon a number of factors, including the
following: regulatory capital requirements; our financial condition and results of operations; our other uses of funds for the long-term value of stockholders; tax considerations; the Federal
Reserve Board’s current regulations restricting the waiver of dividends by mutual holding companies; and general economic conditions. See “Our Policy Regarding Dividends” for
additional information regarding our dividend policy.

Possible Change in the Offering Range

RP Financial, LC. will update its appraisal before we complete the offering. If, as a result of demand for the shares or changes in market conditions, RP Financial, LC. determines
that our pro forma market value has increased, we may sell up to 3,467,595 shares in the offering without further notice to you. If our pro forma market value at that time is either below
$48.5 million or above $75.4 million, then, after consulting with the Federal Reserve Board, we may:
• terminate the stock offering, cancel deposit account withdrawal authorizations and promptly return all funds received in the offering with interest at 0.10% per annum;
• set a new offering range; or
• take such other actions as may be permitted by the Federal Reserve Board, the Financial Industry Regulatory Authority (“FINRA”) and the Securities and Exchange
Commission.

If we set a new offering range, we will promptly return funds, with interest at 0.10% per annum for funds received in the offering, cancel deposit account withdrawal authorizations
and commence a resolicitation. In connection with the resolicitation, we will notify subscribers of their right to place a new stock order for a specified period of time.

Possible Termination of the Offering

We may terminate the offering at any time prior to the special meeting of members of Newton Federal Bank that is being called to vote on the reorganization and offering, and at any
time after member approval with applicable regulatory approval. If we terminate the offering, we will promptly return your funds, with interest at 0.10% per annum, and we will cancel
deposit account withdrawal authorizations.

Our Officers, Directors and Employees Will Receive Additional Benefits and Compensation After the Reorganization and Offering
In connection with the reorganization, we are establishing an employee stock ownership plan, and, subject to stockholder approval, we intend to implement one or more stock-based
benefits plan that will provide for grants of stock options and restricted stock.

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Employee Stock Ownership Plan . The board of directors of Newton Federal Bank has adopted an employee stock ownership plan, which will award shares of our common stock to
eligible employees primarily based on their compensation. Our board of directors will, at the completion of the offering, ratify the loan to the employee stock ownership plan and the
issuance of the common stock to the employee stock ownership plan. It is expected that our employee stock ownership plan will purchase an amount of shares equal to 3.92% of our
outstanding shares (including shares issued to Community First Bancshares, MHC).

Stock-Based Benefit Plans . In addition to shares purchased by the employee stock ownership plan, we intend to adopt one or more stock-based benefit plans, which are designed to
attract and retain qualified personnel in key positions and provide directors, officers and key employees with an ownership interest in Community First Bancshares, Inc., which will be an
incentive to contribute to our success, and reward key employees for their performance. The number of options granted and shares of restricted common stock awarded under stock-based
benefit plans may not exceed 4.90% and 1.96%, respectively, of our total outstanding shares, including shares issued to Community First Bancshares, MHC, provided that if Newton
Federal Bank’s tangible capital at the time of adoption of the stock-based benefit plan is less than 10% of its assets, then the amount of shares of restricted common stock may not exceed
1.47% of our outstanding shares. The number of options granted or shares of restricted common stock awarded under stock-based benefit plans, when aggregated with any subsequently
adopted stock-based benefit plans (exclusive of any shares held by any employee stock ownership plan), may not exceed 25% of the shares of common stock held by persons other than
Community First Bancshares, MHC. Under applicable regulations, the exercise price of options granted within one year of the completion of the offering must be equal to the then fair
market value of the common stock on the date the options are granted.

Stock-based benefit plans will not be established sooner than six months after the stock offering, and if adopted within one year after the stock offering, the plans must be approved
by a majority of the votes eligible to be cast by our stockholders, as well as a majority of the votes eligible to be cast by our stockholders other than Community First Bancshares, MHC. If
stock-based benefit plans are established more than one year after the stock offering, they must be approved by a majority of votes cast by our stockholders, as well as a majority of votes
cast by our stockholders other than Community First Bancshares, MHC. The following additional restrictions would apply to our stock-based benefit plans only if such plans are adopted
within one year after the stock offering:
• non-employee directors in the aggregate may not receive more than 30% of the options and shares of restricted common stock authorized under the plans;
• no non-employee director may receive more than 5% of the options and shares of restricted common stock authorized under the plans;
• no officer or employee may receive more than 25% of the options and shares of restricted common stock authorized under the plans;
• options and shares of restricted common stock may not vest more rapidly than 20% per year, beginning on the first anniversary of stockholder approval of the plans; and
• accelerated vesting is not permitted except for death, disability or upon a change in control of Newton Federal Bank or Community First Bancshares, Inc.

We have not determined whether we will present stock-based benefit plans for stockholder approval prior to or more than 12 months after the completion of the stock offering. In the
event federal regulators change their regulations or policies regarding stock-based benefit plans, including any regulations or policies restricting the size of awards and vesting of benefits as
described above, the restrictions described above may not be applicable.

We may obtain the shares needed for our stock-based benefit plans by issuing additional shares of common stock from authorized but unissued shares or through stock repurchases.

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Equity Plan Expenses. The implementation of an employee stock ownership plan and one or more stock-based benefit plans will increase our future compensation costs, thereby
reducing our earnings. For example, we will be required to recognize an expense each year under our employee stock ownership plan equal to the fair market value of the shares committed
to be released for that year to the participating employees. Similarly, if we issue restricted stock awards under a stock-based benefit plan, we would be required to recognize an expense as
the shares vest equal to their fair market value on the grant date. Finally, if we issue stock options, we would be required to recognize an expense as the options vest, equal to their estimated
value on the grant date. See “Risk Factors—Risks Related to the Offering—Our stock-based benefit plans will increase our costs, which will reduce our income” and “Management—
Benefits to be Considered Following Completion of the Stock Offering.”

Benefits to Management. The following table summarizes the stock benefits that our officers, directors and employees may receive following the reorganization and offering, at the
adjusted maximum of the offering range and assuming that our employee stock ownership plan purchases 3.92% of our outstanding shares (including shares issued to Community First
Bancshares, MHC) and that we implement one or more stock-based benefit plans granting options to purchase 4.90% of the total shares of common stock of Community First Bancshares,
Inc. issued in connection with the reorganization (including shares issued to Community First Bancshares, MHC) and awarding shares of restricted common stock equal to 1.96% of the
total shares of common stock of Community First Bancshares, Inc. issued in connection with the reorganization (including shares issued to Community First Bancshares, MHC).

Value of Benefits Based on

Individuals Eligible to Receive Percent of Adjusted Maximum of
Plan Awards Outstanding Shares Offering Range
Employee stock ownership plan All employees 3.92% $ 2,955
Stock awards Directors, officers and employees 1.96 1,478
Stock options Directors, officers and employees 4.90 864(1)
Total 10.78% $ 5,297

(1) The fair value of stock options has been estimated at $2.34 per option using the Black-Scholes option pricing model with the following assumptions: a grant-date share price and
option exercise price of $10.00; no dividend yield; expected option life of 10 years; risk free interest rate of 1.60%; and a volatility rate of 12.81% based on an index of publicly
traded thrift institutions.

The actual value of the shares of restricted common stock awarded under the stock-based benefit plan would be based on the price of Community First Bancshares, Inc.’s common
stock at the time the shares are awarded. The following table presents the total value of all shares of restricted common stock to be available for award and issuance under the stock-based
benefit plan, assuming receipt of stockholder approval and that the shares are awarded in a range of market prices from $8.00 per share to $14.00 per share.

147,750 Shares
94,962 Shares Awarded 111,720 Shares 128,478 Shares Awarded at Adjusted
at Minimum of Offering Awarded at Midpoint of Awarded at Maximum Maximum of Offering
Share Price Range Offering Range of Offering Range Range
(In thousands, except share price information)
$8.00 $ 760 $ 894 $ 1,028 $ 1,182
$10.00 $ 950 $ 1,117 $ 1,285 $ 1,477
$12.00 $ 1,140 $ 1,341 $ 1,542 $ 1,773
$14.00 $ 1,329 $ 1,564 $ 1,799 $ 2,068

The grant-date fair value of the options granted under the stock-based benefit plan would be based in part on the price of shares of Community First Bancshares, Inc.’s common
stock at the time the options are granted. The value will also depend on the various assumptions utilized in the option pricing model ultimately adopted. The following table presents the
total estimated value of the options to be available for grant under the stock-based benefit plan, assuming receipt of stockholder approval, using a Black-Scholes option pricing model, and
assuming the market price and exercise price for the stock options are equal and the range of market prices for the shares is $8.00 per share to $14.00 per share. The Black-Scholes option
pricing model provides an estimate only of the fair value of the options, and the actual value of the options may differ significantly from the value set forth in this table.

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237,405 Options at 279,300 Options at 321,195 Options at 369,374 Options at

Grant-Date Minimum of Midpoint of Maximum of Adjusted
Fair Value Per Offering Offering Offering Maximum of
Market/Exercise Price Option Range Range Range Offering Range
(In thousands, except market/exercise price and fair value information)
$8.00 $ 1.87 $ 444 $ 522 $ 601 $ 691
$10.00 $ 2.34 $ 556 $ 654 $ 752 $ 864
$12.00 $ 2.81 $ 667 $ 785 $ 903 $ 1,038
$14.00 $ 3.28 $ 779 $ 916 $ 1,054 $ 1,212

Restrictions on the Acquisition of Community First Bancshares, Inc. and Newton Federal Bank
Federal regulations, as well as provisions contained in the charter and bylaws of Newton Federal Bank and Community First Bancshares, Inc., restrict the ability of any person, firm
or entity to acquire Community First Bancshares, Inc., Newton Federal Bank, or their respective capital stock. These restrictions include the requirement that a potential acquirer of common
stock obtain the prior approval of the Federal Reserve Board and/or the Office of the Comptroller of the Currency before acquiring in excess of 10% of the voting stock of Community First
Bancshares, Inc. or Newton Federal Bank, as well as a provision in each of Community First Bancshares, Inc.’s and Newton Federal Bank’s respective charters that generally provides that
for a period of five years from the closing of the offering, no person, other than Community First Bancshares, MHC, may directly or indirectly offer to acquire or acquire the beneficial
ownership of more than 10% of any class of equity security of Community First Bancshares, Inc. or Newton Federal Bank held by persons other than Community First Bancshares, MHC,
and, with respect to Newton Federal Bank, other than Community First Bancshares, Inc., and that any shares acquired in excess of this limit would not be entitled to be voted and would not
be counted as voting stock in connection with any matters submitted to the stockholders for a vote.

Because a majority of the shares of outstanding common stock of Community First Bancshares, Inc. must be owned by Community First Bancshares, MHC, any acquisition of
Community First Bancshares, Inc. must be approved by Community First Bancshares, MHC. Furthermore, Community First Bancshares, MHC would not be required to pursue or approve a
sale of Community First Bancshares, Inc. even if such sale were favored by a majority of Community First Bancshares, Inc.’s public stockholders. Finally, although a mutual holding
company may be acquired by a mutual institution or another mutual holding company in what is known as a “remutualization” transaction, current regulatory policy may make such
transactions unlikely because of the heightened regulatory scrutiny given to the structure and pricing of such transactions. Specifically, current regulatory policy views remutualization
transactions as raising significant issues concerning disparate treatment of minority stockholders and mutual members of the target entity, and raising issues concerning the effect on the
mutual members of the acquiring entity. As a result, a remutualization transaction for Community First Bancshares, Inc. is unlikely unless the applicant can clearly demonstrate that the
regulatory concerns are not warranted in the particular case.

Proposed Stock Purchases by Management

Community First Bancshares, Inc.’s directors and executive officers and their associates are expected to purchase, for investment purposes, approximately 72,300 shares of common
stock in the offering, which represents 3.2% of the shares sold to the public and 1.5% of the total shares to be outstanding after the offering (including shares owned by Community First
Bancshares, MHC), each at the minimum of the offering range, respectively. Like all of our eligible depositor and borrower purchasers, our directors and executive officers and their
associates have subscription rights based on their deposits or borrowings and, in the event of an oversubscription, their orders will be subject to the allocation provisions set forth in our plan
of reorganization.

The plan of reorganization provides that the aggregate amount of shares acquired in the offering by our directors and executive officers (and their associates) may not exceed 31% of
the outstanding shares held by persons other than Community First Bancshares, MHC, except with the approval of federal regulators. We may seek approval from the federal regulators to
allow purchases by our directors and executive officers (and their associates) to exceed the 31% limit to the extent needed to enable us to sell the minimum number of shares of common
stock in the offering range.

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Directors and executive officers will pay the same $10.00 per share price paid by all other persons who purchase shares in the offering. These shares will be counted in determining
whether the minimum of the offering range is reached.

Conditions to Completing the Reorganization and Offering

We cannot complete the reorganization and offering unless:
• we sell at least 2,228,700 shares, the minimum of the offering range;
• the members of Newton Federal Bank vote to approve the reorganization and offering; and
• we receive final approval from the Federal Reserve Board to complete the reorganization and offering, as well as any additional required approvals from the Office
of the Comptroller of the Currency and the Federal Deposit Insurance Corporation.

Federal Reserve Board, Office of the Comptroller of the Currency or Federal Deposit Insurance Corporation approval does not constitute a recommendation or endorsement of an
investment in our stock.

Possible Conversion of Community First Bancshares, MHC to Stock Form

In the future, Community First Bancshares, MHC may convert from the mutual to capital stock form, in a transaction commonly referred to as a “second-step conversion.” In a
second-step conversion, members of Community First Bancshares, MHC would have subscription rights to purchase common stock of Community First Bancshares, Inc. or its successor,
and the public stockholders of Community First Bancshares, Inc. would be entitled to exchange their shares of common stock for an equal percentage of shares of the converted Community
First Bancshares, MHC. This percentage may be adjusted to reflect any assets owned by Community First Bancshares, MHC.

Our board of directors has no current plans to undertake a second-step conversion transaction. Any second-step conversion transaction would require the approval of holders of a
majority of the outstanding shares of Community First Bancshares, Inc. common stock (excluding shares held by Community First Bancshares, MHC) and the approval of the depositor and
borrower members of Community First Bancshares, MHC.

Delivery of Prospectus
To ensure that each person receives a prospectus at least 48 hours before the deadline for orders for common stock, we may not mail prospectuses any later than five days
prior to such date or hand-deliver prospectuses later than two days prior to that date. Stock order forms may only be delivered if accompanied or preceded by a prospectus. We
are not obligated to deliver a prospectus or stock order form by means other than U.S. mail.

We will make reasonable attempts to provide a prospectus and offering materials to holders of subscription rights. The subscription offering and all subscription rights will expire at
4:00 p.m., Eastern Time, on March 22, 2017, whether or not we have been able to locate each person entitled to subscription rights.

Delivery of Shares of Common Stock

All shares of common stock sold will be issued in book entry form. Stock certificates will not be issued. A statement reflecting ownership of shares of common stock issued in the
subscription and community offerings will be mailed by our transfer agent to the persons entitled thereto at the registration address noted by them on their stock order forms as soon as
practicable following consummation of the stock offering. Shares of common stock sold in the syndicated community offering may be delivered electronically through the services of The
Depository Trust

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Company, subject to any necessary regulatory approval. We expect trading in the stock to begin on the day of completion of the stock offering or the next business day. Until a statement
reflecting ownership of shares of common stock is available and delivered to purchasers, purchasers might not be able to sell the shares of common stock that they purchased,
even though the common stock will have begun trading. Your ability to sell your shares of common stock before receiving your statement will depend on arrangements you may make
with a brokerage firm.

Tax Consequences
Newton Federal Bank and Community First Bancshares, Inc. have received an opinion of counsel, Luse Gorman, PC, regarding the material federal income tax consequences of the
reorganization, including an opinion that it is more likely than not that the fair market value of the nontransferable subscription rights to purchase the common stock will be zero and,
accordingly, no gain or loss will be recognized by members upon the distribution to them of the nontransferable subscription rights to purchase the common stock and no taxable income
will be realized by depositors as a result of the exercise of the nontransferable subscription rights. Newton Federal Bank and Community First Bancshares, Inc. have also received an
opinion of Porter Keadle Moore, LLC regarding the material Georgia state tax consequences of the reorganization. As a general matter, the reorganization will not be a taxable transaction
for purposes of federal or state income taxes to Newton Federal Bank, Community First Bancshares, Inc. or persons eligible to subscribe in the subscription offering. See the section of this
prospectus entitled “Taxation” for additional information regarding taxes.

Emerging Growth Company Status

We qualify as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). For as long as we are an emerging growth company, we
may choose to take advantage of exemptions from various reporting requirements applicable to other public companies but not to emerging growth companies. See “Risk Factors—Risks
Related to the Offering—We are an emerging growth company, and any decision on our part to comply only with certain reduced reporting and disclosure requirements applicable to
emerging growth companies could make our common stock less attractive to investors” and “Regulation and Supervision—Emerging Growth Company Status.”

An emerging growth company may elect to use the extended transition period to delay adoption of new or revised accounting pronouncements applicable to public companies until
such pronouncements are made applicable to private companies, but must make such election when the company is first required to file a registration statement. Such an election is
irrevocable during the period a company is an emerging growth company. We have elected to use the extended transition period to delay adoption of new or revised accounting
pronouncements applicable to public companies until such pronouncements are made applicable to private companies. Accordingly, our financial statements may not be comparable to the
financial statements of public companies that comply with such new or revised accounting standards.

How You May Obtain Additional Information Regarding the Reorganization and Offering
If you have any questions regarding the reorganization and offering, please call the Stock Information Center at (678) 729-9788, or visit the Stock Information Center, which is
located at 3175 Highway 278, Covington, Georgia. The Stock Information Center will be open Monday through Friday between 10:00 a.m. and 4:00 p.m., Eastern Time. The Stock
Information Center will be closed on bank holidays.

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RISK FACTORS

You should consider carefully the following risk factors, in addition to all other information in this prospectus, in evaluating an investment in our common stock.

Risks Related to Our Business

We have increased our commercial real estate, commercial and industrial, and construction and land loans, and intend to continue to increase originations of these types of loans.
These loans involve credit risks that could adversely affect our financial condition and results of operations.

At September 30, 2016, commercial real estate loans totaled $29.2 million, or 15.0% of our loan portfolio, commercial and industrial loans totaled $16.2 million, or 8.4% of our loan
portfolio, and construction and land loans totaled $13.3 million, or 6.9% of our loan portfolio. Given their larger balances and the complexity of the underlying collateral, commercial real
estate and commercial and industrial loans generally have more risk than the one- to four-family residential real estate loans we originate. Because the repayment of commercial real estate
and commercial and industrial loans depends on the successful management and operation of the borrower’s properties or related businesses, repayment of such loans can be affected by
adverse conditions in the local real estate market or economy. A downturn in the real estate market or the local economy could adversely impact the value of properties securing the loan or
the revenues from the borrower’s business, thereby increasing the risk of nonperforming loans. Further, unlike residential mortgage loans, commercial real estate loans and commercial and
industrial loans may be secured by collateral other than real estate, such as inventory and accounts receivable, the value of which may depreciate over time, may be more difficult to
appraise and may be more susceptible to fluctuation in value at default. In addition, the physical condition of non-owner occupied properties may be below that of owner occupied
properties due to lax property maintenance standards, which have a negative impact on the value of the collateral properties. As our commercial real estate and commercial and industrial
loan portfolios increase, the corresponding risks and potential for losses from these loans may also increase.

Our portfolio of loans with a higher risk of loss is increasing and the unseasoned nature of our commercial loan portfolio may result in errors in judging its collectability, which
may lead to additional provisions for loan losses or charge-offs, which would hurt our profits.

Our commercial loan portfolio, which includes commercial real estate, commercial and industrial loans and construction and land loans, has increased to $58.7 million, or 30.3% of
total loans, at September 30, 2016 from $38.3 million, or 21.3% of total loans, at September 30, 2014. A large portion of our commercial loan portfolio was originated recently. Our limited
experience with these borrowers does not provide us with a significant payment history pattern with which to judge future collectability. Further, these loans have not been subjected to
unfavorable economic conditions. As a result, it is difficult to predict the future performance of this part of our loan portfolio. These loans may have delinquency or charge-off levels above
our historical experience, which could adversely affect our future performance.

A worsening of economic conditions in our market area could reduce demand for our products and services and/or result in increases in our level of nonperforming loans, which
could adversely affect our operations, financial condition and earnings.

Local economic conditions have a significant impact on the ability of our borrowers to repay loans and the value of the collateral securing loans. A deterioration in economic
conditions could have the following consequences, any of which could have a material adverse effect on our business, financial condition, liquidity and results of operations:
• demand for our products and services may decline;
• loan delinquencies, problem assets and foreclosures may increase;

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• collateral for loans, especially real estate, may decline in value, thereby reducing customers’ future borrowing power, and reducing the value of assets and collateral
associated with existing loans; and
• the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us.

Moreover, a significant decline in general economic conditions caused by inflation, recession, acts of terrorism, an outbreak of hostilities or other international or domestic
calamities, unemployment or other factors beyond our control could further impact these local economic conditions and could further negatively affect the financial results of our banking
operations. In addition, deflationary pressures, while possibly lowering our operating costs, could have a significant negative effect on our borrowers, especially our business borrowers, and
the values of underlying collateral securing loans, which could negatively affect our financial performance.

Our business strategy includes growth, and our financial condition and results of operations could be negatively affected if we fail to grow or fail to manage our growth
effectively. Growing our operations could also cause our expenses to increase faster than our revenues.

Our business strategy includes growth in assets, deposits and the scale of our operations. Achieving such growth will require us to attract customers that currently bank at other
financial institutions in our market area. Our ability to successfully grow will depend on a variety of factors, including our ability to attract and retain experienced bankers, the continued
availability of desirable business opportunities, competition from other financial institutions in our market area and our ability to manage our growth. Growth opportunities may not be
available or we may not be able to manage our growth successfully. If we do not manage our growth effectively, our financial condition and operating results could be negatively affected.
Furthermore, there can be considerable costs involved in opening branches and expanding lending capacity that generally require a period of time to generate the necessary revenues to
offset their costs, especially in areas in which we do not have an established presence. Accordingly, any such business expansion can be expected to negatively impact our earnings for some
period of time until certain economies of scale are reached. Our expenses could be further increased if we encounter delays in the opening of new branches.

If our allowance for loan losses is not sufficient to cover actual loan losses, our earnings could decrease.

We maintain an allowance for loan losses, which is established through a provision for loan losses that represents management’s best estimate of probable losses within the existing
portfolio of loans. We make various assumptions and judgments about the collectability of our loan portfolio, including the creditworthiness of borrowers and the value of the real estate and
other assets serving as collateral for the repayment of loans. In determining the adequacy of the allowance for loan losses, we rely on our experience and our evaluation of economic
conditions. If our assumptions prove to be incorrect, our allowance for loan losses may not be sufficient to cover losses inherent in our loan portfolio and adjustment may be necessary to
allow for different economic conditions or adverse developments in our loan portfolio. Consequently, a problem with one or more loans could require us to significantly increase the level of
our provision for loan losses. In addition, federal regulators periodically review our allowance for loan losses and as a result of such reviews, we may have to adjust our allowance for loan
losses or recognize further loan charge-offs. However, regulatory agencies are not directly involved in the process of establishing the allowance for loan losses, as the process is our
responsibility and any adjustment of the allowance is the responsibility of management. Material additions to the allowance would materially decrease our net income.

We depend on our management team to implement our business strategy and execute successful operations and we could be harmed by the loss of their services.

We are dependent upon the services of the members of our senior management team who direct our strategy and operations. Members of our senior management team, or lending
personnel who possess expertise in

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our markets and key business relationships, could be difficult to replace. Our loss of these persons, or our inability to hire additional qualified personnel, could impact our ability to
implement our business strategy and could have a material adverse effect on our results of operations and our ability to compete in our markets. See “Management.”

A continuation of the historically low interest rate environment and the possibility that we may access higher-cost funds to support our loan growth and operations may
adversely affect our net interest income and profitability.

In recent years the Federal Reserve Board’s policy has been to maintain interest rates at historically low levels through its targeted federal funds rate and the purchase of mortgage-
backed securities. Our ability to reduce our interest expense may be limited at current interest rate levels while the average yield on our interest-earning assets may continue to decrease, and
our interest expense may increase as we access non-core funding sources or increase deposit rates to fund our operations. A continuation of a low interest rate environment or our increasing
our cost of funds may adversely affect our net interest income, which would have an adverse effect on our profitability.

Future changes in interest rates could reduce our profits and asset values.

Net income is the amount by which net interest income and non-interest income exceeds non-interest expense and the provision for loan losses. Net interest income makes up a
majority of our income and is based on the difference between:
• the interest income we earn on interest-earning assets, such as loans and securities; and
• the interest expense we pay on interest-bearing liabilities, such as deposits and borrowings.

The rates we earn on our assets and the rates we pay on our liabilities are generally fixed for a contractual period of time. Like many savings institutions, our liabilities generally
have shorter contractual maturities than our assets. This imbalance can create significant earnings volatility because market interest rates change over time. In a period of rising interest
rates, the interest income we earn on our assets may not increase as rapidly as the interest we pay on our liabilities. In a period of declining interest rates, the interest income we earn on our
assets may decrease more rapidly than the interest we pay on our liabilities, as borrowers prepay mortgage loans, and mortgage-backed securities and callable investment securities are
called, requiring us to reinvest those cash flows at lower interest rates.

In addition, changes in interest rates can affect the average life of loans and mortgage-backed and related securities. A decline in interest rates results in increased prepayments of
loans and mortgage-backed and related securities as borrowers refinance their debt to reduce their borrowing costs. This creates reinvestment risk, which is the risk that we may not be able
to reinvest prepayments at rates that are comparable to the rates we earned on the prepaid loans or securities. Furthermore, an inverted interest rate yield curve, where short-term interest
rates (which are usually the rates at which financial institutions borrow funds) are higher than long-term interest rates (which are usually the rates at which financial institutions lend funds
for fixed-rate loans) can reduce a financial institution’s net interest margin and create financial risk for financial institutions who originate longer-term, fixed rate mortgage loans.

Any substantial, unexpected, prolonged change in market interest rates could have a material adverse effect on our financial condition, liquidity and results of operations. Changes in
the level of interest rates also may negatively affect the value of our assets and ultimately affect our earnings.

We monitor interest rate risk through the use of simulation models, including estimates of the amounts by which the fair value of our assets and liabilities (our net economic value or
“NEV”) and our net interest income would change in the event of a range of assumed changes in market interest rates. As of September 30, 2016, in the event of an instantaneous 200 basis
point increase in interest rates, we estimate that we would experience a 12.33% decrease in NEV and a 0.70% decrease in net interest income. For further discussion of how changes in
interest rates could impact us, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Management of Market Risk.”

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Strong competition within our market areas may limit our growth and profitability.

Competition in the banking and financial services industry is intense. In our market area, we compete with commercial banks, savings institutions, mortgage brokerage firms, credit
unions, finance companies, mutual funds, insurance companies, and brokerage and investment banking firms and unregulated or less regulated non-banking entities, operating locally and
elsewhere. Many of these competitors have substantially greater resources and higher lending limits than we have and offer certain services that we do not or cannot provide. In addition,
some of our competitors offer loans with lower interest rates on more attractive terms than loans we offer. Competition also makes it increasingly difficult and costly to attract and retain
qualified employees. Our profitability depends upon our continued ability to successfully compete in our market area. If we must raise interest rates paid on deposits or lower interest rates
charged on our loans, our net interest margin and profitability could be adversely affected.

The financial services industry could become even more competitive as a result of new legislative, regulatory and technological changes and continued consolidation. Banks,
securities firms and insurance companies can merge under the umbrella of a financial holding company, which can offer virtually any type of financial service, including banking, securities
underwriting, insurance (both agency and underwriting) and merchant banking. Also, technology has lowered barriers to entry and made it possible for non-banks to offer products and
services traditionally provided by banks, such as automatic transfer and automatic payment systems. Many of our competitors have fewer regulatory constraints and may have lower cost
structures. Additionally, due to their size, many competitors may be able to achieve economies of scale and, as a result, may offer a broader range of products and services as well as better
pricing for those products and services than we can. We expect competition to increase in the future as a result of legislative, regulatory and technological changes and the continuing trend
of consolidation in the financial services industry. For additional information see “Business of Newton Federal Bank—Market Area” and “—Competition.”

Our small size makes it more difficult for us to compete.

Our small asset size makes it more difficult to compete with other financial institutions that are larger and can more easily afford to invest in the marketing and technologies needed
to attract and retain customers. Because our principal source of income is the net interest income we earn on our loans and investments after deducting interest paid on deposits and other
sources of funds, our ability to generate the revenues needed to cover our expenses and finance such investments is limited by the size of our loan and investment portfolios. Accordingly,
we are not always able to offer new products and services as quickly as our competitors. Our lower earnings may also make it more difficult to offer competitive salaries and benefits. In
addition, our smaller customer base may make it difficult to generate meaningful non-interest income from such activities as securities and insurance brokerage. Finally, as a smaller
institution, we are disproportionately affected by the continually increasing costs of compliance with new banking and other regulations.

Changes in laws and regulations and the cost of regulatory compliance with new laws and regulations may adversely affect our operations and/or increase our costs of operations.

Newton Federal Bank is subject to extensive regulation, supervision and examination by the Office of the Comptroller of the Currency, and Community First Bancshares, Inc. will
be subject to extensive regulation, supervision and examination by the Federal Reserve Board. Such regulation and supervision governs the activities in which an institution and its holding
company may engage and are intended primarily for the protection of the federal deposit insurance fund and the depositors and borrowers of Newton Federal Bank, rather than for our
stockholders. Regulatory authorities have extensive discretion in their supervisory and enforcement activities, including the imposition of restrictions on our operations, the classification of
our assets and determination of the level of our allowance for loan losses. These regulations, along with existing tax, accounting, securities, insurance and monetary laws, rules, standards,
policies, and interpretations, control the methods by which financial institutions conduct business, implement strategic initiatives and tax compliance, and govern financial reporting and
disclosures.

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Any change in such regulation and oversight, whether in the form of regulatory policy, regulations, legislation or supervisory action, may have a material impact on our operations. Further,
changes in accounting standards can be both difficult to predict and involve judgment and discretion in their interpretation by us and our independent accounting firms. These changes could
materially impact, potentially even retroactively, how we report our financial condition and results of operations.

The Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) has significantly changed the regulation of banks and savings institutions and affects the
lending, deposit, investment, trading and operating activities of financial institutions and their holding companies. The Dodd-Frank Act requires various federal agencies to adopt a broad
range of new implementing rules and regulations, and to prepare numerous studies and reports for Congress. The federal agencies have been given significant discretion in drafting the
implementing rules and regulations, many of which are not in final form. As a result, we cannot at this time predict the full extent to which the Dodd-Frank Act will impact our business,
operations or financial condition. However, compliance with the Dodd-Frank Act and its implementing regulations and policies has already resulted in changes to our business and
operations, as well as additional costs, and has diverted management’s time from other business activities, all of which have adversely affected our financial condition and results of
operations.

Non-compliance with the USA PATRIOT Act, Bank Secrecy Act, or other laws and regulations could result in fines or sanctions.

The USA PATRIOT and Bank Secrecy Acts require financial institutions to develop programs to prevent financial institutions from being used for money laundering and terrorist
activities. If such activities are detected, financial institutions are obligated to file suspicious activity reports with the U.S. Treasury’s Office of Financial Crimes Enforcement Network.
These rules require financial institutions to establish procedures for identifying and verifying the identity of customers seeking to open new financial accounts. Failure to comply with these
regulations could result in fines or sanctions, including restrictions on conducting acquisitions or establishing new branches. The policies and procedures we have adopted that are designed
to assist in compliance with these laws and regulations may not be effective in preventing violations of these laws and regulations.

Our ability to originate loans could be restricted by recently adopted federal regulations.

The Consumer Financial Protection Bureau has issued a rule intended to clarify how lenders can avoid legal liability under the Dodd-Frank Act, which holds lenders accountable for
ensuring a borrower’s ability to repay a mortgage loan. Under the rule, loans that meet the “qualified mortgage” definition will be presumed to have complied with the new ability-to-repay
standard. Under the rule, a “qualified mortgage” loan must not contain certain specified features, including:
• excessive upfront points and fees (those exceeding 3% of the total loan amount, less “bona fide discount points” for prime loans);
• interest-only payments;
• negative amortization; and
• terms of longer than 30 years.

Also, to qualify as a “qualified mortgage,” a loan must be made to a borrower whose total monthly debt-to-income ratio does not exceed 43%. Lenders must also verify and
document the income and financial resources relied upon to qualify a borrower for the loan and underwrite the loan based on a fully amortizing payment schedule and maximum interest
rate during the first five years, taking into account all applicable taxes, insurance and assessments.

In addition, the Dodd-Frank Act requires the Consumer Finance Protection Bureau to adopt rules and publish forms that combine certain disclosures that consumers receive in
connection with applying for and closing on certain mortgage loans under the Truth in Lending Act and the Real Estate Settlement Procedures Act. The Consumer Financial Protection
Bureau has implemented a final rule to implement this requirement, and the final rule was effective in October 2015.

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We face significant operational risks because the financial services business involves a high volume of transactions and increased reliance on technology, including risk of loss
related to cyber-security breaches.

We operate in diverse markets and rely on the ability of our employees and systems to process a high number of transactions and to collect, process, transmit and store significant
amounts of confidential information regarding our customers, employees and others and concerning our own business, operations, plans and strategies. Operational risk is the risk of loss
resulting from our operations, including but not limited to, the risk of fraud by employees or persons outside our company, the execution of unauthorized transactions by employees, errors
relating to transaction processing and technology, systems failures or interruptions, breaches of our internal control systems and compliance requirements, and business continuation and
disaster recovery. Insurance coverage may not be available for such losses, or where available, such losses may exceed insurance limits. This risk of loss also includes the potential legal
actions that could arise as a result of operational deficiencies or as a result of non-compliance with applicable regulatory standards or customer attrition due to potential negative publicity.
In addition, we outsource some of our data processing to certain third-party providers. If these third-party providers encounter difficulties, including as a result of cyber-attacks or
information security breaches, or if we have difficulty communicating with them, our ability to adequately process and account for transactions could be affected, and our business
operations could be adversely affected.

In the event of a breakdown in our internal control systems, improper operation of systems or improper employee actions, or a breach of our security systems, including if
confidential or proprietary information were to be mishandled, misused or lost, we could suffer financial loss, face regulatory action, civil litigation and/or suffer damage to our reputation.

We have become subject to more stringent capital requirements, which may adversely impact our return on equity, require us to raise additional capital, or limit our ability to
pay dividends or repurchase shares.

A final capital rule, effective for Newton Federal Bank on January 1, 2015, includes new minimum risk-based capital and leverage ratios and refines the definition of what
constitutes “capital” for calculating these ratios. The new minimum capital requirements are: (i) a new common equity Tier 1 capital ratio of 4.5%; (ii) a Tier 1 to risk-based assets capital
ratio of 6% (increased from 4%); (iii) a total capital ratio of 8% (unchanged from prior rules); and (iv) a Tier 1 leverage ratio of 4%. The final rule also establishes a “capital conservation
buffer” of 2.5%, and, when fully phased in, will result in the following minimum ratios: (i) a common equity Tier 1 capital ratio of 7.0%; (ii) a Tier 1 to risk-based assets capital ratio of
8.5%; and (iii) a total capital ratio of 10.5%. The new capital conservation buffer requirement is being phased in beginning in January 2016 at 0.625% of risk-weighted assets and will
increase each year until fully implemented in January 2019. An institution will be subject to limitations on paying dividends, engaging in share repurchases and paying discretionary
bonuses if its capital level falls below the buffer amount.

We have analyzed the effects of these new capital requirements, and we believe that Newton Federal Bank meets all of these new requirements, including the full 2.5% capital
conservation buffer as if it had been fully phased in.

The application of more stringent capital requirements could, among other things, result in lower returns on equity, and result in regulatory actions if we are unable to comply with
such requirements. Furthermore, the imposition of liquidity requirements in connection with the implementation of the requirements of the Basel Committee on Banking Supervision
(“Basel III”) could result in our having to lengthen the term of our funding sources, change our business models or increase our holdings of liquid assets. Specifically, following the
completion of the stock offering, Newton Federal Bank’s ability to pay dividends to Community First Bancshares, Inc. will be limited if it does not have the capital conservation buffer
required by the new capital rules, which may further limit Community First Bancshares, Inc.’s ability to pay dividends to stockholders. See “Regulation and Supervision—Federal Banking
Regulation—Capital Requirements.”

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The cost of additional finance and accounting systems, procedures and controls in order to satisfy our new public company reporting requirements will increase our expenses.

As a result of the completion of this offering, we will become a public reporting company. We expect that the obligations of being a public company, including the substantial public
reporting obligations, will require significant expenditures and place additional demands on our management team. We have made, and will continue to make, changes to our internal
controls and procedures for financial reporting and accounting systems to meet our reporting obligations as a stand-alone public company. However, the measures we take may not be
sufficient to satisfy our obligations as a public company. Section 404 of the Sarbanes-Oxley Act of 2002 (the “Sarbanes Oxley Act”) requires annual management assessments of the
effectiveness of our internal control over financial reporting, starting with the second annual report that we would expect to file with the Securities and Exchange Commission. Any failure
to achieve and maintain an effective internal control environment could have a material adverse effect on our business and stock price. In addition, we may need to hire additional
compliance, accounting and financial staff with appropriate public company experience and technical knowledge, and we may not be able to do so in a timely fashion. As a result, we may
need to rely on outside consultants to provide these services for us until qualified personnel are hired. These obligations will increase our operating expenses and could divert our
management’s attention from our operations.

Changes in accounting standards could affect reported earnings.

The bodies responsible for establishing accounting standards, including the Financial Accounting Standards Board, the Securities and Exchange Commission and other regulatory
bodies, periodically change the financial accounting and reporting guidance that governs the preparation of our financial statements. These changes can be hard to predict and can materially
impact how we record and report our financial condition and results of operations. In some cases, we could be required to apply new or revised guidance retroactively.

Changes in management’s estimates and assumptions may have a material impact on our consolidated financial statements and our financial condition or operating results.

In preparing this prospectus as well as periodic reports we will be required to file under the Securities Exchange Act of 1934, including our consolidated financial statements, our
management is and will be required under applicable rules and regulations to make estimates and assumptions as of a specified date. These estimates and assumptions are based on
management’s best estimates and experience as of that date and are subject to substantial risk and uncertainty. Materially different results may occur as circumstances change and additional
information becomes known. Areas requiring significant estimates and assumptions by management include our evaluation of the adequacy of our allowance for loan losses and our
determinations with respect to amounts owed for income taxes.

Legal and regulatory proceedings and related matters could adversely affect us.

We have been and may in the future become involved in legal and regulatory proceedings. We consider most of the proceedings to be in the normal course of our business or typical
for the industry; however, it is inherently difficult to assess the outcome of these matters, and we may not prevail in any proceedings or litigation. There could be substantial cost and
management diversion in such litigation and proceedings, and any adverse determination could have a materially adverse effect on our business, brand or image, or our financial condition
and results of our operations.

We are subject to environmental liability risk associated with lending activities or properties we own.

A significant portion of our loan portfolio is secured by real estate, and we could become subject to environmental liabilities with respect to one or more of these properties, or with
respect to properties that we own in

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operating our business. During the ordinary course of business, we may foreclose on and take title to properties securing defaulted loans. In doing so, there is a risk that hazardous or toxic
substances could be found on these properties. If hazardous conditions or toxic substances are found on these properties, we may be liable for remediation costs, as well as for personal
injury and property damage, civil fines and criminal penalties regardless of when the hazardous conditions or toxic substances first affected any particular property. Environmental laws
may require us to incur substantial expenses to address unknown liabilities and may materially reduce the affected property’s value or limit our ability to use or sell the affected property. In
addition, future laws or more stringent interpretations or enforcement policies with respect to existing laws may increase our exposure to environmental liability. Our policies, which require
us to perform an environmental review before initiating any foreclosure action on non-residential real property, may not be sufficient to detect all potential environmental hazards. The
remediation costs and any other financial liabilities associated with an environmental hazard could have a material adverse effect on us.

We are a community bank and our ability to maintain our reputation is critical to the success of our business and the failure to do so may materially adversely affect our
performance.

We are a community bank, and our reputation is one of the most valuable components of our business. A key component of our business strategy is to rely on our reputation for
customer service and knowledge of local markets to expand our presence by capturing new business opportunities from existing and prospective customers in our market area and
contiguous areas. As such, we strive to conduct our business in a manner that enhances our reputation. This is done, in part, by recruiting, hiring and retaining employees who share our core
values of being an integral part of the communities we serve, delivering superior service to our customers and caring about our customers and associates. If our reputation is negatively
affected, by the actions of our employees, by our inability to conduct our operations in a manner that is appealing to current or prospective customers, or otherwise, our business and,
therefore, our operating results may be materially adversely affected.

Risks Related to the Offering

The future price of our common stock may be less than the purchase price in the stock offering.

If you purchase shares of common stock in the offering, you may not be able to sell them later at or above the $10.00 purchase price in the offering. In many cases, shares of
common stock issued by newly converted savings institutions or mutual holding companies have traded below the initial offering price. The aggregate purchase price of the shares of
common stock sold in the offering will be based on an independent appraisal. The independent appraisal is not intended, and should not be construed, as a recommendation of any kind as to
the advisability of purchasing shares of common stock. The independent appraisal is based on certain estimates, assumptions and projections, all of which are subject to change from time to
time. After the shares begin trading, the trading price of our common stock will be determined by the marketplace, and may be influenced by many factors, including prevailing interest
rates, the overall performance of the economy, changes in federal tax laws, new regulations, investor perceptions of Community First Bancshares, Inc. and the outlook for the financial
services industry in general. Price fluctuations in our common stock may be unrelated to our operating performance.

The capital we raise in the stock offering may negatively impact our return on equity until we can fully implement our business plan. This could negatively affect the trading
price of our shares of common stock.

Net income divided by average equity, known as “return on equity,” is a ratio many investors use to compare the performance of a financial institution to its peers. We expect our
return on equity to remain relatively low until we are able to implement our business plan and leverage the additional capital we receive from the stock offering. Although we anticipate
increasing net interest income using proceeds of the stock offering, our return on equity will be reduced by the capital raised in the stock offering, higher expenses from the costs of being a
public company, and added expenses associated with our employee stock ownership plan and the stock-based benefit plans we intend to adopt. Until we can implement our business plan
and increase our net interest income through investment of the proceeds of the offering, we expect our return on equity to remain relatively low compared to our peer group, which may
reduce the value of our shares.

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There may be a limited trading market in our common stock, which would hinder your ability to sell our common stock and may lower the market price of the stock.

We have never issued capital stock and there is no established market for our common stock. We expect that our common stock will be quoted on the traded on the on the Nasdaq
Capital Market under the symbol “CFBI” upon conclusion of the stock offering, subject to completion of the stock offering and compliance with certain conditions, including having 300
“round lot” stockholders (more than 100 shares) and at least three companies making a market for our common stock. The development of an active trading market depends on the existence
of willing buyers and sellers, the presence of which is not within our control, or that of any market maker. The number of active buyers and sellers of the shares of common stock at any
particular time may be limited. Under such circumstances, you could have difficulty selling your shares of common stock on short notice, and, therefore, you should not view the shares of
common stock as a short-term investment. In addition, our public “float,” which is the total number of our outstanding shares less the shares held by our employee stock ownership plan and
our directors and executive officers, is likely to be quite limited. As a result, it is unlikely that an active trading market for the common stock will develop or that, if it develops, it will
continue. If you purchase shares of common stock, you may not be able to sell them at or above $10.00 per share. Purchasers of common stock in this stock offering should have long-term
investment intent and should recognize that there will be a limited trading market in the common stock. This may make it difficult to sell the common stock after the stock offering and may
have an adverse impact on the price at which the common stock can be sold.

Our stock-based benefit plans will increase our costs, which will reduce our income.

We anticipate that our employee stock ownership plan will purchase an amount of shares of our common stock equal to up to 3.92% of our outstanding shares (including the shares
held by Community First Bancshares, MHC), provided that, with approval of the Federal Reserve Board, our employee stock ownership plan may purchase some or all of such shares in the
open market following the completion of the offering. If all shares are purchased in the open market at a price of $10.00 per share, the cost of acquiring the shares of common stock for the
employee stock ownership plan will be between $1.9 million at the minimum of the offering range and $3.0 million at the adjusted maximum of the offering range. We will record annual
employee stock ownership plan expenses in an amount equal to the fair value of shares of common stock committed to be released to employees. If shares of common stock appreciate in
value over time, compensation expense relating to the employee stock ownership plan will increase.

We also intend to adopt one or more stock-based benefit plans after the offering, under which participants would be awarded shares of restricted common stock (at no cost to them)
and/or options to purchase shares of our common stock. Under federal regulations, we are authorized to grant awards of stock or options under one or more stock-based benefit plans in an
amount up to 25% of the shares of common stock held by persons other than Community First Bancshares, MHC. The number of shares of common stock or options granted under any
initial stock-based benefit plan may not exceed 4.90% and 1.96%, respectively, of our total outstanding shares, including shares issued to Community First Bancshares, MHC.

The shares of restricted common stock granted under the stock-based benefit plans will be expensed by us over their vesting period based on the fair market value of the shares on
the date they are awarded. If the shares of restricted common stock to be granted under the stock-based benefit plans are repurchased in the open market (rather than issued directly from
authorized but unissued shares by Community First Bancshares, Inc.) and cost the same as the purchase price in the offering, the reduction to stockholders’ equity due to the plan would be
between $950,000 at the minimum of the offering range and $1.5 million at the adjusted maximum of the offering range. To the extent we repurchase shares of common stock in the open
market to fund the grants of shares of restricted common stock under the plan, and the price of such shares exceeds the offering price of $10.00 per share, the reduction to stockholders’
equity would exceed the range described above. Conversely, to the extent the price of such shares is below the offering price of $10.00 per share, the reduction to stockholders’ equity
would be less than the range described above.

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We will generally recognize as an expense in our income statement the grant-date fair value of stock options as such options vest. When we record an expense related to the grant of
options using the fair value method, we will incur significant compensation and benefits expense. As discussed in the Management’s Discussion and Analysis section of this prospectus, and
based on certain assumptions discussed therein, we estimate this annual expense would be approximately $156,000 on an after-tax basis, assuming we sell 3,467,595 shares in the offering.

The implementation of one or more stock-based benefit plans may dilute your ownership interest.

We intend to adopt one or more stock-based benefit plans following the reorganization and offering. The stock-based benefit plans will be funded through either open market
purchases, if permitted, or from the issuance of authorized but unissued shares. Public stockholders would experience a reduction in ownership interest totaling 2.95% in the event newly
issued shares are used to fund stock options and stock awards in an amount equal to 4.90% and 1.96%, respectively, of the total shares issued in the reorganization and offering (including
shares issued to Community First Bancshares, MHC).

We have broad discretion in using the proceeds of the stock offering. Our failure to effectively deploy the net proceeds of the offering may have an adverse effect on our financial
performance and the value of our common stock.

We intend to invest between $10.5 million and $16.6 million of the net proceeds of the offering in Newton Federal Bank. We also expect to use a portion of the net proceeds we
retain to fund a loan for the purchase of shares of common stock in the offering by the employee stock ownership plan, and will contribute $100,000 to Community First Bancshares, MHC
as a part of our formation of the mutual holding company. We may use the remaining net proceeds to invest in short-term and other investments, repurchase shares of common stock, pay
dividends, or for other general corporate purposes. Newton Federal Bank intends to use the net proceeds it receives to fund new loans, enhance existing products and services, invest in
securities, expand its banking franchise, or for other general corporate purposes. However, with the exception of the loan to the employee stock ownership plan and the contribution to
Community First Bancshares, MHC, we have not allocated specific amounts of the net proceeds for any of these purposes, and we will have significant flexibility in determining the amount
of the net proceeds we apply to different uses and the timing of such applications. Also, certain of these uses, such as any potential acquisition, paying dividends and repurchasing common
stock, may require the approval of or non-objection from the Office of the Comptroller of the Currency or the Federal Reserve Board. We have not established a timetable for investing the
net proceeds, and, accordingly, we may not invest the net proceeds at the time that is most beneficial to Community First Bancshares, Inc., Newton Federal Bank or the stockholders. For
additional information see “How We Intend To Use The Proceeds From The Offering.”

Persons who purchase stock in the offering will own a minority of Community First Bancshares, Inc.’s common stock and will not be able to exercise voting control over most
matters put to a vote of stockholders.

Public stockholders will own a minority of the outstanding shares of Community First Bancshares, Inc.’s common stock. As a result, stockholders other than Community First
Bancshares, MHC will not be able to exercise voting control over most matters put to a vote of stockholders. Community First Bancshares, MHC will own a majority of Community First
Bancshares, Inc.’s common stock after the offering and, through its board of directors, will be able to exercise voting control over most matters put to a vote of stockholders. The same
directors and officers who manage Newton Federal Bank will also manage Community First Bancshares, Inc. and Community First Bancshares, MHC. Our board of directors, officers or
Community First Bancshares, MHC may take action that the public stockholders believe to be contrary to their interests. The only matters as to which stockholders other than Community
First Bancshares, MHC will be able to exercise voting control currently include any proposal to implement one or more stock-based benefit plans or a “second-step” conversion. In addition,
Community First Bancshares, MHC may exercise its voting control to prevent a sale or merger transaction in which stockholders could receive a premium for their shares.

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Our stock value may be negatively affected by our mutual holding company structure and federal regulations restricting takeovers.

Community First Bancshares, MHC, as the majority stockholder of Community First Bancshares, Inc., will be able to control the outcome of virtually all matters presented to
stockholders for their approval, including a proposal to acquire Community First Bancshares, Inc. Accordingly, Community First Bancshares, MHC may prevent the sale of control or
merger of Community First Bancshares, Inc. or its subsidiaries even if such a transaction were favored by a majority of the public stockholders of Community First Bancshares, Inc. The
board of directors of Newton Federal Bank has decided to form a mutual holding company rather than undertake a standard conversion to stock form in part because the mutual holding
company structure will allow our board of directors to control the future of Community First Bancshares, Inc. and its subsidiaries. Additionally, although federal regulations permit a mutual
holding company to be acquired by a mutual institution in a remutualization transaction, such transactions may be unlikely because of the heightened regulatory scrutiny given to such
transactions.

For three years following the offering, federal regulations prohibit any person from acquiring or offering to acquire more than 10% of our common stock without the prior written
approval of the Federal Reserve Board and/or the Office of the Comptroller of the Currency. Moreover, current Federal Reserve Board and Office of the Comptroller of the Currency policy
prohibits the acquisition of a mutual holding company subsidiary by any person or entity other than a mutual holding company or a mutual institution, and restricts the terms of permissible
acquisitions. See “Restrictions on the Acquisition of Community First Bancshares, Inc. and Newton Federal Bank” for a discussion of applicable Federal Reserve Board Regulations
regarding acquisitions.

The corporate governance provisions in our charter and bylaws may prevent or impede the holders of a minority of our common stock from obtaining representation on our
board of directors and may also prevent or impede a change in control.

Provisions in our charter and bylaws may prevent or impede holders of a minority of our common stock from obtaining representation on our board of directors. For example, our
board of directors will be divided into three classes with staggered three-year terms. A classified board makes it more difficult for stockholders to change a majority of the directors because
it generally takes at least two annual elections of directors for this to occur. Second, our charter provides that there will not be cumulative voting by stockholders for the election of our
directors, which means that Community First Bancshares, MHC, as the holder of a majority of the shares eligible to be voted at a meeting of stockholders, may elect all of our directors to
be elected at that meeting. Also, we have the ability to issue preferred stock with voting rights to third parties who may be friendly to our board of directors.

In addition, a section in each of Community First Bancshares, Inc.’s and Newton Federal Bank’s respective charters will generally provide that, for a period of five years from the
closing of the offering, no person, other than Community First Bancshares, MHC, and, with respect to Newton Federal Bank, other than Community First Bancshares, MHC and
Community First Bancshares, Inc., may directly or indirectly offer to acquire or acquire the beneficial ownership of more than 10% of any class of equity security of Community First
Bancshares, Inc. or Newton Federal Bank held by persons other than Community First Bancshares, MHC, and, with respect to Newton Federal Bank, other than Community First
Bancshares, Inc., and that any shares acquired in excess of this limit would not be entitled to be voted and would not be counted as voting stock in connection with any matters submitted to
the stockholders for a vote.

Our management team has limited experience managing a public company, and regulatory compliance may divert its attention from the day-to-day management of our business.

Our management team has limited experience managing a publicly-traded company or complying with the increasingly complex laws pertaining to public companies. Our
management team may not successfully or efficiently manage our transition into a public company, which will be subject to significant regulatory oversight and reporting obligations under
federal securities laws. In particular, these new obligations will require substantial attention from our management and may divert their attention away from the day-to-day management of
our business, which could materially and adversely impact our business operations.

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You may not receive dividends on our common stock.

Holders of our common stock are only entitled to receive such dividends as our board of directors may declare out of funds legally available for such payments. The declaration and
payment of future cash dividends will be subject to, among other things, regulatory restrictions, our then current and projected consolidated operating results, financial condition, tax
considerations, future growth plans, general economic conditions, and other factors our board of directors deems relevant. In particular, we will be limited in our ability to pay dividends to
our public stockholders only, under the regulations that have been implemented by the Federal Reserve Board following the enactment of the Dodd-Frank Act with regard to dividend
waivers by mutual holding companies. See “Regulation and Supervision—Federal Banking Regulation—Capital Requirements”; “—Capital Distributions”; and “—Holding Company
Regulation—Waivers of Dividends by Community First Bancshares, MHC.”

Community First Bancshares, Inc. will depend primarily upon the proceeds it retains from the offering as well as earnings of Newton Federal Bank to provide funds to pay dividends
on our common stock. The payment of dividends by Newton Federal Bank also is subject to certain regulatory restrictions. Federal law generally prohibits a depository institution from
making any capital distributions (including payment of a dividend) to its parent holding company if the depository institution would thereafter be or continue to be undercapitalized, and
dividends by a depository institution are subject to additional limitations.

As a result, any payment of dividends in the future by Community First Bancshares, Inc. will depend, in large part, on Newton Federal Bank’s ability to satisfy these regulatory
restrictions and its earnings, capital requirements, financial condition and other factors.

Under current law, if we declare dividends on our common stock, Community First Bancshares, MHC will be restricted from waiving the receipt of dividends.

Community First Bancshares, Inc.’s board of directors will have the authority to declare dividends on our common stock, subject to statutory and regulatory requirements. If
Community First Bancshares, Inc. pays dividends to its stockholders, it also will be required to pay dividends to Community First Bancshares, MHC, unless Community First Bancshares,
MHC is permitted by the Federal Reserve Board to waive the receipt of dividends. The Federal Reserve Board’s current regulations significantly restrict the ability of newly organized
mutual holding companies to waive dividends declared by their subsidiaries. Accordingly, because dividends would likely be required to be paid to Community First Bancshares, MHC
along with all other stockholders, the amount of dividends available for all other stockholders will be less than if Community First Bancshares, MHC were to waive the receipt of dividends.

You may not be able to sell your shares of common stock until you have received a statement reflecting ownership of shares, which will affect your ability to take advantage of
changes in the stock price immediately following the offering.

A statement reflecting ownership of shares of common stock purchased in the offering may not be delivered for several days after the completion of the offering and the
commencement of trading in the common stock. Your ability to sell the shares of common stock before receiving your ownership statement will depend on arrangements you may make
with a brokerage firm, and you may not be able to sell your shares of common stock until you have received your ownership statement. As a result, you may not be able to take advantage of
fluctuations in the price of the common stock immediately following the offering.

We are an emerging growth company, and any decision on our part to comply only with certain reduced reporting and disclosure requirements applicable to emerging growth
companies could make our common stock less attractive to investors.

We are an emerging growth company, and, for as long as we continue to be an emerging growth company, we may choose to take advantage of exemptions from various reporting
requirements applicable to other public companies but not to “emerging growth companies,” including, but not limited to, reduced disclosure obligations

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regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation
and stockholder approval of any golden parachute payments not previously approved. As an emerging growth company, we also will not be subject to Section 404(b) of the Sarbanes-Oxley
Act of 2002, which would require that our independent auditors review and attest as to the effectiveness of our internal control over financial reporting. We have also elected to use the
extended transition period to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private
companies. Accordingly, our financial statements may not be comparable to the financial statements of public companies that comply with such new or revised accounting standards.

We could remain an “emerging growth company” for up to five years, or until the earliest of (a) the last day of the first fiscal year in which our annual gross revenues exceed
$1.0 billion, (b) the date that we become a “large accelerated filer” as defined in Rule 12b-2 under the Securities Exchange Act of 1934, as amended, which would occur if the market value
of our common stock that is held by non-affiliates exceeds $700 million as of the last business day of our most recently completed second fiscal quarter, or (c) the date on which we have
issued more than $1.0 billion in non-convertible debt during the preceding three-year period.

As a result, our stockholders may not have access to certain information they may deem important, and investors may find our common stock less attractive if we choose to rely on
these exemptions. This could result in a less active trading market for our common stock and the price of our common stock may be more volatile.

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SELECTED FINANCIAL AND OTHER DATA

The summary information presented below at each date or for each of the periods presented is derived in part from the financial statements of Newton Federal Bank. The financial
condition data at September 30, 2016 and 2015, and the operating data for the years ended September 30, 2016 and 2015 were derived from the audited financial statements of Newton
Federal Bank included elsewhere in this prospectus. The information at and for the years ended September 30, 2014, 2013 and 2012 was derived in part from audited financial statements
that are not included in this prospectus. The following information is only a summary, and should be read in conjunction with our financial statements and notes beginning on page F-1 of
this prospectus.

At September 30,
2016 2015 2014 2013 2012
(In thousands)
Selected Financial Condition Data:
Total assets $ 232,832 $ 226,337 $ 227,089 $ 222,328 $ 229,519
Cash and cash equivalents 25,693 38,494 34,140 29,316 27,823
Securities held to maturity 7,499 7,492 6,986 5,431 7,065
Federal Home Loan Bank stock, at cost 205 202 198 276 862
Loans receivable, net 190,050 169,798 174,132 180,006 183,958
Other real estate owned — 532 1,129 1,880 4,121
Premises and equipment, net 4,556 4,261 4,338 4,394 4,475
Deposits 181,699 176,687 179,264 183,763 191,389
Borrowings — — — — —
Retained earnings 45,081 43,924 42,311 34,058 34,351

For the Years Ended September 30,

2016 2015 2014 2013 2012
(In thousands)
Selected Operating Data:
Interest income $ 11,248 $ 11,045 $ 11,571 $ 11,401 $ 12,571
Interest expense 1,415 1,813 2,156 2,700 3,311
Net interest income 9,833 9,232 9,415 8,701 9,260
Provision for loan losses — — — 3,147 9,017
Net interest income after provision for loan losses 9,833 9,232 9,415 5,554 243
Non-interest income 1,185 882 871 876 945
Non-interest expenses 9,164 7,621 6,969 6,723 7,259
Income (loss) before income tax (expense) benefit 1,854 2,493 3,317 (293) (6,071)
Income tax (expense) benefit (697) (879) 4,935 — (349)
Net income (loss) $ 1,157 $ 1,614 $ 8,252 $ (293) $ (6,420)

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At or For the Years Ended September 30,

2016 2015 2014 2013 2012

Performance Ratios:
Return (loss) on average assets 0.51% 0.72% 3.71% (0.13)% (2.68)%
Return (loss) on average equity 2.60% 3.83% 23.39% (0.88)% (15.70)%
Interest rate spread (1) 4.15% 4.04% 4.04% 3.63% 3.74%
Net interest margin (2) 4.39% 4.32% 4.32% 3.93% 4.06%
Non-interest expense to average assets 4.00% 3.41% 3.14% 2.96% 3.03%
Efficiency ratio (3) 83.17% 75.35% 67.75% 70.20% 71.13%
Average interest-earning assets to average interest-bearing liabilities 138.46% 133.81% 129.08% 124.02% 122.05%
Capital Ratios:
Average equity to average assets 19.41% 18.86% 15.87% 14.68% 17.04%
Total capital to risk weighted assets 32.13% 36.67% 33.95% 29.34% 28.54%
Tier 1 capital to risk weighted assets 30.86% 35.38% 32.66% 28.04% 27.25%
Common equity tier 1 capital to risk weighted assets 30.86% 35.38% N/A N/A N/A
Tier 1 capital to average assets 19.32% 19.37% 17.25% 15.28% 14.85%
Asset Quality Ratios:
Allowance for loan losses as a percentage of total loans 2.22% 3.34% 3.17% 3.20% 3.00%
Allowance for loan losses as a percentage of non-performing loans 132.87% 229.18% 187.39% 78.44% 43.90%
Net (charge-offs) recoveries to average outstanding loans during the year (0.86)% 0.09% (0.13)% (1.56)% (4.24)%
Non-performing loans as a percentage of total loans 1.67% 1.46% 1.69% 4.08% 6.84%
Non-performing loans as a percentage of total assets 1.39% 1.13% 1.34% 3.41% 5.65%
Total non-performing assets as a percentage of total assets 1.39% 1.37% 1.84% 4.26% 7.45%
Other:
Number of offices 3 3 3 3 3
Number of full-time employees 65 63 59 56 55
Number of part-time employees 2 1 1 1 1

(1) Represents the difference between the weighted average yield on average interest-earning assets and the weighted average cost of interest-bearing liabilities.
(2) Represents net interest income as a percentage of average interest-earning assets.
(3) Represents non-interest expenses divided by the sum of net interest income and non-interest income.

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RECENT DEVELOPMENTS

The summary information presented below at each date or for each of the periods presented is derived in part from the financial statements of Newton Federal Bank. The financial
condition data at September 30, 2016 was derived from the audited financial statements of Newton Federal Bank included elsewhere in this prospectus. The information at December 31,
2016 and for the three months ended December 31, 2016 and 2015 is unaudited and reflects only normal recurring adjustments that are, in the opinion of management, necessary for a fair
presentation of the results for the interim periods presented. The results of operations for the three months ended December 31, 2016 are not necessarily indicative of the results to be
achieved for all of the year ending September 30, 2017 or for any other period.

At At
December 31, September 30,
2016 2016
(In thousands)
Selected Financial Condition Data:
Total assets $ 237,999 $ 232,832
Cash and cash equivalents 26,128 25,693
Securities held to maturity 7,500 7,499
Securities available for sale 1,231 —
Federal Home Loan Bank stock, at cost 205 205
Loans receivable, net 192,590 190,050
Other real estate owned 284 —
Premises and equipment, net 5,093 4,556
Deposits 187,763 181,699
Borrowings — —
Retained earnings 45,461 45,081

For the Three Months Ended

December 31,
2016 2015
(In thousands)
Selected Operating Data:
Interest income $ 2,887 $ 2,739
Interest expense 241 422
Net interest income 2,646 2,317
Provision for loan losses — —
Net interest income after provision for loan losses 2,646 2,317
Non-interest income 312 264
Non-interest expenses 2,349 2,161
Income before income tax expense 609 420
Income tax expense 229 146
Net income $ 380 $ 274

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At or For the Three

Months Ended
December 31,
2016 2015

Performance Ratios:
Return on average assets (1) 0.66% 0.48%
Return on average equity (1) 3.34% 2.47%
Interest rate spread (1)(2) 4.72% 4.10%
Net interest margin (1)(3) 4.88% 4.35%
Non-interest expense to average assets (1) 4.07% 3.83%
Efficiency ratio (4) 79.41% 83.73%
Average interest-earning assets to average interest-bearing liabilities 135.83% 131.69%
Capital Ratios:
Average equity to average assets 19.72% 19.65%
Total capital to risk weighted assets 32.12% 37.89%
Tier 1 capital to risk weighted assets 30.84% 36.60%
Common equity tier 1 capital to risk weighted assets 30.84% 36.60%
Tier 1 capital to average assets 19.48% 19.64%
Asset Quality Ratios:
Allowance for loan losses as a percentage of total loans 2.21% 3.37%
Allowance for loan losses as a percentage of non-performing loans 95.18% 141.69%
Net (charge-offs) recoveries to average outstanding loans during the period (1) 0.15% (0.15)%
Non-performing loans as a percentage of total loans 2.32% 2.38%
Non-performing loans as a percentage of total assets 1.93% 1.81%
Total non-performing assets as a percentage of total assets 2.05% 2.04%
Other:
Number of offices 3 3
Number of full-time employees 66 66
Number of part-time employees 2 1

(1) Annualized.
(2) Represents the difference between the weighted average yield on average interest-earning assets and the weighted average cost of interest-bearing liabilities.
(3) Represents net interest income as a percentage of average interest-earning assets.
(4) Represents non-interest expenses divided by the sum of net interest income and non-interest income.

Comparison of Financial Condition at December 31, 2016 and September 30, 2016
Total assets increased $5.2 million, or 2.2%, to $238.0 million at December 31, 2016 from $232.8 million at September 30, 2016. The increase was due primarily to an increase in
loans.

Cash and cash equivalents increased $435,000, or 1.7%, to $26.1 million at December 31, 2016 from $25.7 million at September 30, 2016. The increase resulted primarily from an
increase in deposits, which exceeded the amounts needed to fund loan originations and securities purchases.

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We had $103,000 of loans held for sale at December 31, 2016 compared to $472,000 of loans held for sale at September 30, 2016.

Loans held for investment increased $3.3 million, or 1.7%, to $197.2 million at December 31, 2016 from $193.9 million at September 30, 2016. Construction and land loans
increased $2.6 million, or 19.4%, to $15.9 million at December 31, 2016 from $13.3 million at September 30, 2016, and commercial and industrial loans increased $1.7 million, or 10.3%,
to $17.9 million at December 31, 2016 from $16.2 million at September 30, 2016. We have recently increased our focus on commercial lending, including construction lending, and our
construction lending has benefitted from the opening of our loan production office in Bogart, Georgia in January 2016. Commercial real estate loans decreased $2.3 million, or 7.8%, to
$26.9 million at December 31, 2016 from $29.2 million at September 30, 2016. The decrease resulted from our largest commercial real estate loan being repaid in connection with it being
refinanced at another financial institution.

Securities held-to-maturity totaled $7.5 million at each of December 31, 2016 and September 30, 2016. Securities available-for-sale increased to $1.2 million at December 31, 2016,
from $0 at September 30, 2016. We purchased securities available-for-sale with a portion of the excess cash we held during the quarter.

Total deposits increased $6.1 million, or 3.3%, to $187.8 million at December 31, 2016 from $181.7 million at September 30, 2016. The increase was primarily due to an increase in
passbook accounts, which increased $4.8 million, or 22.7%, to $26.0 million at December 31, 2016 from $21.2 million at September 30, 2016. We experienced an increase in passbook
accounts from out-of-state customers who we believe opened deposit accounts in order to obtain subscription rights in the offering. This increase was partially offset by a decrease in
certificates of deposit, which decreased $920,000, or 1.1%, to $84.6 million at December 31, 2016 from $85.5 million at September 30, 2016. In recent periods, we allowed higher-rate
certificates of deposit to run off at maturity to both improve our deposit mix and reduce our cost of funds. In addition, we have been able to fund loan growth from excess cash as well as
cash generated from other deposit products.

We had no outstanding borrowings at December 31, 2016 or September 30, 2016. We have not needed borrowings to fund our operations in recent years due to a strong cash
position and continued deposit growth.

Total equity capital increased $381,000, or 0.8%, to $45.5 million at December 31, 2016 from $45.1 million at September 30, 2016. The growth was due primarily to net income of
$380,000 for the three months ended December 31, 2016. Until the quarter ended December 31, 2016, we had classified all of our securities as held to maturity, resulting in no
comprehensive income or loss. We had $1,000, net of taxes, of unrecognized gain on securities available for sale at December 31, 2016.

Comparison of Operating Results for the Three Months Ended December 31, 2016 and 2015
General. Net income increased $106,000, or 38.7%, to $380,000 for the three months ended December 31, 2016, compared to $274,000 for the three months ended December 31,
2015. The increase was due to increases in net interest income and non-interest income, partially offset by an increase in non-interest expenses, as described in more detail below.

Interest Income. Interest income increased $148,000, or 5.4%, to $2.9 million for the three months ended December 31, 2016 from $2.7 million for the three months ended
December 31, 2015. The increase was due to a $148,000, or 5.5%, increase in interest income on loans, which is our primary source of interest income. Our average balance of loans
increased $20.9 million, or 12.4%, to $189.6 million for the three months ended December 31, 2016 from $168.7 million for the three months ended December 31, 2015. The increase in the
average balance of loans resulted from our continued increased focus on commercial lending, including construction lending, and our construction lending has benefitted from the opening
of our loan production office in Bogart, Georgia in January 2016. Our average yield on loans decreased 39 basis points to 5.95% for the three months ended December 31, 2016 from 6.34%
for the three months ended December 31, 2015, as higher-yielding loans have been repaid or refinanced and replaced with lower-yielding loans, reflecting the current interest rate
environment.

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Interest Expense. Interest expense decreased $181,000, or 42.9%, to $241,000 for the three months ended December 31, 2016 compared to $422,000 for the three months ended
December 31, 2015, due to a decrease in interest expense on deposits, which is currently our sole source of interest expense. Specifically, interest expense on certificates of deposit
decreased $193,000, or 49.7%, to $195,000 for the three months ended December 31, 2016 from $388,000 for the three months ended December 31, 2015. This decrease resulted from
decreases in both the average balance of certificates of deposit and the average rate we paid on certificates of deposit. The average balance of certificates of deposit decreased $10.6 million,
or 11.2%, to $84.5 million for the three months ended December 31, 2016 from $95.1 million for the three months ended December 31, 2015, and the average rate we paid on certificates of
deposit decreased 71 basis points to 0.92% for the three months ended December 31, 2016 from 1.63% for the three months ended December 31, 2015. In recent periods, we allowed
higher-rate certificates of deposit to run off at maturity to improve our deposit mix and reduce our cost of funds. In addition, we have been able to fund loan growth from excess cash as well
as cash generated from other deposit products.

Net Interest Income. Net interest income increased $329,000, or 14.2%, to $2.6 million for the three months ended December 31, 2016 from $2.3 million for the three months ended
December 31, 2015, as a result of a higher balance of net interest-earning assets combined with a higher net interest rate spread and net interest margin. Our average net interest-earning
assets increased by $6.0 million, or 11.8%, to $57.2 million for the three months ended December 31, 2016 from $51.2 million for the three months ended December 31, 2015, due
primarily to our loan growth, described above. Our net interest rate spread increased by 62 basis points to 4.72% for the three months ended December 31, 2016 from 4.10% for the three
months ended December 31, 2015, and our net interest margin increased by 53 basis points to 4.88% for the three months ended December 31, 2016 from 4.35% for the three months ended
December 31, 2015, reflecting primarily a decrease in our cost of funds, as well as a 17 basis point increase in the average yield on our interest-earning assets.

Provision for Loan Losses. Provisions for loan losses are charged to operations to establish an allowance for loan losses at a level necessary to absorb known and inherent losses in
our loan portfolio that are both probable and reasonably estimable at the date of the financial statements. In evaluating the level of the allowance for loan losses, management analyzes
several qualitative loan portfolio risk factors including, but not limited to, management’s ongoing review and grading of loans, facts and issues related to specific loans, historical loan loss
and delinquency experience, trends in past due and non-accrual loans, existing risk characteristics of specific loans or loan pools, the fair value of underlying collateral, current economic
conditions and other qualitative and quantitative factors which could affect potential credit losses. See “Management’s Discussion and Analysis of Financial Condition and Results of
Operations of Newton Federal Bank—Summary of Significant Accounting Policies” and “Business of Newton Federal Bank—Allowance for Loan Losses” for additional information.

After an evaluation of these factors, we did not record a provision for loan losses for the three months ended December 31, 2016 or 2015. Our allowance for loan losses was
$4.4 million at December 31, 2016 compared to $4.3 million at September 30, 2016 and $5.9 million at December 31, 2015. The allowance for loan losses to total loans was 2.21% at
December 31, 2016 compared to 2.22% at September 30, 2016 and 3.37% at December 31, 2015. The allowance for loan losses to non-performing loans decreased to 95.18% at
December 31, 2016 from 132.87% at September 30, 2016 and 141.69% at December 31, 2015. We were able to maintain the allowance relatively consistent between December 31, 2016
and September 30, 2016 as we experienced modest loan growth during the quarter ended December 31, 2016, and had net recoveries of $74,000 during the quarter.

To the best of our knowledge, we have recorded all loan losses that are both probable and reasonable to estimate at December 31, 2016. However, future changes in the factors
described above, including, but not limited to, actual loss experience with respect to our loan portfolio, could result in material increases in our provision for loan losses. In addition, the
Office of the Comptroller of the Currency, as an integral part of its examination process, will periodically review our allowance for loan losses, and as a result of such reviews, we may have
to adjust our allowance for loan losses. However, regulatory agencies are not directly involved in the process of establishing the allowance for loan losses as the process is our responsibility
and any increase or decrease in the allowance is the responsibility of management.

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Non-interest Income. Non-interest income increased $48,000, or 18.2%, to $312,000 for the three months ended December 31, 2016 from $264,000 for the three months ended
December 31, 2015. The increase primarily resulted from an increase in other non-interest income of $39,000, or 44.8%, to $126,000 for the three months ended December 31, 2016 from
$87,000 for the three months ended December 31, 2015.

Non-interest Expenses. Non-interest expenses information is as follows.

Three Months Ended

December 31, Change
2016 2015 Amount Percent
(Dollars in thousands)
Salaries and employee benefits $ 1,162 $ 1,107 $ 55 5.0%
Deferred compensation 54 55 (1) (1.8)
Occupancy 282 269 13 4.8
Advertising 58 62 (4) 6.5
Data processing 197 136 61 44.9
Loss (gain) on write down of other real estate owned (5) (27) 22 (81.5)
Legal and accounting 103 119 (16) (13.4)
Organizational dues and subscriptions 73 54 19 35.2
Director compensation 63 41 22 53.7
Federal deposit insurance premiums 38 34 4 11.8
Other 324 311 13 4.2
Total non-interest income $ 2,349 $ 2,161 $ 188 8.7%

Data processing expense increased due to increased expenses related to our Kasasa (rewards) deposit program, which we introduced in November 2014, which promotes free
checking accounts with either attractive interest rates or cash-back rewards.

Income Tax Expense. We incurred income tax expense of $229,000 and $146,000 for the three months ended December 31, 2016 and 2015, respectively, resulting in effective rates
of 37.6% and 34.8%, respectively. The increase in tax expense resulted from a $189,000, or 45.0%, increase in pre-tax income to $609,000 for the three months ended December 31, 2016
from $420,000 for the three months ended December 31, 2015.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This prospectus contains forward-looking statements, which can be identified by the use of words such as “estimate,” “project,” “believe,” “intend,” “anticipate,” “assume,” “plan,”
“seek,” “expect,” “will,” “may,” “should,” “indicate,” “would,” “believe,” “contemplate,” “continue,” “target” and words of similar meaning. These forward-looking statements include, but
are not limited to:
• statements of our goals, intentions and expectations;
• statements regarding our business plans, prospects, growth and operating strategies;
• statements regarding the quality of our loan and investment portfolios; and
• estimates of our risks and future costs and benefits.

These forward-looking statements are based on our current beliefs and expectations and are inherently subject to significant business, economic and competitive uncertainties and
contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that
are subject to change. We are under no duty to and do not take any obligation to update any forward-looking statements after the date of this prospectus.

The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements:
• general economic conditions, either nationally or in our market areas, that are worse than expected;

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• changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for loan losses;
• our ability to access cost-effective funding;
• fluctuations in real estate values and both residential and commercial real estate market conditions;
• demand for loans and deposits in our market area;
• our ability to implement and change our business strategies;
• competition among depository and other financial institutions;
• inflation and changes in the interest rate environment that reduce our margins and yields, our mortgage banking revenues, the fair value of financial instruments or our level
of loan originations, or increase the level of defaults, losses and prepayments on loans we have made and make;
• adverse changes in the securities or secondary mortgage markets;
• changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees and capital requirements, including as a result of
Basel III;
• the impact of the Dodd-Frank Act and the implementing regulations;
• changes in the quality or composition of our loan or investment portfolios;
• technological changes that may be more difficult or expensive than expected;
• the inability of third party providers to perform as expected;
• our ability to manage market risk, credit risk and operational risk in the current economic environment;
• our ability to enter new markets successfully and capitalize on growth opportunities;
• our ability to successfully integrate into our operations any assets, liabilities, customers, systems and management personnel we may acquire and our ability to realize related
revenue synergies and cost savings within expected time frames, and any goodwill charges related thereto;
• changes in consumer spending, borrowing and savings habits;
• changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange
Commission or the Public Company Accounting Oversight Board;

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• our ability to retain key employees;

• our compensation expense associated with equity allocated or awarded to our employees; and
• changes in the financial condition, results of operations or future prospects of issuers of securities that we own.

Because of these and a wide variety of other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking
statements. Please see “Risk Factors” beginning on page 19.

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HOW WE INTEND TO USE THE PROCEEDS FROM THE OFFERING

Although we will not be able to determine the amount of actual net proceeds we will receive from the sale of shares of common stock until the offering is completed, we anticipate
that the net proceeds will be between $21.0 million and $28.8 million, or $33.3 million if the offering is increased by 15%, assuming in each case all shares are sold in the subscription
offering and the community offering.

Community First Bancshares, Inc. intends to distribute the net proceeds from the offering as follows:

Based Upon the Sale at $10.00 Per Share of

2,228,700 Shares at 2,622,000 Shares at 3,015,300 Shares at 3,467,595 Shares at
Minimum of Midpoint of Offering Maximum of Adjusted Maximum
Offering Range Range Offering Range of Offering Range (1)
Percent Percent Percent Percent
of Net of Net of Net of Net
Amount Proceeds Amount Proceeds Amount Proceeds Amount Proceeds
(Dollars in thousands)
Offering proceeds $22,287 $26,220 $30,153 $34,676
Less: offering expenses (1,284) (1,320) (1,356) (1,397)
Net offering proceeds $21,003 100.0% $24,900 100.0% $28,797 100.0% $33,279 100.0%
Less:
Amount contributed to Community First Bancshares, MHC $ 100 0.5% $ 100 0.4% $ 100 0.3% $ 100 0.3%
Proceeds contributed to Newton Federal Bank $10,502 50.0% $12,450 50.0% $14,399 50.0% $16,639 50.0%
Proceeds used for loan to employee stock ownership plan (2) $ 1,899 9.0% $ 2,234 9.0% $ 2,570 8.9% $ 2,955 8.9%
Proceeds retained by Community First Bancshares, Inc. $ 8,502 40.5% $10,116 40.6% $11,729 40.7% $13,584 40.8%

(1) As adjusted to give effect to an increase in the number of shares, which could occur due to a 15% increase in the offering range to reflect demand for the shares or changes in market
conditions following the commencement of the offering.
(2) The employee stock ownership plan will purchase 3.92% of our outstanding shares (including shares issued to Community First Bancshares, MHC). The loan will be repaid
principally through Newton Federal Bank’s contribution to the employee stock ownership plan and dividends payable on common stock held by the employee stock ownership plan
over the anticipated 25-year term of the loan. The interest rate for the employee stock ownership plan loan is expected to be equal to the prime rate, as published in The Wall Street
Journal , on the closing date of the offering.

The net proceeds may vary because total expenses relating to the reorganization and offering may be more or less than our estimates. For example, our expenses would increase if a
syndicated community offering were used to sell shares of common stock not purchased in the subscription offering and the community offering. See “The Reorganization and Offering—
Plan of Distribution and Marketing Arrangements” for a discussion of fees to be paid in the event that shares are sold in a syndicated community offering. Payments for shares made
through withdrawals from existing deposit accounts will not result in the receipt of new funds for investment but will result in a reduction of Newton Federal Bank’s deposits. Newton
Federal Bank will receive at least 50% of the net proceeds of the offering.

Use of Proceeds Retained by Community First Bancshares, Inc.

Community First Bancshares, Inc.:
• intends to initially invest the proceeds that it retains in interest earning deposits and in securities, including securities issued by the U. S. government and its agencies or
government sponsored enterprises, mortgage-backed securities, and other securities as permitted by our investment policy. See “Business of Newton Federal Bank—
Investment Activities;”
• may, in the future, use a portion of the proceeds that it retains to pay cash dividends or to repurchase shares of our common stock, although under current federal regulations
we may not repurchase shares of our common stock during the first year following the reorganization and offering, except to fund stock-based benefit plans or when
extraordinary circumstances exist with prior regulatory approval;

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• may, in the future, use a portion of the proceeds that it retains to finance acquisitions of financial institutions or other financial services businesses, or to expand through de
novo branching, although no specific transactions are being considered at this time and no specific expansion is being considered at this time; and
• expects to use the proceeds that it retains from time to time for other general corporate purposes.

The use of the proceeds may change based on changes in interest rates, equity markets, laws and regulations affecting the financial services industry, our relative position in the
financial services industry, the attractiveness of potential acquisitions to expand our operations, and overall market conditions.

Use of Proceeds Received by Newton Federal Bank

Newton Federal Bank:
• intends to use a portion of the proceeds received to increase our lending capacity by providing us with additional capital to support new loans and higher lending limits;
• intends to use a portion of the proceeds received to fund new residential mortgage loans, commercial real estate and commercial and industrial loans and, to a lesser extent,
other loans, in accordance with our business plan and lending guidelines. See “Business of Newton Federal Bank—Lending Activities;”
• may use a portion of the proceeds received to support new loan, deposit and other financial products and services if our board of directors determines that such products will
help us compete more effectively in our market area or increase our financial performance;
• may invest a portion of the proceeds received in securities issued by the U. S. government and its agencies or government sponsored enterprises, mortgage-backed securities,
and other securities as permitted by our investment policy. See “Business of Newton Federal Bank—Investment Activities;”
• may, in the future, use a portion of the proceeds received to expand our retail banking franchise, by acquiring other financial institutions, branch offices or other financial
services businesses, or establishing new branches or loan production offices, although no specific transactions are being considered at this time; and
• expects to use the proceeds received from time to time for other general corporate purposes.

The use of the proceeds may change based on changes in interest rates, equity markets, laws and regulations affecting the financial services industry, our relative position in the
financial services industry, the attractiveness of potential acquisitions to expand our operations, and overall market conditions.

OUR POLICY REGARDING DIVIDENDS

We intend to pay cash dividends to our stockholders, beginning no earlier than the first calendar quarter of 2018. However, no decision has been made with respect to the amount of
any dividend payments. The payment and amount of any dividend payments will be subject to statutory and regulatory limitations, and will depend upon a number of factors, including the
following: regulatory capital requirements; our financial condition and results of operations; our other uses of funds for the long-term value of stockholders; tax considerations; the Federal
Reserve Board’s current regulations restricting the waiver of dividends by mutual holding companies; and general economic conditions.

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The Federal Reserve Board has issued a policy statement providing that dividends should be paid only out of current earnings and only if our prospective rate of earnings retention is
consistent with our capital needs, asset quality and overall financial condition. Regulatory guidance also provides for prior regulatory consultation with respect to capital distributions in
certain circumstances such as where the holding company’s net income for the past four quarters, net of dividends previously paid over that period, is insufficient to fully fund the dividend
or the holding company’s overall rate or earnings retention is inconsistent with its capital needs and overall financial condition. In addition, Newton Federal Bank’s ability to pay dividends
will be limited if it does not have the capital conservation buffer required by the new capital rules, which may limit our ability to pay dividends to stockholders. See “Regulation and
Supervision—Federal Banking Regulation—Capital Requirements.” No assurances can be given that any dividends will be paid or that, if paid, will not be reduced or eliminated in the
future. Special cash dividends, stock dividends or returns of capital, to the extent permitted by regulations and policies of the Federal Reserve Board and the Office of the Comptroller of the
Currency, may be paid in addition to, or in lieu of, regular cash dividends.

We will file a consolidated federal tax return with Newton Federal Bank. Accordingly, it is anticipated that any cash distributions that we make to our stockholders would be treated
as cash dividends and not as a non-taxable return of capital for federal and state tax purposes. Additionally, pursuant to regulations of the Federal Reserve Board, during the three-year
period following the stock offering, we will not take any action to declare an extraordinary dividend to stockholders that would be treated by recipients as a tax-free return of capital for
federal income tax purposes.

Pursuant to our charter, we are authorized to issue preferred stock. If we issue preferred stock, the holders thereof may have a priority over the holders of our shares of common
stock with respect to the payment of dividends. For a further discussion concerning the payment of dividends on our shares of common stock, see “Description of Capital Stock of
Community First Bancshares, Inc.—Common Stock.” Dividends we can declare and pay will depend, in part, upon receipt of dividends from Newton Federal Bank, because initially we
will have no source of income other than dividends from Newton Federal Bank and earnings from the investment of the net proceeds from the sale of shares of common stock retained by
Community First Bancshares, Inc. and interest payments received in connection with the loan to the employee stock ownership plan. Regulations of the Federal Reserve Board and the
Office of the Comptroller of the Currency impose limitations on “capital distributions” by savings institutions. See “Regulation and Supervision—Federal Banking Regulation—Capital
Distributions.”

Any payment of dividends by Newton Federal Bank to us that would be deemed to be drawn out of Newton Federal Bank’s bad debt reserves, if any, would require a payment of
taxes at the then-current tax rate by Newton Federal Bank on the amount of earnings deemed to be removed from the reserves for such distribution. Newton Federal Bank does not intend to
make any distribution to us that would create such a federal tax liability. See “Taxation.”

If Community First Bancshares, Inc. pays dividends to its stockholders, it will likely pay dividends to Community First Bancshares, MHC. The Federal Reserve Board’s current
regulations significantly restrict the ability of newly organized mutual holding companies to waive dividends declared by their subsidiaries. Accordingly, we do not currently anticipate that
Community First Bancshares, MHC will waive dividends paid by Community First Bancshares, Inc. See “Risk Factors—Risks Related to the Offering—Under current law, if we declare
dividends on our common stock, Community First Bancshares, MHC will be restricted from waiving the receipt of dividends.”

MARKET FOR THE COMMON STOCK

Community First Bancshares, Inc. is a to-be-formed company and has never issued capital stock. Newton Federal Bank, as a mutual institution, has never issued capital stock.
Accordingly, there is no established market for our common stock. Community First Bancshares, Inc. expects that its common stock will be traded on the Nasdaq Capital Market under the
symbol “CFBI”.

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The development of an active trading market depends on the existence of willing buyers and sellers, the presence of which is not within our control, or that of any market maker. The
number of active buyers and sellers of the shares of common stock at any particular time may be limited. Under such circumstances, you could have difficulty selling your shares of
common stock on short notice, and, therefore, you should not view the shares of common stock as a short-term investment. Furthermore, we cannot assure you that, if you purchase shares
of common stock, you will be able to sell them at or above $10.00 per share. Purchasers of common stock in this stock offering should have long-term investment intent and should
recognize that there may be a limited trading market in the common stock. This may make it difficult to sell the common stock after the stock offering and may have an adverse impact on
the price at which the common stock can be sold.

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HISTORICAL AND PRO FORMA REGULATORY CAPITAL COMPLIANCE

At September 30, 2016, Newton Federal Bank exceeded all of the applicable regulatory capital requirements and was considered “well capitalized.” The table below sets forth the
historical equity capital and regulatory capital of Newton Federal Bank at September 30, 2016, and the pro forma equity capital and regulatory capital of Newton Federal Bank after giving
effect to the sale of shares of common stock at $10.00 per share. The table assumes the receipt by Newton Federal Bank of 50% of the net proceeds. See “How We Intend to Use the
Proceeds from the Offering.”

Newton Federal Bank Pro Forma at September 30, 2016, Based Upon the Sale in the Offering of (1)
Historical at
September 30, 2016 2,228,700 Shares 2,622,000 Shares 3,015,300 Shares 3,467,595 Shares (2)
Percent Percent of Percent of Percent of Percent of
Amount of Assets (3) Amount Assets (3) Amount Assets (3) Amount Assets (3) Amount Assets (3)
(Dollars in thousands)
Equity $45,081 19.36% $52,734 21.67% $54,179 22.09% $55,625 22.50% $57,288 22.96%
Tier 1 leverage capital $44,801 19.32% $52,454 21.64% $53,899 22.06% $55,345 22.47% $57,008 22.94%
Tier 1 leverage capital requirement 11,593 5.00 12,118 5.00 12,215 5.00 12,313 5.00 12,425 5.00
Excess $33,208 14.32% $40,336 16.64% $41,684 17.06% $43,032 17.47% $44,583 17.94%
Tier 1 risk-based capital (4) $44,801 30.86% $52,454 35.62% $53,899 36.50% $55,345 37.38% $57,008 38.39%
Tier 1 risk-based requirement 11,614 8.00 11,782 8.00 11,813 8.00 11,844 8.00 11,880 8.00
Excess $33,187 22.86% $40,672 27.62% $42,086 28.50% $43,501 29.38% $45,128 30.39%
Total risk-based capital (4) $46,647 32.13% $54,300 36.87% $55,745 37.75% $57,191 38.63% $58,854 39.63%
Total risk-based requirement 14,517 10.00 14,727 10.00 14,766 10.00 14,805 10.00 14,850 10.00
Excess $32,130 22.13% $39,573 26.87% $40,979 27.75% $42,386 28.63% $44,004 29.63%
Common equity tier 1 risk-based capital (4) $44,801 30.86% $52,454 35.62% $53,899 36.50% $55,345 37.38% $57,008 38.39%
Common equity tier 1 risk-based requirement 9,436 6.50 9,573 6.50 9,598 6.50 9,623 6.50 9,653 6.50
Excess $35,365 24.36% $42,881 29.12% $44,301 30.00% $45,722 30.88% $47,355 31.89%
Reconciliation of capital infused into Newton
Federal Bank:
Net offering proceeds $21,003 $24,900 $28,797 $33,279
Proceeds to Newton Federal Bank $10,502 $12,450 $14,399 $16,639
Proceeds to Community First Bancshares, MHC — — — —
Less: Common stock acquired by employee stock ownership plan (1,899) (2,234) (2,570) (2,955)
Less: Common stock acquired by stock-based benefit plans (950) (1,117) (1,285) (1,477)
Pro forma increase $ 7,653 $ 9,098 $10,545 $12,207

(1) Pro forma capital levels assume that the employee stock ownership plan purchases 3.92% of our total outstanding shares (including shares issued to Community First Bancshares,
MHC) with funds we lend and that one or more stock-based benefit plans purchases 1.96% of our total outstanding shares (including shares issued to Community First Bancshares,
MHC) for restricted stock awards. Pro forma capital calculated under generally accepted accounting principles (“GAAP”) and regulatory capital have been reduced by the amount
required to fund these plans. See “Management” for a discussion of the employee stock ownership plan.
(2) As adjusted to give effect to an increase in the number of shares, which could occur due to a 15% increase in the offering range to reflect demand for the shares or changes in market
conditions following the commencement of the offering.
(3) Tier 1 leverage capital levels are shown as a percentage of total adjusted assets. Risk-based capital levels are shown as a percentage of risk-weighted assets.
(4) Pro forma amounts and percentages assume net proceeds are invested in assets that carry a 20% risk weighting.

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CAPITALIZATION

The following table presents the historical capitalization of Newton Federal Bank at September 30, 2016, and the pro forma consolidated capitalization of Community First
Bancshares, Inc. after giving effect to the offering, based upon the sale of the number of shares of common stock indicated in the table and the other assumptions set forth under “Pro Forma
Data.”

Newton Federal Pro Forma Consolidated Capitalization at September 30, 2016 of

Bank Historical Community First Bancshares, Inc.
Capitalization Based Upon the Sale for $10.00 Per Share of
at September 30, 2,228,700 2,622,000 3,015,300 3,467,595
2016 Shares Shares Shares Shares (1)
(Dollars in thousands)
Deposits (2) $ 181,699 $ 181,699 $ 181,699 $ 181,699 $ 181,699
Borrowings — — — — —
Total interest-bearing liabilities $ 181,699 $ 181,699 $ 181,699 $ 181,699 $ 181,699
Stockholders’ equity:
Preferred Stock, $0.01 par value per share: 1,000,000 shares authorized (post
offering); none to be issued $ — $ — $ — $ — $ —
Common Stock, $0.01 par value per share:
19,000,000 shares authorized (post offering); shares to be issued as reflected
(3) — 48 57 66 75
Additional paid-in capital (3) — 20,955 24,843 28,731 33,203
Retained earnings (4) 45,081 45,081 45,081 45,081 45,081
Accumulated other comprehensive income — — — — —
Less:
Assets retained by Community First Bancshares, MHC (5) — (100) (100) (100) (100)
Common stock acquired by employee stock ownership plan (6) — (1,899) (2,234) (2,570) (2,955)
Common stock acquired by stock-based benefit plans (7) — (950) (1,117) (1,285) (1,477)
Total stockholders’ equity $ 45,081 $ 63,135 $ 66,529 $ 69,924 $ 73,827
Total tangible stockholders’ equity $ 45,081 $ 63,135 $ 66,529 $ 69,924 $ 73,827
Pro forma shares outstanding:
Shares offered for sale — 2,228,700 2,622,000 3,015,300 3,467,595
Shares issued to Community First Bancshares, MHC — 2,616,300 3,078,000 3,539,700 4,070,655
Total shares outstanding — 4,845,000 5,700,000 6,555,000 7,538,250
Total stockholders’ equity as a percentage of pro forma total assets 19.36% 25.16% 26.16% 27.14% 28.22%

(1) As adjusted to give effect to a 15% increase in the number of shares of common stock outstanding after the offering, which could occur due to an increase in the maximum of the
independent valuation to reflect demand for the shares or changes in market conditions following the commencement of the offering.
(2) Does not reflect withdrawals from deposit accounts for the purchase of shares of common stock in the offering. Such withdrawals would reduce pro forma deposits by the amount of
such withdrawals.
(3) The sum of the par value and additional paid-in capital equals the net offering proceeds. No effect has been given to the issuance of additional shares of common stock pursuant to
stock options under one or more stock-based benefit plans that Community First Bancshares, Inc. expects to adopt. The plan of reorganization permits Community First Bancshares,
Inc. to adopt one or more stock benefit plans, subject to stockholder approval, in an amount up to 25% of the shares of common stock held by persons other than Community First
Bancshares, MHC.
(4) The retained earnings of Newton Federal Bank will be substantially restricted after the offering. See “Regulation and Supervision—Federal Banking Regulation—Capital
Distributions.”
(5) Pro forma stockholders’ equity reflects a $100,000 initial capitalization of Community First Bancshares, MHC.
(6) Assumes that 3.92% of the shares of common stock outstanding following the reorganization and offering (including shares issued to Community First Bancshares, MHC) will be
purchased by the employee stock ownership plan at a price of $10.00 per share and that the funds used to acquire the employee stock ownership plan shares will be borrowed from
Community First Bancshares, Inc. The common stock acquired by the employee stock ownership plan is reflected as a reduction of stockholders’ equity. Newton Federal Bank will
provide the funds to repay the employee stock ownership plan loan. See “Management—Benefit Plans and Agreements.”
(footnotes continued on following page)

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(continued from previous page)

(7) Assumes that subsequent to the offering, 1.96% of the shares of common stock issued in the reorganization and offering (including shares of common stock issued to Community
First Bancshares, MHC) are purchased by Community First Bancshares, Inc. for stock awards under one or more stock-based benefit plans in the open market. The shares of
common stock to be purchased by the stock-based benefit plans are reflected as a reduction of stockholders’ equity. See “Pro Forma Data” and “Management.” The plan of
reorganization permits Community First Bancshares, Inc. to adopt one or more stock-based benefit plans that award stock or stock options, in an aggregate amount up to 25% of the
shares of common stock held by persons other than Community First Bancshares, MHC. The stock-based benefit plans will not be implemented for at least six months after the
reorganization and offering and, if required under applicable regulations, until they have been approved by stockholders.

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PRO FORMA DATA

The following tables summarize historical data of Newton Federal Bank and pro forma data of Community First Bancshares, Inc. at and for the year ended September 30, 2016. This
information is based on assumptions set forth below and in the table and related footnotes, and should not be used as a basis for projections of market value of the shares of common stock
following the conversion.

The net proceeds disclosed in the tables are based upon the following assumptions:
(i) all of the shares of common stock will be sold in the subscription and community offerings;
(ii) our employees, directors and their associates will purchase 250,000 shares of our common stock;
(iii) our employee stock ownership plan will purchase an amount of shares equal to 3.92% of our outstanding shares, including shares held by Community First Bancshares,
MHC, with a loan from Community First Bancshares, Inc. The loan will be repaid in substantially equal principal payments over a period of 25 years. Interest income that we
earn on the loan will offset the interest paid by Newton Federal Bank;
(iv) we will pay BSP Securities, LLC a fee of 1.0% with respect to shares sold in the subscription and community offerings, and we will reimburse BSP Securities, LLC for its
reasonable expenses associated with its marketing effort in the subscription and community offerings in an amount not to exceed $10,000 and for attorney’s fees and
expenses not to exceed $85,000; and
(v) total expenses of the offering, other than the fees, commissions and expense reimbursements to be paid to BSP Securities, LLC and other broker-dealers, will be $975,000.

We calculated the pro forma consolidated net income of Community First Bancshares, Inc. for the year as if the shares of common stock had been sold at the beginning of the year
and the net proceeds had been invested at 1.14% (0.71% on an after-tax basis), which is equal to the yield on the five-year U.S. Treasury Note as of September 30, 2016. In light of current
interest rates, we consider this rate to more accurately reflect the pro forma reinvestment rate than the arithmetic average method, which assumes reinvestment of the net proceeds at a rate
equal to the average of the yield on interest-earning assets and the cost of deposits for those periods.

We further believe that the reinvestment rate is factually supportable because:

• the yield on the U.S. Treasury Note can be determined and/or estimated from third-party sources; and
• we believe that U.S. Treasury securities are not subject to credit losses due to a U.S. Government guarantee of payment of principal and interest.

We calculated historical and pro forma per share amounts by dividing historical and pro forma amounts of net income and stockholders’ equity by the indicated number of shares of
common stock. For pro calculations, we adjusted these figures to give effect to the shares of common stock purchased by the employee stock ownership plan. We computed per share
amounts for each period as if the common stock was outstanding at the beginning of the periods, but we did not adjust per share historical or pro forma stockholders’ equity to reflect the
earnings on the estimated net proceeds.

The pro forma tables give effect to the implementation of one or more stock-based benefit plans. We have assumed that the stock-based benefit plans will acquire an amount of
common stock equal to 1.96% of our outstanding shares of common stock (including shares issued to Community First Bancshares, MHC) at the same price for which they were sold in the
offering. We assume that shares of common stock are granted under the plan

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in awards that vest over a five-year period. The plan of reorganization provides that we may grant awards of restricted stock under one or more stock benefit plans in an aggregate amount
up to 25% of the shares of common stock held by persons other than Community First Bancshares, MHC. However, any awards of restricted common stock in excess of 1.96% of the
outstanding shares, including shares issued to Community First Bancshares, MHC, currently would require prior approval of federal regulators.

We have assumed that the stock-based benefit plans will grant options to acquire common stock equal to 4.90% of our outstanding shares of common stock (including shares of
common stock issued to Community First Bancshares, MHC). In preparing the following tables, we also assumed that stockholder approval was obtained, that the exercise price of the stock
options and the market price of the stock at the date of grant were $10.00 per share and that the stock options had a term of ten years and vested over five years. We applied the Black-
Scholes option pricing model to estimate a grant-date fair value of $2.34 for each option. In addition to the terms of the options described above, the Black-Scholes option pricing model
incorporated an estimated volatility rate of 12.81% for the common stock based on an index of publicly traded thrifts, no dividend yield, an expected option life of 10 years and a risk free
interest rate of 1.60%. The plan of reorganization provides that we may grant awards of stock options under one or more stock benefit plans in an amount up to 25% of the shares of
common stock held by persons other than Community First Bancshares, MHC. However, any awards of options in excess of 4.96% of our outstanding shares, including shares issued to
Community First Bancshares, MHC, currently would require prior approval of federal regulators.

As disclosed under “How We Intend to Use the Proceeds from the Offering,” Community First Bancshares, Inc. intends to contribute 50% of the net proceeds from the offering to
Newton Federal Bank, will contribute $100,000 to Community First Bancshares, MHC and will retain the remainder of the net proceeds from the offering. Community First Bancshares,
Inc. will use a portion of the proceeds it retains for the purpose of making a loan to the employee stock ownership plan and retain the rest of the proceeds for future use.

The pro forma tables do not give effect to:

• withdrawals from deposit accounts for the purpose of purchasing shares of common stock in the offering;
• Community First Bancshares, Inc.’s results of operations after the offering;
• increased fees and expenses that we would pay BSP Securities, LLC and other broker-dealers if we conducted a syndicated offering; or
• changes in the market price of the shares of common stock after the offering.

The following pro forma information may not represent the financial effects of the offering at the date on which the offering actually occurs and you should not use the tables to
indicate future results of operations. Pro forma stockholders’ equity represents the difference between the stated amounts of assets and liabilities of Community First Bancshares, Inc.,
computed in accordance with U.S. generally accepted accounting principles. We did not increase or decrease stockholders’ equity to reflect the difference between the carrying value of
loans and other assets and their market value. Pro forma stockholders’ equity is not intended to represent the fair market value of the common stock, and may be different than the amounts
that would be available for distribution to stockholders if we were liquidated. Pro forma stockholders’ equity does not give effect to the impact of tax bad debt reserves in the event we were
to be liquidated. We had no intangible assets at September 30, 2016.

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At or For the Year Ended September 30, 2016

Based Upon the Sale at $10.00 Per Share of
3,467,595
3,015,300 Shares at
2,228,700 2,622,000 Shares at Adjusted
Shares at Shares at Maximum Maximum
Minimum of Midpoint of of of
Offering Offering Offering Offering
Range Range Range Range (1)
(Dollars in thousands, except per share amounts)
Gross proceeds of the offering $ 22,287 $ 26,220 $ 30,153 $ 34,676
Market value of shares issued to Community First Bancshares, MHC 26,163 30,780 35,397 40,707
Market value of Community First Bancshares, Inc. $ 48,450 $ 57,000 $ 65,550 $ 75,383

Gross proceeds of the offering $ 22,287 $ 26,220 $ 30,153 $ 34,676

Expenses (1,284) (1,320) (1,356) (1,397)
Estimated net proceeds 21,003 24,900 28,797 33,279
Community First Bancshares, MHC capitalization (100) (100) (100) (100)
Common stock acquired by employee stock ownership plan (2) (1,899) (2,234) (2,570) (2,955)
Common stock acquired by stock-based benefit plans (3) (950) (1,117) (1,285) (1,477)
Estimated net proceeds as adjusted $ 18,054 $ 21,448 $ 24,843 $ 28,747

For the year ended September 30, 2016

Consolidated net income:
Historical (4) $ 1,157 $ 1,157 $ 1,157 $ 1,157
Income on adjusted net proceeds 128 152 176 203
Employee stock ownership plan (2) (47) (55) (64) (73)
Shares granted under stock-based benefit plans (3) (118) (139) (159) (183)
Options granted under stock-based benefit plans (5) (101) (118) (136) (156)
Pro forma net income $ 1,019 $ 997 $ 974 $ 948

Earnings per share:

Historical $ 0.25 $ 0.21 $ 0.18 $ 0.16
Income on net proceeds 0.03 0.03 0.03 0.03
Employee stock ownership plan (2) (0.01) (0.01) (0.01) (0.01)
Shares granted under stock-based benefit plans (3) (0.03) (0.03) (0.03) (0.03)
Options granted under stock-based benefit plans (5) (0.02) (0.02) (0.02) (0.02)
Pro forma earnings per share $ 0.22 $ 0.18 $ 0.15 $ 0.13
Offering price to pro forma earnings per share 45.45x 55.56x 66.67x 76.92x
Number of shares used in earnings per share calculations (2) 4,662,673 5,485,498 6,308,322 7,254,571
At September 30, 2016
Stockholders’ equity:
Historical (4) $ 45,081 $ 45,081 $ 45,081 $ 45,081
Estimated net proceeds 21,003 24,900 28,797 33,279
Capitalization of Community First Bancshares, MHC (100) (100) (100) (100)
Common stock acquired by employee stock ownership plan (2) (1,899) (2,234) (2,570) (2,955)
Common stock acquired by stock-based benefit plans (3) (950) (1,117) (1,285) (1,477)
Pro forma stockholders’ equity (6) $ 63,135 $ 66,529 $ 69,924 $ 73,827
Pro forma tangible stockholders’ equity $ 63,135 $ 66,529 $ 69,924 $ 73,827

Stockholders’ equity per share:

Historical $ 9.30 $ 7.91 $ 6.88 $ 5.98
Estimated net proceeds 4.33 4.37 4.39 4.41
Capitalization of Community First Bancshares, MHC (0.02) (0.02) (0.02) (0.01)
Common stock acquired by employee stock ownership plan (2) (0.39) (0.39) (0.39) (0.39)
Common stock acquired by stock-based benefit plans (3) (0.20) (0.20) (0.20) (0.20)
Pro forma stockholders’ equity per share (3)(6) $ 13.02 $ 11.67 $ 10.66 $ 9.79
Pro forma tangible stockholders’ equity per share $ 13.02 $ 11.67 $ 10.66 $ 9.79

Offering price as a percentage of pro forma stockholders’ equity per share 76.80% 85.69% 93.81% 102.15%
Offering price as a percentage of pro forma tangible stockholders’ equity per share 76.80% 85.69% 93.81% 102.15%
Number of shares outstanding for pro forma equity per share calculations 4,845,000 5,700,000 6,555,000 7,538,250

(footnotes begin on following page)

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(1) As adjusted to give effect to a 15% increase in the number of shares outstanding after the offering, which could occur due to an increase in the maximum of the independent
valuation as a result of demand for the shares or changes in market conditions following the commencement of the offering.
(2) It is assumed that 3.92% of the shares outstanding following the offering will be purchased by the employee stock ownership plan at a price of $10.00 per share. For purposes of this
table, the funds used to acquire such shares are assumed to have been borrowed by the employee stock ownership plan from Community First Bancshares, Inc. The amount to be
borrowed is reflected as a reduction of stockholders’ equity. Newton Federal Bank intends to make annual contributions to the employee stock ownership plan in an amount at least
equal to the principal and interest requirement of the debt. Newton Federal Bank’s total annual payment of the employee stock ownership plan debt is based upon 25 equal annual
installments of principal and interest. The pro forma net earnings information makes the following assumptions: (i) Newton Federal Bank’s contribution to the employee stock
ownership plan is equivalent to the debt service requirement for the period presented and was made at the end of the period; (ii) the employee stock ownership plan acquires
189,924, 223,440, 256,956 and 295,499 shares, respectively, at the minimum, midpoint, maximum and adjusted maximum of the offering range; (iii) 7,597, 8,938, 10,278 and
11,820 shares, respectively, at the minimum, midpoint, maximum and adjusted maximum of the offering range (based on a 25-year loan term), were committed to be released during
the year ended September 30, 2016 at an average fair value equal to the price for which the shares are sold in the offering; and (iv) only the employee stock ownership plan shares
committed to be released were considered outstanding for purposes of the net earnings per share calculations, resulting in a reduction from total outstanding shares (which is also the
number of shares outstanding for pro forma equity per share calculations) of 182,327, 214,502, 246,678 and 283,679 shares, respectively, at the minimum, midpoint, maximum and
adjusted maximum of the offering range, to determine the number of shares outstanding for earnings per share calculations.
(3) Gives effect to one or more stock-based benefit plans expected to be adopted following the offering. We have assumed that these plans acquire a number of shares of common stock
equal to 1.96% of the shares issued in the reorganization and offering (including shares issued to Community First Bancshares, MHC) either through open market purchases or from
authorized but unissued shares of common stock or treasury stock of Community First Bancshares, Inc., if any. Funds used by the stock-based benefit plans to purchase the shares
will be contributed to the plan by Community First Bancshares, Inc. In calculating the pro forma effect of the stock-based benefit plans, it is assumed that the shares were acquired
by the plan in open market purchases at the beginning of the period presented for a purchase price equal to the price for which the shares are sold in the offering, and that 20% of the
amount contributed was an amortized expense (based upon a five-year vesting period) during the year ended September 30, 2016. The actual purchase price of the shares granted
under the stock-based benefit plans may not be equal to the subscription price of $10.00 per share. If shares are acquired from the issuance of authorized but unissued shares of
common stock of Community First Bancshares, Inc., there would be a dilutive effect of up to 4.09% on the ownership interest of persons who purchase common stock in the
offering. The above table shows pro forma net income per share and pro forma stockholders’ equity per share, assuming all the shares to fund the stock-based benefit plans are
obtained from authorized but unissued shares.
(4) Derived from Newton Federal Bank’s audited September 30, 2016 financial statements included elsewhere in this prospectus.
(5) Gives effect to one or more stock-based benefit plans expected to be adopted following the offering. We have assumed that options will be granted to acquire common stock equal to
4.90% of the shares of common stock issued in the reorganization and offering (including shares of common stock issued to Community First Bancshares, MHC). In calculating the
pro forma effect of the stock-based benefit plans, it is assumed that the exercise price of the stock options and the trading price of the stock at the date of grant were $10.00 per share,
the estimated grant-date fair value pursuant to the application of the Black-Scholes option pricing model was $2.34 for each option, the aggregate grant-date fair value of the stock
options was amortized to expense on a straight-line basis over a five-year vesting period of the options, and that 25% of the amortization expense (the assumed portion relating to
options granted to directors) resulted in a tax benefit using an assumed tax rate of 38.0%. Under the above assumptions, the adoption of stock-based benefit plans will result in no
additional shares under the treasury stock method for purposes of calculating earnings per share. The actual exercise price of the stock options may not be equal to the $10.00 price
per share. If a portion of the shares issued to satisfy the exercise of options under stock-based benefit plans are obtained from the issuance of authorized but unissued shares, our net
income per share and stockholders’ equity per share will decrease. This will also have a dilutive effect of up to 9.63% on the ownership interest of persons who purchase common
stock in the offering.
(6) The retained earnings of Newton Federal Bank will continue to be substantially restricted after the offering. See “Regulation and Supervision—Federal Banking Regulation.”

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS OF NEWTON FEDERAL BANK

This discussion and analysis reflects our financial statements and other relevant statistical data, and is intended to enhance your understanding of our financial condition and results
of operations. The information in this section has been derived from the financial statements, which appear beginning on page F-1 of this prospectus. You should read the information in this
section in conjunction with the business and financial information regarding Newton Federal Bank provided in this prospectus.

Overview
Total assets increased $6.5 million, or 2.9%, to $232.8 million at September 30, 2016 from $226.3 million at September 30, 2015. The increase was due to an increase in loans.
Loans held for investment increased $18.2 million, or 10.4%, to $193.9 million at September 30, 2016 from $175.7 million at September 30, 2015, reflecting increases in all loan categories.

Net income decreased $457,000, or 28.3%, to $1.2 million for the year ended September 30, 2016, compared to $1.6 million for the year ended September 30, 2015. The decrease
was due to an increase in non-interest expenses, which increased $1.5 million, or 20.2%, to $9.2 million for the year ended September 30, 2016 from $7.6 million for the year ended
September 30, 2015. This was caused primarily by a $1.2 million, or 34.3%, increase in salaries and employee benefits expense, as we established our loan production office in Bogart,
Georgia in January 2016, and accrued $244,000 for payments to our former President and Chief Executive Officer, beginning in February 2016, in connection with his retirement.

An increase in interest rates will present us with a challenge in managing our interest rate risk. As a general matter, our interest-bearing liabilities reprice or mature more quickly
than our interest-earning assets, which can result in interest expense increasing more rapidly than increases in interest income as interest rates increase. Therefore, increases in interest rates
may adversely affect our net interest income and net economic value, which in turn would likely have an adverse effect on our results of operations. As described in “—Management of
Market Risk,” we expect that our net interest income and our net economic value would decrease as a result of an instantaneous increase in interest rates. To help manage interest rate risk,
we promote core deposit products and we are diversifying our loan portfolio by adding more commercial-related loans. See “—Management of Market Risk” and “Risk Factors—Risks
Related to Our Business—Future changes in interest rates could reduce our profits and asset values.”

Business Strategy
Our goal is to provide long-term value to our stockholders, customers, employees and the communities we serve by executing a safe and sound business strategy that produces
increasing earnings. We believe there is a significant opportunity for a community-focused bank to provide a full range of financial services to commercial and retail customers in our
market area, and the increased capital we will have after the completion of the offering will enable us to compete more effectively with other financial institutions.

Our current business strategy consists of the following:

• Grow our loan portfolio prudently with a focus on diversifying the portfolio, particularly in commercial real estate, commercial and industrial and construction and land
lending . Our principal business activity historically has been the origination of residential mortgage loans for retention in our portfolio, and we intend to retain our presence
as a mortgage lender in our market area. As part of our strategy of diversifying our loan portfolio by increasing our commercial real estate loans, commercial and industrial
loans and construction and land loans, we opened a loan production office in Bogart, Georgia (in the Athens, Georgia market area) in 2016, added a commercial loan officer,
and enhanced our credit function and our sales culture. Commercial real estate loans increased $4.6 million, or 18.6%, to $29.2 million at September 30, 2016 from
$24.6 million

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at September 30, 2015, commercial and industrial loans increased $1.9 million, or 13.2%, to $16.2 million at September 30, 2016 from $14.3 million at September 30, 2015,
and construction and land loans increased $11.1 million to $13.3 million at September 30, 2016 from $2.3 million at September 30, 2015. We may also expand our
commercial lending activities through participation in government-sponsored loan programs, such as the Small Business Administration (“SBA”) and the U.S. Department of
Agriculture, as a way to generate government-guaranteed loans with the opportunity to sell the guaranteed portion of the loan at a premium and retain the non-guaranteed
portion as well as the servicing rights. The capital we are raising in the offering will support an increase in our lending limits, which will enable us to originate larger loans to
new and existing customers.
• Continue to increase core deposits, with an emphasis on low cost commercial demand deposits, and add non-core funding opportunities. We seek core deposits to provide
a stable source of funds to support loan growth, at costs consistent with improving our interest rate spread and margin. Core deposits also help us maintain loan-to-deposit
ratios at levels consistent with regulatory expectations. We consider our core deposits to include passbook savings accounts, negotiable orders of withdrawal (NOW)
accounts, other savings deposits and checking accounts. As part of our focus on commercial loan growth, our lenders are expected to source business checking accounts from
our borrowers. In prior years, we allowed higher-cost certificates of deposit to run off at maturity to improve our deposit mix and reduce our cost of funds. As a result of these
efforts, core deposits increased to $96.2 million, or 52.9% of our total deposits at September 30, 2016, from $80.4 million, or 45.5% of our total deposits at September 30,
2015. However, we will also explore adding non-core funding sources, such as QwickRate (online deposits) and brokered deposits, and may use borrowings, as needed, to
fund future loan growth and our operations.
• Manage credit risk to maintain a low level of nonperforming assets. We believe strong asset quality is a key to our long-term financial success. Our strategy for credit risk
management focuses on having an experienced team of credit professionals, well-defined policies and procedures, appropriate loan underwriting criteria and active credit
monitoring. Our non-performing assets to total assets ratio was 1.39% at September 30, 2016 and 1.37% at September 30, 2015, compared to 7.45% at September 30, 2012.
The majority of our non-performing assets have related to one- to four-family residential real estate loans, as our residential borrowers experienced difficulties repaying their
loans during the past recession. We intend to increase our investment in our credit review function, both in personnel as well as ancillary systems, in order to be able to
evaluate more complex loans and better manage credit risk, which will also support our intended loan growth.
• Grow organically and through opportunistic bank or branch acquisitions. We expect to consider both organic growth as well as acquisition opportunities that we believe
would enhance the value of our franchise and yield potential financial benefits for our stockholders. Although we believe opportunities exist to increase our market share in
our historical markets, we expect to continue to expand into nearby markets, primarily Clarke and Oconee Counties, Georgia, as well as contiguous counties. We will
consider expanding our branch network and adding additional loan production offices. The capital we are raising in the offering will also provide us the opportunity to
acquire smaller institutions located in our market area, and will help fund improvements in our operating facilities, credit reporting and customer delivery services in order to
enhance our competitiveness.
• Expand our employee base to support future growth. The additional capital we will raise in the offering will provide us with the ability to expand our employee base to
support increased lending, deposit activities and enhanced information technology. The potential to offer equity awards in the future following the offering will also allow us
to be more competitive when hiring experienced banking personnel.

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Anticipated Increase in Noninterest Expense

Following the completion of the reorganization and stock offering, our noninterest expense is expected to increase because of the increased costs associated with operating as a
public company, and the increased compensation expenses associated with the purchase of shares of common stock by our employee stock ownership plan and the possible implementation
of one or more stock-based benefit plans, if approved by our stockholders, no earlier than six months after the completion of the reorganization and stock offering. For further information,
see “Summary—Our Officers, Directors and Employees Will Receive Additional Benefits and Compensation After the Reorganization and Offering;” “Risk Factors—Risks Related to the
Offering—Our stock-based benefit plans will increase our costs, which will reduce our income;” and “Management—Benefits to be Considered Following Completion of the Stock
Offering.” See “Risks Factors—Risks Related to Our Business.”

Summary of Significant Accounting Policies

The discussion and analysis of the financial condition and results of operations are based on our financial statements, which are prepared in conformity with U.S. generally accepted
accounting principles. The preparation of these financial statements requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities,
disclosure of contingent assets and liabilities, and the reported amounts of income and expenses. We consider the accounting policies discussed below to be significant accounting policies.
The estimates and assumptions that we use are based on historical experience and various other factors and are believed to be reasonable under the circumstances. Actual results may differ
from these estimates under different assumptions or conditions, resulting in a change that could have a material impact on the carrying value of our assets and liabilities and our results of
operations.

On April 5, 2012, the JOBS Act was signed into law. The JOBS Act contains provisions that, among other things, reduce certain reporting requirements for qualifying public
companies. As an “emerging growth company” we may delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made
applicable to private companies. We intend to take advantage of the benefits of this extended transition period. Accordingly, our financial statements may not be comparable to companies
that comply with such new or revised accounting standards.

The following represent our significant accounting policies:

Allowance for Loan Losses . The allowance for loan losses is a reserve for estimated credit losses on individually evaluated loans determined to be impaired as well as estimated
credit losses inherent in the loan portfolio. Actual credit losses, net of recoveries, are deducted from the allowance for loan losses. Loans are charged off when management believes that the
collectability of the principal is unlikely. Subsequent recoveries, if any, are credited to the allowance for loan losses. A provision for loan losses, which is a charge against earnings, is
recorded to bring the allowance for loan losses to a level that, in management’s judgment, is adequate to absorb probable losses in the loan portfolio. Management’s evaluation process used
to determine the appropriateness of the allowance for loan losses is subject to the use of estimates, assumptions, and judgment. The evaluation process involves gathering and interpreting
many qualitative and quantitative factors which could affect probable credit losses. Because interpretation and analysis involves judgment, current economic or business conditions can
change, and future events are inherently difficult to predict, the anticipated amount of estimated loan losses and therefore the appropriateness of the allowance for loan losses could change
significantly.
The allocation methodology applied by Newton Federal Bank is designed to assess the appropriateness of the allowance for loan losses and includes allocations for specifically
identified impaired loans and loss factor allocations for all remaining loans, with a component primarily based on historical loss rates and a component primarily based on other qualitative
factors. The methodology includes evaluation and consideration of several factors, such as, but not limited to, management’s ongoing review and grading of loans, facts and issues related to
specific loans, historical loan loss and delinquency experience, trends in past due and non-accrual loans, existing risk characteristics of specific loans or loan pools, the fair value of
underlying collateral, current economic

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conditions and other qualitative and quantitative factors which could affect potential credit losses. While management uses the best information available to make its evaluation, future
adjustments to the allowance may be necessary if there are significant changes in economic conditions or circumstances underlying the collectability of loans. Because each of the criteria
used is subject to change, the allocation of the allowance for loan losses is made for analytical purposes and is not necessarily indicative of the trend of future loan losses in any particular
loan category. The total allowance is available to absorb losses from any segment of the loan portfolio. Management believes the allowance for loan losses is appropriate at September 30,
2016. The allowance analysis is reviewed by the board of directors on a quarterly basis in compliance with regulatory requirements. In addition, various regulatory agencies periodically
review the allowance for loan losses. As a result of such reviews, we may have to adjust our allowance for loan losses. However, regulatory agencies are not directly involved in the process
of establishing the allowance for loan losses as the process is the responsibility of Newton Federal Bank and any increase or decrease in the allowance is the responsibility of management.
Income Taxes . The assessment of income tax assets and liabilities involves the use of estimates, assumptions, interpretation, and judgment concerning certain accounting
pronouncements and federal and state tax codes. There can be no assurance that future events, such as court decisions or positions of federal and state taxing authorities, will not differ from
management’s current assessment, the impact of which could be significant to the results of operations and reported earnings.
Newton Federal Bank files a federal and a state income tax return. Amounts provided for income tax expense are based on income reported for financial statement purposes and do
not necessarily represent amounts currently payable under tax laws. Deferred income tax assets and liabilities are computed annually for differences between the financial statement and tax
bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax law rates applicable to the periods in which the differences are expected to
affect taxable income. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income tax expense. Valuation allowances are
established when it is more likely than not that a portion of the full amount of the deferred tax asset will not be realized. In assessing the ability to realize deferred tax assets, management
considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies. Newton Federal Bank may also recognize a liability for unrecognized
tax benefits from uncertain tax positions. Unrecognized tax benefits represent the differences between a tax position taken or expected to be taken in a tax return and the benefit recognized
and measured in the financial statements. Penalties related to unrecognized tax benefits are classified as income tax expense.

Comparison of Financial Condition at September 30, 2016 and 2015

Total assets increased $6.5 million, or 2.9%, to $232.8 million at September 30, 2016 from $226.3 million at September 30, 2015. The increase was due to an increase in loans,
offset by a decrease in cash and cash equivalents, as discussed in more detail below.

Cash and cash equivalents decreased $12.8 million, or 33.3%, to $25.7 million at September 30, 2016 from $38.5 million at September 30, 2015. The decrease resulted from our
using excess cash to fund loan originations, partially offset by an increase in deposits.

We had $472,000 of loans held for sale at September 30, 2016 compared to no loans held for sale at September 30, 2015.

Loans held for investment increased $18.2 million, or 10.4%, to $193.9 million at September 30, 2016 from $175.7 million at September 30, 2015, reflecting increases in all loan
categories. Construction and land loans increased $11.1 million to $13.3 million at September 30, 2016 from $2.3 million at September 30, 2015, while commercial real estate loans
increased $4.6 million, or 18.6%, to $29.2 million at September 30, 2016 from $24.6 million at September 30, 2015, and commercial and industrial loans increased $1.9 million, or 13.2%,
to $16.2 million at September 30, 2016 from $14.3 million at September 30, 2015. We have recently increased our focus on commercial lending, including construction lending, and our
construction lending has benefitted from the opening of our loan production office in Bogart, Georgia in 2016.

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Securities held-to-maturity totaled $7.5 million at each of September 30, 2016 and September 30, 2015. We have invested excess cash in higher-yielding loans instead of lower-
yielding securities as we have been able to grow our loan portfolio.

Total deposits increased $5.0 million, or 2.8%, to $181.7 million at September 30, 2016 from $176.7 million at September 30, 2015. The increase was primarily due to increases in
interest-bearing checking accounts (a $7.9 million increase, or 34.8%, to $30.7 million at September 30, 2016 from $22.8 million at September 30, 2015) and non-interest bearing checking
accounts (a $6.6 million increase, or 43.6%, to $21.7 million at September 30, 2016 from $15.1 million at September 30, 2015). The increase in checking accounts was primarily due to our
introducing our Kasasa (rewards) deposit program in November 2014, which promotes free checking accounts with either attractive interest rates or cash-back rewards. These increases
were partially offset by a decrease in certificates of deposit, which decreased $10.8 million, or 11.2%, to $85.5 million at September 30, 2016 from $96.3 million at September 30, 2015. In
prior years, we allowed higher-rate certificates of deposit to run off at maturity to both improve our deposit mix and reduce our cost of funds. In addition, we have been able to fund loan
growth from excess cash as well as cash generated from other deposit products.

We had no outstanding borrowings at September 30, 2016 or 2015. We have not needed borrowings to fund our operations in recent years due to a strong cash position and deposit
growth during the year ended September 30, 2016.

Total equity capital increased $1.2 million, or 2.6%, to $45.1 million at September 30, 2016 from $43.9 million at September 30, 2015. The growth was due to net income of
$1.2 million for the year ended September 30, 2016. We classify all of our securities as held to maturity, resulting in no comprehensive income or loss.

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Average Balance Sheets

The following tables set forth average balance sheets, average yields and costs, and certain other information at and for the years indicated. No tax-equivalent yield adjustments have
been made, as the effects would be immaterial. All average balances are monthly average balances. Non-accrual loans were included in the computation of average balances. The yields set
forth below include the effect of deferred fees, discounts, and premiums that are amortized or accreted to interest income or interest expense. Loan balances exclude loans held for sale.

At
September 30, For the Year Ended
2016 September 30, 2016
Average Average
Average Outstanding Yield/
Yield/Rate Balance Interest Rate
(Dollars in thousands)
Interest-earning assets:
Loans 5.57% $ 182,181 $10,937 6.00%
Securities 1.09% 7,496 82 1.09%
Interest-earning deposits 0.74% 34,070 219 0.64%
Federal Home Loan Bank of Atlanta stock 4.64% 204 10 4.90%
Total interest-earning assets 223,951 11,248 5.02%
Non-interest-earning assets 4,980
Total assets $ 228,931

Interest-bearing liabilities:
Passbook savings accounts 0.04% $ 20,766 8 0.04%
Interest-bearing checking accounts 0.45% 27,162 83 0.31%
Money market checking accounts 0.26% 22,919 59 0.26%
Certificates of deposit 1.05% 90,902 1,265 1.39%
Total interest-bearing deposits 161,749 1,415 0.87%
Total interest-bearing liabilities 161,749 1,415 0.87%
Non-interest-bearing liabilities 22,736
Total liabilities 184,485
Total retained earnings $ 44,446
Total liabilities and retained earnings $ 228,931
Net interest income $ 9,833
Net interest rate spread (1) 4.15%
Net interest-earning assets (2) $ 62,202
Net interest margin (3) 4.39%
Average interest-earning assets to interest-bearing liabilities 138.46%

(1) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
(2) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(3) Net interest margin represents net interest income divided by average total interest-earning assets.

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For the Years Ended September 30,

2015 2014
Average Average Average Average
Outstanding Yield/ Outstanding Yield/
Balance Interest Rate Balance Interest Rate
(Dollars in thousands)
Interest-earning assets:
Loans $ 177,805 $10,815 6.08% $ 186,610 $11,416 6.12%
Securities 7,781 89 1.14% 5,957 69 1.16%
Interest-earning deposits 33,661 132 0.39% 24,965 77 0.31%
Federal Home Loan Bank of Atlanta stock 200 9 4.50% 230 9 3.91%
Total interest-earning assets 219,447 11,045 5.03% 217,762 11,571 5.31%
Non-interest-earning assets 3,947 4,478
Total assets $ 223,394 $ 222,240

Interest-bearing liabilities:
Passbook savings accounts $ 19,933 8 0.04% $ 18,709 7 0.04%
Interest-bearing checking accounts 20,711 36 0.17% 16,738 7 0.04%
Money market checking accounts 22,997 58 0.25% 23,321 64 0.27%
Certificates of deposit 100,356 1,711 1.70% 109,937 2,078 1.89%
Total interest-bearing deposits 163,997 1,813 1.11% 168,705 2,156 1.28%
Total interest-bearing liabilities 163,997 1,813 1.11% 168,708 2,156 1.28%
Non-interest-bearing liabilities 17,258 18,261
Total liabilities 181,255 186,966
Total retained earnings 42,139 35,274
Total liabilities and retained earnings $ 223,394 $ 222,240
Net interest income $ 9,232 $ 9,415
Net interest rate spread (1) 3.93% 4.04%
Net interest-earning assets (2) $ 55,450 $ 49,057
Net interest margin (3) 4.21% 4.32%
Average interest-earning assets to interest-bearing liabilities 133.81% 129.08%

(1) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
(2) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(3) Net interest margin represents net interest income divided by average total interest-earning assets.

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Rate/Volume Analysis
The following table presents the effects of changing rates and volumes on our net interest income for the years indicated. The rate column shows the effects attributable to changes in
rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The total column
represents the sum of the prior columns. For purposes of this table, changes attributable to both rate and volume, which cannot be segregated, have been allocated proportionately based on
the changes due to rate and the changes due to volume.

Year Ended September 30, Year Ended September 30,

2016 vs. 2015 2015 vs. 2014
Increase (Decrease) Total Increase (Decrease) Total
Due to Increase Due to Increase
Volume Rate (Decrease) Volume Rate (Decrease)
(In thousands)
Interest-earning assets:
Loans $ 264 $ (142) $ 122 $ (536) $ (65) $ (601)
Securities (3) (4) (7) 21 (1) 20
Interest-earning deposits and federal funds 2 85 87 31 24 55
Federal Home Loan Bank of Atlanta stock — 1 1 (1) 1 —
Total interest-earning assets 263 (60) 203 (485) (41) (526)
Interest-bearing liabilities:
Passbook savings accounts — — — — 1 1
Interest-bearing checking accounts 14 33 47 2 27 29
Money market checking accounts — 1 1 (1) (5) (6)
Certificates of deposit (151) (295) (446) (173) (194) (367)
Total deposits (137) (261) (398) (172) (171) (343)
Total interest-bearing liabilities (137) (261) (398) (172) (171) (343)
Change in net interest income $ 400 $ 201 $ 601 $ (313) $ 130 $ (183)

Comparison of Operating Results for the Years Ended September 30, 2016 and 2015
General. Net income decreased $457,000, or 28.3%, to $1.2 million for the year ended September 30, 2016, compared to $1.6 million for the year ended September 30, 2015. The
decrease was due to an increase in non-interest expenses, partially offset by increases in net interest income and non-interest income, as described in more detail below.

Interest Income. Interest income increased $203,000, or 1.8%, to $11.2 million for the year ended September 30, 2016 from $11.0 million for the year ended September 30, 2015.
The increase was due primarily to a $122,000, or 1.1%, increase in interest income on loans, which is our primary source of interest income. Our average balance of loans increased
$4.4 million, or 2.5%, to $182.2 million for the year ended September 30, 2016 from $177.8 million for the year ended September 30, 2015. The increase in average balance resulted from
our recent increased focus on commercial lending, including construction lending, and our construction lending has benefitted from the opening of our loan production office in Bogart,
Georgia in January 2016. Our average yield on loans decreased eight basis points to 6.00% for the year ended September 30, 2016 from 6.08% for the year ended September 30, 2015, as
higher-yielding loans have been repaid or refinanced and replaced with lower-yielding loans, reflecting the current interest rate environment.

Interest income on interest-earning deposits increased $87,000, or 65.9%, to $219,000 for the year ended September 30, 2016 from $132,000 for the year ended September 30, 2015.
The average rate we earned on interest-earning deposits increased 25 basis points to 0.64% for the year ended September 30, 2016 from 0.39% for the year ended September 30, 2015,
reflecting higher market interest rates. Our average balance of interest-earning deposits increased $409,000, or 1.2%, to $34.1 million for the year ended September 30, 2016 from
$33.7 million for the year ended September 30, 2015.

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Interest Expense. Interest expense decreased $398,000, or 22.0%, to $1.4 million for the year ended September 30, 2016 compared to $1.8 million for the year ended September 30,
2015, due to a decrease in interest expense on deposits, which is currently our sole source of interest expense. Specifically, interest expense on certificates of deposit decreased $446,000, or
26.1%, to $1.3 million for the year ended September 30, 2016 from $1.7 million for the year ended September 30, 2015. This decrease resulted from decreases in both the average balance
of certificates of deposit and the average rate we paid on certificates of deposit. The average balance of certificates of deposit decreased $9.5 million, or 9.4%, to $90.9 million for the year
ended September 30, 2016 from $100.4 million for the year ended September 30, 2015, and the average rate we paid on certificates of deposit decreased 31 basis points to 1.39% for the
year ended September 30, 2016 from 1.70% for the year ended September 30, 2015. In prior years, we allowed higher-rate certificates of deposit to run off at maturity to improve our
deposit mix and reduce our cost of funds. In addition, we have been able to fund loan growth from excess cash as well as cash generated from other deposit products.

Interest expense on interest-bearing checking accounts increased $47,000 to $83,000 for the year ended September 30, 2016 from $36,000 for the year ended September 30, 2015.
This increase resulted from increases in both the average balance of interest-bearing checking accounts and the average rate we paid on interest-bearing checking accounts. The average
balance of interest-bearing checking accounts increased $6.5 million, or 31.1%, to $27.2 million for the year ended September 30, 2016 from $20.7 million for the year ended September 30,
2015, and the average rate we paid on interest-bearing checking accounts increased 14 basis points to 0.31% for the year ended September 30, 2016 from 0.17% for the year ended
September 30, 2015, reflecting higher market interest rates. The increase in checking accounts was primarily due to our introducing our Kasasa (rewards) deposit program in November
2014.

Net Interest Income. Net interest income increased $601,000, or 6.5%, to $9.8 million for the year ended September 30, 2016 from $9.2 million for the year ended September 30,
2015, primarily as a result of a higher balance of net interest-earning assets and, to a lesser extent, a higher net interest rate spread and net interest margin. Our average net interest-earning
assets increased by $6.8 million, or 12.2%, to $62.2 million for the year ended September 30, 2016 from $55.5 million for the year ended September 30, 2015, due primarily to our loan
growth, described above. Our net interest rate spread increased by 22 basis points to 4.15% for the year ended September 30, 2016 from 3.93% for the year ended September 30, 2015, and
our net interest margin increased by 18 basis points to 4.39% for the year ended September 30, 2016 from 4.21% for the year ended September 30, 2015, reflecting primarily a decrease in
our cost of funds.

Provision for Loan Losses. Provisions for loan losses are charged to operations to establish an allowance for loan losses at a level necessary to absorb known and inherent losses in
our loan portfolio that are both probable and reasonably estimable at the date of the financial statements. In evaluating the level of the allowance for loan losses, management analyzes
several qualitative loan portfolio risk factors including, but not limited to, management’s ongoing review and grading of loans, facts and issues related to specific loans, historical loan loss
and delinquency experience, trends in past due and non-accrual loans, existing risk characteristics of specific loans or loan pools, the fair value of underlying collateral, current economic
conditions and other qualitative and quantitative factors which could affect potential credit losses. See “—Summary of Significant Accounting Policies” and “Business of Newton Federal
Bank—Allowance for Loan Losses” for additional information.

After an evaluation of these factors, we did not record a provision for loan losses for the years ended September 30, 2016 or 2015. Our allowance for loan losses was $4.3 million at
September 30, 2016 compared to $5.9 million at September 30, 2015. The allowance for loan losses to total loans decreased to 2.22% at September 30, 2016 from 3.34% at September 30,
2015, and the allowance for loan losses to non-performing loans decreased to 132.87% at September 30, 2016 from 229.18% at September 30, 2015. We significantly decreased the portion
of the allowance for loan losses attributable to one- to four-family residential real estate loans due to a continued decreased loss history related to this portion of the portfolio, as well as
recoveries related to this portion of the portfolio exceeding charge-offs, which offset the effect of an increase in non-accrual one- to four-family residential real estate loans. We increased
the portion of the allowance for loan losses attributable to commercial real estate loans due to increased charge-offs and an increase in this portion of the loan portfolio which, in the absence
of other factors, would result in an increase in the allowance for loan losses as we apply historical loss ratios to newly originated loans. We modestly increased the portion of the allowance
for loan losses attributable to construction and land loans despite an increase in this portion of the loan portfolio, as we have a low loss history with respect to construction and land loans.

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To the best of our knowledge, we have recorded all loan losses that are both probable and reasonable to estimate at September 30, 2016. However, future changes in the factors
described above, including, but not limited to, actual loss experience with respect to our loan portfolio, could result in material increases in our provision for loan losses. In addition, the
Office of the Comptroller of the Currency, as an integral part of its examination process, will periodically review our allowance for loan losses, and as a result of such reviews, we may have
to adjust our allowance for loan losses. However, regulatory agencies are not directly involved in establishing the allowance for loan losses as the process is our responsibility and any
increase or decrease in the allowance is the responsibility of management.

Non-interest Income. Non-interest income information is as follows.

Years Ended
September 30, Change
2016 2015 Amount Percent
(Dollars in thousands)
Service charges on deposit accounts $ 717 $631 $ 86 13.6%
Other 468 251 217 86.5
Total non-interest income $1,185 $882 $ 303 34.3%

The increase in other non-interest income was primarily due to $94,000 in secondary market mortgage fee income for the year ended September 30, 2016, consisting of $58,000
relating to loans we sold during the fiscal year ended September 30, 2016 and $35,000 in broker fees, compared to no such income for the year ended September 30, 2015. We sold
$2.3 million of loans during 2016 compared to no such loan sales during 2015.

Non-interest Expenses. Non-interest expenses information is as follows.

Years Ended
September 30, Change
2016 2015 Amount Percent
(Dollars in thousands)
Salaries and employee benefits $4,742 $3,532 $ 1,210 34.3%
Deferred compensation 218 336 (118) (35.1)
Occupancy 1,091 980 111 11.3
Advertising 207 123 84 68.3
Data processing 633 538 95 17.7
Other real estate owned 65 40 25 62.5
Loss on write down of other real estate owned 73 123 (50) (68.5)
Loss on sale of other real estate owned 34 12 22 183.3
Legal and accounting 426 422 4 0.9
Organizational dues and subscriptions 220 308 (88) (28.6)
Director compensation 176 80 96 120.0
Federal deposit insurance premiums 155 266 (111) (41.7)
Other 1,124 861 263 30.5
Total non-interest income $9,164 $7,621 $ 1,543 20.2%

Salaries and employee benefits expense increased due to our establishing our loan production office in Bogart, Georgia in January 2016, as well as our accruing $244,000 for
payments to our former President and Chief Executive Officer, beginning in February 2016, in connection with his retirement. Occupancy expense increased due to our investment in new
technology and services, as well as an increase in our amount of fixed assets. Deferred compensation expense decreased due to our freezing new accruals in our directors deferred fee plan
and our decreasing the interest rate paid on previously deferred compensation.

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Income Tax Expense. We incurred income tax expense of $697,000 and $879,000 for the years ended September 30, 2016 and 2015, respectively, resulting in effective rates of
37.6% and 35.3%, respectively. The decrease in tax expense resulted from a $639,000, or 25.6%, decrease in pre-tax income to $1.9 million for the year ended September 30, 2016 from
$2.5 million for the year ended September 30, 2015.

Management of Market Risk

General . Our most significant form of market risk is interest rate risk because, as a financial institution, the majority of our assets and liabilities are sensitive to changes in interest
rates. Therefore, a principal part of our operations is to manage interest rate risk and limit the exposure of our financial condition and results of operations to changes in market interest
rates. Our Asset/Liability Management Committee is responsible for evaluating the interest rate risk inherent in our assets and liabilities, for determining the level of risk that is appropriate,
given our business strategy, operating environment, capital, liquidity and performance objectives, and for managing this risk consistent with the policy and guidelines approved by our board
of directors. We currently utilize a third-party modeling program, prepared on a quarterly basis, to evaluate our sensitivity to changing interest rates, given our business strategy, operating
environment, capital, liquidity and performance objectives, and for managing this risk consistent with the guidelines approved by the board of directors.

We have sought to manage our interest rate risk in order to minimize the exposure of our earnings and capital to changes in interest rates. We have implemented the following
strategies to manage our interest rate risk:

• limiting our reliance on non-core/wholesale funding sources;

• growing our volume of transaction deposit accounts;

• diversifying our loan portfolio by adding more commercial-related loans, which typically have shorter maturities and/or balloon payments; and

• continuing to price our one- to four-family residential real estate loan products in a way that encourages borrowers to select our balloon loans as opposed to longer term,
fixed-rate loans.

By following these strategies, we believe that we are better positioned to react in increased in market interest rates. In addition, beginning in calendar 2017, we intend to introduce
adjustable-rate, one- to four-family residential real estate loans (in addition to our existing home equity loans and lines of credit, which are originated with adjustable interest rates), and we
expect to increase our investment securities portfolio, with an average maturity of less than 15 years.

We do not engage in hedging activities, such as engaging in futures, options or swap transactions, or investing in high-risk mortgage derivatives, such as collateralized mortgage
obligation residual interests, real estate mortgage investment conduit residual interests or stripped mortgage backed securities.

Net Interest Income. We analyze our sensitivity to changes in interest rates through a net interest income model. Net interest income is the difference between the interest income
we earn on our interest-earning assets, such as loans and securities, and the interest we pay on our interest-bearing liabilities, such as deposits and borrowings. We estimate what our net
interest income would be for a 12-month period. We then calculate what the net interest income would be for the same period under the assumptions that the United States Treasury yield
curve increases or decreases instantaneously by 200 and 400 basis point increments, with changes in interest rates representing immediate and permanent, parallel shifts in the yield curve.
A basis point equals one-hundredth of one percent, and 100 basis points equals one percent. An increase in interest rates from 3% to 4% would mean, for example, a 100 basis point
increase in the “Change in Interest Rates” column below.

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The table below sets forth, as of September 30, 2016, the calculation of the estimated changes in our net interest income that would result from the designated immediate changes in
the United States Treasury yield curve.

Change in Interest Rates Net Interest Income Year 1 Change

(basis points) (1) Year 1 Forecast from Level
(Dollars in thousands)
+400 $10,000 (1.89)%
+200 10,121 (0.70)%
Level 10,192 —
-200 9,750 (4.34)%
-400 9,511 (6.69)%

(1) Assumes an immediate uniform change in interest rates at all maturities.

The table above indicates that at September 30, 2016, in the event of an instantaneous parallel 200 basis point increase in interest rates, we would experience a 0.70% decrease in net
interest income, and in the event of an instantaneous 200 basis point decrease in interest rates, we would experience a 4.34% decrease in net interest income. At September 30, 2015, in the
event of an instantaneous parallel 200 basis point increase in interest rates, we would experience a 1.14% increase in net interest income, and in the event of an instantaneous 200 basis point
decrease in interest rates, we would experience a 5.68% decrease in net interest income.

Net Economic Value . We also compute amounts by which the net present value of our assets and liabilities (net economic value or “NEV”) would change in the event of a range of
assumed changes in market interest rates. This model uses a discounted cash flow analysis and an option-based pricing approach to measure the interest rate sensitivity of net portfolio
value. The model estimates the economic value of each type of asset, liability and off-balance sheet contract under the assumptions under the assumptions that the United States Treasury
yield curve increases or decreases instantaneously by 200 and 400 basis point increments, with changes in interest rates representing immediate and permanent, parallel shifts in the yield
curve.

The table below sets forth, as of September 30, 2016, the calculation of the estimated changes in our NEV that would result from the designated immediate changes in the United
States Treasury yield curve.

NEV as a Percentage of Present

Value of Assets (3)
Change in Interest Rates Estimated Increase (Decrease) in NEV NEV Increase (Decrease)
(basis points) (1) Estimated NEV (2) Amount Percent Ratio (4) (basis points)
(Dollars in thousands)
+400 $39,368 $(11,902) (23.21)% 18.72% (289)
+200 44,947 (6,323) (12.33)% 20.15% (146)
— 51,270 — —% 21.61% —
-200 51,544 274 0.53% 21.25% (36)
-400 49,173 (2,371) (4.09)% 20.49% (112)

(1) Assumes an immediate uniform change in interest rates at all maturities.

(2) NEV is the discounted present value of expected cash flows from assets, liabilities and off-balance sheet contracts.
(3) Present value of assets represents the discounted present value of incoming cash flows on interest-earning assets.
(4) NEV Ratio represents NEV divided by the present value of assets.

The table above indicates that at September 30, 2016, in the event of an instantaneous parallel 200 basis point increase in interest rates, we would experience a 12.33% decrease in
net economic value, and in the event of an instantaneous 200 basis point decrease in interest rates, we would experience a 0.53% increase in net economic value. At September 30, 2015, in
the event of an instantaneous parallel 200 basis point increase in interest rates, we would experience a 12.73% decrease in net economic value, and in the event of an instantaneous 200 basis
point decrease in interest rates, we would experience a 1.22% increase in net economic value.

GAP Analysis. In addition, we analyze our interest rate sensitivity by monitoring our interest rate sensitivity “gap.” Our interest rate sensitivity gap is the difference between the
amount of our interest-earning assets maturing or repricing within a specific time period and the amount of our interest bearing-liabilities maturing or

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repricing within that same time period. A gap is considered positive when the amount of interest rate sensitive assets maturing or repricing during a period exceeds the amount of interest
rate sensitive liabilities maturing or repricing during the same period, and a gap is considered negative when the amount of interest rate sensitive liabilities maturing or repricing during a
period exceeds the amount of interest rate sensitive assets maturing or repricing during the same period.

The following table sets forth our interest-earning assets and our interest-bearing liabilities at September 30, 2016, which are anticipated to reprice or mature in each of the future
time periods shown based upon certain assumptions. The amounts of assets and liabilities shown which reprice or mature during a particular period were determined in accordance with the
earlier of term to repricing or the contractual maturity of the asset or liability. The table sets forth an approximation of the projected repricing of assets and liabilities at September 30, 2016,
on the basis of contractual maturities, anticipated prepayments and scheduled rate adjustments. The loan amounts in the table reflect principal balances expected to be redeployed and/or
repriced as a result of contractual amortization and as a result of contractual rate adjustments on adjustable-rate loans. Amounts are based on preliminary balance sheet as of September 30,
2016, and may not equal amounts included in our audited financial statements for the year ended September 30, 2016. However, we believe that there would be no material changes in the
results of the gap analysis if audited financial results had been utilized.

Time to Repricing
Zero Zero Days Zero Days
Zero to Zero to Days to to Two to Five
90 Days 180 Days One Year Years Years Total
(Dollars in thousands)
Assets:
Cash and due from banks $ 10,066 $10,066 $ 10,066 $ 10,066 $ 10,066 $ 14,293
Investments 3,185 15,460 19,060 19,060 19,060 19,060
Net loans 22,472 33,527 53,328 83,048 140,258 194,445
Other assets — — — — — 5,981
Total $ 35,723 $59,053 $ 82,454 $112,174 $169,384 $233,779

Liabilities:
Non-maturity deposits $ 40,329 $42,300 $ 46,243 $ 54,127 $ 76,824 $ 96,154
Certificates of deposit 11,100 19,742 35,516 44,712 68,355 85,523
Other liabilities — — — — — 7,061
Equity capital — — — — — 45,041
Total $ 51,429 $62,042 $ 81,759 $ 98,839 $145,180(1) $233,779
Asset/liability gap $ (15,707)(1) $ (2,990)(1) $ 695 $ 13,335 $ 24,204(1) $ —
Gap/assets ratio (2) (6.72)% (1.28)% 0.30% 5.70% 10.35% — %

(1) Amounts do not foot due to rounding.

(2) Gap/assets ratio equals the asset/liability gap for the period divided by total assets ($233.8 million).

At September 30, 2015, our asset/liability gap from zero days to one year was $383,000, resulting in a gap/assets ratio of 0.17%.

Certain shortcomings are inherent in the methodologies used in the above interest rate risk measurements. Modeling changes require making certain assumptions that may or may
not reflect the manner in which actual yields and costs respond to changes in market interest rates. In this regard, the net interest income and net economic value tables presented assume
that the composition of our interest-sensitive assets and liabilities existing at the beginning of a period remains constant over the period being measured and assumes that a particular change
in interest rates is reflected uniformly across the yield curve regardless of the duration or repricing of specific assets and liabilities. Accordingly, although the net interest income and NEV
tables provide an indication of our interest rate risk exposure at a particular point in time, such measurements are not intended to and do not provide a precise forecast of the effect of
changes in market interest rates on net interest income and NEV and will differ from actual results. Furthermore, although certain assets and liabilities may have similar maturities or
periods to repricing, they may

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react in different degrees to changes in market interest rates. Additionally, certain assets, such as adjustable-rate loans, have features that restrict changes in interest rates both on a short-
term basis and over the life of the asset. In the event of changes in interest rates, prepayment and early withdrawal levels would likely deviate significantly from those assumed in
calculating the gap table.

Interest rate risk calculations also may not reflect the fair values of financial instruments. For example, decreases in market interest rates can increase the fair values of our loans,
deposits and borrowings.

Liquidity and Capital Resources

Liquidity describes our ability to meet the financial obligations that arise in the ordinary course of business. Liquidity is primarily needed to meet the borrowing and deposit
withdrawal requirements of our customers and to fund current and planned expenditures. Our primary sources of funds are deposits, principal and interest payments on loans and securities,
proceeds from the sale of loans, and proceeds from maturities of securities. We also have the ability to borrow from the Federal Home Loan Bank of Atlanta. At September 30, 2016, we
had a $58.0 million line of credit with the Federal Home Loan Bank of Atlanta, and had no borrowings outstanding as of September 30, 2016. In addition, we have a $5.0 million unsecured
federal funds line of credit and a $7.5 million unsecured federal funds line of credit. No amount was outstanding on these lines of credit at September 30, 2016.

While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows and loan prepayments are greatly influenced by general interest
rates, economic conditions, and competition. Our most liquid assets are cash and short-term investments including interest-bearing demand deposits. The levels of these assets are dependent
on our operating, financing, lending, and investing activities during any given period.

Our cash flows are comprised of three primary classifications: cash flows from operating activities, investing activities, and financing activities. Net cash provided by operating
activities was $1.9 million and $2.9 million for the years ended September 30, 2016 and 2015, respectively. Net cash provided by (used in) investing activities, which consists primarily of
disbursements for loan originations and the purchase of securities, offset by principal collections on loans, proceeds from the sale of securities and proceeds from maturing securities and
pay downs on mortgage-backed securities, was $(19.7) million and $4.1 million for the years ended September 30, 2016 and 2015, respectively. Net cash provided by financing activities,
consisting of activity in deposit accounts, was $5.0 million and $(2.6) million for the years ended September 30, 2016 and 2015.

We are committed to maintaining a strong liquidity position. We monitor our liquidity position on a daily basis. We anticipate that we will have sufficient funds to meet our current
funding commitments. Based on our deposit retention experience and current pricing strategy, we anticipate that a significant portion of maturing time deposits will be retained.

At September 30, 2016, we exceeded all of our regulatory capital requirements, and we were categorized as well capitalized at September 30, 2016 and 2015. Management is not
aware of any conditions or events since the most recent notification that would change our category. See “Historical and Pro Forma Regulatory Capital Compliance.”

Off-Balance Sheet Arrangements and Aggregate Contractual Obligations

Commitments. As a financial services provider, we routinely are a party to various financial instruments with off-balance-sheet risks, such as commitments to extend credit and
unused lines of credit. While these contractual obligations represent our future cash requirements, a significant portion of commitments to extend credit may expire without being drawn
upon. Such commitments are subject to the same credit policies and approval process accorded to loans we make. At September 30, 2016, we had outstanding commitments to originate
loans of $19.6 million. We anticipate that we will have sufficient funds available to meet our current lending commitments. Time deposits that are scheduled to mature in less than one year
from September 30, 2016 totaled $35.5 million. Management expects that a substantial portion of the maturing time deposits will be renewed. However, if a substantial portion of these
deposits is not retained, we may utilize Federal Home Loan Bank advances or raise interest rates on deposits to attract new accounts, which may result in higher levels of interest expense.

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Contractual Obligations. In the ordinary course of our operations, we enter into certain contractual obligations. Such obligations include data processing services, operating leases
for premises and equipment, agreements with respect to borrowed funds and deposit liabilities.

During the year ended September 30, 2016, we entered into an agreement to construct an operations center. The new building is expected to be completed during the second calendar
quarter of 2017, with an estimated construction price of $2.6 million, as well as additional costs to furnish the building. During the year ended September 30, 2016, we incurred $231,000 of
expense for this construction.

Recent Accounting Pronouncements

Please refer to Note 1 to the Financial Statements for the years ended September 30, 2016 and 2015 beginning on page F-1 for a description of recent accounting pronouncements
that may affect our financial condition and results of operations.

Impact of Inflation and Changing Price

The financial statements and related data presented herein have been prepared in accordance with generally accepted accounting principles in the United States of America which
require the measurement of financial position and operating results in terms of historical dollars without considering changes in the relative purchasing power of money over time due to
inflation. The primary impact of inflation on our operations is reflected in increased operating costs. Unlike most industrial companies, virtually all of the assets and liabilities of a financial
institution are monetary in nature. As a result, interest rates, generally, have a more significant impact on a financial institution’s performance than does inflation. Interest rates do not
necessarily move in the same direction or to the same extent as the prices of goods and services.

BUSINESS OF COMMUNITY FIRST BANCSHARES, INC.

We have not engaged in any business to date. Upon completion of the reorganization and offering, we will own all of the issued and outstanding common stock of Newton Federal
Bank. We intend to retain up to 50% of the net proceeds from the offering. A portion of the net proceeds we retain will be used to make a loan to fund the purchase of shares of our common
stock by the Newton Federal Bank employee stock ownership plan. We intend to invest our capital as discussed in “How We Intend to Use the Proceeds from the Offering.”

In the future, Community First Bancshares, Inc., as the holding company of Newton Federal Bank, will be authorized to pursue other business activities permitted by applicable laws
and regulations for savings and loan holding companies, which may include the acquisition of banking and financial services companies. We have no plans for any mergers or acquisitions,
or other diversification of the activities of Community First Bancshares, Inc. at the present time.

Our cash flow will depend on earnings from the investment of the net proceeds we retain, and any dividends received from Newton Federal Bank. Initially, Community First
Bancshares, Inc. will neither own nor lease any property, but will instead use the premises, equipment and furniture of Newton Federal Bank. At the present time, we intend to employ only
persons who are officers of Newton Federal Bank to serve as officers of Community First Bancshares, Inc. We will also use the support staff of Newton Federal Bank from time to time.
These persons will not be separately compensated by Community First Bancshares, Inc. Community First Bancshares, Inc. may hire additional employees, as appropriate, to the extent it
expands its business in the future.

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BUSINESS OF COMMUNITY FIRST BANCSHARES, MHC

Community First Bancshares, MHC will be formed as a federal mutual holding company and will at all times own a majority of the outstanding shares of Community First
Bancshares, Inc.’s common stock. Persons who had membership rights in Newton Federal Bank as of the date of the reorganization will continue to have membership rights; however, these
membership rights will be in Community First Bancshares, MHC.

Community First Bancshares, MHC’s principal assets will be the common stock of Community First Bancshares, Inc. it receives in the reorganization and offering and $100,000
cash in initial capitalization, which will be contributed from the net proceeds of the stock offering. Presently, it is expected that the only business activity of Community First Bancshares,
MHC will be to own a majority of Community First Bancshares, Inc.’s common stock. Community First Bancshares, MHC will be authorized, however, to engage in any other business
activities that are permissible for mutual holding companies under federal law, including investing in loans and securities.

Community First Bancshares, MHC will neither own nor lease any property, but will instead use the premises, equipment and furniture of Newton Federal Bank. It is anticipated that
Community First Bancshares, MHC will employ only persons who are officers of Newton Federal Bank to serve as officers of Community First Bancshares, MHC. Those persons will not
be separately compensated by Community First Bancshares, MHC. The initial directors of Community First Bancshares, MHC will consist of the current directors of Newton Federal Bank.

BUSINESS OF NEWTON FEDERAL BANK

General
Newton Federal Bank is a federally chartered savings association headquartered in Covington, Georgia. Newton Federal Bank was originally chartered in 1928 as a Georgia-
chartered mutual building and loan association under the name Newton County Building and Loan Association. In 1947, we converted to a federal charter and changed our name to
“Newton Federal Savings and Loan Association.” In 2004 we changed our name to “Newton Federal Bank.”

We conduct our business from our main office, two branch offices and a loan production office. All of our banking offices are located in Covington, Georgia, which is located in
Newton County. Our loan production office is located in Bogart, Georgia, which is in the Athens, Georgia market in Oconee County. Our primary market area currently consists of Newton
County, Georgia and the contiguous counties.

Our business consists primarily of taking deposits from the general public and investing those deposits, together with funds generated from operations, in one- to four-family
residential real estate loans, and, to a lesser extent, commercial real estate loans, commercial and industrial loans, construction loans and consumer loans. Subject to market conditions, we
expect to increase our focus on originating commercial real estate loans, commercial and industrial loans, and construction loans in an effort to diversify our overall loan portfolio, increase
the overall yield earned on our loans and assist in managing interest rate risk. We also invest in securities, which have historically consisted primarily of mortgage-backed securities issued
by U.S. government sponsored enterprises and Federal Home Loan Bank stock. We offer a variety of deposit accounts, including checking accounts, savings accounts and certificate of
deposit accounts. We have not used borrowings in recent years to fund our operations.

Our executive office is located at 3175 Highway 278, Covington, Georgia 30014, and our telephone number at this address is (770) 786-7088. Our website address is
www.newtonfederal.com . Information on our website should not be considered a part of this prospectus.

Market Area
We conduct our operations from our main office and two branch offices in Covington, Georgia, which are located in Newton County, Georgia, as well as our loan production office
located in Bogart, Georgia, which is in Oconee County bordering Clarke County (in the Athens, Georgia market area). Newton County, Georgia represents our primary geographic market
area for deposits, while we make loans in Newton County and the contiguous counties.

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Covington, Georgia, is located 35 miles east of Atlanta, Georgia and 47 miles south of Athens, Georgia. In Newton County, the manufacturing sector represents approximately 22%
of the non-farm, non-government labor force. This is more than double the U.S. and Georgia averages. Other significant employer industries in the county include retail trades, health care
and social assistance and food services and accommodations. There are approximately 1,300 businesses operating in Newton County. Newton County’s total population is estimated at
108,000, which grew 7.6% from 2010. The state of Georgia grew 7.1% during that period. Newton County is projected to grow 6.0% between 2017 and 2022, compared to 5.1% for
Georgia. The median household income in Newton County was approximately $49,669, which is lower than the Georgia state median of $52,421 and lower than the national median
household income of $57,462.

Oconee County’s total population is estimated at 37,000, grew 13% since 2010, and is estimated to grow over 8% by 2022. It has approximately 1,000 businesses, with the largest
employers in the retail trade, health care and social assistance, and food service and accommodations industries.

Clarke County has a total population of 126,000, grew 8% since 2010, and is projected to grow another 6% by 2022. It is the home to the University of Georgia. It is also home to
nearly 3,000 businesses, with the most significant employee representation in accommodation and food services, health care and social services, retail trade and manufacturing.

The unemployment rates in October 2016 for Newton, Oconee and Clarke Counties were 5.6%, 3.9% and 5.1%, respectively, compared to 5.2% for the State of Georgia and 4.7%
for the United States.

We believe that we have developed products and services that will meet the financial needs of our current and future customer base; however, we plan, and believe it is necessary, to
expand the range of products and services that we offer to be more competitive in our market area. Marketing strategies focus on the strength of our knowledge of local consumer and small
business markets, as well as expanding relationships with current customers and reaching out to develop new, profitable business relationships.

Competition
We face competition within our market area both in making loans and attracting deposits. Our market area has a concentration of financial institutions that include large money
center and regional banks, community banks and credit unions. We also face competition from savings institutions, mortgage banking firms, consumer finance companies and credit unions
and, with respect to deposits, from money market funds, brokerage firms, mutual funds and insurance companies. As of June 30, 2016 (the most recent date for which data is available), our
market share of deposits represented 20.9% of Federal Deposit Insurance Corporation-insured deposits in Newton County, ranking us third in market share of deposits out of eight
institutions operating in the county.

Lending Activities
General. Our historical principal lending activity has been originating one- to four-family residential real estate loans and, to a lesser extent, commercial real estate loans,
commercial and industrial loans, construction and land loans and consumer loans. To a much lesser extent, we also originate multi-family residential real estate loans and home equity loans
and lines of credit. Subject to market conditions, we expect to increase our focus on originating commercial real estate loans, commercial and industrial loans, and construction loans in an
effort to diversify our overall loan portfolio, increase the overall yield earned on our loans and assist in managing interest rate risk. Historically, we have not originated significant amounts
of loans for sale, but we intend to increase this activity in the future in order to manage the duration and time to repricing of our loan portfolio, and to generate fee income.

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Loan Portfolio Composition. The following table sets forth the composition of our loan portfolio by type of loan at the dates indicated. In addition to the loans included in the table
below, at September 30, 2016, we had $472,000 of loans held for sale, $4.2 million of loans in process and $289,000 of deferred loan fees.

At September 30,
2016 2015 2014 2013 2012
Amount Percent Amount Percent Amount Percent Amount Percent Amount Percent
(Dollars in thousands)
Real estate loans:
One- to four-family residential (1) $132,899 68.54% $132,480 75.42% $139,977 77.84% $147,396 79.26% $154,959 81.71%
Commercial (2) 29,162 15.04 24,581 13.99 25,860 14.38 24,862 13.37 27,092 14.29
Construction and land 13,343 6.88 2,261 1.28 817 0.45 1,205 0.65 1,980 1.04
Commercial and industrial loans 16,221 8.37 14,333 8.16 11,639 6.47 11,067 5.95 4,160 2.19
Consumer loans 2,262 1.17 2,017 1.15 1,547 0.86 1,423 0.77 1,461 0.77
193,887 100.00% 175,672 100.00% 179,840 100.00% 185,953 100.00% 189,652 100.00%
Less:
Allowance for losses 4,309 5,874 5,708 5,947 5,694
Total loans $189,578 $169,798 $174,132 $180,006 $183,958

(1) Includes home equity loans and lines of credit, which totaled $1.2 million at September 30, 2016.
(2) Includes multi-family residential real estate loans, which totaled $806,000 at September 30, 2016.

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Contractual Maturities. The following tables set forth the contractual maturities of our total loan portfolio at September 30, 2016. Demand loans, loans having no stated repayment
schedule or maturity, and overdraft loans are reported as being due in one year or less. The tables present contractual maturities and do not reflect repricing or the effect of prepayments.
Actual maturities may differ.

One- to Four-
Family
Residential Real Commercial Construction
September 30, 2016 Estate Real Estate and Land
(In thousands)
Amounts due in:
One year or less $ 4,816 $ 2,351 $ 10,210
More than one to five years 26,742 13,529 2,019
More than five years 101,341 13,282 1,114
Total $ 132,899 $ 29,162 $ 13,343

Commercial and
September 30, 2016 Industrial Consumer Total
(In thousands)
Amounts due in:
One year or less $ 3,446 $ 719 $ 21,542
More than one to five years 7,556 1,364 51,210
More than five years 5,219 179 121,135
Total $ 16,221 $ 2,262 $193,887

The following table sets forth our fixed and adjustable-rate loans at September 30, 2016 that are contractually due after September 30, 2017.

Due After September 30, 2017

Fixed Adjustable Total
(In thousands)
Real estate loans:
One- to four-family residential $127,004 $ 1,079(1) $128,083
Commercial 24,130 2,681 26,811
Construction and land 2,591 542 3,133
Commercial and industrial loans 12,760 15 12,775
Consumer loans 1,522 21 1,543
Total loans $168,007 $ 4,338 $172,345

(1) Consists of home equity loans and lines of credit.

One- to Four-Family Residential Real Estate Lending . The focus of our lending program has historically been the origination of one- to four-family residential real estate loans. At
September 30, 2016, we had $132.9 million of loans secured by one- to four-family real estate, representing 68.5% of our total loan portfolio. We currently originate fixed-rate residential
mortgage loans, including loans with balloon terms. At September 30, 2016, $25.9 million, or 19.7%, of our one- to four-family residential real estate loans were balloon loans. Beginning
in 2017, we intend to introduce adjustable-rate, one- to four-family residential real estate loans (in addition to our existing home equity loans and lines of credit, which are originated with
adjustable interest rates).

Our one- to four-family residential real estate loans are generally underwritten to internal guidelines, although we generally follow documentation practices of Fannie Mae
guidelines. We generally originate one- to four-family residential real estate loans in amounts up to $150,000, although we will originate loans above this amount. The significant majority
of our one- to four-family residential real estate loans are secured by properties located in our primary market area.

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We generally limit the loan-to-value ratios of our one- to four-family residential mortgage loans to 89.9% of the purchase price or appraised value, whichever is lower. In addition,
we occasionally make one- to four-family residential mortgage loans with loan-to-value ratios in excess of 90% of the purchase price or appraised value, whichever is less, if the borrower
obtains private mortgage insurance.

Our one- to four-family residential real estate loans typically have terms of up to 30 years. Our balloon loans generally have terms of five or seven years, but with amortization terms
of 30 years. We will originate balloon loans with initial terms of ten years.

We do not offer “interest only” mortgage loans on permanent one- to four-family residential real estate loans (where the borrower pays interest for an initial period, after which the
loan converts to a fully amortizing loan). We also do not offer loans that provide for negative amortization of principal, such as “Option ARM” loans, where the borrower can pay less than
the interest owed on the loan, resulting in an increased principal balance during the life of the loan. We do not currently offer “subprime loans” on one- to four-family residential real estate
loans ( i.e. , generally loans to borrowers with credit scores less than 620).

Commercial Real Estate Loans . In recent years, we have sought to increase our commercial real estate loans. Our commercial real estate loans are secured primarily by one- to
four-family non-owner occupied investment properties and houses of worship and, to a lesser extent, office buildings, industrial facilities and retail facilities, substantially all located in our
primary market area. At September 30, 2016, we had $29.2 million in commercial real estate loans, representing 15.0% of our total loan portfolio. This amount included $806,000 of multi-
family residential real estate loans. At September 30, 2016, our commercial real estate loans had an average balance of $309,000.

Most of our commercial real estate loans are balloon loans with a five-year initial term and a 20-year amortization period. The maximum loan-to-value ratio of our commercial real
estate loans is generally 80%. All of our commercial real estate loans are subject to our underwriting procedures and guidelines. At September 30, 2016, our largest commercial real estate
loan totaled $3.1 million and was secured by an owner-occupied funeral home located in our primary market area. At September 30, 2016, this loan was performing in accordance with its
terms.

We consider a number of factors in originating commercial real estate loans. We evaluate the qualifications and financial condition of the borrower, including credit history,
profitability and expertise, as well as the value and condition of the property securing the loan. When evaluating the qualifications of the borrower, we consider the financial resources of the
borrower, the borrower’s experience in owning or managing similar property and the borrower’s payment history with us and other financial institutions. In evaluating the property securing
the loan, the factors we consider include the net operating income of the mortgaged property before debt service and depreciation, the ratio of the loan amount to the appraised value of the
mortgaged property and the debt service coverage ratio (the ratio of net operating income to debt service). The significant majority of our commercial real estate loans are appraised by
outside independent appraisers approved by the board of directors, although we are only required to get independent appraisals on commercial real estate loans in amounts of $500,000 or
greater. Personal guarantees are generally obtained from the principals of commercial real estate borrowers.

Commercial and Industrial Loans. We make commercial and industrial loans, primarily in our market area, to a variety of professionals, sole proprietorships and small businesses.
These loans are generally secured by business assets, and we may support this collateral with junior liens on real property. At September 30, 2016, commercial and industrial loans were
$16.2 million, or 8.4% of our gross loans held for investment. As part of our relationship driven focus, we encourage our commercial borrowers to maintain their primary deposit accounts
with us, which enhances our interest rate spread and margin.

Commercial lending products include term loans and revolving lines of credit. Commercial loans and lines of credit are made with either adjustable or fixed rates of interest.
Adjustable rates and fixed rates are based on the prime rate as published in The Wall Street Journal , plus a margin. We are focusing our efforts on experienced, growing small- to medium-
sized, privately-held companies with solid historical and projected cash flow that operate in our market areas.

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When making commercial and industrial loans, we consider the financial statements of the borrower, our lending history with the borrower, the debt service capabilities and global
cash flows of the borrower and other guarantors, the projected cash flows of the business and the value of the collateral, accounts receivable, inventory and equipment. Depending on the
collateral used to secure the loans, commercial and industrial loans are made in amounts of up to 80% of the value of the collateral securing the loan. All of these loans are secured by assets
of the respective borrowers.

Our largest commercial and industrial loan at September 30, 2016 totaled $1.6 million, was originated in 2011 to an insurance agency and is secured by business assets. At
September 30, 2016, this loan was performing in accordance with its terms.

Construction and Land Loans . We make construction loans, primarily to individuals for the construction of their primary residences and loans to contractors and builders of single-
family homes. We also make a limited amount of land loans to complement our construction lending activities, as such loans are generally secured by lots that will be used for residential
development. Land loans also include loans secured by land purchased for investment purposes. At September 30, 2016, our construction loans totaled $13.3 million, representing 6.9% of
our total loan portfolio, and included $4.0 million of land loans. At that date, we also had $3.7 million of construction loans in process. At September 30, 2016, $8.8 million of our single-
family construction loans were to individuals and $4.5 million were to contractors and builders.

While we may originate loans to contractors and builders whether or not the collateral property underlying the loan is under contract for sale, we consider each project carefully in
light of current residential real estate market conditions. We actively monitor the number of unsold homes in our construction loan portfolio and local housing markets to attempt to
maintain an appropriate balance between home sales and new loan originations. We generally will limit the maximum number of speculative units (units that are not pre-sold) approved for
each builder. We have attempted to diversify the risk associated with speculative construction lending by doing business with experienced small and mid-sized builders within our market
area.

We also originate construction loans for commercial development projects, including retail buildings, churches, small industrial, hotels and office buildings. Most of our construction
loans are interest-only loans that provide for the payment of interest during the construction phase, which is usually up to 12 months. At the end of the construction phase, the loan may
convert to a permanent mortgage loan or the loan may be paid in full. Construction loans generally can be made with a maximum loan-to-value ratio of 80% of the estimated appraised
market value upon completion of the project. Before making a commitment to fund a construction loan, we require an appraisal of the property by an independent licensed appraiser. We
also generally require inspections of the property before disbursements of funds during the term of the construction loan.

At September 30, 2016, our largest construction and land loan was for $655,000, all of which was outstanding. This loan was originated in 2016 and is secured by improved
residential building lots. This loan was performing according to its terms at September 30, 2016.

Consumer Loans . We offer a limited range of consumer loans, principally to customers residing in our primary market area with other relationships with us and with acceptable
credit ratings. Our consumer loans generally consist of loans secured by deposit accounts, loans on new and used automobiles and unsecured personal loans. At September 30, 2016,
consumer and other loans were $2.3 million, or 1.2% of gross loans held for investment.

Loan Underwriting Risks

Commercial Real Estate Loans. Loans secured by commercial real estate generally have larger balances and involve a greater degree of risk than one- to four-family residential real
estate loans. The primary concern in commercial real estate lending is the borrower’s creditworthiness and the feasibility and cash flow potential of the project. Payments on loans secured
by income properties often depend on successful operation and management of the properties. As a result, repayment of such loans may be subject to a greater extent than residential real
estate

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loans, to adverse conditions in the real estate market or the economy. To monitor cash flows on income properties, we require borrowers and loan guarantors to provide annual financial
statements on commercial real estate loans. In reaching a decision on whether to make a commercial real estate loan, we consider and review a global cash flow analysis of the borrower and
consider the net operating income of the property, the borrower’s expertise, credit history and profitability and the value of the underlying property. We have generally required that the
properties securing these real estate loans have an aggregate debt service ratio, including the guarantor’s cash flow and the borrower’s other projects, of at least 1.20x. An environmental
phase one report is obtained when the possibility exists that hazardous materials may have existed on the site, or the site may have been impacted by adjoining properties that handled
hazardous materials.

If we foreclose on a commercial real estate loan, the marketing and liquidation period to convert the real estate asset to cash can be lengthy with substantial holding costs. In
addition, vacancies, deferred maintenance, repairs and market stigma can result in prospective buyers expecting sale price concessions to offset their real or perceived economic losses for
the time it takes them to return the property to profitability. Depending on the individual circumstances, initial charge-offs and subsequent losses on commercial real estate loans can be
unpredictable and substantial.

Commercial and Industrial Loans. Unlike residential real estate loans, which generally are made on the basis of the borrower’s ability to make repayment from his or her
employment or other income, and which are secured by real property whose value tends to be more easily ascertainable, commercial and industrial loans are of higher risk and typically are
made on the basis of the borrower’s ability to make repayment from the cash flow of the borrower’s business and the collateral securing these loans may fluctuate in value. Our commercial
and industrial loans are originated primarily based on the identified cash flow of the borrower and secondarily on the underlying collateral provided by the borrower. Most often, this
collateral consists of real estate, accounts receivable, inventory or equipment. Credit support provided by the borrower for most of these loans is based on the liquidation of the pledged
collateral and enforcement of a personal guarantee, if any. Further, any collateral securing such loans may depreciate over time, may be difficult to appraise and may fluctuate in value. As a
result, the availability of funds for the repayment of commercial and industrial loans may depend substantially on the success of the business itself.

Construction and Land Loans. Our construction loans are based upon estimates of costs and values associated with the completed project. Underwriting is focused on the
borrowers’ financial strength, credit history and demonstrated ability to produce a quality product and effectively market and manage their operations.

Construction lending involves additional risks when compared with permanent lending because funds are advanced upon the security of the project, which is of uncertain value prior
to its completion. Because of the uncertainties inherent in estimating construction costs, as well as the market value of the completed project and the effects of governmental regulation of
real property, it is relatively difficult to evaluate accurately the total funds required to complete a project and the related loan-to-value ratio. In addition, generally during the term of a
construction loan, interest may be funded by the borrower or disbursed from an interest reserve set aside from the construction loan budget. These loans often involve the disbursement of
substantial funds with repayment substantially dependent on the success of the ultimate project and the ability of the borrower to sell or lease the property or obtain permanent take-out
financing, rather than the ability of the borrower or guarantor to repay principal and interest. If the appraised value of a completed project proves to be overstated, we may have inadequate
security for the repayment of the loan upon completion of construction of the project and may incur a loss.

Balloon Loans. Although balloon mortgage loans may reduce to an extent our vulnerability to changes in market interest rates because they reprice at the end of the term, the ability
of the borrower to renew or repay the loan and the marketability of the underlying collateral may be adversely affected if real estate values decline prior to the expiration of the term of the
loan or in a rising interest rate environment.

Adjustable-Rate Loans. While we anticipate that adjustable-rate loans will better offset the adverse effects of an increase in interest rates as compared to fixed-rate loans, an
increased monthly payment required of adjustable-rate loan borrowers in a rising interest rate environment could cause an increase in delinquencies and defaults. The marketability of the
underlying collateral also may be adversely affected in a high interest rate environment.

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Consumer Loans. Consumer loans may entail greater risk than residential real estate loans, particularly in the case of consumer loans that are unsecured or secured by assets that
depreciate rapidly, such as motor vehicles. Repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment for the outstanding loan and a small
remaining deficiency often does not warrant further substantial collection efforts against the borrower. Consumer loan collections depend on the borrower’s continuing financial stability,
and therefore are likely to be adversely affected by various factors, including job loss, divorce, illness or personal bankruptcy. Furthermore, the application of various federal and state laws,
including federal and state bankruptcy and insolvency laws, may limit the amount that can be recovered on such loans.

Originations, Purchases and Sales of Loans

Lending activities are conducted by our salaried loan personnel operating at our main and branch office locations and our loan production office. All loans originated by us are
underwritten pursuant to our policies and procedures. We primarily originate fixed-rate loans and balloon loans and, to a lesser extent, adjustable-rate loans. Our ability to originate fixed-
rate loans, balloon loans or adjustable-rate loans is dependent upon relative customer demand for such loans, which is affected by current and expected future levels of market interest rates.
We originate real estate and other loans through our loan officers, marketing efforts, our customer base, walk-in customers and referrals from real estate brokers, builders and attorneys.

We sometimes purchase whole loans from third parties to supplement our loan production. These loans generally consist of loans to health care professionals and loans secured by
manufactured housing. At September 30, 2016, we had $7.1 million of whole loans that we purchased. The majority of our purchased loans are to borrowers who are not located in our
primary market area.

In addition, from time to time, we may purchase or sell participation interests in loans. We underwrite our participation interest in the loan that we are purchasing according to our
own underwriting criteria and procedures. At September 30, 2016, we had $750,000 of committed funds for loan participation interests that we purchased ($26,000 of which had been
funded), and at that date, we had no loans for which we had sold participation interests.

Historically, we have not originated significant amounts of loans for sale, but we intend to increase this activity in the future in order to manage the duration and time to repricing of
our loan portfolio, and to generate fee income. We currently sell loans through the LenderSelect Mortgage Group. At September 30, 2016, we held $472,000 of loans for sale, and we sold
$2.3 million of loans during the year ended September 30, 2016, all on a servicing-released basis, generating $58,000 in fee income.

Loan Approval Procedures and Authority

Pursuant to federal law, the aggregate amount of loans that Newton Federal Bank is permitted to make to any one borrower or a group of related borrowers is generally limited to
15% of Newton Federal Bank’s unimpaired capital and surplus (25% if the amount in excess of 15% is secured by “readily marketable collateral” or 30% for certain residential
development loans). At September 30, 2016, based on the 15% limitation, Newton Federal Bank’s loans-to-one-borrower limit was approximately $6.8 million. On the same date, Newton
Federal Bank had no borrowers with outstanding balances in excess of this amount. At September 30, 2016, our largest loan relationship with one borrower was for $3.7 million, which was
secured by land, homes that are being constructed and personal guarantees, and the underlying loans were performing in accordance with their terms on that date. Our loan-to-one borrower
limitation will increase following the completion of the stock offering due to the additional capital Newton Federal Bank will receive.

Our lending is subject to written underwriting standards and origination procedures. Decisions on loan applications are made on the basis of detailed applications submitted by the
prospective borrower, credit histories that we obtain, and property valuations (consistent with our appraisal policy) prepared by outside independent

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licensed appraisers approved by our board of directors as well as internal evaluations, where permitted by regulations. The loan applications are designed primarily to determine the
borrower’s ability to repay the requested loan, and the more significant items on the application are verified through use of credit reports, bank statements and tax returns.

All loan approval amounts are based on the aggregate loans, including total balances of outstanding loans and the proposed loan to the individual borrower and any related entity.
Each of our President and Chief Executive Officer, our Chief Credit Officer and our Chief Lending Officer has individual authorization to approve loans up to $500,000. These individuals
can combine their authority to approve loans up to $1.0 million. Our Management Loan Committee, which consists of our President and Chief Executive Officer, Chief Credit Officer,
Chief Lending Officer, Chief Operations Officer, a Commercial Lending Officer and an outside board member can approve loans up to $2.0 million in the aggregate. Loans in excess of
$2.0 million require the approval of our full board of directors.

Generally, we require title insurance or abstracts on our mortgage loans as well as fire and extended coverage casualty insurance in amounts at least equal to the principal amount of
the loan or the value of improvements on the property, depending on the type of loan.

Delinquencies and Asset Quality

Delinquency Procedures. When a loan payment becomes 15 days past due, we contact the customer by mailing a late notice, and loan officers may contact their customers. If a loan
payment becomes 30 days past due, we mail an additional late notice and a loan-specific letter written by a collection representative, and we also place telephone calls to the borrower.
These loan collection efforts continue until a loan becomes 90 days past due, at which point we would refer the loan for foreclosure proceedings unless management determines that it is in
the best interest of Newton Federal Bank to work further with the borrower to arrange a workout plan. The foreclosure process would begin when a loan becomes 120 days delinquent. From
time to time we may accept deeds in lieu of foreclosure.

Loans Past Due and Non-Performing Assets . Loans are reviewed on a regular basis. Management determines that a loan is impaired or non-performing when it is probable at least
a portion of the loan will not be collected in accordance with the original terms due to a deterioration in the financial condition of the borrower or the value of the underlying collateral if the
loan is collateral dependent. When a loan is determined to be impaired, the measurement of the loan in the allowance for loan losses is based on present value of expected future cash flows,
except that all collateral-dependent loans are measured for impairment based on the fair value of the collateral. Non-accrual loans are loans for which collectability is questionable and,
therefore, interest on such loans will no longer be recognized on an accrual basis. All loans that become 90 days or more delinquent are placed on non-accrual status unless the loan is well
secured and in the process of collection. When loans are placed on non-accrual status, unpaid accrued interest is fully reversed, and further income is recognized only to the extent received
on a cash basis or cost recovery method.

When we acquire real estate as a result of foreclosure, the real estate is classified as real estate owned. The real estate owned is recorded at the lower of carrying amount or fair
value, less estimated costs to sell. Soon after acquisition, we order a new appraisal to determine the current market value of the property. Any excess of the recorded value of the loan
satisfied over the market value of the property is charged against the allowance for loan losses, or, if the existing allowance is inadequate, charged to expense of the current period. After
acquisition, all costs incurred in maintaining the property are expensed. Costs relating to the development and improvement of the property, however, are capitalized to the extent of
estimated fair value less estimated costs to sell.

A loan is classified as a troubled debt restructuring if, for economic or legal reasons related to the borrower’s financial difficulties, we grant a concession to the borrower that we
would not otherwise consider. This usually includes a modification of loan terms, such as a reduction of the interest rate to below market terms, capitalizing past due interest or extending
the maturity date and possibly a partial forgiveness of the principal amount due. Interest income on restructured loans is accrued after the borrower demonstrates the ability to pay under the
restructured terms through a sustained period of repayment performance, which is generally six consecutive months.

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Delinquent Loans . The following tables set forth our loan delinquencies, including non-accrual loans, by type and amount at the dates indicated.

At September 30,
2016 2015 2014
30-59 60-89 90 Days 30-59 60-89 90 Days 30-59 60-89 90 Days
Days Days or More Days Days or More Days Days or More
Past Due Past Due Past Due Past Due Past Due Past Due Past Due Past Due Past Due
(In thousands)
Real estate loans:
One- to four-family residential $ 32 $ 3,382 $ 1,955 $ — $ 2,909 $ 1,598 $ — $ 3,244 $ 1,583
Commercial — 66 44 — 408 50 — 564 509
Construction and land — — — — — — — 11 —
Commercial and industrial loans 194 — — — — 33 — 243 —
Consumer loans 20 — — — 15 20 — 18 —
Total $ 246 $ 3,448 $ 1,999 $ — $ 3,332 $ 1,701 $ — $ 4,080 $ 2,092

At September 30,
2013 2012
30-59 60-89 90 Days 30-59 60-89 90 Days
Days Days or More Days Days or More
Past Due Past Due Past Due Past Due Past Due Past Due
(In thousands)
Real estate loans:
One- to four-family residential $ 4,894 $ 958 $ 1,118 $ 4,833 $ 3,193 $ 1,961
Commercial 447 — 28 438 1,165 438
Construction and land 109 — — 435 366 —
Commercial and industrial loans — — 30 — — 435
Consumer loans — — — 17 — 8
Total $ 5,450 $ 958 $ 1,176 $ 5,723 $ 4,724 $ 2,842

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Non-Performing Assets. The following table sets forth information regarding our non-performing assets. Non-accrual loans include non-accruing troubled debt restructurings of
$810,000, $1.3 million, $1.4 million, $3.4 million and $4.9 million as of September 30, 2016, 2015, 2014, 2013 and 2012, respectively.

At September 30,
2016 2015 2014 2013 2012
(Dollars in thousands)
Non-accrual loans:
Real estate loans:
One- to four-family residential $3,013 $2,056 $2,269 $5,295 $ 8,365
Commercial 230 448 777 1,952 3,581
Construction and land — — — — 581
Commercial and industrial loans — 33 — 335 434
Consumer loans — 26 — — 8
Total non-accrual loans 3,243 2,563 3,046 7,582 12,969
Accruing loans past due 90 days or more — — — — —
Real estate owned:
One- to four-family — — 822 1,239 3,653
Commercial — 470 — 64 84
Construction and land — 62 307 577 384
Commercial and industrial loans — — — — —
Consumer loans — — — — —
Total real estate owned — 532 1,129 1,880 4,121
Total non-performing assets $3,243 $3,095 $4,175 $9,462 $17,090
Total accruing troubled debt restructured loans $5,815 $4,358 $4,845 $3,730 $ 2,716
Total non-performing loans to total loans 1.71% 1.51% 1.75% 4.21% 7.05%
Total non-performing assets to total assets 1.39% 1.37% 1.84% 4.26% 7.45%

Interest income that would have been recorded for the year ended September 30, 2016 had non-accruing loans been current according to their original terms amounted to $199,000.
We recognized $100,000 of interest income for these loans for the year ended September 30, 2016. In addition, interest income that would have been recorded for the year ended
September 30, 2016 had troubled debt restructurings been current according to their original terms amounted to $454,000. We recognized $362,000 of interest income for these loans for the
year ended September 30, 2016.

Classified Assets . Federal regulations provide for the classification of loans and other assets, such as debt and equity securities considered by the Office of the Comptroller of the
Currency to be of lesser quality, as “substandard,” “doubtful” or “loss.” An asset is considered “substandard” if it is inadequately protected by the current net worth and paying capacity of
the obligor or of the collateral pledged, if any. “Substandard” assets include those characterized by the “distinct possibility” that the insured institution will sustain “some loss” if the
deficiencies are not corrected. Assets classified as “doubtful” have all of the weaknesses inherent in those classified “substandard,” with the added characteristic that the weaknesses present
make “collection or liquidation in full,” on the basis of currently existing facts, conditions, and values, “highly questionable and improbable.” Assets classified as “loss” are those
considered “uncollectible” and of such little value that their continuance as assets without the establishment of a specific loss allowance is not warranted. Assets which do not currently
expose the insured institution to sufficient risk to warrant classification in one of the aforementioned categories but possess weaknesses are designated as “special mention” by our
management.

When an insured institution classifies problem assets as either substandard or doubtful, it may establish general allowances in an amount deemed prudent by management to cover
probable accrued losses. General allowances represent loss allowances which have been established to cover probable accrued losses associated with lending activities, but which, unlike
specific allowances, have not been allocated to particular problem assets. When

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an insured institution classifies problem assets as “loss,” it is required either to establish a specific allowance for losses equal to 100% of that portion of the asset so classified or to charge-
off such amount. An institution’s determination as to the classification of its assets and the amount of its valuation allowances is subject to review by the regulatory authorities, which may
require the establishment of additional general or specific loss allowances.

In connection with the filing of our periodic reports with the Office of the Comptroller of the Currency and in accordance with our classification of assets policy, we regularly review
the problem loans in our portfolio to determine whether any loans require classification in accordance with applicable regulations.

On the basis of this review of our assets, our classified and special mention assets at the dates indicated were as follows:

At September 30,
2016 2015
(In thousands)
Substandard assets $10,027 $11,880
Doubtful assets — —
Loss assets — —
Total classified assets $10,027 $11,880
Special mention assets $ 229 $ 2,591

Substandard assets decreased as we wrote down a portion of a $3.0 million commercial real estate loan during the year ended September 30, 2016, and the remaining portion of the
loan ($1.4 million) was subsequently considered performing as of September 30, 2016. Special mention assets decreased during the year ended September 30, 2016 as three commercial and
industrial loans with an aggregate principal balance of $2.0 million were upgraded during 2016.

Allowance for Loan Losses

The allowance for loan losses is maintained at a level which, in management’s judgment, is adequate to absorb probable credit losses inherent in the loan portfolio. The amount of
the allowance is based on management’s evaluation of the collectability of the loan portfolio, including the nature of the portfolio, credit concentrations, trends in historical loss experience,
specific impaired loans, and economic conditions. Allowances for impaired loans are generally determined based on collateral values or the present value of estimated cash flows. Because
of uncertainties associated with regional economic conditions, collateral values, and future cash flows on impaired loans, it is reasonably possible that management’s estimate of probable
credit losses inherent in the loan portfolio and the related allowance may change materially in the near-term. The allowance is increased by a provision for loan losses, which is charged to
expense and reduced by full and partial charge-offs, net of recoveries. Changes in the allowance relating to impaired loans are charged or credited to the provision for loan losses.
Management’s periodic evaluation of the adequacy of the allowance is based on various factors, including, but not limited to, management’s ongoing review and grading of loans, facts and
issues related to specific loans, historical loan loss and delinquency experience, trends in past due and non-accrual loans, existing risk characteristics of specific loans or loan pools, the fair
value of underlying collateral, current economic conditions and other qualitative and quantitative factors which could affect potential credit losses.

As an integral part of their examination process, the Office of the Comptroller of the Currency will periodically review our allowance for loan losses, and as a result of such reviews,
we may have to adjust our allowance for loan losses. However, regulatory agencies are not directly involved in the process for establishing the allowance for loan losses as the process is our
responsibility and any increase or decrease in the allowance is the responsibility of management.

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The following table sets forth activity in our allowance for loan losses for the years indicated.

Years Ended September 30,

2016 2015 2014 2013 2012
(Dollars in thousands)
Allowance at beginning of year $ 5,874 $ 5,708 $ 5,947 $ 5,694 $ 5,032
Provision for loan losses — — — 3,147 9,017
Charge offs:
Real estate loans:
One- to four-family residential (337) (438) (1,214) (4,073) (7,018)
Commercial (1,796) (20) (132) (386) (1,211)
Construction and land — — (125) (230) (519)
Commercial and industrial loans — — (48) (243) —
Consumer loans (12) (18) (1) (38) (12)
Total charge-offs (2,145) (476) (1,520) (4,970) (8,760)
Recoveries:
Real estate loans:
One- to four-family residential 341 356 970 1,816 401
Commercial 233 130 281 12 —
Construction and land — — 23 120 —
Commercial and industrial loans — 154 7 127 —
Consumer loans 6 2 — 1 4
Total recoveries 580 642 1,281 2,076 405
Net (charge-offs) recoveries (1,565) 166 (239) (2,984) (8,355)
Allowance at end of year $ 4,309 $ 5,874 $ 5,708 $ 5,947 $ 5,694
Allowance to non-performing loans 132.87% 229.18% 187.39% 78.44% 43.90%
Allowance to total loans outstanding at the end of the year 2.22% 3.34% 3.17% 3.20% 3.00%
Net (charge-offs) recoveries to average loans outstanding during the year (0.86)% 0.09% (0.13)% (1.56)% (4.24)%

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Allocation of Allowance for Loan Losses. The following tables set forth the allowance for loan losses allocated by loan category and the percent of the allowance in each category
to the total allocated allowance at the dates indicated. The allowance for loan losses allocated to each category is not necessarily indicative of future losses in any particular category and
does not restrict the use of the allowance to absorb losses in other categories.

At September 30,
2016 2015 2014
Percent of Percent of Percent of
Allowance Percent Allowance Percent Allowance Percent
in Each of Loans in Each of Loans in Each of Loans
Category in Each Category in Each Category in Each
Allowance to Total Category Allowance to Total Category Allowance to Total Category
for Loan Allocated to Total for Loan Allocated to Total for Loan Allocated to Total
Losses Allowance Loans Losses Allowance Loans Losses Allowance Loans
(Dollars in thousands)
Real estate loans:
One- to four-family residential $ 1,882 43.78% 68.54% $ 3,486 62.47% 75.42% $ 3,424 67.83% 77.84%
Commercial 1,595 37.10 15.04 1,238 22.19 13.99 1,034 20.48 14.38
Construction and land 143 3.32 6.88 67 1.20 1.28 55 1.09 0.45
Commercial and industrial loans 643 14.96 8.37 739 13.24 8.16 495 9.81 6.47
Consumer loans 36 0.84 1.17 50 0.90 1.15 40 0.79 0.86
Total allocated allowance 4,299 100.00% 100.00% 5,580 100.00% 100.00% 5,048 100.00% 100.00%
Unallocated 10 294 660
Total $ 4,309 $ 5,874 $ 5,708

At September 30,
2013 2012
Percent of Percent of
Allowance Percent Allowance Percent
in Each of Loans in Each of Loans
Category in Each Category in Each
Allowance to Total Category Allowance to Total Category
for Loan Allocated to Total for Loan Allocated to Total
Losses Allowance Loans Losses Allowance Loans
(Dollars in thousands)
Real estate loans:
One- to four-family residential $ 4,243 73.57% 79.26% $ 4,960 87.11% 81.71%
Commercial 1,021 17.70 13.37 619 10.87 14.29
Construction and land 92 1.60 0.65 107 1.88 1.04
Commercial and industrial loans 389 6.75 5.95 2 0.04 2.19
Consumer loans 22 0.38 0.77 6 0.10 0.77
Total allocated allowance 5,767 100.00% 100.00% 5,694 100.00% 100.00%
Unallocated 180 —
Total $ 5,947 $ 5,694

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Investment Activities
General . The goals of our investment policy are to provide liquidity, meet pledging requirements, generate a reasonable rate of return, and minimize risk. Subject to loan demand
and our interest rate risk analysis, we will increase the balance of our investment securities portfolio when we have excess liquidity. We expect to initially invest a substantial portion of the
proceeds of the offering in short-term and other investments, including U.S. government securities.

Our investment policy was adopted by the board of directors and is reviewed annually by the board of directors. All investment decisions are made by our Asset/Liability
Management Committee, consisting of our President and Chief Executive Officer, the Chairman of the Board, another member of the board of directors, and other members of senior
management. The Chief Financial Officer provides an investment schedule detailing the investment portfolio which is reviewed at least monthly by the board of directors.

Our current investment policy permits, with certain limitations: investments in U.S. Treasury securities; securities issued by the U.S. government and its agencies or government
sponsored enterprises including mortgage-backed securities and collateralized mortgage obligations (“CMO”) issued by Fannie Mae, Ginnie Mae and Freddie Mac; corporate and municipal
bonds; certificates of deposit in other financial institutions; federal funds and money market funds.

At September 30, 2016, our investment portfolio consisted of securities and obligations issued by U.S. government-sponsored enterprises or the Federal Home Loan Bank of Atlanta.
At September 30, 2016, we owned $205,000 of Federal Home Loan Bank of Atlanta stock. As a member of Federal Home Loan Bank of Atlanta, we are required to purchase stock in the
Federal Home Loan Bank of Atlanta, which stock is carried at cost and classified as restricted equity securities.

The following table sets forth the amortized cost and estimated fair value of our held-to-maturity securities portfolio at the dates indicated. At the dates indicated, we did not hold
any securities as available for sale.

At September 30,
2016 2015 2014
Estimated Estimated Estimated
Amortized Fair Amortized Fair Amortized Fair
Cost Value Cost Value Cost Value
(In thousands)
U.S. Government sponsored enterprises $ 7,499 $ 7,517 $ 7,492 $ 7,533 $ 6,986 $ 6,989
Total $ 7,499 $ 7,517 $ 7,492 $ 7,533 $ 6,986 $ 6,989

The following table sets forth the amortized cost and estimated fair value of securities of issuers as of September 30, 2016, that exceeded 10% of our total equity as of that date.

At September 30, 2016

Estimated
Amortized Fair
Cost Value
(In thousands)
Federal Home Loan Bank bonds $ 5,999 $ 6,012

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Portfolio Maturities and Yields. The composition and maturities of the investment securities portfolio at September 30, 2016, are summarized in the following table. Maturities are
based on the final contractual payment dates, and do not reflect the effect of scheduled principal repayments, prepayments, or early redemptions that may occur. All of our securities at
September 30, 2016, were taxable securities.

More than Five

More than One Year Years through More than
One Year or Less through Five Years Ten Years Ten Years Total
Weighted Weighted Weighted Weighted Weighted
Amortized Average Amortized Average Amortized Average Amortized Average Amortized Fair Average
Cost Yield Cost Yield Cost Yield Cost Yield Cost Value Yield
(Dollars in thousands)
U.S. Government sponsored enterprises $ 6,499 0.90% $ 1,000 1.60% $ — — $ — — $ 7,499 $7,517 1.00%
Total $ 6,499 0.90% $ 1,000 1.60% $ — — $ — — $ 7,499 $7,517 1.00%

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Sources of Funds
General. Deposits have traditionally been our primary source of funds for use in lending and investment activities. We also may use borrowings to supplement cash flow needs,
lengthen the maturities of liabilities for interest rate risk purposes and to manage the cost of funds, but we have not needed to utilize borrowings in recent periods. In addition, we receive
funds from scheduled loan payments, investment maturities, loan prepayments, retained earnings and income on earning assets. While scheduled loan payments and income on earning
assets are relatively stable sources of funds, deposit inflows and outflows can vary widely and are influenced by prevailing interest rates, market conditions and levels of competition.

Deposits. Our deposits are generated primarily from our primary market area. We offer a selection of deposit accounts, including savings accounts, checking accounts, certificates of
deposit and individual retirement accounts. Deposit account terms vary, with the principal differences being the minimum balance required, the amount of time the funds must remain on
deposit and the interest rate. We have not accepted brokered deposits in recent periods, although we have the authority to do so.

Interest rates paid, maturity terms, service fees and withdrawal penalties are established on a periodic basis. Deposit rates and terms are based primarily on current operating
strategies and market rates, liquidity requirements, rates paid by competitors and growth goals. We rely upon personalized customer service, long-standing relationships with customers, and
the favorable image of Newton Federal Bank in the community to attract and retain deposits. We also seek to obtain deposits from our commercial loan customers.

The flow of deposits is influenced significantly by general economic conditions, changes in money market and other prevailing interest rates and competition. The variety of deposit
accounts offered allows us to be competitive in obtaining funds and responding to changes in consumer demand. Based on experience, we believe that our deposits are relatively stable.
However, the ability to attract and maintain deposits and the rates paid on these deposits, has been and will continue to be significantly affected by market conditions.

The following table sets forth the distribution of total deposits by account type at the dates indicated.

At September 30,
2016 2015 2014
Average Average Average
Amount Percent Rate Amount Percent Rate Amount Percent Rate
(Dollars in thousands)
Non-interest bearing checking accounts $ 21,727 11.96% — % $ 15,132 8.56% — % $ 13,276 7.41% — %
Passbook savings accounts 21,180 11.65 0.04% 19,906 11.27 0.04% 19,559 10.91 0.04%
Interest-bearing checking accounts 30,662 16.88 0.31% 22,750 12.88 0.17% 16,991 9.48 0.04%
Money market checking accounts 22,607 12.44 0.26% 22,587 12.78 0.25% 23,689 13.21 0.27%
Certificates of deposit 85,523 47.07 1.39% 96,312 54.51 1.70% 105,749 58.99 1.89%
Total $181,699 100.00% 0.87% $176,687 100.00% 1.11% $179,264 100.00% 1.28%

As of September 30, 2016, the aggregate amount of all our certificates of deposit in amounts greater than or equal to $100,000 was approximately $35.0 million. The following table
sets forth the maturity of these certificates as of September 30, 2016.

At
September 30,
2016
(In
thousands)
Maturity Period:
Three months or less $ 3,178
Over three through six months 3,655
Over six through twelve months 6,203
Over twelve months 21,980
Total $ 35,016

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Borrowings . As of September 30, 2016, we had a $58.0 million line of credit with the Federal Home Loan Bank of Atlanta. Other than annual testing of the line of credit where we
borrow $5.0 million for one day, we did not have any outstanding borrowings during the years ended September 30, 2016, 2015 or 2014.

In addition to the Federal Home Loan Bank of Atlanta line of credit, we have two unsecured federal funds line of credit, in the amounts of $5.0 million and $7.5 million. No amount
was outstanding on these lines of credit at September 30, 2016 or during the 2016 fiscal year, except for amounts required for annual testing.

Properties
As of September 30, 2016, the net book value of our office properties was $3.8 million, and the net book value of our furniture, fixtures and equipment was $532,000. The following
table sets forth information regarding our offices.

Net Book
Leased or Year Acquired Value of Real
Location Owned or Leased Property
(In thousands)

Main Office:
3175 Highway 278 Owned 1974 $ 1,169
Covington, Georgia 30014
Other Properties:
Eastside Branch Owned 2000 1,514
8278 Highway 278
Covington, Georgia 30014
Southside Branch Building 2006 1,110
Bypass Road & Highway 36 Owned/Land
10131 Carlin Avenue Leased
Covington, Georgia 30014
Loan Production Office Leased 2016 N/A
3001 Monroe Highway
Suite 500B
Bogart, Georgia 30622

We believe that current facilities are adequate to meet our present and foreseeable needs, subject to possible future expansion.

Legal Proceedings
We are not involved in any pending legal proceedings as a defendant other than routine legal proceedings occurring in the ordinary course of business. At September 30, 2016, we
were not involved in any legal proceedings the outcome of which would be material to our financial condition or results of operations.

Expense and Tax Allocation

Newton Federal Bank will enter into an agreement with Community First Bancshares, Inc. and Community First Bancshares, MHC to provide them with certain administrative
support services for compensation not less than the fair market value of the services provided. In addition, Newton Federal Bank and Community First Bancshares, Inc. will enter into an
agreement to establish a method for allocating and for reimbursing the payment of their consolidated tax liability.

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Personnel
As of September 30, 2016, we had 65 full-time employees and two part-time employees. Our employees are not represented by any collective bargaining group. Management
believes that we have good working relations with our employees.

TAXATION

Newton Federal Bank is, and Community First Bancshares, MHC and Community First Bancshares, Inc. will be, subject to federal and state income taxation in the same general
manner as other corporations, with some exceptions discussed below. The following discussion of federal and state taxation is intended only to summarize material income tax matters and
is not a comprehensive description of the tax rules applicable to Community First Bancshares, MHC, Community First Bancshares, Inc., and Newton Federal Bank.

Our federal and state tax returns have not been audited for the past five years.

Federal Taxation
Method of Accounting. For federal income tax purposes, Newton Federal Bank currently reports its income and expenses on the accrual method of accounting and uses a tax year
ending September 30 for filing its federal income tax returns. Community First Bancshares, Inc. and Newton Federal Bank will file a consolidated federal income tax return. The Small
Business Protection Act of 1996 eliminated the use of the reserve method of accounting for income taxes on bad debt reserves by savings institutions. For taxable years beginning after
1995, Newton Federal Bank has been subject to the same bad debt reserve rules as commercial banks. It currently utilizes the specific charge-off method under Section 582(a) of the Internal
Revenue Code of 1986, as amended (the “Internal Revenue Code”).

Minimum Tax. The Internal Revenue Code imposes an alternative minimum tax at a rate of 20% on a base of regular taxable income plus certain tax preferences, less an exemption
amount, referred to as “alternative minimum taxable income.” The alternative minimum tax is payable to the extent tax computed this way exceeds tax computed by applying the regular tax
rates to regular taxable income. Net operating losses can, in general, offset no more than 90% of alternative minimum taxable income. Certain payments of alternative minimum tax may be
used as credits against regular tax liabilities in future years. After the computation of taxes for the fiscal year ended September 30, 2016, Newton Federal Bank anticipates that it will have
approximately $16,000 of minimum tax credit carryforward to utilize in the future. The credit is not subject to expiration.

Net Operating Loss Carryovers. Generally, a financial institution may carry back net operating losses to the preceding two taxable years and forward to the succeeding 20 taxable
years. At September 30, 2016, Newton Federal Bank had no federal net operating loss carryforwards.

Capital Loss Carryovers. A corporation cannot recognize capital losses in excess of capital gains generated. Generally, a financial institution may carry back capital losses to the
preceding three taxable years and forward to the succeeding five taxable years. Any capital loss carryback or carryover is treated as a short-term capital loss for the year to which it is
carried. As such, it is grouped with any other capital losses for the year to which carried and is used to offset any capital gains. Any undeducted loss remaining after the five-year carryover
period is not deductible. At September 30, 2016, Newton Federal Bank had no capital loss carryovers.

Corporate Dividends. Community First Bancshares, Inc. may generally exclude from its income 100% of dividends received from Newton Federal Bank as a member of the same
affiliated group of corporations.

State Taxation
Newton Federal Bank is treated as a financial institution under Georgia state income tax law. The state of Georgia subjects financial institutions to all state and local taxes in the
same manner and to the same extent as other business corporations in Georgia. Additionally, depository financial institutions are subject to local business license taxes and a special
occupation tax.

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Consolidated Group Return. Georgia is not a unitary business state. Affiliated corporations that file a consolidated federal income tax return must file separate income tax returns
unless they have prior approval or have been requested to file a consolidated return by the Commissioner of the Georgia Department of Revenue.

Net Operating Loss Carryovers. Generally, Georgia law conforms to federal law and a financial institution may carry back Georgia net operating losses to the preceding two taxable
years and forward to the succeeding 20 taxable years. At September 30, 2016, Newton Federal Bank had no Georgia net operating loss carryforwards.

Bank Tax Credit. All financial depositary institutions that conduct business or own property in Georgia are required to file a Georgia Financial Institutions Business Occupation Tax
based on Georgia gross receipts. Any local license tax and state occupation tax paid a depository financial institution is credited dollar for dollar against any state corporate income tax
liability of such institution for the tax year during which any such tax is paid. Any unused credits may be carried forward for five years. At September 30, 2016, Newton Federal Bank had
$380,000 of bank tax credits available for future use.

REGULATION AND SUPERVISION

General
As a federal savings association, Newton Federal Bank is subject to examination, supervision and regulation, primarily by the Office of the Comptroller of the Currency, and,
secondarily, by the Federal Deposit Insurance Corporation (“FDIC”) as deposits insurer. Prior to July 21, 2011, the Office of Thrift Supervision was Newton Federal Bank’s primary federal
regulator. However, the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), which is discussed further below, eliminated the Office of Thrift
Supervision and transferred the Office of Thrift Supervision’s functions relating to federal savings associations, including rulemaking authority, to the Office of the Comptroller of the
Currency, effective July 21, 2011. The federal system of regulation and supervision establishes a comprehensive framework of activities in which Newton Federal Bank may engage and is
intended primarily for the protection of depositors and the FDIC’s Deposit Insurance Fund.

Newton Federal Bank is also regulated to a lesser extent by the Board of Governors of the Federal Reserve System, or the “Federal Reserve Board,” which governs the reserves to be
maintained against deposits and other matters. In addition, Newton Federal Bank is a member of and owns stock in the Federal Home Loan Bank of Atlanta, which is one of the 11 regional
banks in the Federal Home Loan Bank System. Newton Federal Bank’s relationship with its depositors and borrowers also is regulated to a great extent by federal law and, to a lesser
extent, state law, including in matters concerning the ownership of deposit accounts and the form and content of Newton Federal Bank’s loan documents.

As a savings and loan holding company, Community First Bancshares, Inc. will be subject to examination and supervision by, and be required to file certain reports with, the Federal
Reserve Board. The Office of Thrift Supervision’s functions relating to savings and loan holding companies were transferred to the Federal Reserve Board on July 21, 2011 pursuant to the
Dodd-Frank Act regulatory restructuring. Community First Bancshares, Inc. will also be subject to the rules and regulations of the Securities and Exchange Commission under the federal
securities laws.

Set forth below are certain material regulatory requirements that are applicable to Newton Federal Bank and Community First Bancshares, Inc. This description of statutes and
regulations is not intended to be a complete description of such statutes and regulations and their effects on Newton Federal Bank and Community First Bancshares, Inc. Any change in
these laws or regulations, whether by Congress or the applicable regulatory agencies, could have a material adverse impact on Community First Bancshares, Inc., Newton Federal Bank and
their operations.

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Dodd-Frank Act
As noted above, the Dodd-Frank Act made significant changes to the regulatory structure for depository institutions and their holding companies. However, the Dodd-Frank Act’s
changes go well beyond that and affect the lending, investments and other operations of all depository institutions. The Dodd-Frank Act required the Federal Reserve Board to set minimum
capital levels for both bank holding companies and savings and loan holding companies that are as stringent as those required for the insured depository subsidiaries, and the components of
Tier 1 capital for holding companies were restricted to capital instruments that were then currently considered to be Tier 1 capital for insured depository institutions. Subsequent regulations
issued by the Federal Reserve Board generally exempted from these requirements bank and savings and loan holding companies of less than $1 billion of consolidated assets. The
legislation also established a floor for capital of insured depository institutions that cannot be lower than the standards in effect upon passage, and directed the federal banking regulators to
implement new leverage and capital requirements that take into account off-balance sheet activities and other risks, including risks relating to securitized products and derivatives.

The Dodd-Frank Act created a new Consumer Financial Protection Bureau with broad powers to supervise and enforce consumer protection laws. The Consumer Financial
Protection Bureau has broad rule-making authority for a wide range of consumer protection laws that apply to all banks and savings institutions such as Newton Federal Bank, including the
authority to prohibit “unfair, deceptive or abusive” acts and practices. The Consumer Financial Protection Bureau has examination and enforcement authority over all banks and savings
institutions with more than $10 billion in assets. Banks and savings institutions with $10 billion or less in assets continue to be examined for compliance by their applicable bank regulators.
The new legislation also weakened the federal preemption available for national banks and federal savings associations, and gave state attorneys general the ability to enforce applicable
federal consumer protection laws.

The Dodd-Frank Act broadened the base for FDIC insurance assessments. Assessments are now based on the average consolidated total assets less tangible equity capital of a
financial institution. The legislation also permanently increased the maximum amount of deposit insurance for banks, savings institutions and credit unions to $250,000 per depositor,
retroactive to January 1, 2008. The Dodd-Frank Act increased stockholder influence over boards of directors by requiring publicly traded companies to give stockholders a non-binding vote
on executive compensation and so-called “golden parachute” payments. The legislation also directed the Federal Reserve Board to promulgate rules prohibiting excessive compensation
paid to bank holding company executives, regardless of whether the company is publicly traded. Further, the legislation required that originators of securitized loans retain a percentage of
the risk for transferred loans, directed the Federal Reserve Board to regulate pricing of certain debit card interchange fees and contained a number of reforms related to mortgage
origination.

Many provisions of the Dodd-Frank Act involve delayed effective dates and/or require implementing regulations. The implementation of the legislation is an ongoing process and
the impact on operations cannot yet fully be assessed. However, there is a significant likelihood that the Dodd-Frank Act will result in an increased regulatory burden and compliance,
operating and interest expense for Newton Federal Bank and Community First Bancshares, Inc.

Federal Banking Regulation

Business Activities. A federal savings association derives its lending and investment powers from the Home Owners’ Loan Act, as amended, and applicable federal regulations.
Under these laws and regulations, Newton Federal Bank may invest in mortgage loans secured by residential and commercial real estate, commercial business and consumer loans, certain
types of debt securities and certain other assets, subject to applicable limits. The Dodd-Frank Act authorized, for the first time, the payment of interest on commercial checking accounts,
effective July 21, 2011. Newton Federal Bank may also establish, subject to specified investment limits, service corporation subsidiaries that may engage in certain activities not otherwise
permissible for Newton Federal Bank, including real estate investment and securities and insurance brokerage.

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Examinations and Assessments. Newton Federal Bank is primarily supervised by the Office of the Comptroller of the Currency. Newton Federal Bank is required to file reports
with and is subject to periodic examination by the Office of the Comptroller of the Currency. Newton Federal Bank is required to pay assessments to the Office of the Comptroller of the
Currency to fund the agency’s operations.

Capital Requirements. Federal regulations require FDIC-insured depository institutions, including federal savings associations, to meet several minimum capital standards: a
common equity Tier 1 capital to risk-based assets ratio, a Tier 1 capital to risk-based assets ratio, a total capital to risk-based assets and a Tier 1 capital to total assets leverage ratio. The
existing capital requirements were effective January 1, 2015 and are the result of a final rule implementing regulatory amendments based on recommendations of the Basel Committee on
Banking Supervision and certain requirements of the Dodd-Frank Act.

The capital standards require the maintenance of common equity Tier 1 capital, Tier 1 capital and Total capital to risk-weighted assets of at least 4.5%, 6% and 8%, respectively. The
regulations also establish a minimum required leverage ratio of at least 4% Tier 1 capital. Common equity Tier 1 capital is generally defined as common stockholders’ equity and retained
earnings. Tier 1 capital is generally defined as common equity Tier 1 and Additional Tier 1 capital. Additional Tier 1 capital generally includes certain noncumulative perpetual preferred
stock and related surplus and minority interests in equity accounts of consolidated subsidiaries. Total capital includes Tier 1 capital (common equity Tier 1 capital plus Additional Tier 1
capital) and Tier 2 capital. Tier 2 capital is comprised of capital instruments and related surplus meeting specified requirements, and may include cumulative preferred stock and long-term
perpetual preferred stock, mandatory convertible securities, intermediate preferred stock and subordinated debt. Also included in Tier 2 capital is the allowance for loan and lease losses
limited to a maximum of 1.25% of risk-weighted assets and, for institutions that have exercised an opt-out election regarding the treatment of Accumulated Other Comprehensive Income
(“AOCI”), up to 45% of net unrealized gains on available-for-sale equity securities with readily determinable fair market values. Institutions that have not exercised the AOCI opt-out have
AOCI incorporated into common equity Tier 1 capital (including unrealized gains and losses on available-for-sale-securities). Calculation of all types of regulatory capital is subject to
deductions and adjustments specified in the regulations.

In determining the amount of risk-weighted assets for purposes of calculating risk-based capital ratios, an institution’s assets, including certain off-balance sheet assets (e.g., recourse
obligations, direct credit substitutes, residual interests), are multiplied by a risk weight factor assigned by the regulations based on the risk deemed inherent in the type of asset. Higher
levels of capital are required for asset categories believed to present greater risk. For example, a risk weight of 0% is assigned to cash and U.S. government securities, a risk weight of 50%
is generally assigned to prudently underwritten first lien one to four-family residential mortgages, a risk weight of 100% is assigned to commercial and consumer loans, a risk weight of
150% is assigned to certain past due loans and a risk weight of between 0% to 600% is assigned to permissible equity interests, depending on certain specified factors.

In addition to establishing the minimum regulatory capital requirements, the regulations limit capital distributions and certain discretionary bonus payments to management if the
institution does not hold a “capital conservation buffer” consisting of 2.5% of common equity Tier 1 capital to risk-weighted assets above the amount necessary to meet its minimum risk-
based capital requirements. The capital conservation buffer requirement is being phased in beginning January 1, 2016 at 0.625% of risk-weighted assets and increasing each year until fully
implemented at 2.5% on January 1, 2019.

At September 30, 2016, Newton Federal Bank’s capital exceeded all applicable requirements. See “Historical and Pro Forma Regulatory Capital Compliance.”

Loans-to-One Borrower. Generally, a federal savings association may not make a loan or extend credit to a single or related group of borrowers in excess of 15% of unimpaired
capital and surplus. An additional amount may be lent, equal to 10% of unimpaired capital and surplus, if secured by “readily marketable collateral,” which generally includes certain
financial instruments (but not real estate). As of September 30, 2016, Newton Federal Bank was in compliance with the loans-to-one borrower limitations.

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Standards for Safety and Soundness. Federal law requires each federal banking agency to prescribe certain standards for all insured depository institutions. These standards relate
to, among other things, internal controls, information systems and audit systems, loan documentation, credit underwriting, interest rate risk exposure, asset growth, compensation and other
operational and managerial standards as the agency deems appropriate. Interagency guidelines set forth the safety and soundness standards that the federal banking agencies use to identify
and address problems at insured depository institutions before capital becomes impaired. If the appropriate federal banking agency determines that an institution fails to meet any standard
prescribed by the guidelines, the agency may require the institution to submit to the agency an acceptable plan to achieve compliance with the standard. Failure to implement such a plan
can result in further enforcement action, including the issuance of a cease and desist order or the imposition of civil money penalties.

Prompt Corrective Action Regulations . Under the federal Prompt Corrective Action statute, the Office of the Comptroller of the Currency is required to take supervisory actions
against undercapitalized institutions under its jurisdiction, the severity of which depends upon the institution’s level of capital. An institution that has a total risk-based capital ratio of less
than 8.0%, a Tier 1 risk-based capital ratio of less than 6.0%, a common equity Tier 1 ratio of less than 4.5% or a leverage ratio of less than 4% is considered to be “undercapitalized.” A
savings institution that has total risk-based capital of less than 6.0%, a Tier 1 risk-based capital ratio of less than 4.0%, a common equity Tier 1 ratio of less than 3.0% or a leverage ratio
that is less than 3.0% is considered to be “significantly undercapitalized.” A savings institution that has a tangible capital to assets ratio equal to or less than 2.0% is deemed to be “critically
undercapitalized.”

Generally, the Office of the Comptroller of the Currency is required to appoint a receiver or conservator for a federal savings association that becomes “critically undercapitalized”
within specific time frames. The regulations also provide that a capital restoration plan must be filed with the Office of the Comptroller of the Currency within 45 days of the date that a
federal savings association is deemed to have received notice that it is “undercapitalized,” “significantly undercapitalized” or “critically undercapitalized.” Any holding company of a
federal savings association that is required to submit a capital restoration plan must guarantee performance under the plan in an amount of up to the lesser of 5.0% of the savings
association’s assets at the time it was deemed to be undercapitalized by the Office of the Comptroller of the Currency or the amount necessary to restore the savings association to
adequately capitalized status. This guarantee remains in place until the Office of the Comptroller of the Currency notifies the savings association that it has maintained adequately
capitalized status for each of four consecutive calendar quarters. Institutions that are undercapitalized become subject to certain mandatory measures such as restrictions on capital
distributions and asset growth. The Office of the Comptroller of the Currency may also take any one of a number of discretionary supervisory actions against undercapitalized federal
savings associations, including the issuance of a capital directive and the replacement of senior executive officers and directors.

At September 30, 2016, Newton Federal Bank met the criteria for being considered “well capitalized,” which means that its total risk-based capital ratio exceeded 10%, its Tier 1
risk-based ratio exceeded 8.0%, its common equity Tier 1 ratio exceeded 6.5% and its leverage ratio exceeded 5.0%

Qualified Thrift Lender Test. As a federal savings association, Newton Federal Bank must satisfy the qualified thrift lender, or “QTL,” test. Under the QTL test, Newton Federal
Bank must maintain at least 65% of its “portfolio assets” in “qualified thrift investments” (primarily residential mortgages and related investments, including mortgage-backed securities) in
at least nine months of every 12-month period. “Portfolio assets” generally means total assets of a savings association, less the sum of specified liquid assets up to 20% of total assets,
goodwill and other intangible assets, and the value of property used in the conduct of the savings association’s business.

Alternatively, Newton Federal Bank may satisfy the QTL test by qualifying as a “domestic building and loan association” as defined in the Internal Revenue Code.

A savings association that fails the qualified thrift lender test must operate under specified restrictions set forth in the Home Owners’ Loan Act. The Dodd-Frank Act made
noncompliance with the QTL test subject to agency enforcement action for a violation of law. At September 30, 2016, Newton Federal Bank satisfied the QTL test.

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Capital Distributions. Federal regulations govern capital distributions by a federal savings association, which include cash dividends, stock repurchases and other transactions
charged to the savings association’s capital account. A federal savings association must file an application with the Office of the Comptroller of the Currency for approval of a capital
distribution if:
• the total capital distributions for the applicable calendar year exceed the sum of the savings association’s net income for that year to date plus the savings association’s
retained net income for the preceding two years;
• the savings association would not be at least adequately capitalized following the distribution;
• the distribution would violate any applicable statute, regulation, agreement or regulatory condition; or
• the savings association is not eligible for expedited treatment of its filings.

Even if an application is not otherwise required, every savings association that is a subsidiary of a savings and loan holding company, such as Newton Federal Bank, must file a
notice with the Federal Reserve Board at least 30 days before the board of directors declares a dividend.

An application or notice related to a capital distribution may be disapproved if:

• the federal savings association would be undercapitalized following the distribution;
• the proposed capital distribution raises safety and soundness concerns; or
• the capital distribution would violate a prohibition contained in any statute, regulation or agreement.

In addition, the Federal Deposit Insurance Act provides that an insured depository institution shall not make any capital distribution if, after making such distribution, the institution
would fail to meet any applicable regulatory capital requirement. A federal savings association also may not make a capital distribution that would reduce its regulatory capital below the
amount required for the liquidation account established in connection with its conversion to stock form.

Community Reinvestment Act and Fair Lending Laws. All federal savings associations have a responsibility under the Community Reinvestment Act and related regulations to
help meet the credit needs of their communities, including low- and moderate-income borrowers. In connection with its examination of a federal savings association, the Office of the
Comptroller of the Currency is required to assess the federal savings association’s record of compliance with the Community Reinvestment Act. A savings association’s failure to comply
with the provisions of the Community Reinvestment Act could, at a minimum, result in denial of certain corporate applications such as branches or mergers, or in restrictions on its
activities. In addition, the Equal Credit Opportunity Act and the Fair Housing Act prohibit lenders from discriminating in their lending practices on the basis of characteristics specified in
those statutes. The failure to comply with the Equal Credit Opportunity Act and the Fair Housing Act could result in enforcement actions by the Office of the Comptroller of the Currency,
as well as other federal regulatory agencies and the Department of Justice.

The Community Reinvestment Act requires all institutions insured by the FDIC to publicly disclose their rating. Newton Federal Bank received a “satisfactory” Community
Reinvestment Act rating in its most recent federal examination.

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Transactions with Related Parties. A federal savings association’s authority to engage in transactions with its affiliates is limited by Sections 23A and 23B of the Federal Reserve
Act and federal regulation. An affiliate is generally a company that controls, or is under common control with an insured depository institution such as Newton Federal Bank. Community
First Bancshares, Inc. will be an affiliate of Newton Federal Bank because of its control of Newton Federal Bank. In general, transactions between an insured depository institution and its
affiliates are subject to certain quantitative limits and collateral requirements. In addition, federal regulations prohibit a savings association from lending to any of its affiliates that are
engaged in activities that are not permissible for bank holding companies and from purchasing the securities of any affiliate, other than a subsidiary. Finally, transactions with affiliates must
be consistent with safe and sound banking practices, not involve the purchase of low-quality assets and be on terms that are as favorable to the institution as comparable transactions with
non-affiliates.

Newton Federal Bank’s authority to extend credit to its directors, executive officers and 10% stockholders, as well as to entities controlled by such persons, is currently governed by
the requirements of Sections 22(g) and 22(h) of the Federal Reserve Act and Regulation O of the Federal Reserve Board. Among other things, these provisions generally require that
extensions of credit to insiders:
• be made on terms that are substantially the same as, and follow credit underwriting procedures that are not less stringent than, those prevailing for comparable transactions
with unaffiliated persons and that do not involve more than the normal risk of repayment or present other unfavorable features; and
• not exceed certain limitations on the amount of credit extended to such persons, individually and in the aggregate, which limits are based, in part, on the amount of Newton
Federal Bank’s capital.

In addition, extensions of credit in excess of certain limits must be approved by Newton Federal Bank’s board of directors. Extensions of credit to executive officers are subject to
additional limits based on the type of extension involved.

Enforcement. The Office of the Comptroller of the Currency has primary enforcement responsibility over federal savings associations and has authority to bring enforcement action
against all “institution-affiliated parties,” including directors, officers, stockholders, attorneys, appraisers and accountants who knowingly or recklessly participate in wrongful action likely
to have an adverse effect on a federal savings association. Formal enforcement action by the Office of the Comptroller of the Currency may range from the issuance of a capital directive or
cease and desist order to removal of officers and/or directors of the institution to the appointment of a receiver or conservator. Civil penalties cover a wide range of violations and actions,
and range up to $25,000 per day, unless a finding of reckless disregard is made, in which case penalties may be as high as $1.0 million per day. The FDIC also has the authority to terminate
deposit insurance or recommend to the Office of the Comptroller of the Currency that enforcement action be taken with respect to a particular savings association. If such action is not
taken, the FDIC has authority to take the action under specified circumstances.

Insurance of Deposit Accounts. The Deposit Insurance Fund of the FDIC insures deposits at FDIC insured financial institutions such as Newton Federal Bank. Deposit accounts in
Newton Federal Bank are insured by the FDIC generally up to a maximum of $250,000 per separately insured depositor and up to a maximum of $250,000 for self-directed retirement
accounts.

The FDIC charges insured depository institutions premiums to maintain the Deposit Insurance Fund. Under the FDIC’s risk-based assessment system, insured institutions were
assigned a risk category based on supervisory evaluations, regulatory capital levels and certain other factors. An institution’s rate depended upon the category to which it is assigned, and
certain adjustments specified by FDIC regulations. Institutions deemed less risky pay lower FDIC assessments. The Dodd-Frank Act required the FDIC to revise its procedures to base its
assessments upon each insured institution’s total assets less tangible equity instead of deposits. The FDIC finalized a rule, effective April 1, 2011, that set the assessment range at 2.5 to 45
basis points of total assets less tangible equity.

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Effective July 1, 2016, the FDIC adopted changes that eliminated the risk categories. Assessments for most institutions are now based on financial measures and supervisory ratings
derived from statistical modeling estimating the probability of failure within three years. In conjunction with the Deposit Insurance Fund reserve ratio achieving 1.15%, the assessment
range (inclusive of possible adjustments) was reduced for most banks and savings associations to 1.5 basis points to 30 basis points.

In addition to the FDIC assessments, the Financing Corporation (“FICO”) is authorized to impose and collect, with the approval of the FDIC, assessments for anticipated payments,
issuance costs and custodial fees on bonds issued by the FICO in the 1980s to recapitalize the former Federal Savings and Loan Insurance Corporation. The bonds issued by the FICO are
due to mature in 2017 through 2019. For the quarter ended September 30, 2016, the annualized FICO assessment was equal to 0.56 basis points of total assets less tangible capital.

The FDIC has authority to increase insurance assessments. Any significant increases would have an adverse effect on the operating expenses and results of operations of Newton
Federal Bank. Management cannot predict what assessment rates will be in the future.

Insurance of deposits may be terminated by the FDIC upon a finding that an institution has engaged in unsafe or unsound practices, is in an unsafe or unsound condition to continue
operations or has violated any applicable law, regulation, rule, order or condition imposed by the FDIC. We do not currently know of any practice, condition or violation that may lead to
termination of our deposit insurance.

Federal Home Loan Bank System. Newton Federal Bank is a member of the Federal Home Loan Bank System, which consists of 11 regional Federal Home Loan Banks. The
Federal Home Loan Bank System provides a central credit facility primarily for member institutions as well as other entities involved in home mortgage lending. As a member of the
Federal Home Loan Bank of Atlanta, Newton Federal Bank is required to acquire and hold shares of capital stock in the Federal Home Loan Bank. As of September 30, 2016, Newton
Federal Bank was in compliance with this requirement. While Newton Federal Bank’s ability to borrow from the Federal Home Loan Bank of Atlanta provides an additional source of
liquidity, Newton Federal Bank has historically not used Federal Home Loan Bank advances to fund its operations.

Other Regulations
Interest and other charges collected or contracted for by Newton Federal Bank are subject to state usury laws and federal laws concerning interest rates. Newton Federal Bank’s
operations are also subject to federal laws applicable to credit transactions, such as the:
• Truth-In-Lending Act, governing disclosures of credit terms to consumer borrowers;
• Home Mortgage Disclosure Act, requiring financial institutions to provide information to enable the public and public officials to determine whether a financial institution is
fulfilling its obligation to help meet the housing needs of the community it serves;
• Equal Credit Opportunity Act, prohibiting discrimination on the basis of race, creed or other prohibited factors in extending credit;
• Fair Credit Reporting Act, governing the use and provision of information to credit reporting agencies;
• Fair Debt Collection Act, governing the manner in which consumer debts may be collected by collection agencies;
• Truth in Savings Act; and

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• rules and regulations of the various federal agencies charged with the responsibility of implementing such federal laws.

The operations of Newton Federal Bank also are subject to the:

• Right to Financial Privacy Act, which imposes a duty to maintain confidentiality of consumer financial records and prescribes procedures for complying with administrative
subpoenas of financial records;
• Electronic Funds Transfer Act and Regulation E promulgated thereunder, which govern automatic deposits to and withdrawals from deposit accounts and customers’ rights
and liabilities arising from the use of automated teller machines and other electronic banking services;
• Check Clearing for the 21st Century Act (also known as “Check 21”), which gives “substitute checks,” such as digital check images and copies made from that image, the
same legal standing as the original paper check;
• The USA PATRIOT Act, which requires savings associations to, among other things, establish broadened anti-money laundering compliance programs, and due diligence
policies and controls to ensure the detection and reporting of money laundering. Such required compliance programs are intended to supplement existing compliance
requirements that also apply to financial institutions under the Bank Secrecy Act and the Office of Foreign Assets Control regulations; and
• The Gramm-Leach-Bliley Act, which places limitations on the sharing of consumer financial information by financial institutions with unaffiliated third parties. Specifically,
the Gramm-Leach-Bliley Act requires all financial institutions offering financial products or services to retail customers to provide such customers with the financial
institution’s privacy policy and provide such customers the opportunity to “opt out” of the sharing of certain personal financial information with unaffiliated third parties.

Holding Company Regulation

General . Community First Bancshares, Inc. and Community First Bancshares, MHC will be non-diversified savings and loan holding companies within the meaning of the Home
Owners’ Loan Act. As such, Community First Bancshares, Inc. and Community First Bancshares, MHC will be registered with the Federal Reserve Board and be subject to the regulation,
examination, supervision and reporting requirements applicable to savings and loan holding companies. In addition, the Federal Reserve Board has enforcement authority over Community
First Bancshares, Inc., Community First Bancshares, MHC and its non-savings institution subsidiaries. Among other things, this authority permits the Federal Reserve Board to restrict or
prohibit activities that are determined to be a serious risk to the subsidiary savings institution.

Permissible Activities. Under present law, the business activities of Community First Bancshares, Inc. and Community First Bancshares, MHC are generally limited to those
activities permissible for financial holding companies under Section 4(k) of the Bank Holding Company Act of 1956, as amended, provided certain conditions are met and financial holding
company status is elected, or for multiple savings and loan holding companies. A financial holding company may engage in activities that are financial in nature, including underwriting
equity securities and insurance as well as activities that are incidental to financial activities or complementary to a financial activity. A multiple savings and loan holding company is
generally limited to activities permissible for bank holding companies under Section 4(c)(8) of the Bank Holding Company Act, subject to regulatory approval, and certain additional
activities authorized by federal regulations. Community First Bancshares, Inc. and Community First Bancshares, MHC have not elected financial holding company status.

Federal law prohibits a savings and loan holding company, including Community First Bancshares, Inc. and Community First Bancshares, MHC, directly or indirectly, or through
one or more subsidiaries, from acquiring

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more than 5.0% of another savings institution or savings and loan holding company, without prior Federal Reserve Board approval. In evaluating applications by holding companies to
acquire savings institutions, the Federal Reserve Board considers factors such as the financial and managerial resources, future prospects of the company and institution involved, the effect
of the acquisition on the risk to the federal deposit insurance fund, the convenience and needs of the community and competitive factors.

The Federal Reserve Board is prohibited from approving any acquisition that would result in a multiple savings and loan holding company controlling savings institutions in more
than one state, subject to two exceptions:
• the approval of interstate supervisory acquisitions by savings and loan holding companies; and
• the acquisition of a savings institution in another state if the laws of the state of the target savings institution specifically permit such acquisition.

Capital. Savings and loan holding companies have historically not been subjected to consolidated regulatory capital requirements. The Dodd-Frank Act required the Federal Reserve
Board to establish for all bank and savings and loan holding companies minimum consolidated capital requirements that are as stringent as those required for the insured depository
subsidiaries. However, pursuant to legislation passed in December 2014, the Federal Reserve Board extended to savings and loan holding companies the applicability of the “Small Bank
Holding Company” exception to its consolidated capital requirements and increased the threshold for the exception from $500 million of assets to $1.0 billion, effective May 15, 2015. As a
result, savings and loan holding companies with less than $1.0 billion in consolidated assets are generally not subject to the capital requirements unless otherwise advised by the Federal
Reserve Board.

Source of Strength. The Dodd-Frank Act extended the “source of strength” doctrine to savings and loan holding companies. The Federal Reserve Board has issued regulations
requiring that all savings and loan holding companies serve as a source of strength to their subsidiary depository institutions.

Dividends and Stock Repurchases. The Federal Reserve Board has issued a policy statement regarding the payment of dividends by holding companies. In general, the policy
provides that dividends should be paid only out of current earnings and only if the prospective rate of earnings retention by the holding company appears consistent with the organization’s
capital needs, asset quality and overall supervisory financial condition. Separate regulatory guidance provides for prior consultation with Federal Reserve Bank staff concerning dividends in
certain circumstances such as where the company’s net income for the past four quarters, net of dividends previously paid over that period, is insufficient to fully fund the dividend or the
company’s overall rate or earnings retention is inconsistent with the company’s capital needs and overall financial condition. The ability of a savings and loan holding company to pay
dividends may be restricted if a subsidiary savings association becomes undercapitalized. The regulatory guidance also states that a savings and loan holding company should inform
Federal Reserve Bank supervisory staff prior to redeeming or repurchasing common stock or perpetual preferred stock if the savings and loan holding company is experiencing financial
weaknesses or the repurchase or redemption would result in a net reduction, at the end of a quarter, in the amount of such equity instruments outstanding compared with the beginning of the
quarter in which the redemption or repurchase occurred. These regulatory policies may affect the ability of Community First Bancshares, Inc. to pay dividends, repurchase shares of
common stock or otherwise engage in capital distributions.

Waivers of Dividends by Community First Bancshares, MHC . Community First Bancshares, Inc. may pay dividends on its common stock to public stockholders. If it does, it is
also required to pay dividends to Community First Bancshares, MHC, unless Community First Bancshares, MHC elects to waive the receipt of dividends. Under the Dodd-Frank Act,
Community First Bancshares, MHC must receive the approval of the Federal Reserve Board before it may waive the receipt of any dividends from Community First Bancshares, Inc. The
Federal Reserve Board has issued an interim final rule providing that it will not object to dividend waivers under certain circumstances, including circumstances where the waiver is not
detrimental to the safe and sound operation of the savings association and a majority of the mutual holding company’s members have approved the waiver of dividends by the mutual
holding company within the previous twelve months. In addition, for a “non-

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grandfathered” mutual holding company such as Community First Bancshares, MHC, each officer or director of Community First Bancshares, Inc. and Newtown Federal Bank, and any tax-
qualified stock benefit plan or non-tax-qualified stock benefit plan in which such individual participates that holds any shares of stock to which the waiver would apply, must waive the right
to receive any such dividend declared. In addition, any dividends waived by Community First Bancshares, MHC must be considered in determining an appropriate exchange ratio in the
event of a conversion of the mutual holding company to stock form.

Acquisition. Under the Federal Change in Bank Control Act, a notice must be submitted to the Federal Reserve Board if any person (including a company), or group acting in
concert, seeks to acquire direct or indirect “control” of a savings and loan holding company. Under certain circumstances, a change of control may occur, and prior notice is required, upon
the acquisition of 10% or more of the company’s outstanding voting stock, unless the Federal Reserve Board has found that the acquisition will not result in control of the company. A
change in control definitively occurs upon the acquisition of 25% or more of the company’s outstanding voting stock. Under the Change in Bank Control Act, the Federal Reserve Board
generally has 60 days from the filing of a complete notice to act, taking into consideration certain factors, including the financial and managerial resources of the acquirer and the
competitive effects of the acquisition.

Federal Securities Laws

Community First Bancshares, Inc.’s common stock will be registered with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended.
Community First Bancshares, Inc. will be subject to the information, proxy solicitation, insider trading restrictions and other requirements under the Securities Exchange Act of 1934.

Emerging Growth Company Status

The Jumpstart Our Business Startups Act (the “JOBS Act”), which was enacted in April 2012, has made numerous changes to the federal securities laws to facilitate access to capital
markets. Under the JOBS Act, a company with total annual gross revenues of less than $1.0 billion during its most recently completed fiscal year qualifies as an “emerging growth
company.” Community First Bancshares, Inc. qualifies as an emerging growth company under the JOBS Act.

An “emerging growth company” may choose not to hold stockholder votes to approve annual executive compensation (more frequently referred to as “say-on-pay” votes) or
executive compensation payable in connection with a merger (more frequently referred to as “say-on-golden parachute” votes). An emerging growth company also is not subject to the
requirement that its auditors attest to the effectiveness of the company’s internal control over financial reporting, and can provide scaled disclosure regarding executive compensation;
however, Community First Bancshares, Inc. will also not be subject to the auditor attestation requirement or additional executive compensation disclosure so long as it remains a “smaller
reporting company” under Securities and Exchange Commission regulations (generally less than $75 million of voting and non-voting equity held by non-affiliates). Finally, an emerging
growth company may elect to comply with new or amended accounting pronouncements in the same manner as a private company, but must make such election when the company is first
required to file a registration statement. Such an election is irrevocable during the period a company is an emerging growth company. Community First Bancshares, Inc. has elected to
comply with new or amended accounting pronouncements in the same manner as a private company.

A company loses emerging growth company status on the earlier of: (i) the last day of the fiscal year of the company during which it had total annual gross revenues of $1.0 billion
or more; (ii) the last day of the fiscal year of the issuer following the fifth anniversary of the date of the first sale of common equity securities of the company pursuant to an effective
registration statement under the Securities Act of 1933; (iii) the date on which such company has, during the previous three-year period, issued more than $1.0 billion in non-convertible
debt; or (iv) the date on which such company is deemed to be a “large accelerated filer” under Securities and Exchange Commission regulations (generally, at least $700 million of voting
and non-voting equity held by non-affiliates).

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MANAGEMENT

Our Directors
The board of directors of Community First Bancshares, Inc. will initially consist of six members. Directors will serve three-year staggered terms so that approximately one-third of
the directors will be elected at each annual meeting of stockholders. Because Community First Bancshares, MHC will own a majority of our outstanding common stock, we will be a
“controlled corporation” within the meaning of the Nasdaq corporate governance guidelines. As a “controlled corporation,” we will be exempt from certain requirements, including that a
majority of our board of directors be independent under those standards, and that executive compensation and director nominations be overseen by independent directors. However, at the
present time, each of our directors, other than our President and Chief Executive Officer Johnny S. Smith, would be considered independent under the Nasdaq Stock Market corporate
governance listing standards. See “—Board Independence” below.

The following table states our directors’ names, their ages as of September 30, 2016, and the calendar years when they began serving as directors of Newton Federal Bank:

Current Term
Directors Position Age Director Since to Expire
Troy B. Brooks Director 57 2007 2019
William D. Fortson, Jr. Chairman of the Board 74 1998 2017
Marshall L. Ginn Director 63 2004 2018
Bob W. Richardson Director 68 1991 2019
Johnny S. Smith President, Chief Executive Officer and Director 57 2016 2018

The business experience for the past five years of each of our directors is set forth below. The biographies also contain information regarding the person’s experience, qualifications,
attributes or skills that caused the board of directors to determine that the person should serve as a director. Unless otherwise indicated, directors have held their positions for the past five
years.

Troy B. Brooks is the Chief Financial Officer of Piedmont Newton Hospital, Inc., located in Covington, Georgia, where he has worked since 1986. Previously, Mr. Brooks was
Chief Financial Officer at Healthcare Management Corporation in Columbus, Georgia; Chief Financial Officer at Upson Regional Medical Center in Thomaston, Georgia, and Assistant
Controller at Humana Shoals Hospital in Sheffield, Alabama. He is a long-time member of the Georgia Chapter of the Healthcare Financial Management Association. Mr. Brooks has
served as President of the Covington-Newton County Chamber of Commerce and served on the Executive Committee of that board for eight years. He has served as the Chairman of the
Board of the Covington Family YMCA and also served as President of the Rockdale Swim League.

William D. Fortson, Jr. has over 47 years’ experience in the automobile industry, and has been the owner of Ginn Motor Company, located in Covington, Georgia, since 1987.
Mr. Fortson has also served as member/manager of Ginn Chrysler, Jeep, Dodge, LLC since 2009. Mr. Fortson has strong marketing, sales, and customer service assessment skills, as well as
significant experience in employee development, training, and business management.

Marshall L. Ginn has been a licensed real estate broker since 1996, and is an Associate Broker with RE/MAX Agents Realty, located in Covington, Georgia. Mr. Ginn assists in the
purchase and sale of residential, commercial and industrial properties as well as raw land. Prior to joining RE/MAX, Mr. Ginn was co-founder of Medical Services South and founder of
ELCO Medical, privately held corporations specializing in the marketing and sale of orthopedic implants and products. He has served as President of the East Metro Board of Realtors and
Chairman of the Newton County Chamber of Commerce. Mr. Ginn brings the board of directors a unique perspective of the community in areas of economic development, residential
housing and commercial opportunities.

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Bob W. Richardson was a licensed pharmacist for 40 years until his retirement in 2010. Mr. Richardson was the owner and manager of People’s Drug Store, located in Covington,
Georgia, beginning in 1979. Mr. Richardson is also the co-owner of Taziki’s Mediterranean Cafe, located in Athens, Georgia, which opened in 2014. Mr. Richardson’s experience as a
small business owner gives him extensive insight into the customers who live in our market areas and economic developments affecting the communities in which we operate, as well as the
challenges facing small businesses in our market area.

Johnny S. Smith has served as the President and Chief Executive Officer of Newton Federal Bank since February 2016, having joined Newton Federal Bank in 1992 as Comptroller.
Mr. Smith served as an elected board member of the Newton County School System and is the Chairman of the Board of the Rotary Club of Covington Foundation. Mr. Smith’s positions as
President and Chief Executive Officer foster clear accountability, effective decision-making, a clear and direct channel of communication from senior management to the full board of
directors, and alignment on corporate strategy.

Executive Officers who are Not Directors

The following sets forth information regarding our executive officers who are not directors. Age information is as of September 30, 2016. The executive officers of Community First
Bancshares, Inc. and Newton Federal Bank are elected annually.

Gregory J. Proffitt , age 48, was appointed our Executive Vice President and Chief Operations Officer in February 2016. Mr. Proffitt has been employed with Newton Federal Bank
since 2005, serving as Senior Vice President and Chief Operations Officer beginning in November 2013 and as Controller and Compliance Officer. Prior to being employed with Newton
Federal Bank, Mr. Proffitt has served in various roles with other companies including SunTrust Bank, The Federal Reserve Bank of Atlanta, John H. Harland Company, The Original Honey
Baked Ham Company, Allied Automotive Group, and Blue Cross Blue Shield of Georgia.

Kenneth D. Lumpkin , age 51, is our Executive Vice President and Chief Lending and Marketing Officer, and has served in those positions since February 2016. Mr. Lumpkin
previously served as our Vice President and Director of Sales and Marketing, and joined Newton Federal Bank as a consultant in June 2014. From December 2012 to June 2014,
Mr. Lumpkin was a licensed real estate agent for Progressive Realty LLC, located in Winder, Georgia. Mr. Lumpkin was not employed from June 2011 to December 2012, but previously
worked at The Peoples Bank of Winder, Winder, Georgia, from 1998 to 2011, most recently as Executive Vice President and head of production. Prior to joining The Peoples Bank of
Winder, Mr. Lumpkin served as Vice President and Commercial Lender at Regions Bank. He began his banking career in 1988 with Bank of America (formerly known as Bank South and
Nations Bank).

Tessa M. Nolan , age 31, was named our Senior Vice President and Chief Financial Officer in February 2016, and served as our controller beginning in March 2014. Ms. Nolan
joined Newton Federal Bank in August 2005.

Tara T. Williams , age 36, is our Senior Vice President and Chief Credit Officer. Ms. Williams joined Newton Federal Bank in 2014 as a Senior Credit Analyst in 2014, and was
named Chief Credit Officer in 2015. Ms. Williams was previously a Business Credit Underwriter at First Citizens Bank, Columbia, South Carolina, where she began working in 2007.

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Board Independence
The board of directors has determined that each of our directors, with the exception of President and Chief Executive Officer Johnny S. Smith, is “independent” as defined in the
listing standards of the Nasdaq Stock Market. Mr. Smith is not considered independent because he is an executive officer of Newton Federal Bank. In determining the independence of our
directors, the board of directors considered relationships between Newton Federal Bank and our directors that are not required to be reported under “—Transactions With Certain Related
Persons,” below, consisting of deposit accounts that our directors maintain at Newton Federal Bank. In addition, we utilize the services of RE/MAX Agents Realty for certain real estate
transactions, with which Director Marshall L. Ginn is an Associate Broker. We paid RE/MAX Agents Realty commissions of $14,930 for the year ended September 30, 2016.

Transactions With Certain Related Persons

The Sarbanes-Oxley Act of 2002 generally prohibits publicly traded companies from making loans to their executive officers and directors, but it contains a specific exemption from
such prohibition for loans made by federally insured financial institutions, such as Newton Federal Bank, to their executive officers and directors in compliance with federal banking
regulations. Federal regulations permit executive officers and directors to receive the same terms that are widely available to other employees as long as the director or executive officer is
not given preferential treatment compared to the other participating employees. Newton Federal Bank makes loans to its employees through an employee loan program pursuant to which
loans are made at a reduced rate. The reduced rate is 0.50% below the interest rate offered to the public. Employees also receive a 50% discount on loan origination fees.

The chart below lists our executive officers who participated in the employee loan program during the years ended September 30, 2016 and 2015, and certain information with
respect to their loans. No other directors or executive officers of Newton Federal Bank participated in the employee loan program during the years ended September 30, 2016 or 2015.

Largest
Aggregate
Balance Principal Interest
10/01/15 Principal Paid Paid
to Balance 10/01/15 to 10/01/15 to Interest
Name Type of Loan 9/30/16 9/30/16 9/30/16 9/30/16 Rate
Gregory J. Proffitt Home Mortgage $285,318 $278,365 $ 6,953 $ 9,847 3.49%
Kenneth D. Lumpkin Consumer $ 11,744 $ 11,744 $ — $ 44 7.00%
Home Mortgage $395,433 $389,318 $ 6,638 $ 17,644 3.49%
Consumer $ 3,672 $ — $ 3,672 $ 266 9.49%
Tessa M. Nolan Home Mortgage $169,932 $163,148 $ 6,784 $ 6,694 4.00%
Consumer $ 24,130 $ 23,630 $ 500 $ 97 6.00%
Consumer $ 24,761 $ — $ 24,760 $ 1,058 6.00%

Largest
Aggregate
Balance Principal Interest
10/01/14 Principal Paid Paid
to Balance 10/01/14 to 10/01/14 to Interest
Name Type of Loan 9/30/15 9/30/15 9/30/15 9/30/15 Rate
Gregory J. Proffitt Home Mortgage $289,636 $285,318 $ 6,784 $ 12,452 3.49%
Kenneth D. Lumpkin Home Mortgage $395,956 $395,956 $ — $ 1,037 3.49%
Consumer $ 5,131 $ 3,672 $ 1,459 $ 226 9.49%
Tessa M. Nolan Home Mortgage $175,299 $169,932 $ 6,286 $ 7,212 4.00%
Consumer $ 24,760 $ 24,760 $ 470 $ 79 6.00%

At the time of termination of employment with Newton Federal Bank, the interest rate will be adjusted to the non-employee interest rate.

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These loans neither involve more than the normal risk of collection nor present other unfavorable features. Federal regulations permit executive officers and directors to participate
in loan programs that are available to other employees, as long as the director or executive officer is not given preferential treatment compared to other participating employees. Loans made
to directors or executive officers, including any modification of such loans, must be approved by a majority of disinterested members of the board of directors. The interest rate on loans to
directors and officers is the same as that offered to other employees.

Since October 1, 2014, other than described above, and except for loans to executive officers made in the ordinary course of business that were made on substantially the same
terms, including interest rates and collateral, as those prevailing at the time for comparable loans with persons not related to Newton Federal Bank and for which management believes
neither involve more than the normal risk of collection nor present other unfavorable features, we and our subsidiaries have not had any transaction or series of transactions, or business
relationships, nor are any such transactions or relationships proposed, in which the amount involved exceeds $120,000 and in which our directors or executive officers have a direct or
indirect material interest.

Meetings and Committees of the Board of Directors

We conduct business through meetings of our board of directors and its committees, including an Audit Committee and a Loan Committee. During the year ended September 30,
2016, the board of directors of Newton Federal Bank met 12 times. It is expected that the board of directors of Community First Bancshares, Inc. will establish a standing audit committee,
which will operate under a written charter, which will govern its composition, responsibilities and operations.

Community First Bancshares, Inc.’s Audit Committee will consist of Directors Richardson (Chairman), Fortson and Brooks. Compensation and nominating decisions will be made
by the full board of directors, as permitted under Nasdaq Stock Market rules for “Controlled Companies.” We will be a Controlled Company because Community First Bancshares, MHC
will own a majority of our outstanding shares of common stock.

Corporate Governance Policies and Procedures

In addition to establishing committees of our board of directors, Community First Bancshares, Inc. will adopt several policies to govern the activities of both Community First
Bancshares, Inc. and Newton Federal Bank, including corporate governance policies and a code of business conduct and ethics. The corporate governance policies are expected to involve
such matters as the following:
• the composition, responsibilities and operation of our board of directors;
• the establishment and operation of board committees, including audit, nominating and corporate governance and compensation committees;
• convening executive sessions of independent directors; and
• our board of directors’ interaction with management and third parties.

The code of business conduct and ethics, which is expected to apply to all employees and directors, will address conflicts of interest, the treatment of confidential information,
general employee conduct and compliance with applicable laws, rules and regulations. In addition, the code of business conduct and ethics will be designed to deter wrongdoing and to
promote honest and ethical conduct, the avoidance of conflicts of interest, full and accurate disclosure and compliance with all applicable laws, rules and regulations.

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Executive Compensation
Summary Compensation Table. The table below summarizes the total compensation paid to or earned by our President and Chief Executive Officer, our two other most highly
compensated executive officers for the year ended September 30, 2016, and another individual who served as our President and Chief Executive Officer during the year ended
September 30, 2016. Each individual listed in the table below is referred to as a “named executive officer.”

Summary Compensation Table

All other
Salary Bonus Compensation Total
Name and principal position Year ($)(1) ($)(2) ($)(4) ($)
Johnny S. Smith, 2016 150,999 2,558 14,700 168,257
President and
Chief Executive Officer
Gregory J. Proffitt, 2016 137,421 3,080 6,358 146,859
Executive Vice President and
Chief Operations Officer
Kenneth D. Lumpkin, 2016 114,923 2,077 11,492 128,492
Executive Vice President and
Chief Lending and Marketing Officer
George Lazenby, 2016 63,654 3,672 259,499 326,825
Former President and
Chief Executive Officer (4)

(1) The current annual base salaries for Messrs. Smith, Proffitt and Lumpkin are $170,000, $140,000, and $130,000, respectively.
(2) Represents discretionary cash bonuses, which were paid during the year ending September 30, 2016, and includes a $569 ten-year service award for Mr. Proffitt.
(3) A break-down of the various elements of compensation in this column is set forth in the following table:

All Other Compensation

401(k) Total All
Profit 401(k) Director Automobile Club Retirement/ Other
Sharing Match Fees Allowance Dues Release Compensation
Name ($) ($) ($) ($) ($) ($)(a) ($)
Johnny S. Smith 4,300 2,400 3,500 — 4,500 — 14,700
Gregory J. Proffitt 4,300 1,374 — — 684 — 6,358
Kenneth D. Lumpkin 3,096 3,448 — 2,800 2,148 — 11,492
George Lazenby 6,489 — 7,000 2,500 — 243,510 259,499

(4) Mr. Lazenby retired as our President and Chief Executive Officer and as a member of the Board of Directors on January 15, 2016. In connection with his retirement, in exchange for
a release of claims, Newton Federal agreed to pay Mr. Lazenby a total of $243,510 in cash, with the last payment made on February 13, 2017.

Benefit Plans and Agreements

401(k) Plan. Newton Federal Bank maintains the Newton Federal Bank 401(k) Profit Sharing Plan, a tax-qualified defined contribution plan for eligible employees (the “401(k)
Plan”). The named executive officers are eligible to participate in the 401(k) Plan just like other employees. An employee must complete three months of service to be eligible to participate
in the 401(k) Plan.

Under the 401(k) Plan a participant may elect to defer, on a pre-tax basis, the maximum amount as permitted by the Internal Revenue Code. For 2017, the salary deferral
contribution limit is $18,000, provided, however, that a participant over age 50 may contribute an additional $6,000 to the 401(k) Plan for a total of $24,000. In addition to salary deferral
contributions, Newton Federal Bank may make discretionary matching contributions and discretionary profit sharing contributions to the 401(k) Plan. Newton Federal Bank made both
matching and profit sharing contributions to the 401(k) Plan for the plan year ended September 30, 2016. A participant is always 100% vested in his or her salary deferral contributions.
Matching and profit sharing contributions vest 100% after three years of participant’s service with Newton Federal Bank. Generally, unless the participant elects otherwise, the participant’s
account balance will be distributed as a result of the participant’s termination of employment. Expense recognized in connection with the 401(k) Plan totaled approximately $54,000 for the
fiscal year ended September 30, 2016.

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Employee Stock Ownership Plan. In connection with the reorganization, we intend to adopt an employee stock ownership plan for eligible employees. The named executive officers
are eligible to participate in the employee stock ownership plan just like other employees. Eligible employees will begin participation in the employee stock ownership plan on the later of
the effective date of the reorganization or upon the first entry date commencing on or after the eligible employee’s completion of one year of service and attainment of age 21.

The employee stock ownership plan trustee is expected to purchase, on behalf of the employee stock ownership plan, 3.92% of the total number of shares of Community First
Bancshares, Inc. common stock outstanding (including shares issued to Community First Bancshares, MHC). We anticipate that the employee stock ownership plan will fund its stock
purchase with a loan from Community First Bancshares, Inc. equal to the aggregate purchase price of the common stock. The loan will be repaid principally through Newton Federal Bank’s
discretionary contributions to the employee stock ownership plan and any dividends payable on common stock held by the employee stock ownership plan over the anticipated 25-year term
of the loan. The interest rate for the employee stock ownership plan loan is expected to equal the prime rate, as published in The Wall Street Journal , on the closing date of the offering. See
“Pro Forma Data.”

The trustee will hold the shares purchased by the employee stock ownership plan in an unallocated suspense account, and shares will be released from the suspense account on a pro-
rata basis as we repay the loan. The trustee will allocate the shares released among participants on the basis of each participant’s proportional share of compensation relative to all
participants. A participant will become 100% vested in his or her account balance after three years of service. Participants who were employed by Newton Federal Bank immediately prior
to the offering will receive credit for vesting purposes for years of service prior to adoption of the employee stock ownership plan. Participants also will become fully vested automatically
upon normal retirement, death or disability, a change in control, or termination of the employee stock ownership plan. Generally, participants will receive distributions from the employee
stock ownership plan upon separation from service in accordance with the terms of the plan document. The employee stock ownership plan reallocates any unvested shares forfeited upon
termination of employment among the remaining participants.

The employee stock ownership plan will permit participants to direct the trustee as to how to vote the shares of common stock allocated to their accounts. The trustee will vote
unallocated shares and allocated shares for which participants do not timely provide instructions on any matter in the same ratio as those shares for which participants provide timely
instructions, subject to fulfillment of the trustee’s fiduciary responsibilities.

Under applicable accounting requirements, Newton Federal Bank will record a compensation expense for the employee stock ownership plan at the fair market value of the shares as
they are committed to be released from the unallocated suspense account to participants’ accounts, which may be more or less than the original issue price. The compensation expense
resulting from the release of the common stock from the suspense account and allocation to plan participants will result in a corresponding reduction in the earnings of Community First
Bancshares, Inc.

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The following table sets forth for the year ended September 30, 2016 certain information as to the total remuneration we paid to our directors. Mr. Smith received director fees of
$3,500 for the year ended September 30, 2016, which is included in All Other Compensation in the Summary Compensation Table.

Directors Compensation Table For the Year Ended September 30, 2016
Fees Nonqualified
Earned Deferred
or Paid Compensation All Other
in Cash Earnings Compensation Total
Name ($) ($)(1) ($) ($)
Troy B. Brooks 23,100 689 — 23,789
William D. Fortson, Jr. 44,250 10,429 — 54,679
Marshall L. Ginn 21,900 4,166 — 26,066
Bob W. Richardson 22,300 11,745 — 34,045

(1) Reflects above-market earnings under the Directors’ Deferred Compensation Plan, described below.

Director Fees
Directors earn an annual fee of $21,000, and our chairman receives an additional chairman fee of $21,000 per year. Directors currently receive fees of $150 per meeting for service
on the Audit Committee and $100 per meeting for service on the Loan Committee.

Each person who will serve as a director of Community First Bancshares, Inc. will also serve as a director of Newton Federal Bank and will initially earn a monthly fee only in his or
her capacity as a board or committee member of Newton Federal Bank. Upon completion of the reorganization, additional director fees may be paid for Community First Bancshares, Inc.
director meetings although no such determination has been made at this time.

Directors’ Deferred Compensation Plan

Newton Federal Bank sponsors a deferred compensation plan under which eligible directors were previously able to defer the receipt of compensation that otherwise would have
been payable to them for their service as a director. Effective June 30, 2015, the plan has been frozen with respect to further deferral contributions and any new participants. However,
directors who previously deferred compensation under the plan maintain a benefit under the plan until the deferred compensation is distributed to them in accordance with their previous
elections and the terms of the plan. Until their benefits are distributed under the plan, the deferred compensation will be credited with earnings, compounded quarterly, at a rate equal to the
average pre-tax return for the immediately preceding ten-year period on shares in the Vanguard Balanced Index Fund Admiral Shares, as published in the fund’s annual report for
December 31 of the immediately preceding calendar year.

Benefits to be Considered Following Completion of the Stock Offering

Following the stock offering, we intend to adopt one or more new stock-based benefit plans that will provide for grants of stock options and awards of shares of restricted common
stock. In accordance with applicable regulations, we anticipate that the plan will authorize a number of stock options and a number of shares of restricted common stock, not to exceed 4.9%
and 1.96%, respectively, of the shares issued in the offering (including shares issued to Community First Bancshares, MHC). These limitations may not apply if the plans are implemented
more than one year after the reorganization and offering, subject to any applicable regulatory approvals.

The stock-based benefit plans will not be established sooner than six months after the stock offering and, if adopted within one year after the stock offering, the plans must be
approved by a majority of the votes eligible to be cast by our stockholders, as well as a majority of the votes eligible to be cast by our stockholders other than Community First Bancshares,
MHC. If stock-based benefit plans are established more than one year after the stock offering, they must be approved by a majority of votes cast by our stockholders, as well as a majority of
votes cast by our stockholders other than Community First Bancshares, MHC.

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Certain additional restrictions would apply to our stock-based benefit plans if adopted within one year after the stock offering, including:
• non-employee directors in the aggregate may not receive more than 30% of the options and shares of restricted common stock authorized under the plans;
• any non-employee director may not receive more than 5% of the options and restricted stock awards authorized under the plans;
• any officer or employee may not receive more than 25% of the options and restricted stock awards authorized under the plans;
• the options and shares of restricted common stock may not vest more rapidly than 20% per year, beginning on the first anniversary of stockholder approval of the plans; and
• accelerated vesting is not permitted except for death, disability or upon a change in control of Community First Bancshares, Inc. or Newton Federal Bank.

We have not yet determined whether we will present stock-based benefit plans for stockholder approval within one year following the completion of the reorganization or whether
we will present plans for stockholder approval more than one year after the completion of the reorganization. In the event of changes in applicable regulations or policies regarding stock-
based benefit plans, including any regulations or policies restricting the size of awards and vesting of benefits as described above, the restrictions described above may not be applicable.

We may obtain the shares needed for our stock-based benefit plans by issuing additional shares of common stock from authorized but unissued shares or through stock repurchases.

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SUBSCRIPTIONS BY DIRECTORS AND EXECUTIVE OFFICERS

The following table sets forth information regarding intended common stock subscriptions by each of our directors and executive officers and their associates, and by all directors,
officers and their associates as a group. However, there can be no assurance that any such person or group will purchase any specific number of shares of our common stock. In the event
the individual maximum purchase limitation is increased, persons subscribing for the maximum amount may increase their purchase order. Directors and officers will purchase shares of
common stock at the same $10.00 purchase price per share and on the same terms as other purchasers in the offering. This table excludes shares of common stock to be purchased by the
employee stock ownership plan, as well as any stock awards or stock option grants that may be made no earlier than six months after the completion of the offering. Purchases by directors,
officers and their associates will be included in determining whether the required minimum number of shares has been subscribed for in the offering. The shares being acquired by the
directors, executive officers and their associates are being acquired for investment purposes, and not with a view towards resale. Our directors and executive officers will be subject to the
same minimum purchase requirements and purchase limitations as other participants in the offering set forth under “The Reorganization and Offering—Limitations on Purchase of Shares.”

Percent of
Outstanding
Number Shares at
of Aggregate Minimum
Shares Purchase of Offering
Name and Title (1) Price (1) Range (2)
Troy D. Brooks, Director 10,000 $100,000 *
William D. Fortson, Jr., Chairman of the Board 30,000 300,000 *
Marshall L. Ginn, Director 10,000 100,000 *
Bob W. Richardson, Director 10,000 100,000 *
Johnny S. Smith, President, Chief Executive Officer and Director 5,000 50,000 *
Gregory J. Proffitt, Executive Vice President and Chief Operations Officer 2,500 25,000 *
Kenneth D. Lumpkin, Executive Vice President and Chief Lending and Marketing Officer 3,500 35,000 *
Tessa M. Nolan, Senior Vice President and Chief Financial Officer 1,000 10,000 *
Tara T. Williams, Senior Vice President and Chief Credit Officer 300 3,000 *
All directors and executive officers as a group (9 persons) 72,300 $723,000 1.5%

* Less than 1.0%.

(1) Includes purchases by the named individual’s spouse and other relatives of the named individual living in the same household. Other than as set forth above, the named individuals
are not aware of any other purchases by a person who or entity that would be considered an associate of the named individuals under the plan of reorganization.
(2) At the adjusted maximum of the offering range, directors and executive officers would own 1.0% of our outstanding shares of common stock.

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THE REORGANIZATION AND OFFERING

The board of directors of Newton Federal Bank has approved the plan of reorganization. The plan of reorganization must also be approved by Newton Federal Bank’s members. A
special meeting of members has been called for this purpose. We have filed an application with respect to the reorganization and stock offering with the Federal Reserve Board, and the
approval of the Federal Reserve Board is required before we can consummate the reorganization and stock offering. We also have filed certain applications with respect to the
reorganization with the Office of the Comptroller of the Currency and the FDIC. The final approvals of the Federal Reserve Board, the Office of the Comptroller of the Currency and the
FDIC are required before we can consummate the reorganization and stock offering. Any approval by the Federal Reserve Board, the Office of the Comptroller of the Currency and the
FDIC does not constitute a recommendation or endorsement of the plan of reorganization.

General
On October 31, 2016, our board of directors unanimously adopted the plan pursuant to which we will reorganize from a federally chartered mutual savings association into a two-tier
federal mutual holding company structure. After the reorganization, Community First Bancshares, Inc. will be the mid-tier stock holding company and Community First Bancshares, MHC
will be the top-tier mutual holding company. After the offering, subscribers in the offering will own 46% and Community First Bancshares, MHC will own 54% of the outstanding shares of
common stock of Community First Bancshares, Inc.

Consummation of the reorganization and stock offering is subject to, among other things, approval of the plan of reorganization by the members of Newton Federal Bank as of the
voting record date. A special meeting of members has been called for this purpose, to be held on March 30, 2017. The reorganization will be completed as follows, or in any manner
approved by regulators that is consistent with the purposes of the plan of reorganization and applicable laws and regulations:
(i) Newton Federal Bank will organize an interim stock savings association as a wholly owned subsidiary (“Interim Bank”);
(ii) After Interim Bank receives approval from the FDIC for insurance of accounts and the FDIC has issued it a certificate number, Newton Federal Bank will transfer pursuant to
a purchase and assumption agreement all of its assets and liabilities, except $100,000 in cash, to Interim Bank, and Interim Bank will become the stock savings association
resulting from the reorganization, including the purchase and assumption transaction pursuant to the plan (the “Stock Bank”);
(iii) Newton Federal Bank will amend its charter and bylaws to read in the form of a federal mutual holding company to become Community First Bancshares, MHC;
(iv) Community First Bancshares, MHC will organize Community First Bancshares, Inc. as a wholly-owned subsidiary, and transfer $1,000 to Community First Bancshares, Inc.
in exchange for 100 shares of Community First Bancshares, Inc. common stock; and
(v) Community First Bancshares, MHC will transfer all of the initially issued stock of the Stock Bank to Community First Bancshares, Inc. in exchange for additional shares of
Community First Bancshares, Inc. common stock, and the Stock Bank will become a wholly-owned subsidiary of Community First Bancshares, Inc.

Concurrently with the reorganization, Community First Bancshares, Inc. will offer for sale 46% of its common stock representing 46% of the pro forma market value of Community
First Bancshares, Inc. and Newton Federal Bank.

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We have mailed to each person eligible to vote at the special meeting a proxy statement containing information concerning the business purposes of the reorganization and the
effects of the reorganization on voting rights, liquidation rights, existing savings accounts, deposit insurance, loans and Newton Federal Bank’s business. The proxy statement also describes
the manner in which the plan may be amended or terminated. Included with the proxy statement is a proxy card that can be used to vote on the plan.

The following is a summary of the material aspects of the plan of reorganization, the subscription offering, and the community offering. The plan of reorganization should be
consulted for a more detailed description of its terms.

Reasons for the Reorganization

The primary purpose of the reorganization is to establish a holding company and to convert Newton Federal Bank to the stock form of ownership in order to compete and expand
more effectively in the financial services marketplace. The stock form of ownership is the corporate form used by commercial banks, most major businesses and a large number of savings
institutions. The reorganization also will enable customers, employees, management and directors to have an equity ownership interest in our company. Management believes that this will
enhance the long-term growth and performance of Newton Federal Bank and Community First Bancshares, Inc. by enabling us to attract and retain qualified employees who have a direct
interest in our financial success and that customer ownership may enhance our connection with our customers. The reorganization will permit us to issue and sell capital stock, which is a
source of capital not available to mutual savings institutions. The reorganization also will give us greater flexibility to structure and finance the expansion of our operations and increase our
capital to support future growth and profitability, including the potential acquisition of other financial institutions, and to diversify into other financial services, to the extent permissible by
applicable law and regulation. Although there are no current arrangements, understandings or agreements regarding any such opportunities, we will be in a position after the reorganization,
subject to regulatory limitations and our financial condition, to take advantage of any such opportunities that may arise, and to compete more effectively in the financial services
marketplace. The reorganization and the capital raised in the offering are expected to increase our lending capacity by providing us with additional capital to support new loans and higher
lending limits, support the growth of our banking franchise, provide an additional cushion against unforeseen risk and expand our asset base. Lastly, the reorganization will enable us to
better manage our capital by providing broader investment opportunities through the holding company structure and by enabling us to repurchase our common stock as market conditions
permit. Although the reorganization and offering will create a stock savings institution and stock holding company, only a minority of the common stock will be offered for sale in the
offering. As a result, our mutual form of ownership and its ability to provide community-oriented financial services will be preserved through the mutual holding company structure.

Our board of directors believes that the advantages of the mutual holding company structure outweigh the potential disadvantages of the mutual holding company structure to
minority stockholders, including the inability of stockholders other than Community First Bancshares, MHC to own a majority of the common stock of Community First Bancshares, Inc. A
majority of our voting stock will be owned by Community First Bancshares, MHC, which will be controlled by its board of directors. While this structure will permit management to focus
on our long-term business strategy for growth and capital redeployment without undue pressure from stockholders, it will also serve to perpetuate our existing management and directors.
Community First Bancshares, MHC will be able to elect all the members of Community First Bancshares, Inc.’s board of directors, and will be able to control the outcome of all matters
presented to our stockholders for resolution by vote. No assurance can be given that Community First Bancshares, MHC will not take action adverse to the interests of stockholders other
than Community First Bancshares, MHC. For example, Community First Bancshares, MHC could prevent the sale of control of Community First Bancshares, Inc., or defeat a candidate for
the board of directors of Community First Bancshares, Inc. or other proposals put forth by stockholders.

Since we will not be offering all of our common stock for sale in the offering, the reorganization will result in less capital raised in comparison to a standard mutual-to-stock
conversion. We are not undertaking a standard mutual-to-stock conversion at this time since we do not believe we could effectively deploy that amount of additional capital on a short-term
or near-term basis. The reorganization, however, will allow us to raise additional

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capital in the future because a majority of our common stock will be available for sale in the event of a conversion of Community First Bancshares, MHC to stock form. Our board of
directors has determined that offering 46% of our outstanding shares of common stock for sale in the offering allows for an efficient use of net proceeds for Community First Bancshares,
Inc. and Newton Federal Bank over the next several years.

The reorganization does not preclude the future conversion of Community First Bancshares, MHC from the mutual to stock form of organization in the future. No assurance can be
given when, if ever, Community First Bancshares, MHC will convert to stock form or what conditions the Federal Reserve Board or other regulatory agencies may impose on such a
transaction. See “Summary—Possible Conversion of Community First Bancshares, MHC to Stock Form.”

Effects of the Reorganization and Offering on Depositors and Borrowers of Newton Federal Bank
Continuity. While the reorganization is being accomplished, and after its completion, our routine business of accepting deposits and making loans will continue without interruption.
Newton Federal Bank will continue to be subject to regulation by the Office of the Comptroller of the Currency and the FDIC. After the reorganization, we will continue to provide services
for depositors and borrowers under current policies by our management and staff.

Liquidation Rights . Following the completion of the reorganization, all depositors and borrowers who had liquidation rights with respect to Newton Federal Bank as of the effective
date of the reorganization will continue to have such rights solely with respect to Community First Bancshares, MHC so long as they continue to hold their deposit accounts or loans, as
applicable, with Newton Federal Bank. In addition, all persons who become depositors of Newton Federal Bank subsequent to the reorganization will have such liquidation rights with
respect to Community First Bancshares, MHC.

Deposit Accounts and Loans . Under the plan of reorganization, each depositor of Newton Federal Bank at the time of the reorganization will automatically continue as a depositor
after the reorganization, and each such deposit account will remain the same with respect to deposit balance, interest rate and other terms, except to the extent such deposit is reduced by
withdrawals to purchase common stock in the offering. All insured deposit accounts of Newton Federal Bank will continue to be federally insured by the FDIC up to the legal maximum
limit in the same manner as deposit accounts existing in Newton Federal Bank immediately prior to the reorganization. Furthermore, no loan outstanding will be affected by the
reorganization, and the amounts, interest rates, maturity and security for each loan will remain the same as they were prior to the reorganization.

Voting Rights . Following the completion of the reorganization and offering, members of Newton Federal Bank will no longer have voting rights in Newton Federal Bank, but will
have voting rights in Community First Bancshares, MHC. Following the completion of the reorganization and offering, voting rights in Community First Bancshares, Inc. will be held
exclusively by its stockholders. Each share of outstanding common stock held by a stockholder will entitle the stockholder to one vote on matters considered by Community First
Bancshares, Inc. stockholders. Although Community First Bancshares, Inc. will have the power to issue shares of capital stock to persons other than Community First Bancshares, MHC, as
long as Community First Bancshares, MHC is in existence, Community First Bancshares, MHC will be required to own a majority of the voting stock of Community First Bancshares, Inc.,
and consequently will be able to control the outcome of matters put to a vote of stockholders. Community First Bancshares, Inc. must own 100% of the voting stock of Newton Federal
Bank.

Offering of Common Stock

Under the plan of reorganization, up to 3,015,300 shares (subject to increase to up to 3,467,595 shares) of Community First Bancshares, Inc. common stock will be offered for sale,
subject to certain restrictions described below, through a subscription and community offering.

Subscription Offering . The subscription offering will expire at 4:00 p.m., Eastern Time, on March 22, 2017, unless otherwise extended by Newton Federal Bank. Regulations
require that all shares to be offered in the offering be sold within a period ending not more than 90 days after regulatory approval of the plan of reorganization

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or a longer period as may be approved by the Federal Reserve Board or, despite approval of the plan of reorganization by our members, the reorganization and offering will not be effected.
This period expires on May 8, 2017, unless extended with the approval of the Federal Reserve Board. If the offering is not completed by May 8, 2017, all subscribers will have the right to
modify or rescind their subscriptions and to have their subscription funds returned promptly with interest. In the event of an extension of this type, all subscribers will be notified in writing
of the time period within which subscribers must notify Newton Federal Bank of their intention to maintain, modify or rescind their subscriptions. If the subscriber rescinds or does not
respond in any manner to Newton Federal Bank’s notice, the funds submitted will be refunded to the subscriber with interest at 0.10% per annum, which is Newton Federal Bank’s current
passbook savings rate, and/or the subscriber’s withdrawal authorizations will be terminated. In the event that the offering is not consummated, all funds submitted and not previously
refunded pursuant to the subscription and community offering will be promptly refunded to subscribers with interest at 0.10% per annum, and all withdrawal authorizations will be
terminated.

Subscription Rights . Under the plan of reorganization, nontransferable subscription rights to purchase the shares of common stock have been issued to persons and entities entitled
to purchase the shares of common stock in the subscription offering. The amount of shares of common stock that these parties may purchase will depend on the availability of the common
stock for purchase under the categories described in the plan of reorganization. Subscription priorities have been established for the allocation of common stock to the extent that the
common stock is available. These priorities are as follows:

Category 1: Eligible Account Holders. Subject to the maximum purchase limitations, each depositor with $50.00 or more on deposit at Newton Federal Bank as of the close of
business on September 30, 2015 will receive nontransferable subscription rights to subscribe for up to the greater of the following:
• $300,000 of common stock;
• one-tenth of one percent of the total offering of common stock; or
• 15 times the product, rounded down to the nearest whole number, obtained by multiplying the total number of shares of common stock to be sold by a fraction, the numerator
of which is the amount of the qualifying deposit of the eligible account holder and the denominator is the total amount of qualifying deposits of all eligible account holders.

If the exercise of subscription rights in this category results in an oversubscription, shares of common stock will be allocated among subscribing eligible account holders so as to
permit each one, to the extent possible, to purchase a number of shares sufficient to make the person’s total allocation equal 100 shares or the number of shares for which the person has
actually subscribed, whichever is less. Thereafter, unallocated shares will be allocated among the remaining subscribing eligible account holders whose subscriptions remain unfilled in the
proportion that the amounts of their respective qualifying deposits bear to the total amount of qualifying deposits of all remaining eligible account holders whose subscriptions remain
unfilled; however, no fractional shares shall be issued. If the amount so allocated exceeds the amount subscribed for by any one or more eligible account holders, the excess shall be
reallocated, one or more times as necessary, among those eligible account holders whose subscriptions are still not fully satisfied on the same principle until all available shares have been
allocated or all subscriptions satisfied. Subscription rights received by officers and directors in this category based on their increased deposits in Newton Federal Bank in the one-year
period preceding September 30, 2015 are subordinated to the subscription rights of other eligible account holders.

To ensure proper allocation of stock, each eligible account holder must list on his or her stock order form all deposit accounts in which he or she had an ownership interest on
September 30, 2015. Failure to list an account, or providing incorrect information, could result in the loss of all or part of a subscriber’s stock allocation.

Category 2: Tax-Qualified Employee Plans. The plan of reorganization provides that tax-qualified employee plans of Newton Federal Bank, such as the employee stock ownership
plan and Section 401(k) plan, will receive nontransferable subscription rights to purchase up to 4.90% of the shares of common stock issued and

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outstanding following the completion of the offering. The employee stock ownership plan intends to purchase 3.92% of our outstanding shares (including shares issued to Community First
Bancshares, MHC). In the event the number of shares offered in the offering is increased above the maximum of the valuation range, tax-qualified employee plans will have a priority right
to purchase any shares exceeding that amount up to 4.90% of the common stock issued and outstanding following the completion of the offering. The employee stock ownership plan may,
with Federal Reserve Board approval, purchase some or all of the shares of common stock in the open market or may purchase shares of common stock directly from Community First
Bancshares, Inc.

Category 3: Supplemental Eligible Account Holders. To the extent that there are sufficient shares of common stock remaining after satisfaction of subscriptions by eligible
account holders and the tax-qualified employee plans, and subject to the maximum purchase limitations, each depositor with $50.00 or more on deposit as of the close of business on
December 31, 2016, will receive nontransferable subscription rights to subscribe for up to the greater of:
• $300,000 of common stock;
• one-tenth of one percent of the total offering of common stock; or
• 15 times the product, rounded down to the nearest whole number, obtained by multiplying the total number of shares of common stock to be issued by a fraction, the
numerator of which is the amount of qualifying deposits of the supplemental eligible account holder and the denominator is the total amount of qualifying deposits of all
supplemental eligible account holders.

If the exercise of subscription rights in this category results in an oversubscription, shares of common stock will be allocated among subscribing supplemental eligible account
holders so as to permit each supplemental eligible account holder, to the extent possible, to purchase a number of shares sufficient to make his or her total allocation equal 100 shares or the
number of shares for which the person has actually subscribed, whichever is less. Thereafter, unallocated shares will be allocated among subscribing supplemental eligible account holders
whose subscriptions remain unfilled in the proportion that the amounts of their respective qualifying deposits bear to total qualifying deposits of all subscribing supplemental eligible
account holders.

To ensure proper allocation of stock, each supplemental eligible account holder must list on his or her stock order form all deposit accounts in which he or she had an ownership
interest on December 31, 2016. Failure to list an account, or providing incorrect information, could result in the loss of all or part of a subscriber’s stock allocation.

Category 4: Other Members. To the extent that there are sufficient shares of common stock remaining after satisfaction of subscriptions by eligible account holders, the tax-
qualified employee plans and supplemental eligible account holders, and subject to the maximum purchase limitations, each member of Newton Federal Bank who is not an eligible account
holder, supplemental eligible account holder or tax-qualified employee plan, as of the close of business on February 1, 2017, including borrowers from Newton Federal Bank as of
January 19, 1984 who maintained such borrowings as of the close of business on February 1, 2017, will receive nontransferable subscription rights to purchase up to $300,000 of common
stock.

If there is an oversubscription in this category, the available shares of common stock will be allocated proportionately based on the size of such other member’s orders.

To ensure proper allocation of stock, each other member must list on his or her stock order form all deposit and loan accounts in which he or she had an ownership interest on
February 1, 2017. Failure to list an account, or providing incorrect information, could result in the loss of all or part of a subscriber’s stock allocation.

Newton Federal Bank and Community First Bancshares, Inc. will make reasonable efforts to comply with the securities laws of all states in the United States in which persons
entitled to subscribe for shares of common stock pursuant to the plan of reorganization reside. However, no shares of common stock will be offered or sold

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under the plan of reorganization to any person who resides in a foreign country or resides in a state of the United States in which a small number of persons otherwise eligible to subscribe
for shares under the plan of reorganization reside or as to which Newton Federal Bank and Community First Bancshares, Inc. determine that compliance with the securities laws of the state
would be impracticable for reasons of cost or otherwise, including, but not limited to, a requirement that Newton Federal Bank or Community First Bancshares, Inc. or any of their officers,
directors or employees register, under the securities laws of the state, as a broker, dealer, salesman or agent. No payments will be made in lieu of the granting of subscription rights to any
person.

Community Offering . Any shares of common stock which have not been purchased in the subscription offering may be offered by Community First Bancshares, Inc. in a
community offering to members of the general public to whom Community First Bancshares, Inc. delivers a copy of this prospectus and a stock order form, with preference given to natural
persons (including trusts of natural persons) residing in the Georgia Counties of Barrow, Butts, Clarke, Greene, Gwinnett, Hall, Henry, Jackson, Jasper, Morgan, Newton, Oconee, Putnam,
Rockdale and Walton. Subject to the maximum purchase limitations, these persons may purchase up to $300,000 of common stock. The community offering, if any, may be undertaken
concurrently with, during, or promptly after the subscription offering, and may terminate at any time without notice. Subject to any required regulatory approvals, Community First
Bancshares, Inc. will determine in its sole discretion the advisability of a community offering, the commencement and termination dates of any community offering, and the methods of
finding potential purchasers in such offering. The opportunity to subscribe for shares of common stock in the community offering category is subject to the right of Community
First Bancshares, Inc. and Newton Federal Bank, in their sole discretion, to accept or reject these orders in whole or in part either at the time of receipt of an order or as soon as
practicable thereafter.

If we do not have sufficient shares of common stock available to fill the orders of natural persons (including trusts of natural persons) residing in the Georgia Counties of Barrow,
Butts, Clarke, Greene, Gwinnett, Hall, Henry, Jackson, Jasper, Morgan, Newton, Oconee, Putnam, Rockdale and Walton whose orders are accepted by Newton Federal Bank, we will
allocate the available shares among those persons in a manner that permits each of them, to the extent possible, to purchase the lesser of 100 shares, or the number of shares subscribed for
by such person. Thereafter, unallocated shares will be allocated among natural persons (including trusts of natural persons) residing in the Georgia Counties of Barrow, Butts, Clarke,
Greene, Gwinnett, Hall, Henry, Jackson, Jasper, Morgan, Newton, Oconee, Putnam, Rockdale and Walton, whose orders remain unsatisfied on an equal number of shares basis per order. If,
after allocation of shares to natural persons (including trusts of natural persons) residing in the Georgia Counties of Barrow, Butts, Clarke, Greene, Gwinnett, Hall, Henry, Jackson, Jasper,
Morgan, Newton, Oconee, Putnam, Rockdale and Walton, we do not have sufficient shares of common stock available to fill the orders of other members of the general public, we will
allocate the available shares among those persons in a manner that permits each of them, to the extent possible, to purchase the lesser of 100 shares, or the number of shares subscribed for
by such person. Thereafter, unallocated shares will be allocated among members of the general public whose orders remain unsatisfied on an equal number of shares basis per order.

Syndicated Community Offering . The plan of reorganization provides that, if necessary, all shares of common stock not purchased in the subscription offering and community
offering may be offered for sale to the general public in a syndicated community offering to be managed by BSP Securities, LLC, acting as our agent. In such capacity, BSP Securities, LLC
may form a syndicate of other brokers-dealers who are member firms of the Financial Industry Regulatory Authority, Inc. (“FINRA”). Neither BSP Securities, LLC nor any registered
broker-dealer will have any obligation to take or purchase any shares of the common stock in the syndicated community offering; however, BSP Securities, LLC has agreed to use its best
efforts in the sale of shares in any syndicated community offering. We have not selected any particular broker-dealers to participate in a syndicated community offering and will not do so
until prior to the commencement of the syndicated community offering. The syndicated community offering would terminate no later than 45 days after the expiration of the subscription
offering, unless extended by us, with approval of the Federal Reserve Board. See “—Community Offering” above for a discussion of rights of subscribers in the event an extension is
granted.

The opportunity to subscribe for shares of common stock in the syndicated community offering is subject to our right to reject orders, in whole or part, either at the time
of receipt of an order or as soon as practicable following the expiration date of the offering. If your order is rejected in part, you will not have the right to cancel the remainder of
your order.

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The price at which shares of common stock are sold in the syndicated community offering will be the same price as in the subscription and community offerings. Subject to the
overall purchase limitations, no person by himself or herself may subscribe for or purchase more than $300,000 of common stock.

In the event of a syndicated community offering, it is currently expected that investors would follow the same general procedures applicable to purchasing shares in the subscription
and community offerings (the use of stock order forms and the submission of funds directly to Community First Bancshares, Inc. for the payment of the purchase price of the shares
ordered) except that payment must be in immediately available funds (bank checks, money orders, deposit account withdrawals from accounts at Newton Federal Bank or wire transfers).
See “—Procedure for Purchasing Shares.”

If for any reason we cannot effect a syndicated offering of shares of common stock not purchased in the subscription and community offerings, or if there are an insignificant
number of shares remaining unsold after such offerings, we will try to make other arrangements for the sale of unsubscribed shares. The Federal Reserve Board and the Financial Industry
Regulatory Authority must approve any such arrangements.

Limitations on Purchase of Shares . The plan provides for certain limitations on the purchase of shares of common stock in the offering. These limitations are as follows:
A. The aggregate amount of outstanding common stock of Community First Bancshares, Inc. owned or controlled by persons other than Community First Bancshares, MHC at
the close of the reorganization and offering shall be less than 50% of Community First Bancshares, Inc.’s total outstanding common stock.
B. The maximum purchase of common stock in the subscription offering by a person or group of persons through a single deposit account is $300,000. No person by himself,
with an associate or group of persons acting in concert, may purchase more than $400,000 of the common stock offered in the offering, except that: (i) Community First
Bancshares, Inc. may, in its sole discretion and without further notice to or solicitation of subscribers or other prospective purchasers, increase such maximum purchase
limitation to 9.9% of the number of shares sold in the offering, provided that the total number of shares purchased by persons, their associates and those persons with which
they are acting in concert, to the extent such purchases exceed 5% of the shares sold in the offering, shall not exceed, in the aggregate, 10% (or such higher percentage as
may be determined by our board of directors with the approval of federal banking regulators) of the total number of the shares sold in the offering; (ii) the tax-qualified
employee plans may purchase up to 10% of the shares offered in the offering; and (iii) for purposes of this paragraph B shares to be held by any tax-qualified employee plan
and attributable to a person shall not be aggregated with other shares purchased directly by or otherwise attributable to such person.
C. The aggregate amount of common stock acquired in the offering, plus all prior stock offerings by Community First Bancshares, Inc., by any non-tax-qualified employee plan
or any management person (as defined in the plan) and his or her associates, exclusive of any shares of common stock acquired by such plan or management person and his
or her associates in the secondary market, shall not exceed 4.9% of the outstanding shares of common stock of Community First Bancshares, Inc., at the conclusion of the
offering. In calculating the number of shares held by any management person and his or her associates under this paragraph, shares held by any tax-qualified employee plan
or non-tax-qualified employee plan of Community First Bancshares, Inc., or Newton Federal Bank that are attributable to such person shall not be counted.
D. The aggregate amount of common stock acquired in the offering, plus all prior stock issuances by Community First Bancshares, Inc., by any one or more tax-qualified
employee plans, or any

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management person and his or her associates, exclusive of any shares of common stock acquired by such plan or management person and his or her associates in the
secondary market, shall not exceed 4.9% of the stockholders’ equity of Community First Bancshares, Inc., at the conclusion of the offering. In calculating the number of
shares held by any management person and his or her associates under this paragraph, shares held by any tax-qualified employee plan or non-tax-qualified employee plan of
Community First Bancshares, Inc., or Newton Federal Bank that are attributable to such person shall not be counted.
E. The aggregate amount of common stock acquired in the offering, plus all prior stock issuances by Community First Bancshares, Inc., by any one or more tax-qualified
employee plans, exclusive of any shares of common stock acquired by such plans in the secondary market, shall not exceed 4.9% of the outstanding shares of common stock
of Community First Bancshares, Inc. at the conclusion of the offering.
F. The aggregate amount of common stock acquired in the offering, plus all prior stock issuances by Community First Bancshares, Inc., by any one or more tax-qualified
employee plans, exclusive of any shares of common stock acquired by such plans in the secondary market, shall not exceed 4.9% of the stockholders’ equity of Community
First Bancshares, Inc. at the conclusion of the offering.
G. The aggregate amount of common stock that may be encompassed under all stock option plans and restricted stock plans of Community First Bancshares, Inc. may not
exceed, in the aggregate, 25% of the outstanding shares of common stock of Community First Bancshares, Inc. held by persons other than Community First Bancshares,
MHC at the conclusion of the stock offering.
H. The aggregate amount of common stock acquired in the offering, plus all prior stock issuances by Community First Bancshares, Inc., by all non-tax-qualified employee plans
or management persons and their associates, exclusive of any common stock acquired by such plans or management persons and their associates in the secondary market,
shall not exceed 33% (or such higher percentage as may be set by our board of directors with the approval of federal banking regulators) of the outstanding shares of common
stock held by persons other than Community First Bancshares, MHC at the conclusion of the offering. In calculating the number of shares held by management persons and
their associates under this paragraph or paragraph I. below, shares held by any tax-qualified employee plan or non-tax-qualified employee plan that are attributable to such
persons shall not be counted.
I. The aggregate amount of common stock acquired in the offering, plus all prior stock issuances by Community First Bancshares, Inc., by all non-tax-qualified employee plans
or management persons and their associates, exclusive of any common stock acquired by such plans or management persons and their associates in the secondary market,
shall not exceed 33% of the stockholders’ equity of Community First Bancshares, Inc. held by persons other than Community First Bancshares, MHC at the conclusion of the
offering.
J. Notwithstanding any other provision of the plan of reorganization, no person shall be entitled to purchase any common stock to the extent such purchase would be illegal
under any federal law or state law or regulation or would violate regulations or policies of FINRA. Community First Bancshares, Inc., and/or its agents may ask for an
acceptable legal opinion from any purchaser as to the legality of such purchase and may refuse to honor any purchase order if such opinion is not timely furnished.
K. The board of directors of Community First Bancshares, Inc., has the right in its sole discretion to reject any order submitted by a person whose representations our board of
directors believes to be false or who it otherwise believes, either alone or acting in concert with others, is violating, circumventing, or intends to violate, evade or circumvent
the terms and conditions of the plan.

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L. A minimum of 25 shares of common stock must be purchased by each person purchasing shares in the offering to the extent those shares are available; provided, however,
that in the event the minimum number of shares of common stock purchased times the price per share exceeds $500, then such minimum purchase requirement shall be
reduced to such number of shares which when multiplied by the price per share shall not exceed $500, as determined by our board of directors.

For purposes of the plan of reorganization, the members of our board of directors are not deemed to be acting in concert solely by reason of their board membership. The term
“associate” is used above to indicate any of the following relationships with a person:
• any corporation or organization, other than Community First Bancshares, MHC, Community First Bancshares, Inc. or Newton Federal Bank or a majority-owned subsidiary
of Community First Bancshares, Inc. or Newton Federal Bank, of which a person is a senior officer or partner, or beneficially owns, directly or indirectly, 10% or more of
any class of equity securities of the corporation or organization;
• any trust or other estate, if the person has a substantial beneficial interest in the trust or estate or is a trustee or fiduciary of the trust or estate except that for the purposes
relating to subscriptions in the stock offering and the sale of common stock following the reorganization, a person who has a substantial beneficial interest in any non-tax-
qualified employee plan or any tax-qualified employee plan, or who is a trustee or fiduciary of such plan, is not an associate of such plan, and except that for purposes of
aggregating total shares that may be held by officers and directors, the term “associate” does not include any tax-qualified employee plan; or
• any person who is related by blood or marriage to such person and (i) who lives in the same house as the person; or (ii) who is a director or senior officer of Community First
Bancshares, MHC, Community First Bancshares, Inc. or Newton Federal Bank or a subsidiary thereof.

As used above, the term “acting in concert” means:

• knowing participation in a joint activity or interdependent conscious parallel action towards a common goal whether or not pursuant to an express agreement; or
• a combination or pooling of voting or other interests in the securities of an issuer for a common purpose pursuant to any contract, understanding, relationship, agreement or
other arrangement, whether written or otherwise. A person or company that acts in concert with another person or company (“other party”) shall also be deemed to be acting
in concert with any person or company who is also acting in concert with that other party, except that any tax-qualified employee plan will not be deemed to be acting in
concert with its trustee or a person who serves in a similar capacity solely for the purpose of determining whether stock held by the trustee and stock held by the plan will be
aggregated.

Persons or companies who file jointly a Schedule 13D or Schedule 13G with any regulatory agency will be deemed to be acting in concert.

The boards of directors of Community First Bancshares, Inc. and Newton Federal Bank may, in their sole discretion, and without notice or solicitation of other prospective
purchasers, increase the maximum purchase limitation to 9.9% of the number of shares sold in the offering provided that the total number of shares purchased by persons, their associates
and those persons with which they are acting in concert, to the extent such purchases exceed 5% of the shares sold in the offering, shall not exceed, in the aggregate, 10% (or such higher
percentage as may be determined by our board of directors with the approval of the federal banking regulators) of the total number of shares sold in the offering. Requests to purchase
shares of Community First Bancshares, Inc. common stock under this provision will be allocated by the boards of directors of Community First Bancshares, Inc. and Newton

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Federal Bank in accordance with the priority rights and allocation procedures set forth above. Depending upon market and financial conditions, and subject to certain regulatory limitations,
the boards of directors of Community First Bancshares, Inc. and Newton Federal Bank, with the approval of the federal banking regulators and without further approval of the members,
may increase or decrease any of the above purchase limitations at any time. To the extent that shares are available, each subscriber must subscribe for a minimum of 25 shares. In computing
the number of shares of common stock to be allocated, all numbers will be rounded down to the next whole number.

Shares of common stock purchased in the offering will be freely transferable except for shares of common stock purchased by executive officers and directors of Newton Federal
Bank or Community First Bancshares, Inc. and except as described below. In addition, under FINRA guidelines, members of the FINRA and their associates are subject to certain reporting
requirements upon purchase of these securities.

Plan of Distribution and Marketing Arrangements

Offering materials for the offering initially have been distributed to certain persons by mail, with additional copies made available through our Stock Information Center and BSP
Securities, LLC.

To assist in the marketing of the common stock, we have retained BSP Securities, LLC, which is a broker-dealer registered with FINRA. BSP Securities, LLC will assist us in the
offering as follows:
• consulting as to the marketing implications of the plan of reorganization and stock issuance plan;
• reviewing with our board of directors the financial impact of the offering on us, based upon the independent appraiser’s pro forma market value of the common stock;
• reviewing all offering documents, including the prospectus, stock order forms and related offering materials (we are responsible for the preparation and filing of such
documents);
• assisting in the design and implementation of a marketing strategy for the offering;
• assisting us in scheduling and preparing for meetings with potential investors and/or other broker-dealers in connection with the offering;
• assisting us in drafting press releases as required or appropriate in connection with the offering; and
• providing such other general advice and assistance as may be requested to promote the successful completion of the offering.

For its services as financial advisor, BSP Securities, LLC will receive (i) a non-refundable management fee of $25,000, which we have already paid, and (ii) a service fee of 1.0% of
the aggregate dollar amount of all shares of common stock sold in the subscription and community offerings. No fee will be paid on any shares purchased by our directors, officers or
employees or members of their immediate families (whether directly or through a personal trust), or on shares purchased by any employee benefit plan or trust established for the benefit of
our directors, officers and employees. The service fee will be reduced by the management fee.

In the event shares of common stock are sold through a group of broker-dealers in a syndicated community offering, we will pay fees of 5.5% of the aggregate dollar amount of
shares of common stock sold in the syndicated community offering to BSP Securities, LLC and any other broker-dealers included in the syndicated community offering. Any such offering
will be on a best efforts basis, and BSP Securities, LLC will serve as sole book-running manager in such an offering. All fees payable with respect to a syndicated community offering will
be in addition to fees payable with respect to the subscription and community offerings.

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We also will reimburse BSP Securities, LLC for its reasonable expenses associated with its marketing effort in an amount not to exceed $10,000 and for attorney’s fees and expenses
not to exceed $85,000. The expenses may be increased in the event we conduct a syndicated community offering. Under such circumstances, BSP Securities, LLC may be reimbursed for
total additional reasonable expenses and legal fees and expenses not to exceed $15,000 in the aggregate.

We will indemnify BSP Securities, LLC against liabilities and expenses (including legal fees) incurred in connection with certain claims or litigation arising out of or based upon
untrue statements or omissions contained in the offering material for the common stock, including liabilities under the Securities Act of 1933, as amended.

BSP Securities, LLC has not prepared any report or opinion constituting a recommendation or advice to us or to persons who subscribe for stock, nor has it prepared an opinion as to
the fairness to us of the purchase price or the terms of the stock to be sold. BSP Securities, LLC expresses no opinion as to the prices at which the shares of common stock to be issued may
trade.

Our directors and executive officers may participate in the solicitation of offers to purchase shares of common stock. Other trained employees may participate in the offering in
ministerial capacities, providing clerical work in effecting a sales transaction or answering questions of a ministerial nature. Other questions of prospective purchasers will be directed to
executive officers or registered representatives. We will rely on Rule 3a4-1 of the Exchange Act, so as to permit officers, directors, and employees to participate in the sale of shares of
common stock. No officer, director or employee will be compensated for his participation by the payment of commissions or other remuneration based either directly or indirectly on the
transactions in the shares of common stock. BSP Securities, LLC will solicit orders and conduct sales of the common stock of Community First Bancshares, Inc. in states in which our
directors and executive officers are not permitted to offer and sell our shares of common stock.

Stock Information Center Management

We have also engaged BSP Securities, LLC to manage our Stock Information Center in connection with the offering. In this role, BSP Securities, LLC will assist us in the offering
as follows:
• coordinating vote solicitation and the special meeting of members;
• design stock order forms;
• organize and supervise the Stock Information Center; and
• employee training.

For these services, BSP Securities, LLC will receive a fee of $20,000, $10,000 of which is non-refundable and has already been paid, plus reimbursement of expenses not to exceed
$10,000. The fee can be increased by $5,000 in the event of any unusual or additional items or duplication of service required as a result of a material change in applicable regulations or the
plan of reorganization, or a material delay or other similar events.

How We Determined the Stock Pricing and the Number of Shares to be Issued
The plan of reorganization and federal regulations require that the aggregate purchase price of the common stock sold in the offering be based on the appraised pro forma market
value of the common stock, as determined by an independent valuation. We have retained RP Financial, LC. to prepare an independent valuation appraisal. For its services in preparing the
initial valuation RP Financial, LC. will receive a fee of $40,000, and will receive a fee of $7,500 for each appraisal update. RP Financial, LC. will be reimbursed for its expenses up to
$4,000.

We are not affiliated with RP Financial, LC., and neither we nor RP Financial, LC. has an economic interest in, or is held in common with, the other. RP Financial, LC. represents
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any fact or circumstance that would cause it not to be “independent” within the meaning of the reorganization regulations or the applicable regulatory valuation guidelines or otherwise
prohibit or restrict in anyway RP Financial, LC. from serving in the role of our independent appraiser.

We have agreed to indemnify RP Financial, LC. and its employees and affiliates against specified losses, including any losses in connection with claims under the federal securities
laws, arising out of its services as independent appraiser, except where such liability results from its negligence or bad faith.

The independent valuation appraisal considered the pro forma impact of the offering. Consistent with federal appraisal guidelines, the appraisal applied three primary methodologies:
(1) the pro forma price-to-book value approach applied to both reported book value and tangible book value; (2) the pro forma price-to-earnings approach applied to reported and core
earnings; and (3) the pro forma price-to-assets approach. The market value ratios applied in the three methodologies were based upon the current market valuations of the peer group
companies identified by RP Financial, LC., subject to valuation adjustments applied by RP Financial, LC. to account for differences between us and our peer group. RP Financial, LC.
placed the greatest emphasis on the price-to-book value approach in estimating pro forma market value RP Financial, LC. did not consider a pro forma price-to-assets approach to be
meaningful in preparing the appraisal, as this approach is more meaningful when a company has low equity or earnings. The price-to-assets approach is less meaningful for a company like
us, as we have equity in excess of regulatory capital requirements and positive reported and core earnings.

The independent valuation was prepared by RP Financial, LC. in reliance upon the information contained in this prospectus, including our financial statements. RP Financial, LC.
also considered the following factors, among others:
• our present and projected operating results and financial condition;
• the economic and demographic conditions in our existing market area;
• certain historical, financial and other information relating to us;
• a comparative evaluation of our operating and financial characteristics with those of other similarly situated publicly traded savings institutions;
• the impact of the reorganization and the offering on our equity and earnings potential;
• our proposed dividend policy; and
• the trading market for securities of comparable institutions and general conditions in the market for such securities.

The independent valuation is also based on an analysis of a peer group of publicly traded savings and loan holding companies that RP Financial, LC. considered comparable to us
under regulatory guidelines applicable to the independent valuation. Under these guidelines, a minimum of ten peer group companies are selected from the universe of all publicly-traded
savings institutions with relatively comparable resources, strategies and financial and other operating characteristics. Such companies must also be traded on an exchange (such as Nasdaq
or the New York Stock Exchange). The peer group companies selected also consisted of fully-converted stock institutions that were not subject to an actual or rumored acquisition and that
had been in fully-converted form for at least one year. In addition, RP Financial, LC. limited the peer group companies to the following two selection criteria: (i) institutions with assets less
than $600 million; and (ii) institutions with equity-to-assets ratios greater than 12.50%. The regulatory appraisal guidelines that require RP Financial, LC. to select a minimum of ten peer
companies, whose equity securities are traded on an exchange, resulted in most of the peer companies having greater assets than we do, even though the peer companies selected represent
the ten smallest savings and loan holding companies, based on asset size, traded on the Nasdaq Stock Market with an equity-to-assets ratio greater than 12.50%.

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In applying each of the valuation methods, RP Financial, LC. considered adjustments to the pro forma market value based on a comparison of us with the peer group. RP Financial,
LC. advised the board of board of directors that the valuation conclusion included the following adjustments relative to the peer group:
• a slight downward adjustment was applied for profitability, growth and viability of earnings which took into consideration our lower pro forma return on equity, uncertainty
related to future earnings growth given the expanded market area and potential impact of less favorable asset quality ratios on earnings relative to the comparable peer group
measures;
• a slight downward adjustment was made for dividends due to the MHC ownership structure and dividend waiver regulations in place for MHCs that impact minority
ownership ratios, in comparison to the fully-converted peer group companies; and
• a slight downward adjustment was made for liquidity of the stock due to our lower number of shares to be outstanding and lower market capitalization expected in
comparison to the peer group companies.

RP Financial made no adjustments for financial condition, asset growth, market area, marketing of the issue, management, or effect of government regulations and regulatory
reform.

Included in the independent valuation were certain assumptions as to our pro forma earnings after the reorganization that were utilized in determining the appraised value. These
assumptions included estimated expenses, an assumed after-tax rate of return on the net offering proceeds and purchases in the open market of 1.96% of the shares common stock to be
outstanding by the stock-based benefit plan at the $10.00 purchase price. See “Pro Forma Data” for additional information concerning these assumptions. The use of different assumptions
may yield different results.

On the basis of the foregoing, RP Financial, LC. advised us that as of February 3, 2017, the estimated pro forma market value of the common stock, assuming we were selling a
minority of our shares in the offering, was $57.0 million. Based on applicable regulations, this forms a midpoint of a valuation range with a minimum of $48.5 million and a maximum of
$65.6 million. Our board of directors determined to offer the shares of common stock in the offering at the purchase price of $10.00 per share and that 46% of the shares issued should be
held by purchasers in the offering and 54% should be held by Community First Bancshares, MHC. Based on the estimated valuation range and the purchase price of $10.00 per share, the
total number of shares of common stock that Community First Bancshares, Inc. will issue will range from 4,845,000 to 6,555,000 shares, with a midpoint of 5,700,000 shares (including in
each case shares issued to Community First Bancshares, MHC), and the number of shares sold in the offering will range from 2,228,700 shares to 3,015,300 shares, with a midpoint of
2,622,000 shares.

Our board of directors reviewed the independent valuation and, in particular, considered (i) our financial condition and results of operations for the two years ended September 30,
2016 and for the quarter ended December 31, 2016, (ii) financial comparisons to other financial institutions, and (iii) stock market conditions generally and, in particular, for financial
institutions. All of these factors are set forth in the independent valuation. Our board of directors also reviewed the methodology and the assumptions used by RP Financial, LC. in preparing
the independent valuation. The estimated valuation range may be amended with the approval of the Federal Reserve Board, if necessitated by subsequent developments in our financial
condition or market conditions generally.

Following commencement of the subscription offering, the maximum of the estimated valuation range may be increased by up to 15%, to up to $75.4 million and the maximum
number of shares that will be outstanding immediately following the offering may be increased up to 15% to up to 7,538,250 shares. Under such circumstances the number of shares sold in
the offering will be increased to up to 3,467,595 shares and the number of shares held by Community First Bancshares, MHC will be increased to up to 4,070,655 shares. The increase in the
valuation range may occur to reflect demand for the shares or changes in market conditions, without the resolicitation of subscribers. The minimum of the estimated valuation range and the
minimum of the offering range may not be decreased without a resolicitation of subscribers. The purchase price of $10.00 per share will remain

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fixed. See “—Offering of Common Stock—Limitations On Purchase of Shares” as to the method of distribution and allocation of additional shares of common stock that may be issued in
the event of an increase in the offering range to fill unfilled orders in the subscription and community offerings.

The independent valuation is not intended, and must not be construed, as a recommendation of any kind as to the advisability of purchasing shares of common stock. RP Financial,
LC. did not independently verify the financial statements and other information provided by Newton Federal Bank, nor did RP Financial, LC. value independently the assets or liabilities of
Newton Federal Bank. The independent valuation considers Newton Federal Bank as a going concern and should not be considered as an indication of its liquidation value. Moreover,
because the valuation is necessarily based upon estimates and projections of a number of matters, all of which are subject to change from time to time, no assurance can be given that
persons purchasing shares in the offering will thereafter be able to sell such shares at prices at or above the purchase price.

The independent valuation will be updated at the time of the completion of the offering. If the update to the independent valuation at the conclusion of the offering results in an
increase in the pro forma market value of the common stock to more than $75.4 million or a decrease in the pro forma market value to less than $48.5 million, then Community First
Bancshares, Inc., after consulting with the Federal Reserve Board, may terminate the plan of reorganization and return all funds promptly, with interest on payments made by check,
certified or teller’s check, bank draft or money order; extend or hold a new subscription offering, community offering, or both; establish a new offering range and commence a resolicitation
of subscribers; or take such other actions as may be permitted by the Federal Reserve Board in order to complete the reorganization and offering. In the event that a resolicitation is
commenced due to a change in the independent valuation, all funds will be promptly returned to investors and investors will be given the opportunity to place a new order for a period of
time. A resolicitation, if any, following the conclusion of the subscription and community offerings would not exceed 45 days unless further extended by regulators for periods of up to 90
days not to extend beyond 24 months following the special meeting of members, or March 30, 2019.

An increase in the independent valuation and the number of shares to be issued in the offering would decrease both a subscriber’s ownership interest and Community First
Bancshares, Inc.’s pro forma earnings and stockholders’ equity on a per share basis while decreasing pro forma earnings and increasing stockholders’ equity on an aggregate basis. A
decrease in the independent valuation and the number of shares of common stock to be issued in the offering would increase both a subscriber’s ownership interest and Community First
Bancshares, Inc.’s pro forma earnings and stockholders’ equity on a per share basis while increasing pro forma net income and decreasing stockholders’ equity on an aggregate basis. For a
presentation of the effects of such changes, see “Pro Forma Data.”

Copies of the appraisal report of RP Financial, LC. and the detailed memorandum of the appraiser setting forth the method and assumptions for such appraisal are available for
inspection at the main office of Newton Federal Bank and the other locations specified under “Where You Can Find More Information.”

No sale of shares of common stock may occur unless, prior to such sale, RP Financial, LC. confirms to Newton Federal Bank and the Federal Reserve Board that, to the best of its
knowledge, nothing of a material nature has occurred that, taking into account all relevant factors, would cause RP Financial, LC. to conclude that the independent valuation is incompatible
with its estimate of the pro forma market value of the common stock of Community First Bancshares, Inc. at the conclusion of the offering. Any change that would result in an aggregate
purchase price that is below the minimum or above the maximum of the estimated valuation range would be subject to regulatory approval. If such confirmation is not received, we may
extend the offering; reopen the offering or commence a new offering; establish a new estimated valuation range and commence a resolicitation of all purchasers with the approval of federal
regulators; or take such other actions as permitted in order to complete the offering.

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Prospectus Delivery
To ensure that each purchaser in the subscription and community offerings receives a prospectus at least 48 hours before the expiration of the offering in accordance with Rule 15c2-
8 of the Securities Exchange Act of 1934, we may not mail a prospectus any later than five days prior to the expiration date or hand deliver a prospectus any later than two days prior to that
date. We are not obligated to deliver a prospectus or stock order form by means other than U.S. Mail. Execution of a stock order form will confirm receipt of delivery of a prospectus in
accordance with Rule 15c2-8. Stock order forms will be distributed only if preceded or accompanied by a prospectus.

In the syndicated community offering, a prospectus and stock order form in electronic format may be made available on Internet sites or through other online services maintained by
BSP Securities, LLC or one or more other members of the syndicate, or by their respective affiliates. In those cases, prospective investors may view offering terms online and, depending
upon the syndicate member, prospective investors may be allowed to place orders online. The members of the syndicate may agree with us to allocate a specific number of shares for sale to
online brokerage account holders. Any such allocation for online distributions will be made on the same basis as other allocations.

Other than the prospectus in electronic format, the information on the Internet sites referenced in the preceding paragraph and any information contained in any other Internet site
maintained by any member of the syndicate is not part of this prospectus or the registration statement of which this prospectus forms a part, has not been approved and/or endorsed by us or
by BSP Securities, LLC or any other member of the syndicate in its capacity as selling agent or syndicate member and should not be relied upon by investors.

Procedure for Purchasing Shares

Expiration Date. The offering will expire at 4:00 p.m., Eastern Time, on March 22, 2017, unless we extend it for up to 45 days. This extension may be approved by us, in our sole
discretion, without further approval or additional notice to subscribers in the offering. Any extension of the subscription and/or community offering beyond May 8, 2017 would require the
regulatory approval. If the offering is extended past May 8, 2017, we will resolicit subscribers. You will have the opportunity to confirm, change or cancel your order within a specified
period of time. If you do not respond during that period, your stock order will be cancelled and your deposit account withdrawal authorizations will be cancelled or your funds submitted
will be returned promptly with interest at 0.10% per annum from the date your stock order was processed. No single extension will exceed 90 days. Aggregate extensions may not go
beyond March 30, 2019, which is two years after the special meeting of members. We reserve the right in our sole discretion to terminate the offering at any time and for any reason, in
which case we will cancel any deposit account withdrawal authorizations and promptly return all funds submitted, with interest at 0.10% per annum from the date of processing as described
above.

We have the right to reject any order submitted in the offering by a person who we believe is making false representations or who we otherwise believe, either alone or acting in
concert with others, is violating, evading, circumventing, or intends to violate, evade or circumvent the terms and conditions of the plan of reorganization.

Use of Stock Order Forms. In order to purchase shares of common stock, you must complete and sign an original stock order form and remit full payment. We will not be required
to accept incomplete stock order forms, unsigned stock order forms, or orders submitted on photocopied or facsimiled stock order forms. All stock order forms must be received , not
postmarked, prior to 4:00 p.m., Eastern Time, March 22, 2017. We will not accept stock order forms that are not received by that time, are executed defectively or are received without full
payment or without appropriate deposit account withdrawal instructions. We are not required to notify subscribers of incomplete or improperly executed stock order forms. We have the
right to permit the correction of incomplete or improperly executed stock order forms. We do not represent, however, that we will do so. You may submit your stock order form and
payment by mail using the stock order reply envelope provided, by overnight delivery to our Stock Information Center at the indicated address on the stock order form or by hand-delivery
to our Stock Information Center, which will be located at Newton Federal Bank’s main office, located at 3175 Highway 278, Covington, Georgia. The Stock Information Center will be
open Monday through Friday, between 10:00 a.m. and 4:00 p.m., Eastern Time. The Stock Information Center will not be open on bank holidays. Once tendered, an order form cannot be
modified or revoked unless the offering is terminated or is extended beyond May 8, 2017, or the number of shares of common stock to be sold is increased to more than 3,467,595 shares or
decreased to less than 2,228,700 shares. We reserve the absolute right, in our sole discretion, to reject orders received in the community offering, in whole or in part, at the time of receipt or
at any time prior to completion of the offering.

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If you are ordering shares in the subscription offering, you must represent that you are purchasing shares for your own account and that you have no agreement or understanding
with any person for the sale or transfer of the shares. Our interpretation of the terms and conditions of the plan of reorganization and of the acceptability of the order forms will be final.

To ensure that eligible account holders, supplemental eligible account holders, and other members are properly identified as to their stock purchase priorities, such parties must list
all deposit and loan accounts on the stock order form giving all names on each deposit and loan account and the account numbers at the applicable eligibility date.

By signing the order form, you will be acknowledging that the common stock is not a deposit or savings account and is not federally insured or otherwise guaranteed by Newton
Federal Bank or the federal government, and that you received a copy of this prospectus. However, signing the order form will not result in you waiving your rights under the Securities Act
of 1933 or the Securities Exchange Act of 1934.

Payment for Shares. Payment for all shares of common stock will be required to accompany all completed stock order forms for the purchase to be valid. Payment for shares may be
made by:
• personal check, bank check or money order, payable to Community First Bancshares, Inc.; or
• authorization of withdrawal from Newton Federal Bank deposit account(s), other than checking accounts or individual retirement accounts (“IRAs”).

Appropriate means for designating withdrawals from deposit accounts at Newton Federal Bank are provided in the stock order forms. The funds designated must be available in the
account(s) at the time the stock order form is received. A hold will be placed on these funds, making them unavailable to the depositor. Funds authorized for withdrawal will continue to
earn interest within the account at the contract rate until the offering is completed, at which time the designated withdrawal will be made. Interest will remain in the account. Interest
penalties for early withdrawal applicable to certificate of deposit accounts will not apply to withdrawals authorized for the purchase of shares of common stock; however, if a withdrawal
results in a certificate of deposit account with a balance less than the applicable minimum balance requirement, the certificate of deposit will be cancelled at the time of withdrawal without
penalty, and the remaining balance will earn interest at the rate of 0.10% per annum subsequent to the withdrawal.

In the case of payments made by personal check, these funds must be available in the account(s). Checks and money orders will be immediately cashed and placed in a segregated
account at Newton Federal Bank and will earn interest at a rate of 0.10% per annum from the date payment is processed until the offering is completed, at which time, a subscriber will be
issued a check for interest earned.

Regulations prohibit Newton Federal Bank from knowingly lending funds or extending credit to any person to purchase shares of common stock in the offering. You may not pay by
wire transfer. You may not submit cash or use a check drawn on a Newton Federal Bank line of credit. We will not accept third-party checks (a check written by someone other than you)
payable to you and endorsed over to Community First Bancshares, Inc. You may not designate on your stock order form a direct withdrawal from a Newton Federal Bank retirement
account. See “—Using Retirement Account Funds” for information on using such funds. Additionally, you may not designate on your stock order form a direct withdrawal from Newton
Federal Bank deposit accounts with check-writing privileges. Please submit a check instead. If you request direct withdrawal, we reserve the right to interpret that as your authorization to
treat those funds as if we had received a check for the designated amount, and we will immediately withdraw the amount from your checking account(s). Once we receive your executed
stock order form, it may not be modified, amended or rescinded without our consent, unless the offering is not completed by the expiration date, in which event purchasers may be given the
opportunity to increase, decrease or rescind their orders for a specified period of time.

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We have the right, in our sole discretion, to permit institutional investors to submit irrevocable orders together with the legally binding commitment for payment and to thereafter
pay for the shares of common stock for which they subscribe at any time prior to 48 hours before the completion of the offering. This payment may be made by wire transfer.

Our employee stock ownership plan will not be required to pay for any shares purchased in the offering until completion of the stock offering, provided there is a loan commitment
from either an unrelated financial institution or Community First Bancshares, Inc. to lend to the employee stock ownership plan the necessary amount to fund the purchase at the time of the
expiration of the subscription offering. In addition, if our 401(k) plan purchases shares in the offering, it will not be required to pay for such shares until completion of the stock offering.

Using Retirement Account Funds. If you are interested in using your individual retirement account funds to purchase shares of common stock, you must do so through a self-
directed individual retirement account such as a brokerage firm individual retirement account. By regulation, Newton Federal Bank’s individual retirement accounts are not self-directed, so
they cannot be invested in shares of our common stock. Therefore, if you wish to use your funds that are currently in a Newton Federal Bank individual retirement account, you
may not designate on the stock order form that you wish funds to be withdrawn from the account for the purchase of common stock. The funds you wish to use for the purchase
of common stock will have to be transferred to a brokerage account. It may take several weeks to transfer your Newton Federal Bank individual retirement account to an
independent trustee, so please allow yourself sufficient time to take this action. There will be no early withdrawal or Internal Revenue Service interest penalties for these transfers. A
one-time and/or annual administrative fee may be payable to the independent custodian or trustee. Depositors interested in using funds in an individual retirement account or any other
retirement account to purchase shares of common stock should contact our Stock Information Center as soon as possible, preferably at least two weeks prior to the March 22, 2017 end of
the offering period, because processing such transactions takes additional time, and whether such funds can be used may depend on limitations imposed by the institutions where such funds
are currently held. We cannot guarantee that you will be able to use such funds.

Delivery of Stock Purchased

All shares of common stock sold will be issued in book entry form. Stock certificates will not be issued. A statement reflecting ownership of shares of common stock issued in the
subscription and community offerings will be mailed by our transfer agent to the persons entitled thereto at the registration address noted by them on their stock order forms as soon as
practicable following consummation of the stock offering. Shares of common stock sold in the syndicated community offering may be delivered electronically through the services of The
Depository Trust Company, subject to any necessary regulatory approval. We expect trading in the stock to begin on the day of completion of the stock offering or the next business day.
Until a statement reflecting ownership of shares of common stock is available and delivered to purchasers, purchasers might not be able to sell the shares of common stock that
they purchased, even though the common stock will have begun trading. Your ability to sell your shares of common stock before receiving your statement will depend on arrangements
you may make with a brokerage firm.

Restrictions on Transfer of Subscription Rights and Shares

Federal Reserve Board regulations prohibit any person with subscription rights, specifically the Eligible Account Holders, Supplemental Eligible Account Holders and Other
Members, from transferring or entering into any agreement or understanding to transfer the legal or beneficial ownership of the subscription rights issued under the plan of reorganization or
the shares of common stock to be issued upon their exercise. These rights may be exercised only by the person to whom they are granted and only for his or her account. Each person
exercising subscription rights will be required to certify that he or she is purchasing shares solely for his or her own account and that he or she has no agreement or understanding regarding
the sale or transfer of such shares. The regulations

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also prohibit any person from offering or making an announcement of an offer or intent to make an offer to purchase subscription rights or shares of common stock to be issued upon their
exercise prior to completion of the offering. On the stock order form, you cannot add the names of others for joint stock registration unless they are also named on the qualifying deposit or
loan account, and you cannot delete names of others except in the case of certain orders placed through an IRA, Keogh, 401(k) or similar plan, and except in the event of the death of a
named eligible depositor.

We intend to pursue any and all legal and equitable remedies in the event we become aware of the transfer of subscription rights, and we will not honor orders that we believe
involve the transfer of subscription rights.

Other Restrictions
Notwithstanding any other provision of the plan of reorganization, no person is entitled to purchase any shares of common stock to the extent the purchase would be illegal under
any federal or state law or regulation, including state “blue sky” regulations, or would violate regulations or policies of the Financial Industry Regulatory Authority, particularly those
regarding free riding and withholding. We may ask for an acceptable legal opinion from any purchaser as to the legality of his or her purchase and we may refuse to honor any stock order if
an opinion is not timely furnished. In addition, we are not required to offer shares of common stock to any person who resides in a foreign country or in a state of the United States with
respect to which any of the following apply: (a) a small number of persons otherwise eligible to subscribe for shares under the plan of reorganization reside in the state; (b) the issuance of
subscription rights or the offer or sale of shares of common stock to such persons would require us, under the securities laws of the state, to register as a broker, dealer, salesman or agent or
to register or otherwise qualify our securities for sale in the state; or (c) registration or qualification would be impracticable for reasons of cost or otherwise.

How You Can Obtain Additional Information—Stock Information Center

Our banking personnel may not, by law, assist with investment-related questions about the offering. If you have questions regarding the reorganization or offering, please call our
Stock Information Center. The telephone number is (678) 729-9788. The Stock Information Center is open for telephone calls Monday through Friday, between 10:00 a.m. and 4:00 p.m.,
Eastern Time. The Stock Information Center will be closed on bank holidays.

Material Income Tax Consequences

Consummation of the reorganization is subject to the prior receipt of an opinion of counsel or tax advisor with respect to federal and state income taxation that the reorganization
will not be a taxable transaction to Newton Federal Bank, Community First Bancshares, Inc., Eligible Account Holders, Supplemental Eligible Account Holders and Other Members. Unlike
private letter rulings, opinions of counsel or tax advisors are not binding on the Internal Revenue Service or any state taxing authority, and such authorities may disagree with such opinions.
In the event of such disagreement, there can be no assurance that Newton Federal Bank or Community First Bancshares, Inc. would prevail in a judicial proceeding.

Newton Federal Bank and Community First Bancshares, Inc. have received an opinion of counsel, Luse Gorman, PC, regarding all of the material federal income tax consequences
of the reorganization, which includes the following:
1. The conversion of Newton Federal Bank to Community First Bancshares, MHC will qualify as a tax-free reorganization under Internal Revenue Code Section 368(a)(1)(F).
2. The transfer by Newton Federal Bank in mutual form (the “Mutual Bank”) of substantially all of its assets and liabilities to Newton Federal Bank in stock form (the “Stock
Bank”) qualifies as an exchange under Internal Revenue Code Section 351 and the Mutual Bank will recognize no gain or loss upon the transfer of substantially all of its
assets and liabilities solely in exchange for the voting common stock of the Stock Bank.

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3. The Mutual Bank’s holding period in the common stock of the Stock Bank received in the reorganization will include the holding period during which the property
exchanged was held.
4. Newton Federal Bank will recognize no income with respect to its bad debt reserve established under Internal Revenue Code Section 593.
5. The Stock Bank will recognize no gain or loss upon its receipt of property from the Mutual Bank in exchange for its stock.
6. The Stock Bank’s basis in the property received from the Mutual Bank will be the same as the basis of such property in the hands of the Mutual Bank immediately prior to
the reorganization.
7. The Stock Bank’s holding period for the property received from the Mutual Bank will include the period during which such property was held by the Mutual Bank.
8. Newton Federal Bank’s members will recognize no gain or loss by reason of the reorganization.
9. No gain or loss will be recognized by eligible account holders, supplemental eligible account holders or other members of the Mutual Bank on the issuance to them of
withdrawable deposit accounts in the Stock Bank plus liquidation rights with respect to Community First Bancshares, MHC, in exchange for their deposit accounts in the
Mutual Bank or to the other depositors on the issuance to them of withdrawable deposit accounts.
10. It is more likely than not that the fair market value of the subscription rights to purchase common stock is zero. Accordingly, no gain or loss will be recognized by eligible
account holders, supplemental eligible account holders or other members upon the distribution to them of the nontransferable subscription rights to purchase shares of stock
of Community First Bancshares, Inc. Gain realized, if any, by the eligible account holders, supplemental eligible account holders and other members on the distribution to
them of nontransferable subscription rights to purchase shares of common stock will be recognized but only in an amount not in excess of the fair market value of such
subscription rights. Eligible account holders and supplemental eligible account holders will not realize any taxable income as a result of the exercise by them of the
nontransferable subscription rights.
11. The basis of the deposit accounts in the Stock Bank to be received by the eligible account holders, supplemental eligible account holders and other members of the Mutual
Bank will be the same as the basis of their deposit accounts in Mutual Bank surrendered in exchange therefor. The basis of the interests in the liquidation rights in
Community First Bancshares, MHC to be received by the eligible account holders, supplemental eligible account holders, and other members of the Mutual Bank shall be
zero.
12. Community First Bancshares, MHC and the persons who purchased common stock of Community First Bancshares, Inc. in the subscription and community offering
(“minority stockholders”) will recognize no gain or loss upon the transfer of Stock Bank stock and cash, respectively, to Community First Bancshares, Inc. in exchange for
stock in Community First Bancshares, Inc.
13. Community First Bancshares, Inc. will recognize no gain or loss on its receipt of the Stock Bank stock and cash in exchange for Community First Bancshares, Inc.
14. Community First Bancshares, MHC’s basis in the Community First Bancshares, Inc. common stock received will be the same as its basis in the Stock Bank stock transferred.

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15. Community First Bancshares, MHC’s holding period in Community First Bancshares, Inc. common stock received will include the period during which it held the Stock
Bank common stock, provided that the property was a capital asset on the date of the exchange.
16. Community First Bancshares, Inc.’s basis in the Stock Bank stock received from Community First Bancshares, MHC will be the same as the basis of such property in the
hands of Community First Bancshares, MHC.
17. Community First Bancshares, Inc.’s holding period for the Stock Bank stock received from Community First Bancshares, MHC will include the period during which the
property was held by Community First Bancshares, MHC.
18. It is more likely than not that the basis of Community First Bancshares, Inc. common stock to its stockholders will be the purchase price thereof. The holding period of the
common stock purchased pursuant to the exercise of subscription rights shall commence on the date on which the right to acquire the stock was exercised.

We believe that that the tax opinions summarized above address all material federal income tax consequences that are generally applicable to Community First Bancshares, Inc.,
Community First Bancshares, MHC, Newton Federal Bank and persons receiving subscription rights. The tax opinions as to items 10 and 18 above are based on the position that
subscription rights to be received by eligible account holders do not have any economic value at the time of distribution or the time the subscription rights are exercised. In this regard, Luse
Gorman, PC noted that the subscription rights will be granted at no cost to the recipients, are legally non-transferable and of short duration, and will provide the recipient with the right only
to purchase shares of common stock at the same price to be paid by members of the general public in any community offering. The firm also noted that the Internal Revenue Service has not
in the past concluded that subscription rights have value. Based on the foregoing, Luse Gorman, PC believes that it is more likely than not that the nontransferable subscription rights to
purchase shares of common stock have no value. However, the issue of whether or not the nontransferable subscription rights have value is based on all the facts and circumstances. If the
subscription rights granted to eligible account holders are deemed to have an ascertainable value, receipt of these rights could result in taxable gain to those eligible account holders who
exercise the subscription rights in an amount equal to the ascertainable value, and we could recognize gain on a distribution. Eligible account holders are encouraged to consult with their
own tax advisors as to the tax consequences in the event that subscription rights are deemed to have an ascertainable value.

In the view of RP Financial, LC. (which is acting as independent appraiser of the value of the shares of Community First Bancshares, Inc. common stock in connection with the
reorganization), the subscription rights do not have any value for the reasons set forth above. RP Financial, LC.’s view is not binding on the Internal Revenue Service. If the subscription
rights granted to Eligible Account Holders, Supplemental Eligible Account Holders and Other Members are deemed to have an ascertainable value, receipt of these rights could result in
taxable gain to those Eligible Account Holders, Supplemental Eligible Account Holders and Other Members who exercise the subscription rights in an amount equal to their value, and
Community First Bancshares, Inc. could recognize gain on a distribution. Eligible Account Holders, Supplemental Eligible Account Holders and Other Members are encouraged to consult
with their own tax advisors as to the tax consequences in the event that subscription rights are deemed to have an ascertainable value.

The Internal Revenue Service will not issue private letter rulings with respect to the issue of whether nontransferable rights have value. Unlike private letter rulings, an opinion of
counsel or the view of an independent appraiser is not binding on the Internal Revenue Service and the Internal Revenue Service could disagree with the conclusions reached therein.
Depending on the conclusion or conclusions with which the Internal Revenue Service disagrees, the Internal Revenue Service may take the position that the transaction is taxable to any one
or more of Newton Federal Bank, the members of Newton Federal Bank, Community First Bancshares, Inc., Eligible Account Holders, Supplemental Eligible Account Holders and Other
Members who exercise their subscription rights. In the event of a disagreement, there can be no assurance that Community First Bancshares, Inc. or Newton Federal Bank would prevail in a
judicial or administrative proceeding.

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The federal tax opinion has been filed with the Securities and Exchange Commission as an exhibit to Community First Bancshares, Inc.’s registration statement. An opinion
regarding the Georgia state income tax consequences consistent with the federal tax opinion has been issued by Porter Keadle Moore, LLC, tax advisors to Newton Federal Bank and
Community First Bancshares, Inc.

Restrictions on Purchase or Transfer of Our Shares after Reorganization

The shares being acquired by the directors, executive officers and their associates are being acquired for investment purposes, and not with a view towards resale. All shares of
common stock purchased in the offering by a director or an executive officer of Community First Bancshares, Inc. or Newton Federal Bank generally may not be sold for a period of one
year following the closing of the reorganization, except in the event of the death of the director or executive officer. Each certificate for restricted shares will bear a legend giving notice of
this restriction on transfer, and instructions will be issued to the effect that any transfer within this time period of any certificate or ownership of the shares other than as provided above is a
violation of the restriction. Any shares of common stock issued at a later date as a stock dividend, stock split or otherwise with respect to the restricted stock will be similarly restricted. The
directors and executive officers of Community First Bancshares, Inc. also will be restricted by the insider trading rules promulgated pursuant to the Securities Exchange Act of 1934, as
amended.

Purchases of shares of our common stock by any of our directors, executive officers and their associates, during the three-year period following the closing of the reorganization may
be made only through a broker or dealer registered with the Securities and Exchange Commission, except with the prior written approval of the Federal Reserve Board and the Office of the
Comptroller of the Currency. This restriction does not apply, however, to negotiated transactions involving more than 1% of our outstanding common stock, to purchases of our common
stock to fund stock options by one or more stock-based benefit plans or to any of our tax-qualified employee stock benefit plans or nontax-qualified employee stock benefit plans, including
any stock-based benefit plans.

Federal regulations prohibit Community First Bancshares, Inc. from repurchasing its shares of common stock during the first year following the reorganization unless compelling
business reasons exist for such repurchases, or to fund management recognition plans that have been ratified by stockholders (with regulatory approval) or tax-qualified employee stock
benefit plans.

RESTRICTIONS ON THE ACQUISITION OF COMMUNITY FIRST BANCSHARES, INC. AND

NEWTON FEDERAL BANK

The principal federal regulatory restrictions which affect the ability of any person, firm or entity to acquire Community First Bancshares, Inc., Newton Federal Bank or their
respective capital stock are described below. Also discussed are certain provisions in Community First Bancshares, Inc.’s charter and bylaws that may be deemed to affect the ability of a
person, firm or entity to acquire Community First Bancshares, Inc.

Mutual Holding Company Structure

Community First Bancshares, MHC will own a majority of the outstanding common stock of Community First Bancshares, Inc. after the offering and, through its board of directors,
will be able to exercise voting control over virtually all matters put to a vote of stockholders. For example, Community First Bancshares, MHC may exercise its voting control to prevent a
sale or merger transaction or to defeat a stockholder nominee for election to the board of directors of Community First Bancshares, Inc. It will not be possible for another entity to acquire
Community First Bancshares, Inc. without the consent of Community First Bancshares, MHC. Community First Bancshares, MHC, as long as it remains in the mutual form of organization,
will control a majority of the voting stock of Community First Bancshares, Inc.

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Federal Law
Under the Change in Bank Control Act, no person may acquire control of a savings and loan holding company unless the Federal Reserve Board has been given 60 days’ prior
written notice and has not issued a notice disapproving the proposed acquisition.

Control, as defined under federal law, means ownership, control, or holding with power to vote, of 25% or more of any class of voting stock. Federal regulations establish a
rebuttable presumption of control upon ownership, control, or holding with power to vote, of 10% or more of a class of voting stock (i) where the company has registered securities under
Section 12 of the Securities Exchange Act of 1934 or (ii) no other person will own control or hold the power to vote a greater percentage of that class of voting securities.

The Federal Reserve Board may deny an acquisition of control if it finds, among other things, that:
• the acquisition would result in a monopoly or substantially lessen competition;
• the financial condition of the acquiring person might jeopardize the financial stability of the institution;
• the competence, experience or integrity of the acquiring person indicates that it would not be in the interest of the depositors or the public to permit the acquisition of control
by such person; or
• the acquisition would have an adverse effect on the Deposit Insurance Fund.

For a period of three years following completion of the offering, Federal Reserve Board regulations generally prohibit any person from acquiring or making an offer to acquire
beneficial ownership of more than 10% of the stock of Community First Bancshares, Inc. or Newton Federal Bank without the Federal Reserve Board’s prior approval.

Charters and Bylaws of Community First Bancshares, Inc. and Newton Federal Bank
The following discussion is a summary of provisions of the charter and bylaws of Community First Bancshares, Inc. and Newton Federal Bank that may be deemed to affect the
ability of a person, firm or entity to acquire Community First Bancshares, Inc. The description is necessarily general and qualified by reference to the charter and bylaws.

Classified Board of Directors . The board of directors of Community First Bancshares, Inc. is required by the charter and bylaws to be divided into three staggered classes that are as
equal in size as is possible. Each year one class will be elected by stockholders of Community First Bancshares, Inc. for a three-year term. A classified board promotes continuity and
stability of management of Community First Bancshares, Inc., but makes it more difficult for stockholders to change a majority of the directors because it generally takes at least two annual
elections of directors for this to occur.

Authorized but Unissued Shares of Capital Stock . Following the offering, Community First Bancshares, Inc. will have authorized but unissued shares of preferred stock and
common stock. See “Description of Capital Stock of Community First Bancshares, Inc.” Although these shares could be used by the board of directors of Community First Bancshares, Inc.
to make it more difficult or to discourage an attempt to obtain control of Community First Bancshares, Inc. through a merger, tender offer, proxy contest or otherwise, it is unlikely that we
would use or need to use shares for these purposes since Community First Bancshares, MHC will own a majority of the common stock for so long as we remain in the mutual holding
company structure.

How Shares are Voted . Community First Bancshares, Inc.’s charter provides that there will not be cumulative voting by stockholders for the election of Community First
Bancshares, Inc.’s directors. No cumulative

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voting rights means that Community First Bancshares, MHC, as the holder of a majority of the shares eligible to be voted at a meeting of stockholders, may elect all directors of Community
First Bancshares, Inc. to be elected at that meeting. This could prevent minority stockholder representation on Community First Bancshares, Inc.’s board of directors.

Restrictions on Acquisitions of Shares . A section in Community First Bancshares, Inc.’s charter provides that for a period of five years from the closing of the offering, no person,
other than Community First Bancshares, MHC, and, with respect to Newton Federal Bank, other than Community First Bancshares, MHC and Community First Bancshares, Inc., may
directly or indirectly offer to acquire or acquire the beneficial ownership of more than 10% of any class of equity security of Community First Bancshares, Inc. or Newton Federal Bank
held by persons other than Community First Bancshares, MHC, and, with respect to Newton Federal Bank, other than Community First Bancshares, Inc., and that any shares acquired in
excess of this limit would not be entitled to be voted and would not be counted as voting stock in connection with any matters submitted to the stockholders for a vote.

Procedures for Stockholder Nominations and Proposals for New Business . Community First Bancshares, Inc.’s bylaws provide that any stockholder wanting to make a
nomination for the election of directors or a proposal for new business at a meeting of stockholders must send written notice to the Secretary of Community First Bancshares, Inc. at least
five days before the date of the annual meeting. Management believes that it is in the best interests of Community First Bancshares, Inc. and its stockholders to provide enough time for
management to disclose to stockholders information about a dissident slate of nominations for directors. This advance notice requirement may also give management time to solicit its own
proxies in an attempt to defeat any dissident slate of nominations if management thinks it is in the best interest of stockholders generally. Similarly, adequate advance notice of stockholder
proposals will give management time to study such proposals and to determine whether to recommend to the stockholders that such proposals be adopted.

Limitations on Calling Special Meetings of Stockholders . Our federal charter provides that special meetings of our stockholders may be called by the chairman of the board, the
president, or a majority of the board of directors, and shall be called by the chairman of the board, the president, or the secretary upon the written request of the holders of not less than one-
tenth of all of our outstanding shares of voting stock.

Purpose and Anti-Takeover Effects of Community First Bancshares, Inc.’s Charter and Bylaws . Our board of directors believes that the provisions described above are prudent
and will reduce our vulnerability to takeover attempts and certain other transactions that have not been negotiated with and approved by our board of directors. These provisions also will
assist us in the orderly deployment of the offering proceeds into productive assets during the initial period after the stock offering. We believe these provisions are in the best interests of
Community First Bancshares, Inc. and its stockholders. Our board of directors believes that it will be in the best position to determine the true value of Community First Bancshares, Inc.
and to negotiate more effectively for what may be in the best interests of all our stockholders. Accordingly, our board of directors believes that it is in the best interests of Community First
Bancshares, Inc. and all of our stockholders to encourage potential acquirers to negotiate directly with the board of directors and that these provisions will encourage such negotiations and
discourage hostile takeover attempts. It is also the view of our board of directors that these provisions should not discourage persons from proposing a merger or other transaction at a price
reflective of the true value of Community First Bancshares, Inc. and that is in the best interests of all our stockholders.

Takeover attempts that have not been negotiated with and approved by our board of directors present the risk of a takeover on terms that may be less favorable than might otherwise
be available. A transaction that is negotiated and approved by our board of directors, on the other hand, can be carefully planned and undertaken at an opportune time in order to obtain
maximum value for our stockholders, with due consideration given to matters such as the management and business of the acquiring corporation.

Although a tender offer or other takeover attempt may be made at a price substantially above the current market price, such offers are sometimes made for less than all of the
outstanding shares of a target company. As a result, stockholders may be presented with the alternative of partially liquidating their investment at a time that may be disadvantageous, or
retaining their investment in an enterprise that is under different management and whose objectives may not be similar to those of the remaining stockholders.

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Despite our belief as to the benefits to stockholders of these provisions of Community First Bancshares, Inc.’s charter and bylaws, these provisions also may have the effect of
discouraging a future takeover attempt that would not be approved by our board of directors, but pursuant to which stockholders may receive a substantial premium for their shares over
then current market prices. As a result, stockholders who might desire to participate in such a transaction may not have any opportunity to do so. Such provisions will also make it more
difficult to remove our board of directors and management. We believe, however, that the potential benefits outweigh the possible disadvantages.

Benefit Plans
In addition to the provisions of Community First Bancshares, Inc.’s charter and bylaws described above, benefit plans of Community First Bancshares, Inc. and Newton Federal
Bank that may authorize the issuance of equity to its board of directors, officers and employees adopted in connection with the offering contain provisions which also may discourage
hostile takeover attempts which the board of directors of Newton Federal Bank might conclude are not in the best interests of Community First Bancshares, Inc. and Newton Federal Bank
or Community First Bancshares, Inc.’s stockholders.

DESCRIPTION OF CAPITAL STOCK OF COMMUNITY FIRST BANCSHARES, INC.

General
Community First Bancshares, Inc. is authorized to issue 19,000,000 shares of common stock having a par value of $0.01 per share and 1,000,000 shares of serial preferred stock, par
value of $0.01 per share. Each share of Community First Bancshares, Inc.’s common stock will have the same relative rights as, and will be identical in all respects with, each other share of
common stock. Upon payment of the purchase price for the common stock in accordance with the plan or reorganization and stock issuance plan, all of the stock will be duly authorized,
fully paid and nonassessable. Presented below is a description of the features of Community First Bancshares, Inc.’s capital stock that are deemed material to an investment decision with
respect to the offering. The common stock of Community First Bancshares, Inc. will represent nonwithdrawable capital, will not be an account of an insurable type, and will not be insured
by the FDIC.

Community First Bancshares, Inc. currently expects that it will have a maximum of up to 7,538,250 shares of common stock outstanding after the offering, of which up to 3,467,595
shares will be held by persons other than Community First Bancshares, MHC. Our board of directors can, without stockholder approval, issue additional shares of common stock, although
Community First Bancshares, MHC, so long as it is in existence, must own a majority of Community First Bancshares, Inc.’s outstanding shares of common stock. Community First
Bancshares, Inc.’s issuance of additional shares of common stock could dilute the voting strength of the holders of the common stock and may assist management in impeding an unfriendly
takeover or attempted change in control. Community First Bancshares, Inc. has no present plans to issue additional shares of common stock other than pursuant to the stock benefit plans
previously discussed.

Common Stock
Distributions . Community First Bancshares, Inc. can pay dividends if, as and when declared by its board of directors, subject to compliance with limitations which are imposed by
law. The holders of common stock of Community First Bancshares, Inc. will be entitled to receive and share equally in such dividends as may be declared by the board of directors of
Community First Bancshares, Inc. out of funds legally available therefor. Dividends from Community First Bancshares, Inc. will depend, in large part, upon receipt of dividends from
Newton Federal Bank, because Community First Bancshares, Inc. initially will have no source of income other than dividends from Newton Federal Bank, earnings from the investment of
proceeds from the sale of shares of common stock, and interest payments with respect to Community First Bancshares, Inc.’s loan to the employee stock ownership plan. Regulations of the
Federal Reserve Board and the Office of the Comptroller of the Currency impose limitations on “capital distributions” by savings institutions.

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If Community First Bancshares, Inc. pays dividends to its stockholders, it would likely pay dividends to Community First Bancshares, MHC, unless Community First Bancshares,
MHC is permitted by the Federal Reserve Board to waive the receipt of dividends. The Federal Reserve Board’s current regulations significantly restrict the ability of newly organized
mutual holding companies to waive dividends declared by their subsidiaries. Accordingly, because dividends would be required to be paid to Community First Bancshares, MHC along with
all other stockholders, the amount of dividends available for all other stockholders would be less than if Community First Bancshares, MHC were permitted to waive the receipt of
dividends.

Pursuant to our charter, Community First Bancshares, Inc. is authorized to issue preferred stock. If Community First Bancshares, Inc. issues preferred stock, the holders thereof may
have a priority over the holders of the common stock with respect to dividends.

Voting Rights . Upon the effective date of the offering, the holders of common stock of Community First Bancshares, Inc. will possess exclusive voting rights in Community First
Bancshares, Inc. Each holder of common stock will be entitled to one vote per share and will not have any right to cumulate votes in the election of directors. If Community First
Bancshares, Inc. issues preferred stock, holders of the preferred stock may also possess voting rights.

Liquidation . In the event of any liquidation, dissolution or winding up of Newton Federal Bank, Community First Bancshares, Inc., as holder of Newton Federal Bank’s capital
stock, would be entitled to receive, after payment or provision for payment of all debts and liabilities of Newton Federal Bank, including all deposit accounts and accrued interest thereon,
all assets of Newton Federal Bank available for distribution. In the event of liquidation, dissolution or winding up of Community First Bancshares, Inc., the holders of its common stock
would be entitled to receive, after payment or provision for payment of all its debts and liabilities, all of the assets of Community First Bancshares, Inc. available for distribution. If
preferred stock is issued, the holders thereof may have a priority over the holders of the common stock in the event of liquidation or dissolution.

Rights to Buy Additional Shares . Holders of the common stock of Community First Bancshares, Inc. will not be entitled to preemptive rights with respect to any shares which may
be issued. Preemptive rights are the priority right to buy additional shares if Community First Bancshares, Inc. issues more shares in the future. The common stock is not subject to
redemption.

Preferred Stock
None of the shares of Community First Bancshares, Inc.’s authorized preferred stock will be issued in the offering. Such stock may be issued with such preferences and designations
as our board of directors may from time to time determine. Our board of directors can, without stockholder approval, issue preferred stock with voting, dividend, liquidation and conversion
rights which could dilute the voting strength of the holders of the common stock and may assist management in impeding an unfriendly takeover or attempted change in control. The
issuance of preferred stock must be approved by a majority of our independent directors who do not have an interest in the transaction and who have access, at our expense, to legal counsel.
Community First Bancshares, Inc. has no present plans to issue preferred stock.

TRANSFER AGENT AND REGISTRAR

Continental Stock Transfer & Trust Company, New York, New York, will act as the transfer agent and registrar for the common stock.

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LEGAL AND TAX MATTERS

The legality of the common stock and the federal income tax consequences of the reorganization and offering have been passed upon for Newton Federal Bank and Community First
Bancshares, Inc. by the firm of Luse Gorman, PC, Washington, D.C. The Georgia state income tax consequences of the reorganization and offering have been passed upon for Newton
Federal Bank and Community First Bancshares, Inc. by Porter Keadle Moore, LLC, Atlanta, Georgia. Luse Gorman, PC and Porter Keadle Moore, LLC have consented to the references in
this prospectus to their opinions. Certain legal matters regarding the reorganization and offering will be passed upon for BSP Securities, LLC by Silver, Freedman, Taff & Tiernan LLP,
Washington, D.C.

EXPERTS

The financial statements of Newton Federal Bank as of September 30, 2016 and 2015 and for each of the years in the two-year period ended September 30, 2016 have been audited
by Porter Keadle Moore, LLC, an independent registered public accounting firm, as stated in their report thereon and included in this Prospectus and Registration Statement in reliance upon
such report of such firm as experts in accounting and auditing.

RP Financial, LC. has consented to the publication in this prospectus of the summary of its report to Newton Federal Bank and Community First Bancshares, Inc. setting forth its
opinion as to the estimated pro forma market value of the common stock upon the completion of the reorganization and offering and its valuation with respect to subscription rights.

WHERE YOU CAN FIND MORE INFORMATION

Community First Bancshares, Inc. has filed a registration statement with the Securities and Exchange Commission under the Securities Act of 1933, with respect to the common
stock offered hereby. As permitted by the rules and regulations of the Securities and Exchange Commission, this prospectus does not contain all the information set forth in the registration
statement. This information, including the appraisal report which is an exhibit to the registration statement, can be examined without charge at the Public Reference Room of the Securities
and Exchange Commission located at 100 F Street, N.E., Washington, D.C. 20549 and copies of the material can be obtained from the Securities and Exchange Commission at prescribed
rates. The public may obtain information on the operation of the Public Reference Room by calling the Commission at 1-800-SEC-0330. The registration statement also is available through
the Securities and Exchange Commission’s website on the internet at http://www.sec.gov. The statements contained in this prospectus as to the contents of any contract or other document
filed as an exhibit to the registration statement are, of necessity, brief descriptions thereof and are not necessarily complete but do contain all material information regarding the documents;
each statement is qualified by reference to the contract or document.

Community First Bancshares, Inc. and Newton Federal Bank have filed applications with the Federal Reserve Board, the Office of the Comptroller of the Currency and the FDIC
with respect to the reorganization and offering. Pursuant to the rules and regulations of the Federal Reserve Board, this prospectus omits certain information contained in such applications.
To obtain a copy of non-confidential portions of the applications filed with the Federal Reserve Board, the Office of the Comptroller of the Currency and the FDIC, you may contact
Kathryn Haney, Applications Manager of the Federal Reserve Bank of Atlanta, at (404) 498-7298, the Southern District Office of the Office of the Comptroller of the Currency located at
500 N. Akard Street, Suite 1600, Dallas, Texas 75201, and the Atlanta Regional Office of the FDIC located at One Atlantic Center, Suite 1600, 1201 West Peachtree Street, N.E., Atlanta,
Georgia 30309-3449.

A copy of the charter and bylaws of Community First Bancshares, Inc. is available without charge from Newton Federal Bank.

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REGISTRATION REQUIREMENTS

In connection with the offering, Community First Bancshares, Inc. will register its common stock with the Securities and Exchange Commission under Section 12(b) of the
Securities Exchange Act of 1934. Upon this registration, Community First Bancshares, Inc. and the holders of its shares of common stock will become subject to the proxy solicitation rules,
reporting requirements and restrictions on stock purchases and sales by directors, officers and greater than 10% stockholders, the annual and periodic reporting and certain other
requirements of the Securities Exchange Act of 1934. Under the plan of reorganization, Community First Bancshares, Inc. has undertaken that it will not terminate this registration for a
period of at least three years following the reorganization.

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INDEX TO FINANCIAL STATEMENTS OF

NEWTON FEDERAL BANK

Report of Independent Registered Public Accounting Firm F-2

Balance Sheets at September 30, 2016 and 2015 F-3
Statements of Income and Retained Earnings for the Years Ended September 30, 2016 and 2015 F-4
Statements of Cash Flows for the Years Ended September 30, 2016 and 2015 F-5
Notes to Financial Statements F-6

***

Separate financial statements for Community First Bancshares, Inc. have not been included in this prospectus because Community First Bancshares, Inc. has not engaged in any
significant activities, has no significant assets, and has no contingent liabilities, revenue or expenses.

All financial statement schedules have been omitted as the required information either is not applicable or is included in the financial statements or related notes.

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors

Newton Federal Bank
Covington, Georgia

We have audited the accompanying balance sheets of Newton Federal Bank (the “Bank”) as of September 30, 2016 and 2015, and the related statements of income and retained earnings,
and cash flows for the years then ended. These financial statements are the responsibility of the Bank’s management. Our responsibility is to express an opinion on these financial
statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Bank is not required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Bank’s internal control over financial reporting. Accordingly, we express no such opinion. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Newton Federal Bank as of September 30, 2016 and 2015, and the
results of its operations and cash flows for the years then ended, in conformity with U.S. generally accepted accounting principles.

Atlanta, Georgia
December 7, 2016

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NEWTON FEDERAL BANK

Balance Sheets
September 30, 2016 and 2015

2016 2015
(In thousands)
Assets
Cash and due from banks, including reserve requirement of
$882 and $346 in 2016 and 2015, respectively $ 4,272 2,689
Interest-earning deposits in other depository institutions 21,421 35,805
Cash and cash equivalents 25,693 38,494
Investment securities held-to-maturity
(estimated fair values of $7,517 and $7,533) 7,499 7,492
FHLB stock 205 202
Loans held for sale 472 —
Loans, net 189,578 169,798
Other real estate owned — 532
Premises and equipment, net 4,556 4,261
Accrued interest receivable and other assets 4,829 5,558
Total assets $ 232,832 226,337
Liabilities and Capital
Deposits:
Passbook accounts $ 21,180 19,906
Interest bearing checking 30,662 22,750
Market rate checking 22,607 22,587
Non-interest bearing checking 21,727 15,132
Certificate of deposits 85,523 96,312
Total deposits 181,699 176,687
Accrued interest payable and other liabilities 6,052 5,726
Total liabilities 187,751 182,413
Commitments
Capital – retained earnings 45,081 43,924
Total liabilities and capital $ 232,832 226,337

See accompanying notes to financial statements.

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NEWTON FEDERAL BANK

Statements of Income and Retained Earnings
For the Years Ended September 30, 2016 and 2015

2016 2015
(in thousands)
Interest income:
Loans, including fees $ 10,937 10,815
Investment securities, including dividends 92 98
Other 219 132
Total interest income 11,248 11,045
Interest expense:
Deposits 1,415 1,813
Net interest income 9,833 9,232
Non-interest income:
Service charges on deposit accounts 717 631
Other 468 251
Total Non-interest income 1,185 882
Non-interest expenses:
Salaries and employee benefits 4,742 3,532
Deferred compensation 218 336
Occupancy 1,091 980
Advertising 207 123
Data processing 633 538
Other real estate owned 65 40
Loss on write down of other real estate owned 73 123
Loss on sale of other real estate owned 34 12
Legal and accounting 426 422
Organizational dues and subscriptions 220 308
Director compensation 176 80
Federal deposit insurance premiums 155 266
Other 1,124 861
Total Non-interest expenses 9,164 7,621
Income before income taxes 1,854 2,493
Income tax expense 697 879
Net income 1,157 1,614
Retained earnings, beginning of year 43,924 42,310
Retained earnings, end of year $ 45,081 43,924

See accompanying notes to financial statements.

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NEWTON FEDERAL BANK

Statements of Cash Flows
For the Years Ended September 30, 2016 and 2015

2016 2015
(in thousands)
Cash flows from operating activities:
Net income $ 1,157 1,614
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 310 302
Deferred income tax 694 726
Loss on sale of other real estate owned 34 12
Loss on write down of other real estate owned 73 123
Originations of loans held for sale (2,743) —
Proceeds from sales of loans held for sale 2,271 —
Change in:
Accrued interest receivable and other assets (196) (119)
Accrued interest payable and other liabilities 326 211
Net cash provided by operating activities 1,926 2,869
Cash flows from investing activities:
Purchase of investment security held-to-maturity — (2,000)
Proceeds from maturities and paydowns of investment securities held-to-maturity — 1,500
Purchase of other investments (3) (4)
Net change in loans (20,137) 3,617
Purchases of premises and equipment (381) (231)
Proceeds from the sale of other real estate owned 782 1,180
Net cash (used in) provided by investing activities (19,739) 4,062
Cash flows from financing activities, consisting of net change in deposits 5,012 (2,577)
Net change in cash and cash equivalents (12,801) 4,354
Cash and cash equivalents at beginning of period 38,494 34,140
Cash and cash equivalents at end of period $ 25,693 38,494

Supplemental disclosures of cash flow information:

Cash paid for interest $ 1,431 1,841
Cash paid for income taxes $ 5 231
Supplemental disclosures of noncash investing activities:
Other real estate owned acquired through foreclosures $ 524 941
Financed sales of other real estate owned $ 167 224

See accompanying notes to financial statements.

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NEWTON FEDERAL BANK

Notes to Financial Statements

(1) Summary of Significant Accounting Policies

Nature of Operations
Newton Federal Bank (the “Bank”) is a federally chartered mutual savings and loan that was regulated by the Office of Thrift Supervision (OTS) until July 2011, when the OTS
merged with the Office of the Comptroller of the Currency (OCC) and the OCC became the primary regulator of the Bank. The Bank’s main office is in Covington (Newton
County), Georgia, conducting banking activities primarily in Newton and surrounding counties. The main emphasis of the Bank is providing mortgage loans in its primary lending
area. It offers such customary banking services as consumer and commercial checking accounts, savings accounts, certificates of deposit, mortgage, commercial and consumer
loans, money transfers and a variety of other banking services.

Basis of Presentation
The accounting principles followed by the Bank and the methods of applying these standards and principles conform with accounting principles generally accepted in the United
States of America (“GAAP”) and with general practices within the banking industry. In preparing financial statements in conformity with GAAP, management is required to make
estimates and assumptions that affect the reported amounts in the financial statements. Actual results could differ significantly from those estimates. Material estimates common to
the banking industry that are particularly susceptible to significant change in the near term include, but are not limited to, the determination of the allowance for loan losses, the
valuation of real estate acquired in connection with or in lieu of foreclosure on loans, and valuation allowances associated with deferred tax assets, the recognition of which are
based on future taxable income.

Impaired loans and foreclosed real estate properties are carried at fair value less estimated selling costs, the determination of which requires significant assumptions, estimates and
judgments. Fair values for foreclosed real estate properties and impaired loans collateralized by real estate are principally based on independent appraised values. Fair value is
defined by GAAP as the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. GAAP further defines an
orderly transaction as a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary
for transactions involving such assets. An orderly transaction is not a forced transaction like a forced liquidation or distressed sale. The Bank’s markets, over the past few years,
have experienced a lesser number of transactions in the type of assets which represent the vast majority of the Bank’s impaired loans and foreclosed properties which reflect
orderly transactions as so defined. Instead, most transactions in comparable assets have been distressed sales. Accordingly, the determination of fair value in the current
environment is difficult and more subjective than it would be in a stable, functional real estate environment. Although management believes its processes for determining the value
of these assets are appropriate and allow the Bank to arrive at a fair value under accounting standards, the value of such assets at the time they are revalued or divested may be
significantly different from management’s determination of fair value.

Reclassifications
Certain amounts in the 2015 financial statements have been reclassified to conform to the 2016 presentation.

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NEWTON FEDERAL BANK

Notes to Financial Statements, continued

(1) Summary of Significant Accounting Policies, continued

Recent Accounting Pronouncements

Emerging Growth Company Status
The Bank qualifies as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). For as long as the Bank is an emerging growth
company, it may choose to take advantage of exemptions from various reporting requirements applicable to other public companies but not to emerging growth companies. An
emerging growth company may elect to use the extended transition period to delay adoption of new or revised accounting pronouncements applicable to public companies until
such pronouncements are made applicable to private companies, but must make such election when the company is first required to file a registration statement. The Bank has
elected to use the extended transition period described above and intends to maintain its emerging growth company status as allowed under the JOBS Act.

In January 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2016-01, Financial Instruments – Overall (Subtopic 825-
10): Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01 revises the accounting related to classification and measurement of investments in
equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value as well as amends certain disclosure requirements associated with
the fair value of financial instruments. For emerging growth companies, this update will be effective for fiscal years beginning after December 15, 2018, and interim periods within
fiscal years beginning after December 15, 2019. The Bank plans to adopt ASU 2016-01 for the fiscal year beginning October 1, 2019. For non-emerging growth companies, ASU
2016-01 will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The adoption of this ASU is not expected to have a
material effect on the Bank’s financial position, results of operations or cash flows.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . ASU 2016-02 provides certain targeted improvements to align lessor accounting with the lessee accounting
model. It requires lessees to recognize the assets and liabilities on their balance sheet for the rights and obligations created by most leases and continue to recognize expenses on
their income statements over the lease term. It will also require disclosures designed to give financial statement users information on the amount, timing and uncertainty of cash
flows arising from leases. For emerging growth companies, this update will be effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years
beginning after December 15, 2020. The Bank plans to adopt ASU 2016-02 for the fiscal year beginning October 1, 2020. For non-emerging growth companies, this update will be
effective for fiscal years, and interim periods within those fiscal years, beginning after January 1, 2019. The adoption of this ASU is not expected to have a material effect on the
Bank’s financial position, results of operations or cash flows.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . ASU 2016-13 requires
the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions and reasonable and supportable
forecasts. Adoption of ASU 2016-13 will require financial institutions and other organizations to use forward-looking information to better formulate their credit loss estimates. In
addition, the ASU amends the accounting for credit losses on available for sale debt securities and purchased financial assets with credit deterioration. For emerging growth
companies, this update will be effective for fiscal years beginning after December 15, 2020 and interim periods within fiscal years beginning after December 15, 2021. The Bank
plans to adopt ASU 2016-13 for the fiscal year beginning October 1, 2021. For non-emerging growth companies, this update will be effective for fiscal years, and interim periods
within those fiscal years, beginning after December 15, 2019. Early application will be permitted for all organizations for fiscal years, and interim periods within those fiscal years,
beginning after December 15, 2018. The Bank is in the process of determining the effect of ASU 2016-13 on its financial position, results of operations and cash flows.

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NEWTON FEDERAL BANK

Notes to Financial Statements, continued

(1) Summary of Significant Accounting Policies, continued

Cash and Cash Equivalents

Cash and cash equivalents include cash and due from banks and interest-earning deposits in other depository institutions.

Investment Securities
The Bank classifies its investment securities in one of three categories: trading, available-for-sale, or held-to-maturity. Trading securities are bought and held principally for the
purpose of selling them in the near term. Held-to-maturity securities are those securities for which the Bank has the ability and intent to hold the security until maturity. All other
securities not included in trading or held-to-maturity are classified as available-for-sale. At September 30, 2016 and 2015, all securities were classified as held-to-maturity.

Held-to-maturity securities are recorded at cost, adjusted for the amortization or accretion of premiums or discounts. Transfers of securities between categories are recorded at fair
value at the date of transfer.

Management evaluates investment securities for other-than-temporary impairment on an annual basis. A decline in the market value of any held-to-maturity investment below cost
that is deemed other-than-temporary is charged to earnings for the decline in value deemed to be credit related. The decline in value attributed to non-credit related factors is
recognized in other comprehensive income and a new cost basis in the security is established.
Premiums and discounts are amortized or accreted over the life of the related security as an adjustment to the yield. Realized gains and losses for securities classified as held-to-
maturity are included in earnings and are derived using the specific identification method for determining the cost of securities sold.

FHLB Stock
The Federal Home Loan Bank (“FHLB”) stock is an investment that does not have a readily determinable fair value and is carried at cost.

Loans Held for Sale

Loans held for sale are carried at the lower of aggregate cost or market value. The amount by which cost exceeds market value is accounted for as a valuation allowance. Changes
in the valuation allowance are included in the determination of net income of the period in which the change occurs. At September 30, 2016 and 2015, there was no valuation
allowance associated with loans held for sale.

Loans, Loan Fees and Interest Income on Loans

Loans are stated at the principal amount outstanding, net of the allowance for loan losses. Interest on loans is calculated by using the simple interest method on daily balances of
the principal amount outstanding.

Accrual of interest is discontinued on a loan when management believes, after considering economic and business conditions and collection efforts, that the borrower’s financial
condition is such that collection of interest is doubtful. When a loan is placed on nonaccrual status, previously accrued and uncollected interest is charged to interest income on
loans. Generally, payments on nonaccrual loans are applied first to principal. Interest income is recorded after principal has been satisfied and as payments are received.

Loan fees, net of certain origination costs, are deferred and amortized over the lives of the respective loans as an adjustment to the yield.

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NEWTON FEDERAL BANK

Notes to Financial Statements, continued

(1) Summary of Significant Accounting Policies, continued

A loan is impaired when, based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreement will not be collected.
Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, or at the loan’s observable market price, or at
the fair value of the collateral of the loan if the loan is collateral dependent. Estimated impairment losses for collateral dependent loans are set up as specific reserves. Interest
income on impaired loans is recognized using the cash-basis method of accounting during the time the loans are impaired.

Allowance for Loan Losses

The allowance for loan losses is established through a provision for loan losses charged to expense. Loans are charged against the allowance for loan losses when management
believes that the collection of the principal is unlikely. The allowance represents an amount, which in management’s judgment, will be adequate to absorb probable losses on
existing loans that may become uncollectible.

Management’s judgment in determining the adequacy of the allowance is based on evaluations of the probability of collection of loans. These evaluations take into consideration
such factors as changes in the nature and volume of the loan portfolio, current economic conditions that may affect the borrower’s ability to pay, overall portfolio quality, and
review of specific problem loans. Management uses an external independent loan reviewer to challenge and corroborate its loan gradings and to provide additional analysis in
determining the adequacy of the allowance for loan losses and necessary provisions to the allowance.
Management believes the allowance for loan losses is adequate. While management uses available information to recognize losses on loans, future additions to the allowance may
be necessary based on changes in economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the allowance for loan
losses, and as a result of these periodical reviews of the Bank’s allowance for loan losses by the regulatory agencies, the Bank may have to adjust or make additions to the
allowance for loan losses as a part of management’s ongoing evaluation of its adequacy.

Other Real Estate Owned

Other real estate owned includes real estate acquired through foreclosure. Each other real estate property is initially recorded at its fair value less estimated costs to sell and is
subsequently carried at fair value less estimated costs to sell. All foreclosed properties are actively marketed for sale. Fair value is principally based on independent appraisals
performed by local credentialed appraisers. Any excess of the carrying value of the related loan over the fair value of the real estate at the date of foreclosure is charged against the
allowance for loan losses. Properties in other real estate are re-evaluated annually. Any expense incurred in connection with holding such real estate or resulting from any
writedowns in value subsequent to foreclosure is included in noninterest expense. When the other real estate property is sold, a gain or loss is recognized on the sale for the
difference between the sales proceeds and the carrying amount of the property.

Premises and Equipment

Premises and equipment are carried at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the related
assets. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in
earnings for the period. The cost of maintenance and repairs that do not improve or extend the useful life of the respective asset is charged to earnings as incurred, whereas
significant renewals and improvements are capitalized. The range of estimated useful lives for premises and equipment are as follows:

Equipment and furniture 3 – 10 years

Buildings 40 years
Automobile 5 years

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NEWTON FEDERAL BANK

Notes to Financial Statements, continued

(1) Summary of Significant Accounting Policies, continued

Income Taxes
The Bank uses the liability method of accounting for income taxes, which requires the recognition of deferred tax assets and liabilities for the future tax consequences attributable
to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Additionally, this method requires the recognition of
future tax benefits, such as net operating loss carryforwards, to the extent that realization of such benefits is more likely than not. Deferred tax assets and liabilities are measured
using enacted tax rates expected to apply to taxable income in the years in which the assets and liabilities are expected to be recovered or settled. The effect on deferred tax assets
and liabilities of a change in tax rates is recognized in income tax expense in the period that includes the enactment date.

In the event the future tax consequences of differences between the financial reporting bases and the tax bases of the Bank’s assets and liabilities results in deferred tax assets, an
evaluation of the probability of being able to realize the future benefits indicated by such asset is required. A valuation allowance is provided for the portion of the deferred tax
asset when it is more likely than not that some portion or all of the deferred tax asset will not be realized. In assessing the realization of the deferred tax assets, management
considers the scheduled reversals of deferred tax liabilities, projected future taxable income, and tax planning strategies.
The Bank currently evaluates income tax positions judged to be uncertain. A loss contingency reserve is accrued if it is probable that the tax position will be challenged, it is
probable that the future resolution of the challenge will confirm that a loss has been incurred, and the amount of such loss can be reasonably estimated.

(2) Investment Securities Held-to-Maturity

Investment securities held-to-maturity at September 30, 2016 and 2015 are as follows: (in thousands)

Gross Gross
Amortized Unrealized Unrealized Estimated
September 30, 2016 Cost Gains Losses Fair Value
U.S. Government sponsored enterprises $ 7,499 18 — 7,517

September 30, 2015

U.S. Government sponsored enterprises $ 7,492 41 — 7,533

There were no securities in an unrealized loss position as of September 30, 2016 or 2015.

The U.S. government sponsored enterprise securities as of September 30, 2016 are comprised of three debt financing securities issued by government agencies that mature within
three years.

There were no sales of securities held-to-maturity during 2016 or 2015.

Securities with a carrying value of approximately $2,250,000 were pledged to secure public deposits at September 30, 2016 and 2015.

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NEWTON FEDERAL BANK

Notes to Financial Statements, continued

(3) Loans and Allowance for Loan Losses

Major classifications of loans, by collateral code, at September 30, 2016 and 2015 are summarized as follows: (in thousands)

2016 2015
Commercial (secured by real estate) $ 29,162 24,581
Commercial and industrial 16,221 14,333
Construction, land and acquisition & development 13,343 2,261
Residential mortgage 132,899 132,480
Consumer installment 2,262 2,017
193,887 175,672
Less allowance for loan losses 4,309 5,874
$189,578 169,798

The Bank grants loans and extensions of credit to individuals and a variety of firms and corporations located primarily in Newton County and other surrounding Georgia counties.
A substantial portion of the loan portfolio is collateralized by improved and unimproved real estate and is dependent upon the real estate market.

Qualifying loans in the amount of approximately $131,997,000 and $131,237,000 were pledged to secure the line of credit from the FHLB at September 30, 2016 and 2015,
respectively. These amounts represent the total outstanding balances of single-family mortgage loans, and are included in the residential mortgage classification in the table above.

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NEWTON FEDERAL BANK

Notes to Financial Statements, continued

(3) Loans and Allowance for Loan Losses, continued

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of
September 30, 2016 and 2015: (in thousands)

Commercial Construction,
(Secured by Commercial Land and
Real and Acquisition & Residential Consumer
September 30, 2016 Estate) Industrial Development Mortgage Installment Unallocated Total
Allowance for loan losses:
Beginning balance $ 1,238 739 67 3,486 50 294 5,874
Provision 1,920 (96) 76 (1,608) (8) (284) —
Charge-offs (1,796) — — (337) (12) — (2,145)
Recoveries 233 — — 341 6 — 580
Ending balance $ 1,595 643 143 1,882 36 10 4,309
Ending allowance attributable to loans:
Individually evaluated for impairment $ 3 — — 3 — — 6
Collectively evaluated for impairment 1,592 643 143 1,879 36 10 4,303
Total ending allowance $ 1,595 643 143 1,882 36 10 4,309
Loans:
Individually evaluated for impairment $ 2,383 — — 5,995 5 — 8,383
Collectively evaluated for impairment 26,779 16,221 13,343 126,904 2,257 — 185,504
Total loans $ 29,162 16,221 13,343 132,899 2,262 — 193,887

September 30, 2015

Allowance for loan losses:
Beginning balance $ 1,033 495 55 3,424 40 660 5,708
Provision 95 90 12 144 26 (366) —
Charge-offs (20) — — (438) (18) — (476)
Recoveries 130 154 — 356 2 — 642
Ending balance $ 1,238 739 67 3,486 50 294 5,874
Ending allowance attributable to loans:
Individually evaluated for impairment $ 2 — — 4 — — 6
Collectively evaluated for impairment 1,236 739 67 3,482 50 294 5,868
Total ending allowance $ 1,238 739 67 3,486 50 294 5,874
Loans:
Individually evaluated for impairment $ 1,346 — — 5,025 6 — 6,377
Collectively evaluated for impairment 23,235 14,333 2,261 127,455 2,011 — 169,295
Total loans $ 24,581 14,333 2,261 132,480 2,017 — 175,672

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NEWTON FEDERAL BANK

Notes to Financial Statements, continued

(3) Loans and Allowance for Loan Losses, continued

The Bank individually evaluates all loans for impairment that are on nonaccrual status or are rated substandard (as described below). Additionally, all troubled debt restructurings
are evaluated for impairment. A loan is considered impaired when, based on current events and circumstances, it is probable that all amounts due according to the contractual
terms of the loan will not be collected. Impaired loans are measured based on the present value of expected future cash flows, discounted at the loan’s effective interest rate, at the
loan’s observable market price, or the fair value of the collateral if the loan is collateral dependent. Interest payments received on impaired loans are applied as a reduction of the
outstanding principal balance.

Impaired loans at September 30, 2016 and 2015 were as follows: (in thousands)

Unpaid Allocated Average Interest

Recorded Principal Related Recorded Income
September 30, 2016 Investment Balance Allowance Investment Recognized
With no related allowance recorded:
Commercial (secured by real estate) $ 181 2,922 — 289 22
Commercial and industrial — — — — —
Construction, land and acquisition & development — — — — —
Residential mortgage 5,320 7,587 — 5,523 218
Consumer installment 5 10 — 9 —
$ 5,506 10,519 — 5,821 240
With an allowance recorded:
Commercial (secured by real estate) $ 2,202 2,202 3 2,943 85
Commercial and industrial — — — — —
Construction, land and acquisition & development — — — — —
Residential mortgage 675 675 3 554 37
Consumer installment — — — — —
2,877 2,877 6 3,497 122
Total impaired loans $ 8,383 13,396 6 9,318 362

September 30, 2015

With no related allowance recorded:
Commercial (secured by real estate) $ 783 2,215 — 920 42
Commercial and industrial — — — — —
Construction, land and acquisition & development — — — — —
Residential mortgage 4,233 6,472 — 4,271 198
Consumer installment 6 6 — — —
$ 5,022 8,693 — 5,191 240
With an allowance recorded:
Commercial (secured by real estate) $ 563 563 2 565 36
Commercial and industrial — — — — —
Construction, land and acquisition & development — — — — —
Residential mortgage 792 792 4 799 27
Consumer installment — — — — —
1,355 1,355 6 1,364 63
Total impaired loans $ 6,377 10,048 6 6,555 303

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NEWTON FEDERAL BANK

Notes to Financial Statements, continued

(3) Loans and Allowance for Loan Losses, continued

The following table presents the aging of the recorded investment in past due loans, as well as the recorded investment in nonaccrual loans, as of September 30, 2016 and 2015 by
class of loans: (in thousands)

Greater
30 -59 60- 89 than
Days Days 90 Days Total
September 30, 2016 Past Due Past Due Past Due Past Due Current Total Nonaccrual
Commercial (secured by real estate) $ — 66 44 110 29,052 29,162 230
Commercial and industrial 194 — — 194 16,027 16,221 —
Construction, land and acquisition & development — — — — 13,343 13,343 —
Residential mortgage 32 3,382 1,955 5,369 127,530 132,899 3,013
Consumer installment 20 — — 20 2,242 2,262 —
Total $ 246 3,448 1,999 5,693 188,194 193,887 3,243

September 30, 2015

Commercial (secured by real estate) $ — 408 50 458 24,123 24,581 448
Commercial and industrial — — 33 33 14,300 14,333 33
Construction, land and acquisition & development — — — — 2,261 2,261 —
Residential mortgage — 2,909 1,598 4,507 127,973 132,480 2,056
Consumer installment — 15 20 35 1,982 2,017 26
Total $ — 3,332 1,701 5,033 170,639 175,672 2,563

There were no loans past due over 90 days and still accruing interest as of September 30, 2016 and 2015.

The table below presents additional information on troubled debt restructurings including the number of loan contracts restructured and the pre- and post-modification recorded
investment that have occurred during the years ended September 30, 2016 and 2015. Also included in the table are the number of contracts and the recorded investment for those
trouble debt restructurings that have subsequently defaulted during the years ended September 30, 2016 and 2015: (in thousands)

Pre- Post- Troubled Debt

Modification Modification Restructurings that have
Outstanding Outstanding Subsequently Defaulted
Number of Recorded Recorded Number of Recorded
September 30, 2016 Contracts Investment Investment Contracts Investment
Commercial (secured by real estate) 1 3,057 1,519 — —
Residential mortgage 2 263 263 1 226
Total 3 3,320 1,782 1 226

September 30, 2015

Residential mortgage 3 465 449 2 721

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NEWTON FEDERAL BANK

Notes to Financial Statements, continued

(3) Loans and Allowance for Loan Losses, continued

The Bank has allocated an allowance for loan losses of $5,000 and $6,000 to customers whose loan terms have been modified in troubled debt restructurings as of September 30,
2016 and 2015. As of September 30, 2016 and 2015, the Bank has not committed to lend additional amounts to customers with outstanding loans that are classified as troubled
debt restructurings.

The Bank categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical
payment experience, credit documentation, public information and current economic trends, among other factors. The Bank analyzes loans individually by classifying the loans as
to credit risk. This analysis is performed on a continuous basis. The Bank uses the following definitions for its risk ratings:

Special Mention. Loans have potential weaknesses that may, if not corrected, weaken or inadequately protect the Bank’s credit position at some future date. Weaknesses are
generally the result of deviation from prudent lending practices, such as over advances on collateral. Credits in this category should, within a 12 month period, move to Pass if
improved or drop to Substandard if poor trends continue.

Substandard. Inadequately protected by the current net worth and paying capacity of the obligor or by the collateral pledged, if any. Loans have a well-defined weakness or
weaknesses such as primary source of repayment is gone or severely impaired or cash flow is insufficient to reduce debt. There is a distinct possibility that the Bank will sustain
some loss if the deficiencies are not corrected.

Doubtful. Loans have weaknesses of those classified Substandard, with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and
improbable. The likelihood of a loss on an asset or portion of an asset classified Doubtful is high.

Loss. Loans considered uncollectible and of such little value that the continuance as a Bank asset is not warranted. This does not mean that the loan has no recovery or salvage
value, but rather the asset should be charged off even though partial recovery may be possible in the future.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be Pass rated loans. As of September 30, 2016 and
2015, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: (in thousands)

Special Doubtful/
September 30, 2016 Pass Mention Substandard Loss Total
Commercial (secured by real estate) $ 28,228 — 934 — 29,162
Commercial and industrial 16,221 — — — 16,221
Construction, land and acquisition & development 13,343 — — — 13,343
Residential mortgage 123,577 229 9,093 — 132,899
Consumer installment 2,262 — — — 2,262
Total $183,631 229 10,027 — 193,887

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NEWTON FEDERAL BANK

Notes to Financial Statements, continued

(3) Loans and Allowance for Loan Losses, continued

Special Doubtful/
September 30, 2015 Pass Mention Substandard Loss Total
Commercial (secured by real estate) $ 20,646 163 3,772 — 24,581
Commercial and industrial 12,046 1,734 553 — 14,333
Construction, land and acquisition & development 2,261 — — — 2,261
Residential mortgage 124,274 694 7,512 — 132,480
Consumer installment 1,974 — 43 — 2,017
Total $161,201 2,591 11,880 — 175,672

(4) Other Real Estate Owned

The Bank did not have any other real estate owned as of September 30, 2016. The Bank’s other real estate owned consisted of the following as of September 30, 2015: (in
thousands)

2015
Number of Carrying
Properties Amount
Land — $ —
Construction 2 62
1-4 Family residential — —
Commercial 2 470
Total 4 $ 532

(5) Premises and Equipment

Premises and equipment at September 30, 2016 and 2015 are summarized as follows: (in thousands)

2016 2015
Land $ 935 935
Buildings 5,442 5,360
Equipment and furniture 3,217 2,956
Construction in process 231 —
Automobile 68 30
9,893 9,281
Less: Accumulated depreciation 5,337 5,020
$4,556 4,261

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NEWTON FEDERAL BANK

Notes to Financial Statements, continued

(5) Premises and Equipment, continued

Depreciation expense was approximately $347,000 and $308,000 for the years ended September 30, 2016 and 2015, respectively.

The Bank is obligated under non-cancelable operating leases for certain of its facilities and related land. At September 30, 2016, the approximate minimum annual rentals under
these non-cancelable agreements with remaining terms in excess of one year are as follows:

Years ending September 30, (in thousands)

2017 $ 88
2018 80
2019 77
2020 77
2021 77
Thereafter 277
Total $ 676

Total rent expense for leased property approximated $86,000 and $77,000 for the years ended September 30, 2016 and 2015, respectively.

(6) Deposits
At September 30, 2016, contractual maturities of certificate of deposits are summarized as follows: (in thousands)

2017 $35,516
2018 9,196
2019 9,096
2020 6,145
2021 8,401
Thereafter 17,169
$85,523

The aggregate amounts of certificate of deposits of $250,000 or more, the standard FDIC deposit insurance coverage limit per depositor, were approximately $7,925,000 and
$10,531,000 at September 30, 2016 and 2015, respectively.

The following is a summary of interest expense on deposits for the years ended September 30, 2016 and 2015: (in thousands)

2016 2015
Passbook accounts $ 8 8
Interest bearing checking accounts 83 36
Market rate checking accounts 59 58
Certificate of Deposits 1,265 1,711
$1,415 1,813

(7) Borrowings
At September 30, 2016 and 2015, the Bank had a line of credit totaling $58,000,000 and $34,000,000, respectively, from the FHLB, which is reviewed annually by the FHLB.
There were no advances outstanding at September 30, 2016 or 2015.

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NEWTON FEDERAL BANK

Notes to Financial Statements, continued

(7) Borrowings, continued

At September 30, 2016 and 2015, the Bank had an unsecured federal funds line of credit of $5,000,000, for which no amounts were outstanding as of September 30, 2016 or 2015.

(8) Income Taxes

The components of income tax expense for the years ended September 30, 2016 and 2015 are as follows: (in thousands)

2016 2015
Current $ 3 77
Deferred 694 (2)
Utilization of operating loss carryforward — 844
Change in valuation allowance — (40)
$697 879

The difference between income tax expense and the amount computed by applying the statutory federal income tax rate to income before taxes for the years ended September 30,
2016 and 2015 is as follows:

2016 2015
Pretax income at statutory rate (34%) $630 848
State income tax, net of federal benefit 68 45
Other (1) 26
Change in valuation allowance — (40)
Actual tax expense (38% and 35%, respectively) $697 879

The following summarizes the sources and expected tax consequences of future deductions or income for income tax purposes which comprised the net deferred taxes at
September 30, 2016 and 2015: (in thousands)

2016 2015
Deferred income tax assets:
Allowance for loan losses $1,628 2,237
Deferred compensation 1,464 1,431
Write downs on other real estate owned — 87
Deferred gain on other real estate owned 123 126
Alternative minimum tax credit carryforward 16 74
State tax credits 251 248
Other 104 70
Total deferred income tax assets 3,586 4,273
Deferred income tax liabilities:
FHLB stock dividends 6 6
Other 77 70
Total deferred income tax liabilities 83 76
Net deferred income tax asset $3,503 4,197

The future tax consequences of the difference between financial reporting and tax basis of the Bank’s assets and liabilities resulted in a net deferred tax asset. Based upon
management’s evaluation of the likelihood that the net deferred tax asset would be realized based upon the current and expected future financial performance of the Bank, the
valuation allowance previously provided for was eliminated for the year ended September 30, 2014 and credited to net income, except for $40,000 of the valuation allowance
related to certain deferred tax attributes for state tax credits, which was eliminated for the year ended September 30, 2015.

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NEWTON FEDERAL BANK

Notes to Financial Statements, continued

(9) Retained Earnings

Prior to January 1, 1996, the Bank was permitted under the Internal Revenue Code (the “Code”) a special bad debt deduction related to additions to tax bad debt reserves
established for the purpose of absorbing losses. The provisions of the Code permitted the Bank to deduct from taxable income an allowance for bad debts based on the greater of a
percentage of taxable income before such deduction or actual loss experience. Retained earnings at September 30, 2016 includes approximately $3,625,000 for which no deferred
Federal income tax liability has been recognized. The amounts represent an allocation of income for bad debt deductions for tax purposes only. Reduction of amounts so allocated
for purposes other than tax bad debt losses would create income for tax purposes only, which would be subject to the then current corporate income tax rate.

On August 20, 1996, legislation was passed which eliminated the percentage of taxable income bad debt deduction for thrift institutions for tax years beginning after December 31,
1995. This legislation also requires a thrift to generally recapture the excess of its current tax reserves over its 1987 base year reserves whereas the base year reserves are frozen
from taxation. No additional financial statement tax expense resulted from this legislation as the Bank had previously provided deferred taxes on this recaptured amount.

(10) Benefit Plans

The Bank has a profit sharing plan to provide retirement benefits for all employees. Contributions are paid to a Trust Fund annually by the Bank in an amount determined by the
Board of Directors. The expenses for the plan years ended September 30, 2016 and 2015 totaled approximately $118,000 and $104,000, respectively.

In January 2014, the Bank added a 401(k) feature to the profit sharing plan that covers substantially all employees. Under the terms of the feature, the Bank may make matching
contributions to the plan and the employees can contribute up to the maximum amounts allowed by IRS guidelines. The contribution expense related to the 401(k) feature totaled
$54,000 and $20,000 for the plan years ended September 30, 2016 and 2015, respectively.

The Bank sponsors a deferred compensation plan for directors. Under this plan, participating directors may defer their Board fees and receive the deferred amounts plus interest
upon completion of their time as a director or at their election. The cumulative deferred contributions for the directors in the plan and earnings thereon at September 30, 2016 and
2015 totaled approximately $3,856,000 and $3,769,000, respectively. These amounts are included in other liabilities in the accompanying balance sheets. No contributions were
made to the plan for the current year’s service as the plan was frozen as of June 30, 2015. Contributions to the plan for 2015 prior to the plan being frozen was approximately
$105,000.

(11) Regulatory Matters

On May 29, 2012, the Bank entered into a formal written agreement (the “Agreement”) with the OCC. The Agreement required the Bank to undertake certain actions within
designated time frames, and to operate in compliance with the provisions thereof during its term. The significant actions that were to be undertaken are as follows: implement an
effective criticized assets monitoring and management system, implement a written program to improve the Bank’s loan portfolio management, implement a written program to
ensure adequate allowance for loan losses, obtain independent written or updated appraisals for all criticized assets and assets with stale appraisals, implement action plans for all
other real estate properties, and prepare and ensure adherence to a written three-year business plan. Compliance with the Agreement is monitored by a committee made up of three
independent directors of the Bank, of which no more than one is a related party of the Bank. On April 14, 2015, the Agreement was terminated by the OCC.

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NEWTON FEDERAL BANK

Notes to Financial Statements, continued

(11) Regulatory Matters, continued

The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain
mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital
adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s
assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classifications are also subject to
qualitative judgments by the regulators about components, risk weightings, and other factors.

In July 2013, the Federal bank regulatory agencies issued a final rule that revises their risk-based capital requirements and the method for calculating components of capital and of
computing risk-weighted assets to make them consistent with agreements that were reached by the Basel Committee on Banking Supervision and certain provisions of the Dodd-
Frank Act. The final rule applies to all depository institutions, top-tier bank holding companies with total consolidated assets of $500 million or more and top-tier savings and loan
holding companies. The rule establishes a new common equity Tier 1 minimum capital requirement, increases the minimum capital ratios and assigns a higher risk weight to
certain assets based on the risk associated with these assets. The final rule includes transition periods that generally implement the new regulations over a five year period. These
changes were being phased in beginning in January 2015. Management continues to evaluate this final rule and its potential impact on the Bank. Preliminary assessments indicate
that the Bank will continue to exceed all regulatory capital requirements under the phased in requirements of the new rule.

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios of Common Equity Tier 1, Total and Tier I
Capital to Risk-Weighted Assets and of Tier I Capital to Average Assets. Management believes, as of September 30, 2016 and 2015, that the Bank meets all capital adequacy
requirements to which it is subject.

As of September 30, 2016 and 2015, the most recent notification from the FDIC categorized the Bank as well capitalized under the regulatory framework for prompt corrective
action. To be categorized as well capitalized, the Bank must maintain minimum common equity Tier 1 risk-based, total risk-based, Tier I risk-based and Tier I leverage ratios as
set forth below. There are no conditions or events since that notification that management believes have changed the Bank’s category.

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NEWTON FEDERAL BANK

Notes to Financial Statements, continued

(11) Regulatory Matters, continued

The Bank’s actual capital amounts and ratios for September 30, 2016 and 2015 are presented in the table below (in thousands).

To Be Well
Capitalized
For Capital Under Prompt
Adequacy Corrective
Actual Purposes Action Provisions
Amount Ratio Amount Ratio Amount Ratio
As of September 30, 2016:
Common Equity Tier 1
(to Risk Weighted Assets) $44,801 31% $ 6,533 4.5% $ 9,436 6.5%
Total Capital
(to Risk Weighted Assets) $46,647 32% $11,614 8% $14,517 10%
Tier I Capital
(to Risk Weighted Assets) $44,801 31% $ 8,710 6% $11,614 8%
Tier I Capital
(to Average Assets) $44,801 19% $ 9,274 4% $11,593 5%
As of September 30, 2015:
Common Equity Tier 1
(to Risk Weighted Assets) $43,572 35% $ 5,542 4.5% $ 8,005 6.5%
Total Capital
(to Risk Weighted Assets) $45,167 37% $ 9,853 8% $12,316 10%
Tier I Capital
(to Risk Weighted Assets) $43,572 36% $ 7,390 6% $ 9,853 8%
Tier I Capital
(to Average Assets) $43,572 19% $ 8,997 4% $11,247 5%

A reconciliation of the Bank’s equity capital amounts under GAAP to tier 1 and total risk-based capital for September 30, 2016 and 2015 are presented in the table below (in
thousands).

2016 2015
Regulatory capital:
Retained earnings $45,081 43,924
Disallowed deferred taxes (280) (352)
Tier 1 risk-based capital 44,801 43,572
Eligible allowance for loan losses 1,846 1,595
Total risk-based capital $46,647 45,167

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NEWTON FEDERAL BANK

Notes to Financial Statements, continued

(12) Related Party Transactions

The Bank conducts transactions with its directors and executive officers, including companies in which they have beneficial interest, in the normal course of business. It is the
policy of the Bank that loan transactions with directors and executive officers be made on substantially the same terms as those prevailing at the time for comparable loans to other
persons. The following is a summary of activity for related party loans for 2016: (in thousands)

Beginning balance $ 652

Loans advanced 610
Repayments (349)
Ending balance $ 913

The aggregate amount of deposits from directors and executive officers and their affiliates amounted to approximately $1,182,000 and $2,243,000 at September 30, 2016 and
2015, respectively.

(13) Commitments
During 2016, the Bank entered into an agreement to construct a building to serve as the Bank’s operations center. The building is expected to be completed during the second
quarter of 2017 for a total construction price of approximately $2,578,000.

The Bank is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments
could include commitments to extend credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheet. The
contract amounts of those instruments reflect the extent of involvement the Bank has in particular classes of financial instruments.

The exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount
of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments.

In most cases, the Bank requires collateral or other security to support financial instruments with credit risk.

Appropriate
Contract Amount
2016 2015
Financial instruments whose contract amounts represent credit risk:
Commitments to extend credit (in thousands) $19,553 8,294

The dollar amount and ranges of rates of commitments to fund fixed rate loans follows:

September 30,
2016 2015
Interest Interest
Amount Rate Range Amount Rate Range
Commitments to extend credit (in thousands) $ 11,834 3.50%-9.50% 2,247 3.00%-9.50%

Commitments to extend credit are agreements to lend to a customer, as long as there is no violation of any condition established in the contract. Commitments generally have fixed
expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments may expire without being drawn upon, the total commitment
amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if
deemed necessary by the Bank, upon extension of credit is based on management’s credit evaluation. Collateral held varies but may include unimproved and improved real estate,
certificates of deposit, or personal property.

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NEWTON FEDERAL BANK

Notes to Financial Statements, continued

(14) Fair Value Measurements and Disclosures

The Bank utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The Bank does not currently
record any assets at fair value on a recurring basis. From time to time, the Bank may be required to record at fair value other assets on a nonrecurring basis, such as impaired loans
and other real estate owned. These nonrecurring fair value adjustments typically involve application of the lower of cost or market accounting or write-downs of individual assets.
Additionally, the Bank is required to disclose, but not record, the fair value of other financial instruments.

Fair Value Hierarchy

The Bank groups assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to
determine fair value. These levels are:

Level 1 – Valuation is based upon quoted prices for identical instruments traded in active markets.
Level 2 – Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not
active, and model-based valuation techniques for which all significant assumptions are observable in the market.
Level 3 – Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable
assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of
option pricing models, discounted cash flow models and similar techniques.

Following is a description of valuation methodologies used for assets and liabilities recorded at fair value.

Cash and Cash Equivalents

The carrying value of cash and cash equivalents is a reasonable estimate of fair value.

Investment Securities Held-to-Maturity

Held-to-maturity securities are recorded at cost, adjusted for the amortization or accretion of premiums and discounts. Fair value measurement is based upon quoted prices, if
available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of
future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 securities include those traded on an
active exchange, such as the New York Stock Exchange, and U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter market funds. Level 2
securities include mortgage-backed securities issued by government sponsored enterprises and state, county and municipal bonds. Securities classified as Level 3 include asset-
backed securities in less liquid markets.

Other Investments
The carrying value of other investments approximates fair value.

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NEWTON FEDERAL BANK

Notes to Financial Statements, continued

(14) Fair Value Measurements and Disclosures, continued

Loans and Loans Held for Sale

The Bank does not record loans at fair value on a recurring basis. However, from time to time, a loan is considered impaired and a specific reserve is established within the
allowance for loan losses. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are
considered impaired. Once a loan is identified as individually impaired, management measures impairment in accordance with GAAP. The fair value of impaired loans is
estimated using one of three methods, including collateral value, market value of similar debt, and discounted cash flows. Those impaired loans not requiring an allowance
represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. In accordance with GAAP, impaired loans where
an allowance is established based on the fair value of collateral require classification in the fair value hierarchy. When the fair value of the collateral is based on an observable
market price, the Bank records the impaired loan as nonrecurring Level 2. When an appraised value is used or an appraisal is not available or management determines the fair
value of the collateral is further impaired below the appraised value and there is no observable market price, the Bank records the impaired loan as nonrecurring Level 3. For
disclosure purposes, the fair value of fixed rate loans which are not considered impaired is estimated by discounting the future cash flows using the current rates at which similar
loans would be made to borrowers with similar credit ratings. For unimpaired variable rate loans, the carrying amount is a reasonable estimate of fair value for disclosure purposes.

The estimated fair value of loans held for sale, classified within Level 2, is approximated by the carrying value, given the short-term nature of the loans and similarly to what
secondary markets are currently offering for portfolios of loans with similar characteristics.

Other Real Estate Owned

Other real estate properties are adjusted to fair value upon transfer of the loans to other real estate. Subsequently, other real estate assets are carried at fair value less estimated
selling costs. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. When the fair value
of the collateral is based on an observable market price, the Bank records the other real estate as nonrecurring Level 2. When an appraised value is used or an appraisal is not
available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Bank records the
other real estate asset as nonrecurring Level 3.

Deposits
The fair value of passbook accounts, interest bearing checking accounts, non-interest bearing checking accounts and market rate checking accounts is the amount payable on
demand at the reporting date, while the fair value of fixed maturity certificates of deposit is estimated by discounting the future cash flows using current rates at which comparable
certificates would be issued.

Commitments to Extend Credit

Commitments to extend credit are short-term and, therefore, the carrying value and the fair value are considered immaterial for disclosure.

Assets Recorded at Fair Value on a Recurring Basis

As of September 30, 2016 and 2015, there were no assets measured at fair value on a recurring basis.

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NEWTON FEDERAL BANK

Notes to Financial Statements, continued

(14) Fair Value Measurements and Disclosures, continued

Assets Recorded at Fair Value on a Nonrecurring Basis

The Bank may be required, from time to time, to measure certain assets at fair value on a nonrecurring basis in accordance with GAAP. These include assets that are measured at
the lower of cost or market that were recognized at fair value below cost at the end of the period. Assets measured at fair value on a nonrecurring basis are included in the table
below as of September 30, 2016 and 2015. (in thousands)

September 30, 2016 Level 1 Level 2 Level 3 Total

Other real estate owned $ — — — —
Impaired loans — — 8,377 8,377
Total assets at fair value $ — — 8,377 8,377

September 30, 2015 Level 1 Level 2 Level 3 Total

Other real estate owned $ — — 532 532
Impaired loans — — 6,371 6,371
Total assets at fair value $ — — 6,903 6,903

The carrying amounts and estimated fair values (in thousands) of the Bank’s financial instruments at September 30, 2016 and 2015 are as follows:

2016 2015
Carrying Estimated Carrying Estimated
Amount Fair Value Amount Fair Value
Financial assets:
Cash and cash equivalents $ 25,693 25,693 38,494 38,494
Investment securities held-to-maturity $ 7,499 7,517 7,492 7,533
Other investments $ 205 205 202 202
Loans held for sale $ 472 472 — —
Loans, net $189,578 183,321 169,798 172,855
Financial liabilities:
Deposits $181,699 182,016 176,687 178,417

Limitations
Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any
premium or discount that could result from offering for sale at one time the Bank’s entire holdings of a particular financial instrument. Because no market exists for a significant
portion of the Bank’s financial instruments, fair value estimates are based on many judgments. These estimates are subjective in nature and involve uncertainties and matters of
significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

Fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of
assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not considered financial instruments include deferred income taxes and
premises and equipment. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have
not been considered in the estimates.

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NEWTON FEDERAL BANK

Notes to Financial Statements, continued

(15) Subsequent Event

On October 31, 2016, the Board of Directors of the Bank adopted a Plan of Reorganization from a Mutual Savings Association to a Mutual Holding Company and Stock Issuance
Plan (the “Plan”). The Plan is subject to the approval of the Board of Governors of the Federal Reserve System and must be approved by the affirmative vote of at least a majority
of the total votes eligible to be cast by the voting members of the Bank at a special meeting. Pursuant to the Plan, the Bank proposes to reorganize into a mutual holding company
form of ownership. The Bank will convert to a stock savings bank and issue all of its outstanding stock to a new holding company, which will be named Community First
Bancshares, Inc. Pursuant to the Plan, the new holding company will sell stock to the public, with the total offering value and number of shares of common stock based upon an
independent appraiser’s valuation. The stock will be priced at $10.00 per share. In addition, the Bank’s Board of Directors will adopt an employee stock ownership plan (“ESOP”),
which will subscribe for up to 3.92% of the common stock of the new holding company to be outstanding upon the completion of the reorganization and stock
issuance. Community First Bancshares, Inc. will be organized as a corporation under the laws of the United States and will offer 46% of its common stock to be outstanding to the
Bank’s eligible members, the ESOP and certain other persons. Community First Bancshares, MHC will be organized as a mutual holding company under the laws of the United
States and will own 54% of the common stock of Community First Bancshares, Inc. to be outstanding upon completion of the reorganization and stock issuance.

The costs of the reorganization and the issuing of the common stock will be deferred and deducted from the sales proceeds of the offering. If the conversion is unsuccessful, all
deferred costs will be charged to operations. As of September 30, 2016, no reorganization costs had been incurred.

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No person has been authorized to give any information or to make any representation other than as contained in this prospectus and, if given or made, such other information or
representation must not be relied upon as having been authorized by Community First Bancshares, Inc. or Newton Federal Bank. This prospectus does not constitute an offer to
sell or a solicitation of an offer to buy any of the securities offered hereby to any person in any jurisdiction in which such offer or solicitation is not authorized or in which the
person making such offer or solicitation is not qualified to do so, or to any person to whom it is unlawful to make such offer or solicitation in such jurisdiction. Neither the
delivery of this prospectus nor any sale hereunder shall under any circumstances create any implication that there has been no change in the affairs of Community First
Bancshares, Inc. or Newton Federal Bank since any of the dates as of which information is furnished herein or since the date hereof.

Up to 3,015,300 shares
(Subject to Increase to up to 3,467,595 shares)

(Proposed Holding Company for Newton Federal Bank)

COMMON STOCK
par value $0.01 per share

PROSPECTUS

[prospectus date]

These securities are not deposits or accounts and are not federally insured or guaranteed.

Until , all dealers that effect transactions in these securities, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition
to the obligation of dealers to deliver a prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions.
Table of Contents

PART II: INFORMATION NOT REQUIRED IN PROSPECTUS

Item 13. Other Expenses of Issuance and Distribution
The following table sets forth the costs and expenses, other than underwriting discounts and commissions, payable in connection with the sale of shares of common stock being
registered.

* Registrant’s Legal Fees and Expenses $ 425,000

* Registrant’s Accounting Fees and Expenses 130,000
* Marketing Agent Fees and Expenses 95,000
* Stock Center Fees and Expenses 35,000
* Appraisal Fees and Expenses 51,500
* Printing, Postage, Mailing and EDGAR Fees 136,500
* Filing Fees (NASDAQ, FINRA, SEC) 59,500
* Transfer Agent Fees and Expenses 15,000
* Business Plan Fees and Expenses 40,000
* Proxy Solicitor Fees and Expense 10,000
* Data Conversion Fees and Expense 29,500
* Other 78,000
* Total $1,105,000

* Estimated.

Item 14. Indemnification of Directors and Officers

Provisions in the Registrant’s bylaws provide for indemnification of the Registrant’s directors and officers up to the fullest extent authorized by applicable law and regulations of the
FRB. Section 239.40 of Title 12 of the Code of Federal Regulations is described below. Section 239.31 of Title 12 of the Code of Federal Regulations indicates that Section 239.40 apply to
subsidiary holding companies, such as Community First Bancshares, Inc.

Generally, federal regulations require indemnity coverage for mutual holding companies and subsidiary holding companies for any person against whom any action is brought or
threatened because that person is or was a director or officer of the savings association, for:
(i) Any amount for which that person becomes liable under a judgment in such action; and
(ii) Reasonable costs and expenses, including reasonable attorney’s fees, actually paid or incurred by that person in defending or settling such action, or in enforcing his or her
rights under this section if he or she attains a favorable judgment in such enforcement action,

provided that indemnification shall be made to such person only if:

(i) Final judgment on the merits is in his or her favor; or
(ii) In case of:
a. Settlement,
b. Final judgment against him or her, or
c. Final judgment in his or her favor, other than on the merits, if a majority of the disinterested directors of the mutual holding company determine that he or she was
acting in good faith within the scope of his or her employment or authority as he or she could reasonably have perceived it under the circumstances and for a
purpose he or she could reasonably have believed under the circumstances was in the best interests of the mutual holding company or its members.

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Table of Contents

However, no indemnification shall be made unless the mutual holding company gives the Board at least 60 days’ notice of its intention to make such indemnification. Such notice
shall state the facts on which the action arose, the terms of any settlement, and any disposition of the action by a court. Such notice, a copy thereof, and a certified copy of the resolution
containing the required determination by the board of directors shall be sent to the appropriate Reserve Bank, who shall promptly acknowledge receipt thereof. The notice period shall run
from the date of such receipt. No such indemnification shall be made if the Board advises the mutual holding company in writing, within such notice period, of its objection to the
indemnification.

As used in the above paragraph:

(i) “Action” means any judicial or administrative proceeding, or threatened proceeding, whether civil, criminal, or otherwise, including any appeal or other proceeding for
review;
(ii) “Court” includes, without limitation, any court to which or in which any appeal or any proceeding for review is brought;
(iii) “Final Judgment” means a judgment, decree, or order which is not appealable or as to which the period for appeal has expired with no appeal taken;
(iv) “Settlement” includes the entry of a judgment by consent or confession or a plea of guilty or of nolo contendere .

Item 15. Recent Sales of Unregistered Securities

Not applicable.

Item 16. Exhibits and Financial Statement Schedules:

The exhibits and financial statement schedules filed as part of this registration statement are as follows:

(a) List of Exhibits

1.1 Engagement Letters between Newton Federal Bank and BSP Securities, LLC**
1.2 Form of Agency Agreement between Newton Federal Bank, Community First Bancshares, Inc., Community First Bancshares, MHC and BSP Securities, LLC**
2 Plan of Reorganization from a Mutual Savings Association to a Mutual Holding Company and Stock Issuance Plan, as amended
3.1 Charter of Community First Bancshares, Inc.**
3.2 Bylaws of Community First Bancshares, Inc.
4 Form of Common Stock Certificate of Community First Bancshares, Inc.**
5 Opinion of Luse Gorman, PC regarding legality of securities being registered**
8.1 Federal Tax Opinion**
8.2 State Tax Opinion**
10.1 Form of Employee Stock Ownership Plan**
10.2 Directors Deferred Compensation Plan**
10.3 Release and Settlement Agreement**
21 Subsidiaries of Community First Bancshares, Inc.**
23.1 Consent of Luse Gorman, PC (set forth in Exhibits 5 and 8.1)**
23.2 Consent of Porter Keadle Moore, LLC
23.3 Consent of Porter Keadle Moore, LLC with respect to state tax opinion (set forth in Exhibit 8.2)**
23.4 Consent of RP Financial, LC.
24 Power of Attorney (set forth on the signature page to this Registration Statement)
99.1 Engagement Letter with RP Financial, LC. to serve as appraiser**

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Table of Contents

99.2 Letter of RP Financial, LC. with respect to Subscription Rights**

99.3 Appraisal Report of RP Financial, LC.**
99.4 Marketing Materials**
99.5 Stock Order and Certification Form**
99.6 Amended Appraisal Report of RP Financial, LC.
99.7 Updated Appraisal Report of RP Financial, LC.

* To be filed by amendment.
** Previously filed.

(b) Financial Statement Schedules

No financial statement schedules are filed because the required information is not applicable or is included in the consolidated financial statements or related notes.

Item 17. Undertakings

The undersigned Registrant hereby undertakes:

(1) To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:
(i) To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;
(ii) To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which,
individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or
decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end
of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in
volume and price represent no more than a 20 percent change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective
registration statement;
(iii) To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such
information in the registration statement.

(2) That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

(3) To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.

(4) That, for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities:

The undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting
method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be
a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:

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(i) Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424 (§230.424 of this chapter);
(ii) Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;
(iii) The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or
on behalf of the undersigned registrant; and
(iv) Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.

(5) That, for purposes of determining any liability under the Securities Act of 1933, the information omitted from the form of prospectus filed as part of this registration statement in
reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this
registration statement as of the time it was declared effective.

(6) That, for the purpose of determining any liability under the Securities Act of 1933, each post-effective amendment that contains a form of prospectus shall be deemed to be a new
registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

(7) The undersigned registrant hereby undertakes to provide to the underwriter at the closing specified in the underwriting agreement, certificates in such denominations and
registered in such names as required by the underwriter to permit prompt delivery to each purchaser.

(8) Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the
foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed
in the Act, and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a
director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection
with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction
the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.

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SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly
authorized in the City of Covington, State of Georgia, on February 9, 2017.

COMMUNITY FIRST BANCSHARES, INC.

(In formation)

By: /s/ Johnny S. Smith

Johnny S. Smith
President and Chief Executive Officer
(Duly Authorized Representative)

POWER OF ATTORNEY

We, the undersigned directors of Community First Bancshares, Inc. (the “Company”), severally constitute and appoint Johnny S. Smith with full power of substitution, our true and
lawful attorney and agent, to do any and all things and acts in our names in the capacities indicated below which said Johnny S. Smith may deem necessary or advisable to enable the
Company to comply with the Securities Act of 1933, and any rules, regulations and requirements of the Securities and Exchange Commission, in connection with the Registration Statement
on Form S-1 relating to the offering of the Company common stock, including specifically, but not limited to, power and authority to sign for us or any of us in our names in the capacities
indicated below the registration statement and any and all amendments (including post-effective amendments) thereto; and we hereby approve, ratify and confirm all that said Johnny S.
Smith shall do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities and on the dates indicated.

Signatures Title Date

/s/ Johnny S. Smith President, Chief Executive Officer and Director (Principal Executive Officer) February 9, 2017
Johnny S. Smith

/s/ Tessa M. Nolan Senior Vice President and Chief Financial Officer (Principal Financial and February 9, 2017
Tessa M. Nolan Accounting Officer)

* Director February 9, 2017

Troy B. Brooks

* Director February 9, 2017

William D. Fortson, Jr.

* Director February 9, 2017

Marshall L. Ginn

* Director February 9, 2017

Bob W. Richardson

* Pursuant to the Powers of Attorney filed as Exhibit 24.0 to the Registration Statement on Form S-1 for Community First Bancshares, Inc. filed on December 12, 2016.
Table of Contents

As filed with the Securities and Exchange Commission on February 9, 2017

Registration No. 333-215041

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

EXHIBITS
TO
PRE-EFFECTIVE AMENDMENT NO. 2
TO THE
REGISTRATION STATEMENT
ON
FORM S-1

Community First Bancshares, Inc.

Covington, Georgia
Table of Contents

EXHIBIT INDEX

1.1 Engagement Letters between Newton Federal Bank and BSP Securities, LLC**
1.2 Form of Agency Agreement between Newton Federal Bank, Community First Bancshares, Inc., Community First Bancshares, MHC and BSP Securities, LLC**
2 Plan of Reorganization from a Mutual Savings Association to a Mutual Holding Company and Stock Issuance Plan, as amended
3.1 Charter of Community First Bancshares, Inc.**
3.2 Bylaws of Community First Bancshares, Inc.
4 Form of Common Stock Certificate of Community First Bancshares, Inc.**
5 Opinion of Luse Gorman, PC regarding legality of securities being registered**
8.1 Federal Tax Opinion**
8.2 State Tax Opinion **
10.1 Form of Employee Stock Ownership Plan**
10.2 Directors Deferred Compensation Plan**
10.3 Release and Settlement Agreement**
21 Subsidiaries of Community First Bancshares, Inc.**
23.1 Consent of Luse Gorman, PC (set forth in Exhibits 5 and 8.1)**
23.2 Consent of Porter Keadle Moore, LLC
23.3 Consent of Porter Keadle Moore, LLC with respect to state tax opinion (set forth in Exhibit 8.2)**
23.4 Consent of RP Financial, LC.
24 Power of Attorney (set forth on the signature page to this Registration Statement)
99.1 Engagement Letter with RP Financial, LC. to serve as appraiser**
99.2 Letter of RP Financial, LC. with respect to Subscription Rights**
99.3 Appraisal Report of RP Financial, LC.**
99.4 Marketing Materials**
99.5 Stock Order and Certification Form**
99.6 Amended Appraisal Report of RP Financial, LC.
99.7 Updated Appraisal Report of RP Financial, LC.

* To be filed by amendment.
** Previously filed.
 Exhibit 2

NEWTON FEDERAL BANK

PLAN OF REORGANIZATION
FROM A MUTUAL SAVINGS
ASSOCIATION
TO A MUTUAL HOLDING COMPANY
AND STOCK ISSUANCE PLAN
 TABLE OF CONTENTS

Page
1. Introduction 1
2. Definitions 2
3. The Reorganization 8
4. Conditions to Implementation of the Reorganization 10
5. Special Meeting of Members 11
6. Rights of Members of the MHC 11
7. Conversion of MHC to Stock Form 12
8. Timing of the Reorganization and Sale of Capital Stock 12
9. Number of Shares to be Offered 13
10. Independent Valuation and Purchase Price of Shares 13
11. Method of Offering Shares and Rights to Purchase Stock 14
12. Additional Limitations on Purchases of Common Stock 18
13. Payment for Stock 21
14. Manner of Exercising Subscription Rights Through Order Forms 21
15. Undelivered, Defective or Late Order Form; Insufficient Payment 23
16. Completion of the Stock Offering 23
17. Market for Common Stock 23
18. Stock Purchases by Management Persons After the Stock Offering 23
19. Resales of Stock by Directors and Officers 24
20. Stock Certificates 24
21. Restriction on Financing Stock Purchases 24
22. Stock Benefit Plans 24
23. Post-Reorganization Filing and Market Making 24
24. Payment of Dividends and Repurchase of Stock 25
25. Reorganization and Stock Offering Expenses 25
26. Employment and Other Severance Agreements 25
27. Residents of Foreign Countries and Certain States 25
28. Interpretation 26
29. Amendment or Termination of the Plan 26

Exhibits
Exhibit A Charter and Bylaws of the Bank
Exhibit B Charter and Bylaws of the Holding Company
Exhibit C Charter and Bylaws of the MHC
1. Introduction
This Plan of Reorganization from a Mutual Savings Association to a Mutual Holding Company and Stock Issuance Plan, dated as of October 31, 2016, as amended December 8,
2016, January 26, 2017 and February 8, 2017 (the “Plan”), provides for the reorganization of Newton Federal Bank (the “Bank”) from a federally-chartered mutual savings association into
the mutual holding company structure (the “Reorganization”) under the laws of the United States of America and the regulations of the Board of Governors of the Federal Reserve System
(the “Federal Reserve”), and other applicable requirements. The mutual holding company (the “MHC”) will be a mutually-owned federal corporation, and all of the current ownership and
voting rights of the Members of the Bank will be transferred to the MHC. As part of the Reorganization and the Plan, the Bank will convert to a federal stock savings bank (the “Stock
Bank”), and a stock holding company (the “Holding Company”) will be established as a federal corporation and a majority-owned subsidiary of the MHC at all times so long as the MHC
remains in existence. Concurrently with the Reorganization, the Holding Company intends to offer for sale up to 49.9% of its Common Stock in the Stock Offering. The Common Stock
will be offered for sale on a priority basis to depositors and the Tax-Qualified Employee Plans of the Bank, with any remaining shares offered for sale to the public in a Community
Offering, a Syndicated Community Offering, or a Firm Commitment Underwritten Offering, or a combination thereof. The Reorganization, Stock Offering and issuance of Common Stock
will be conducted in accordance with the Federal Reserve’s Regulation MM, 12 C.F.R. Part 239, and other applicable regulatory requirements.

The primary purpose of the Reorganization is to establish a stock holding company, which will enable the Bank to compete more effectively in the financial services marketplace.
The Reorganization will permit the Holding Company to issue Capital Stock, which is a source of capital not available to mutual savings associations. Since the Holding Company will not
offer all of its Common Stock for sale to depositors and the public in the Stock Offering, the Reorganization will result in less capital raised in comparison to a standard mutual-to-stock
conversion. The mutual holding company structure resulting from the Reorganization, however, will also permit the Bank to raise additional capital since a majority of the Holding
Company’s common stock (the common stock held by the MHC) will be available for sale in the future. The mutual holding company structure will also provide the Bank with greater
flexibility to structure and finance the expansion of its operations, including the potential acquisition of other financial institutions. Lastly, the Reorganization will enable the Bank to better
manage its capital by (i) providing broader acquisition and investment opportunities through the holding company structure, (ii) enabling the Holding Company to distribute capital to
stockholders in the form of dividends, and (iii) enabling the Holding Company to repurchase its common stock as market conditions warrant. Although the Reorganization and Stock
Offering will create a stock savings bank and stock holding company, only a minority of the Common Stock will be offered for sale in the Stock Offering. As a result, the Bank’s mutual
form of ownership and its ability to remain an independent community savings bank will be preserved through the mutual holding company structure. The Reorganization is subject to the
receipt of all necessary regulatory approvals, including the approval of the Federal Reserve, and must be approved by the affirmative vote of a majority of the total votes eligible to be cast
by Members.

1
2. Definitions
As used in this Plan, the terms set forth below have the following meanings:

Acting in Concert: The term Acting in Concert means (i) knowing participation in a joint activity or interdependent conscious parallel action towards a common goal whether or not
pursuant to an express agreement; or (ii) a combination or pooling of voting or other interests in the securities of an issuer for a common purpose pursuant to any contract, understanding,
relationship, agreement or other arrangement, whether written or otherwise. A Person or company which acts in concert with another Person or company (“other party”) shall also be
deemed to be Acting in Concert with any Person or company who is also Acting in Concert with that other party, except that any Tax-Qualified Employee Plan will not be deemed to be
Acting in Concert with its trustee or a Person who serves in a similar capacity solely for the purpose of determining whether stock held by the trustee and stock held by the plan will be
aggregated.

Actual Purchase Price: The price per share, determined as provided in this Plan, at which the Common Stock will be sold in the Stock Offering.

Affiliate: Any Person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with another Person.

Associate: The term “Associate,” when used to indicate a relationship with any Person, means: (i) any corporation or organization (other than the Bank, the Holding Company, the
MHC or a majority-owned subsidiary of any thereof) of which such Person is a senior officer or partner, or beneficially owns, directly or indirectly, 10% or more of any class of equity
securities of the corporation or organization; (ii) any trust or other estate, if the Person has a substantial beneficial interest in the trust or estate or is a trustee or fiduciary of the trust or estate
except that for the purposes of this Plan relating to subscriptions in the Stock Offering and the sale of Common Stock following the Reorganization, a Person who has a substantial
beneficial interest in any Non-Tax-Qualified Employee Plan or any Tax-Qualified Employee Plan, or who is a trustee or fiduciary of such plan, is not an associate of such plan, and except
that for purposes of aggregating total shares that may be held by Officers and Directors, the term “Associate” does not include any Tax-Qualified Employee Plan; and (iii) any Person who
is related by blood or marriage to such Person and who (A) lives in the same home as such Person or (B) is a director or Officer of the Bank, the Holding Company, the MHC or a
subsidiary of the Bank, the Holding Company or the MHC.

Bank: Newton Federal Bank in its pre-Reorganization mutual form or post-Reorganization stock form, as indicated by the context.

Bank Regulators: The Federal Reserve and other bank regulatory agencies, including the OCC and FDIC, as applicable, responsible for reviewing and approving the
Reorganization and Stock Offering, including the organization of an interim stock savings association and the Stock Bank, the insurance of deposit accounts, and the transfer of assets and
liabilities to the Stock Bank or, alternatively, the organization of one or more interim savings associations and any merger required to effect the Reorganization.

Capital Stock: Any and all authorized stock of the Bank or the Holding Company.

2
 Common Stock: Common stock issuable by the Holding Company in connection with the Reorganization and Stock Offering, including securities convertible into Common Stock,
pursuant to its stock charter.

Community: The Georgia counties of Barrow, Butts, Clarke, Greene, Gwinnett, Hall, Henry, Jackson, Jasper, Morgan, Newton, Oconee, Putnam, Rockdale and Walton.

Community Offering: The offering to certain members of the general public of any unsubscribed shares in the Subscription Offering. The Community Offering may occur
concurrently with any Syndicated Community Offering.

Control: (including the terms “controlling,” “controlled by” and “under common control with”) means the direct or indirect power to direct or exercise a controlling influence over
the management and policies of a person, whether through the ownership of voting securities, by contract, or otherwise as described in 12 CFR Part 238.

Conversion Transaction: The conversion of the MHC from the mutual to stock form of organization as described more specifically in Section 7 of this Plan, pursuant to applicable
federal rules and regulations.

Deposit Account(s): Any withdrawable account, including, without limitation, savings, time, demand, NOW account, money market, certificate and passbook accounts.

Effective Date: The date upon which all necessary approvals have been obtained to complete the Reorganization, and the Reorganization and Stock Offering have been completed.

Eligible Account Holder: Any person holding a Qualifying Deposit on the Eligibility Record Date for purposes of determining subscription rights.

Eligibility Record Date: September 30, 2015, the date for determining who qualifies as an Eligible Account Holder of the Bank.

Employee Plans: The Tax-Qualified and Non-Tax Qualified Employee Plans of the Bank and/or the Company.

ESOP: The Stock Bank’s employee stock ownership plan.

Estimated Valuation Range: The range of the estimated pro forma market value of the total number of shares of Common Stock to be issued by the Holding Company to the MHC
and to Minority Stockholders, as determined by the Independent Appraiser prior to the Subscription Offering and as it may be amended from time to time thereafter.

Exchange Act: The Securities Exchange Act of 1934, as amended.

Federal Reserve: The Board of Governors of the Federal Reserve System.

FDIC: The Federal Deposit Insurance Corporation.

3
 Firm Commitment Underwritten Offering: The offering, at the sole discretion of the Holding Company, of shares of Common Stock not subscribed for in the Subscription
Offering and any Community Offering or Syndicated Community Offering, to members of the general public through one or more underwriters. A Firm Commitment Underwritten
Offering may occur following the Subscription Offering and any Community Offering or Syndicated Community Offering.

HOLA: The Home Owners’ Loan Act, as amended.

Holding Company: The federal corporation created in the Reorganization. The Holding Company will be majority-owned by the MHC and will own 100% of the common stock of
the Bank.

Holding Company Application: The Holding Company Application on such form as may be prescribed by the Federal Reserve, which will be filed with the Federal Reserve in
connection with the Reorganization and the formation of the MHC and the Holding Company.

Independent Appraiser: The appraiser retained by the Bank to prepare an appraisal of the pro forma market value of the Bank and the Holding Company.

Interim Bank: The interim federal stock savings association that will become the Stock Bank, which will be established by the Bank as a wholly owned subsidiary.

Management Person: Any Officer or director of the Bank or any Affiliate of the Bank, and any person Acting in Concert with any such Officer or director.

Market Maker: A dealer ( i.e ., any person who engages directly or indirectly as agent, broker, or principal in the business of offering, buying, selling or otherwise dealing or
trading in securities issued by another person) who, with respect to a particular security, (1) regularly publishes bona fide competitive bid and offer quotations on request, and (2) is ready,
willing and able to effect transactions in reasonable quantities at the dealer’s quoted prices with other brokers or dealers.

Member: Any person or entity who qualifies as a member of the Bank pursuant to its charter and bylaws.

MHC: The mutual holding company created in the Reorganization.

Minority Ownership Interest: The shares of the Holding Company’s Common Stock owned by persons other than the MHC, expressed as a percentage of the total shares of
Holding Company Common Stock outstanding.

Minority Stock Offering: One or more offerings of less than 50% in the aggregate of the outstanding Common Stock of the Holding Company to persons other than the MHC.

Minority Stockholder: Any owner of the Holding Company’s Common Stock, other than the MHC.

4
 Notice: The Notice of Mutual Holding Company Reorganization to be submitted by the Bank to the Federal Reserve to notify the Federal Reserve of the Reorganization and the
Stock Offering.

OCC: The Office of the Comptroller of the Currency.

Offering Range: The aggregate purchase price of the Common Stock to be sold in the Stock Offering based on the Independent Valuation expressed as a range, which may vary
within 15% above or 15% below the midpoint of such range, with a possible adjustment by up to 15% above the maximum of such range. The Offering Range will be based on the
Estimated Valuation Range, but will represent a Minority Ownership Interest equal to up to 49.9% of the Common Stock.

Officer: An executive officer of the MHC, the Holding Company or the Bank, including the Chief Executive Officer, President, Senior Vice Presidents in charge of principal
business functions, Secretary, Treasurer and any other person performing similar policy making functions.

Order Form: Any form (together with any attached cover letter and/or certifications or acknowledgements), sent by the Bank to any Person containing among other things a
description of the alternatives available to such Person under the Plan and by which any such Person may make elections regarding purchases of Common Stock in the Subscription and
Community Offerings.

Other Member: Any person who is a Member of the Bank at the close of business on the Voting Record Date who is not an Eligible Account Holder or Supplemental Eligible
Account Holder, or Tax-Qualified Employee Plan.

Person: An individual, corporation, partnership, association, joint-stock company, limited liability company, trust, unincorporated organization, or a government or political
subdivision of a government.

Plan: This Plan of Reorganization from a Mutual Savings Association to a Mutual Holding Company and Stock Issuance Plan.

Qualifying Deposit: The aggregate balance of each Deposit Account of an Eligible Account Holder as of the close of business on the Eligibility Record Date or of a Supplemental
Eligible Account Holder as of the close of business on the Supplemental Eligibility Record Date, as the case may be, provided such aggregate balance is not less than $50.

Regulations: The rules and regulations of the Bank Regulators, including the Federal Reserve rules and regulations regarding mutual holding companies and any applicable rules
and regulations of the OCC and the FDIC.

Reorganization: The reorganization of the Bank into the mutual holding company structure including the organization of the MHC, the Holding Company and the Stock Bank
pursuant to this Plan.

5
 Resident: The terms “resident,” “residence,” “reside,” “resided” or “residing” as used herein with respect to any person shall mean any person who occupies a dwelling within the
Bank’s Community, has an intent to remain with the Community for a period of time, and manifests the genuineness of that intent by establishing an ongoing physical presence within the
Community together with an indication that such presence within the Community is something other than merely transitory in nature. To the extent a Person is a corporation or other
business entity, the principal place of business or headquarters shall be in the Community. To the extent a Person is a personal benefit plan, the circumstances of the beneficiary shall apply
with respect to this definition. In the case of all other benefit plans, the circumstances of the trustee shall be examined for purposes of this definition. The Bank may utilize deposit or loan
records or such other evidence provided to it to make a determination as to whether a Person is a resident. In all cases, however, such a determination shall be in the sole discretion of the
Bank.

SEC: The Securities and Exchange Commission.

Special Meeting: The Special Meeting of Members called for the purpose of voting on the Plan.

Stock Bank: The federally-chartered stock savings bank resulting from the Reorganization, which will be a wholly owned Subsidiary of the Holding Company.

Stock Offering: The offering of Common Stock of the Holding Company for sale to persons other than the MHC, in a Subscription Offering and, to the extent shares remain
available, in a Community Offering, Syndicated Community Offering and/or Firm Commitment Underwritten Offering, as the case may be.

Subscription Offering: The offering of Common Stock of the Holding Company for subscription and purchase pursuant to Section 11 of this Plan.

Subsidiary: A company that is controlled by another company, either directly or indirectly through one or more subsidiaries.

Supplemental Eligible Account Holder: Any Person holding a Qualifying Deposit on the Supplemental Eligibility Record Date, who is not an Eligible Account Holder, a Tax-
Qualified Employee Plan or an Officer or director of the Bank.

Supplemental Eligibility Record Date: The date for determining Supplemental Eligible Account Holders, which shall be the last day of the calendar quarter preceding Federal
Reserve approval of the Reorganization. The Supplemental Eligibility Record Date will only occur if the Federal Reserve has not approved the Reorganization within 15 months after the
Eligibility Record Date.

Syndicated Community Offering: The offering of Common Stock following or contemporaneously with the Community Offering through a syndicate of broker-dealers.

Tax-Qualified Employee Plan: Any defined benefit plan or defined contribution plan (including any employee stock ownership plan, stock bonus plan, profit-sharing plan, or other
plan) of the Bank, the Holding Company, the MHC or any of their affiliates, which, with its

6
related trusts, meets the requirements to be qualified under Section 401 of the Internal Revenue Code. The term “Non-Tax-Qualified Employee Plan” means any stock benefit plan which is
not so qualified under Section 401 of the Internal Revenue Code.

Voting Member: Any Person who at the close of business on the Voting Record Date is entitled to vote as a Member of the Bank pursuant to its charter and bylaws.

Voting Record Date: The date established by the Bank for determining which Members are entitled to vote on the Plan.

Voting Stock:
(1) Voting Stock means common stock or preferred stock, or similar interests if the shares by statute, charter or in any manner, entitle the holder:
(i) To vote for or to select directors of the Bank or the Holding Company; and
(ii) To vote on or to direct the conduct of the operations or other significant policies of the Bank or the Holding Company.
(2) Notwithstanding anything in paragraph (1) above, preferred stock is not “Voting Stock” if:
(i) Voting rights associated with the preferred stock are limited solely to the type customarily provided by statute with regard to matters that would significantly and
adversely affect the rights or preferences of the preferred stock, such as the issuance of additional amounts or classes of senior securities, the modification of the
terms of the preferred stock, the dissolution of the Bank, or the payment of dividends by the Bank when preferred dividends are in arrears;
(ii) The preferred stock represents an essentially passive investment or financing device and does not otherwise provide the holder with Control over the issuer; and
(iii) The preferred stock does not at the time entitle the holder, by statute, charter, or otherwise, to select or to vote for the selection of directors of the Bank or the
Holding Company.
(3) Notwithstanding anything in paragraphs (1) and (2) above, “Voting Stock” shall be deemed to include preferred stock and other securities that, upon transfer or otherwise, are
convertible into Voting Stock or exercisable to acquire Voting Stock where the holder of the stock, convertible security or right to acquire Voting Stock has the preponderant
economic risk in the underlying Voting Stock. Securities immediately convertible into Voting Stock at the option of the holder without payment of additional consideration
shall be deemed to constitute the Voting Stock into which they are convertible; other convertible securities and rights to acquire Voting Stock shall not be deemed to vest the
holder with the

7
 preponderant economic risk in the underlying Voting Stock if the holder has paid less than 50% of the consideration required to directly acquire the Voting Stock and has no
other economic interest in the underlying Voting Stock.

3. The Reorganization
A. Organization of the Holding Companies and the Bank
As part of the Reorganization, the Bank will amend its charter to become the MHC, and the Holding Company and the Stock Bank will be established as federal corporations. The
Reorganization will be effected as follows, or in any other manner approved by the Bank Regulators that is consistent with the purposes of this Plan and applicable laws and regulations:
(i) the Bank will organize Interim Bank and transfer, all of its assets and liabilities, except up to $100,000 in cash, to Interim Bank, which will become the Stock Bank;
(ii) the Bank will amend its charter and bylaws to read in the form of a federal mutual holding company and will become the MHC;
(iii) the MHC will organize the Holding Company as a wholly-owned subsidiary, and transfer $1,000 to the Holding Company in exchange for 100 shares of Common
Stock; and
(iv) the MHC will transfer all of the initially issued stock of the Stock Bank to the Holding Company in exchange for additional shares of Common Stock, and the Stock
Bank will become a wholly-owned subsidiary of the Holding Company.

The transfer of assets and liabilities from the Bank to Interim Bank shall not occur until Interim Bank has received FDIC approval for insurance of accounts and the FDIC has issued
Interim Bank an insurance certificate number. Contemporaneously with the Reorganization, the Holding Company will offer for sale in the Stock Offering shares of Common Stock
representing less than 50% of the pro forma market value of the Holding Company and the Bank.

Upon consummation of the Reorganization, substantially all of the assets and liabilities (including the savings accounts, demand accounts, tax and loan accounts, United States
Treasury General Accounts, or United States Treasury Time Deposit Open Accounts, as defined in the Regulations) of the Bank shall become the assets and liabilities of the Stock Bank,
which will thereupon become an operating savings bank subsidiary of the Holding Company and of the MHC. The Bank will apply to the Bank Regulators to have the Holding Company
receive or retain (as the case may be) up to 50% of the net proceeds of the Stock Offering, or such other amount as may be determined by the Board of Directors. The Stock Bank may
distribute additional capital to the Holding Company following the Reorganization, subject to the applicable requirements set forth in the Regulations governing capital distributions.

Upon consummation of the Reorganization, the legal existence of the Bank will not terminate, but the MHC will be a continuation of the Bank, provided that all property of the

8
Bank, including its right, title, and interest in and to all of its property and assets of every conceivable value or benefit then existing or pertaining to the Bank, or which would inure to the
Bank will be transferred to the Stock Bank, except for up to $100,000 in cash. All assets, rights, obligations and liabilities of whatever nature of the Bank that are not expressly retained by
the MHC shall be deemed transferred to the Stock Bank. The Stock Bank will have, hold, and enjoy the same in its right and fully and to the same extent as the same was possessed, held,
and enjoyed by the Bank. The Stock Bank will continue to have, succeed to, and be responsible for all the assets, rights, liabilities and obligations of the Bank and will maintain its
headquarters and operations at the Bank’s present locations.

B. Effect on Deposit Accounts and Borrowings

Each deposit account in the Bank on the Effective Date will remain a deposit account in the Stock Bank in the same amount and upon the same terms and conditions, and will
continue to be federally insured up to the legal maximum by the FDIC in the same manner as the deposit account existed in the Bank immediately prior to the Reorganization. Upon
consummation of the Reorganization, all loans and other borrowings from the Bank shall retain the same status with the Stock Bank after the Reorganization as they had with the Bank
immediately prior to the Reorganization.

C. The Bank
Upon completion of the Reorganization the Stock Bank will be authorized to exercise any and all powers, rights and privileges of, and will be subject to all limitations applicable to,
capital stock savings associations under federal law. A copy of the proposed charter and bylaws of the Stock Bank is attached hereto as Exhibit A and made a part of this Plan. The
Reorganization will not result in any reduction of the amount of retained earnings (other than the assets of the Bank retained by or distributed to the Holding Company or the MHC),
undivided profits, and general loss reserves that the Bank had prior to the Reorganization. The retained earnings and general loss reserves will be accounted for by the MHC, the Holding
Company and the Stock Bank on a consolidated basis in accordance with generally accepted accounting principles.

The initial members of the Board of Directors of the Stock Bank will be the members of the Board of Directors of the Bank immediately prior to consummation of the
Reorganization. The Stock Bank will be wholly owned by the Holding Company. The Holding Company will be wholly owned by its stockholders who will consist of the MHC and the
persons who purchase Common Stock in the Stock Offering and any subsequent Minority Stock Offering. Upon the Effective Date of the Reorganization, the voting and membership rights
of Members will be transferred to the MHC, subject to the conditions specified below.

D. The Holding Company

The Holding Company will be authorized to exercise any and all powers, rights and privileges, and will be subject to all limitations applicable to savings and loan holding companies
and mutual holding companies under federal law and regulations. The initial members of the Board of Directors of the Holding Company will be the existing members of the Board of
Directors of the Bank immediately prior to the consummation of the Reorganization. Thereafter,

9
the voting stockholders of the Holding Company will elect approximately one-third of the Holding Company’s directors annually. A copy of the proposed charter and bylaws of the Holding
Company is attached as Exhibit B and made part of this Plan.

The Holding Company will have the power to issue shares of Capital Stock to persons other than the MHC. However, so long as the MHC is in existence, the MHC will be required
to own at least a majority of the Voting Stock of the Holding Company. The Holding Company will be authorized to undertake one or more Minority Stock Offerings of less than 50% in
the aggregate of the total outstanding Common Stock of the Holding Company, and the Holding Company intends to offer for sale up to 49.9% of its Common Stock in the Stock Offering.

E. The Mutual Holding Company

As a mutual corporation, the MHC will have no stockholders. The members of the MHC will have exclusive voting authority as to all matters requiring a vote of members under the
charter of the MHC. Persons who have membership rights with respect to the Bank under its existing charter immediately prior to the Reorganization shall continue to have such rights
solely with respect to the MHC after the Reorganization so long as such persons remain depositors or borrowers of the Bank after the Reorganization, as applicable. In addition, all persons
who become depositors of the Stock Bank following the Reorganization will have membership rights with respect to the MHC. The rights and powers of the MHC will be defined by the
MHC’s charter and bylaws (a copy of which is attached to this Plan as Exhibit C and made a part hereof) and by the statutory and regulatory provisions applicable to savings and loan
holding companies and mutual holding companies. In particular, the MHC will be subject to the limitations and restrictions imposed on savings and loan holding companies by
Section 10(o)(5) of the HOLA.

The initial members of the Board of Directors of the MHC will be the existing members of the Board of Directors of the Bank immediately prior to the consummation of the
Reorganization. Thereafter, approximately one-third of the directors of the MHC will be elected annually by the members of the MHC who will consist initially of the Members of the Bank
immediately prior to the consummation of the Reorganization and all persons who become depositors of the Bank after the Reorganization.

4. Conditions to Implementation of the Reorganization

Consummation of the Reorganization is expressly conditioned upon the following:
A. Approval of the Plan by a majority of the Board of Directors of the Bank.
B. The filing of the Notice, including the Plan, with the Federal Reserve and either:
(i) The Federal Reserve has given written notice of its intent not to disapprove the Reorganization; or
(ii) Sixty days have passed since the Federal Reserve received the Notice and deemed it complete under 12 CFR § 239.10(e) and/or 12 CFR § 238.14(g) of the Federal
Reserve regulations, and the Federal Reserve has not given written notice that the Reorganization is disapproved or extended for an additional 30 days the period
during which disapproval may be issued.

10
 C. The filing of a Holding Company Application with the Federal Reserve pursuant to the HOLA for the Holding Company and MHC to become mutual savings and loan
holding companies by owning or acquiring 100% of the common stock of the Stock Bank in the case of the Holding Company, and a majority of the Common Stock of the
Holding Company in the case of the MHC, and the approval of such Holding Company Application by the Federal Reserve.
D. Submission of the Plan to the Members for approval pursuant to a proxy statement and form of proxy cleared in advance by the Bank Regulators, and such Plan is approved
by a majority of the total votes of the Voting Members eligible to be cast at a meeting held at the call of the directors in accordance with the procedures prescribed by the
Bank’s charter and bylaws.
E. All necessary approvals and non-objections have been obtained from the Bank Regulators in connection with the adoption of the charter and bylaws of the MHC, the Holding
Company and the Stock Bank, the issuance of deposit insurance and a certificate number by the FDIC to the Stock Bank and the transfer of assets and liabilities of the Bank
to the Stock Bank pursuant to the Plan (or, alternatively, the conversion of the Bank to a stock charter); and all conditions specified or otherwise imposed by the Bank
Regulators, in connection with their approvals and/or non-objections, have been satisfied.

5. Special Meeting of Members

Subsequent to the approval of the Plan by the Bank Regulators, the Special Meeting shall be scheduled in accordance with the Bank’s bylaws. Promptly after receipt of approval and
at least 20 days but not more than 45 days prior to the Special Meeting, the Bank shall distribute proxy solicitation materials to all Voting Members. The proxy solicitation materials shall
include a proxy statement and other documents authorized for use by the regulatory authorities. A copy of the Plan will be made available to Voting Members upon request. Pursuant to the
Regulations, the affirmative vote of not less than a majority of the total votes eligible to be cast by the Voting Members is required for approval of the Plan. Voting may be in person or by
proxy. The Bank Regulators shall be notified promptly of the actions of the Voting Members.

6. Rights of Members of the MHC

Following the Reorganization, all persons who had membership rights with respect to the Bank as of the date of the Reorganization will continue to have such rights solely with
respect to the MHC as long as they remain depositors or borrowers of the Bank, as applicable. All existing proxies granted by members of the Bank to the Board of Directors of the Bank
shall automatically become proxies granted to the Board of Directors of the MHC. In addition, all persons who become depositors of the Stock Bank subsequent to the Reorganization also
will have membership rights with respect to the MHC. In each case, no person who ceases to be the holder of a deposit account with the Stock Bank after the Reorganization shall have any

11
membership or other rights with respect to the MHC. Borrowers of the Stock Bank who were borrower members of the Bank at the time of Reorganization will have the same membership
rights in the MHC as they had in the Bank immediately prior to the Reorganization for so long as their pre-Reorganization borrowings remain outstanding. Borrowers will not receive
membership rights in connection with any new borrowings made after the Reorganization.

7. Conversion of MHC to Stock Form

Following the completion of the Reorganization, the MHC may elect to convert to stock form in accordance with applicable laws. There can be no assurance when, if ever, a
Conversion Transaction will occur.

In a Conversion Transaction, it is expected that the MHC would merge with and into the Holding Company with the Holding Company as the resulting entity, followed by the
merger of the Holding Company with and into a new stock holding company with the new stock holding company as the resulting entity, and the depositors of the Stock Bank would receive
the right to subscribe for shares of common stock of the new stock holding company, which shares would represent the ownership interest of the MHC in the Holding Company
immediately prior to the Conversion Transaction. The additional shares of Common stock of the new stock holding company issued in the Conversion Transaction would be sold at their
aggregate pro forma market value as determined by an independent appraisal.

Any Conversion Transaction shall be fair and equitable to Minority Stockholders. In any Conversion Transaction, Minority Stockholders will be entitled without additional
consideration to maintain the same percentage ownership interest in the new stock holding company after the Conversion Transaction as their percentage ownership interest in the Holding
Company immediately prior to the Conversion Transaction ( i.e., the “Minority Ownership Interest”), subject to adjustment, if any, required by the Bank Regulators to reflect assets of the
MHC and any dividends waived by the MHC.

At the sole discretion of the Boards of Directors of the MHC and the Holding Company, a Conversion Transaction may be effected in any other manner necessary to qualify the
Conversion Transaction as a tax-free reorganization under applicable federal and state tax laws, provided such Conversion Transaction does not diminish the rights and ownership interest
of Minority Stockholders other than as set forth in this Plan. If a Conversion Transaction does not occur, the MHC will always own a majority of the Voting Stock of the Holding Company.
The Board of Directors of the Bank has no current intention to conduct a Conversion Transaction.

A Conversion Transaction would require the approval of the Federal Reserve and would be presented to a vote of the members of the MHC and the stockholders, including the
MHC, of the Holding Company. Federal regulatory policy requires that in any Conversion Transaction the members of the MHC will be accorded the same stock purchase priorities as if the
MHC were a mutual savings association converting to stock form.

8. Timing of the Reorganization and Sale of Capital Stock

The Bank intends to consummate the Reorganization as soon as feasible following the receipt of all approvals referred to in Section 4 of this Plan. Subject to the approval of the
Bank

12
Regulators, the Holding Company intends to commence the Stock Offering concurrently with the proxy solicitation of Members. The Holding Company may close the Stock Offering
before the Special Meeting, provided that the offer and sale of the Common Stock shall be conditioned upon approval of the Plan by the Members at the Special Meeting. Subject to Bank
Regulator approval, the Bank’s proxy solicitation materials may permit certain Members to return to the Bank by a reasonable date certain a postage paid card or other written
communication requesting receipt of the prospectus if the prospectus is not mailed concurrently with the proxy solicitation materials. The Stock Offering shall be conducted in compliance
with the Regulations, including 12 CFR § 239.24 and § 239.25 of the Federal Reserve’s Regulation MM and the securities offering regulations of the SEC.

9. Number of Shares to be Offered

The total number of shares (or range thereof) of Common Stock to be issued and offered for sale pursuant to the Plan shall be determined initially by the Boards of Directors of the
Bank and the Holding Company in conjunction with the determination of the Independent Appraiser. The number of shares to be offered may be adjusted prior to completion of the Stock
Offering. The total number of shares of Common Stock that may be issued to persons other than the MHC at the close of the Stock Offering must be less than 50% of the issued and
outstanding shares of Common Stock of the Holding Company.

10. Independent Valuation and Purchase Price of Shares

All shares of Common Stock sold in the Stock Offering shall be sold at a uniform price per share. The purchase price and number of shares to be outstanding shall be determined by
the Board of Directors of the Holding Company on the basis of the estimated pro forma market value of the Holding Company and the Bank. The aggregate purchase price for the Common
Stock will be consistent with the market value of the Holding Company and the Bank. The pro forma market value of the Holding Company and the Bank will be determined for such
purposes by the Independent Appraiser.

Prior to the commencement of the Stock Offering, an Estimated Valuation Range will be established, which range may vary within 15% above to 15% below the midpoint of such
range, and up to 15% greater than the maximum of such range, as determined by the Board of Directors of the Holding Company at the time of the Stock Offering and consistent with
applicable requirements set forth in the Regulations. The Holding Company intends to issue up to 49.9% of its Common Stock in the Stock Offering. The number of shares of Common
Stock to be issued and the ownership interest of the MHC may be increased or decreased by the Holding Company, taking into consideration any change in the independent valuation and
other factors, at the discretion of the Boards of Directors of the Bank and the Holding Company.

Based upon the independent valuation as updated prior to the commencement of the Stock Offering, the Board of Directors may establish the minimum and maximum percentage of
shares of Common Stock that will be offered for sale in the Stock Offering, or it may fix the percentage of shares that will be offered for sale in the Stock Offering. In the event the
percentage of the shares offered for sale in the Minority Stock Offering is not fixed in the Stock Offering, the Minority Ownership Interest resulting from the Stock Offering will be
determined

13
as follows: (a) the product of (x) the total number of shares of Common Stock sold by the Holding Company and (y) the purchase price per share, divided by (b) the aggregate pro forma
market value of the Bank and the Holding Company upon the closing of the Stock Offering and sale of all the Common Stock.

Notwithstanding the foregoing, no sale of Common Stock may be consummated unless, prior to such consummation, the Independent Appraiser confirms to the Holding Company,
the Bank and to the Bank Regulators, that, to the best knowledge of the Independent Appraiser, nothing of a material nature has occurred which, taking into account all relevant factors,
would cause the Independent Appraiser to conclude that the aggregate value of the Common Stock sold in the Stock Offering at the Actual Purchase Price is incompatible with its estimate
of the aggregate consolidated pro forma market value of the Holding Company and the Bank. If such confirmation is not received, the Holding Company may cancel the Stock Offering,
extend the Stock Offering and establish a new price range and/or estimated price range, extend, reopen or hold a new Stock Offering or take such other action as the Bank Regulators may
permit.

The estimated market value of the Holding Company and the Bank shall be determined for such purpose by an Independent Appraiser on the basis of such appropriate factors as are
not inconsistent with the applicable Regulations. The Common Stock to be issued in the Stock Offering shall be fully paid and nonassessable.

If there is a Community Offering, Syndicated Community Offering or Firm Commitment Underwritten Offering of shares of Common Stock not subscribed for in the Subscription
Offering, the price per share at which the Common Stock is sold in such Community Offering, Syndicated Community Offering or Firm Commitment Underwritten Offering shall be the
Actual Purchase Price which will be equal to the purchase price per share at which the Common Stock is sold to persons in the Subscription Offering. Shares sold in the Community
Offering, Syndicated Community Offering or Firm Commitment Underwritten Offering will be subject to the same limitations as shares sold in the Subscription Offering.

11. Method of Offering Shares and Rights to Purchase Stock

In descending order of priority, the opportunity to purchase Common Stock shall be given in the Subscription Offering to: (1) Eligible Account Holders; (2) Tax-Qualified Employee
Plans; (3) Supplemental Eligible Account Holders; and (4) Other Members, pursuant to priorities established by the Board of Directors. Any shares of Common Stock that are not
subscribed for in the Subscription Offering may at the discretion of the Bank and the Holding Company be offered for sale in a Community Offering, a Syndicated Community Offering or a
Firm Commitment Underwritten Offering. The minimum purchase by any Person shall be 25 shares. The Holding Company shall determine in its sole discretion whether each prospective
purchaser is a Resident, Associate, or Acting in Concert as defined in the Plan, and shall interpret all other provisions of the Plan in its sole discretion. All such determinations are in the sole
discretion of the Holding Company, and may be based on whatever evidence the Holding Company chooses to use in making any such determination.

14
 In addition to the priorities set forth below, the Board of Directors of the Bank may establish other priorities for the purchase of Common Stock, subject to the approval of the Bank
Regulators. The priorities for the purchase of shares in the Stock Offering are as follows:

A. Subscription Offering
Priority 1: Eligible Account Holders. Each Eligible Account Holder shall receive non-transferable subscription rights to subscribe for shares of Common Stock offered in the
Stock Offering in an amount equal to the greater of $300,000, one-tenth of one percent (0.1%) of the total shares offered in the Stock Offering, or 15 times the product (rounded down to the
nearest whole number) obtained by multiplying the total number of shares of Common Stock to be issued in the Stock Offering by a fraction, of which the numerator is the Qualifying
Deposit of the Eligible Account Holder and the denominator is the total amount of Qualifying Deposits of all Eligible Account Holders, in each case on the Eligibility Record Date and
subject to the provisions of Section 12; provided that the Holding Company may, in its sole discretion and without further notice to or solicitation of subscribers or other prospective
purchasers, increase such maximum purchase limitation to 5% of the maximum number of shares offered in the Stock Offering or decrease such maximum purchase limitation to 0.1% of
the maximum number of shares offered in the Stock Offering, subject to the overall purchase limitations set forth in Section 12. If there are insufficient shares available to satisfy all
subscriptions of Eligible Account Holders, shares will be allocated to Eligible Account Holders so as to permit each such subscribing Eligible Account Holder to purchase a number of
shares sufficient to make his total allocation equal to the lesser of 100 shares or the number of shares subscribed for. Thereafter, unallocated shares will be allocated pro rata to remaining
subscribing Eligible Account Holders whose subscriptions remain unfilled in the same proportion that each such subscriber’s Qualifying Deposit bears to the total amount of Qualifying
Deposits of all subscribing Eligible Account Holders whose subscriptions remain unfilled. To ensure proper allocation of stock, each Eligible Account Holder must list on his subscription
Order Form all accounts in which he had an ownership interest as of the Eligibility Record Date. Officers, directors, and their Associates may be Eligible Account Holders. However, if an
officer, director, or his or her Associate receives subscription rights based on increased deposits in the year before the Eligibility Record Date, subscription rights based upon these increased
deposits are subordinate to the subscription rights of other Eligible Account Holders.

Priority 2: Tax-Qualified Employee Plans. The Tax-Qualified Employee Plans shall be given the opportunity to purchase in the aggregate up to 4.9% of the shares issued and
outstanding following the completion of the Stock Offering. In the event of an oversubscription in the Stock Offering, subscriptions for shares by the Tax-Qualified Employee Plans may be
satisfied, in whole or in part, out of authorized but unissued shares of the Holding Company subject to the maximum purchase limitations applicable to such plans as set forth herein, or may
be satisfied, in whole or in part, through open market purchases by the Tax-Qualified Employee Plans subsequent to the closing of the Stock Offering. If the final valuation exceeds the
maximum of the Offering Range, up to 4.9% of the Common Stock issued and outstanding following the completion of the Stock Offering may be sold to the Tax-Qualified Employee
Plans notwithstanding any oversubscription by Eligible Account Holders.

15
 Priority 3: Supplemental Eligible Account Holders. To the extent there are sufficient shares remaining after satisfaction of subscriptions by Eligible Account Holders, and the
Tax-Qualified Employee Plans, each Supplemental Eligible Account Holder shall receive non-transferable subscription rights to subscribe for shares of Common Stock offered in the Stock
Offering in an amount equal to the greater of $300,000, one-tenth of one percent (0.1%) of the total shares offered in the Stock Offering, or 15 times the product (rounded down to the
nearest whole number) obtained by multiplying the total number of shares of Common Stock to be issued in the Stock Offering by a fraction, of which the numerator is the Qualifying
Deposit of the Supplemental Eligible Account Holder and the denominator is the total amount of Qualifying Deposits of all Supplemental Eligible Account Holders, in each case on the
Supplemental Eligibility Record Date and subject to the provisions of Section 12; provided that the Bank may, in its sole discretion and without further notice to or solicitation of
subscribers or other prospective purchasers, increase such maximum purchase limitation to 5% of the maximum number of shares offered in the Stock Offering or decrease such maximum
purchase limitation to 0.1% of the maximum number of shares offered in the Stock Offering, subject to the overall purchase limitations set forth in Section 12. In the event Supplemental
Eligible Account Holders subscribe for a number of shares which, when added to the shares subscribed for by Eligible Account Holders and the Tax-Qualified Employee Plans, is in excess
of the total shares offered in the Stock Offering, the subscriptions of Supplemental Eligible Account Holders will be allocated among subscribing Supplemental Eligible Account Holders so
as to permit each subscribing Supplemental Eligible Account Holder to purchase a number of shares sufficient to make his total allocation equal to the lesser of 100 shares or the number of
shares subscribed for. Thereafter, unallocated shares will be allocated to each subscribing Supplemental Eligible Account Holder whose subscription remains unfilled in the same proportion
that such subscriber’s Qualifying Deposits on the Supplemental Eligibility Record Date bear to the total amount of Qualifying Deposits of all subscribing Supplemental Eligible Account
Holders whose subscriptions remain unfilled. Directors and Officers do not qualify as Eligible Account Holders.

Priority 4: Other Members. To the extent that there are sufficient shares remaining after satisfaction of subscriptions by Eligible Account Holders, the Tax-Qualified Employee
Plans and Supplemental Eligible Account Holders, each Other Member shall receive non-transferable subscription rights to subscribe for shares of Common Stock offered in the Stock
Offering in an amount equal to $300,000, provided that the Bank may, in its sole discretion and without further notice to or solicitation of subscribers or other prospective purchasers,
increase such maximum purchase limitation to 5% of the maximum number of shares offered in the Stock Offering, or decrease such maximum purchase limitation to 0.1% of the maximum
number of shares offered in the Stock Offering, subject to the overall purchase limitations set forth in Section 12. In the event Other Members subscribe for a number of shares which, when
added to the shares subscribed for by the Eligible Account Holders, Tax-Qualified Employee Plans and Supplemental Eligible Account Holders, is in excess of the total number of shares
offered in the Stock Offering, the subscriptions of such Other Members will be allocated among subscribing Other Members on a pro rata basis based on the size of such Other Members’
orders.

B. Community Offering
Any shares of Common Stock not subscribed for in the Subscription Offering may be offered for sale in a Community Offering. This will involve an offering of all unsubscribed

16
shares directly to the general public with a preference to those natural persons residing in the Community. The Community Offering, if any, shall be for a period of not more than 45 days
unless extended by the Holding Company and the Bank, and shall commence concurrently with, during or promptly after the Subscription Offering. The Holding Company and the Bank
may use one or more investment banking firms on a best efforts basis to sell the unsubscribed shares in the Subscription and Community Offering. The Holding Company and the Bank may
pay a commission or other fee to such investment banking firm(s) for shares sold by such firm(s) in the Subscription and Community Offering and may also reimburse such firm(s) for
expenses incurred in connection with the sale. No Person may purchase more than $300,000 of Common Stock in the Community Offering, subject to the overall purchase limitations set
forth in Section 12. In the event orders for Common Stock in the Community Offering exceed the number of shares available for sale, shares will be allocated (to the extent shares remain
available) first to cover orders of natural persons residing in the Community, and, thereafter, to the extent any shares remain available, to cover orders of other members of the general
public on a basis that will promote a widespread distribution of stock. In the event orders for Common Stock in each of these categories exceed the number of shares available for sale
within such category, orders shall first be filled up to a maximum of two percent (2%) of the shares sold in the Stock Offering, and thereafter remaining shares will be allocated on an equal
number of shares basis per order.

The Bank and the Holding Company, in their sole discretion, may reject subscriptions, in whole or in part, received from any Person under this Section 11.B.

C. Syndicated Community Offering or Firm Commitment Underwritten Offering

If feasible, any shares of Common Stock not sold in the Subscription Offering or in the Community Offering, if any, may be offered for sale to the general public by a selling group
of broker-dealers in a Syndicated Community Offering, subject to terms, conditions and procedures, including the timing of the offering, as may be determined by the Bank and the Holding
Company, subject to the right of the Holding Company, in its sole discretion, to accept or reject in whole or in part all orders in the Syndicated Community Offering. It is expected that the
Syndicated Community Offering would commence as soon as practicable after termination of the Subscription Offering and the Community Offering, if any. The Syndicated Community
Offering shall be completed within 45 days after the termination of the Subscription Offering, unless such period is extended as provided herein. No Person may purchase more than
$300,000 of Common Stock in the Syndicated Community Offering, subject to the overall purchase limitations set forth in Section 12.

Alternatively, if feasible, the Board of Directors may determine to offer any shares of Common Stock sold in the Subscription Offering and any Community Offering for sale in a
Firm Commitment Underwritten Offering subject to such terms, conditions and procedures as may be determined by the Bank and the Holding Company, subject to the right of the Holding
Company, in its sole discretion, to accept or reject in whole or in part any orders in the Firm Commitment Underwritten Offering. Provided the Subscription Offering has begun, the
Holding Company may begin the Firm Commitment Underwritten Offering at any time. Any Firm Commitment Underwritten Offering shall be completed within 45 days after the
termination of the

17
Subscription Offering, unless such period is extended as provided herein. No Person may purchase more than $300,000 of Common Stock in the Firm Commitment Underwritten Offering,
subject to the overall purchase limitations set forth in Section 12.

If for any reason a Syndicated Community Offering or Firm Commitment Underwritten Offering of shares of Common Stock not sold in the Subscription Offering or any
Community Offering cannot be effected and any shares remain unsold after the Subscription Offering and the Community Offering, if any, the Boards of Directors of the Holding Company
and the Bank will seek to make other arrangements for the sale of unsubscribed shares aggregating at least the minimum of the Offering Range. Such other arrangements will be subject to
the receipt of any required approval of the Bank Regulators.

12. Additional Limitations on Purchases of Common Stock

Purchases of Common Stock in the Stock Offering will be subject to the following purchase limitations:
A. The aggregate amount of outstanding Common Stock of the Holding Company owned or controlled by persons other than MHC at the close of the Stock Offering shall be
less than 50% of the Holding Company’s total outstanding Common Stock.
B. The maximum purchase of Common Stock in the Subscription Offering by a Person or group of Persons through a single Deposit Account is $300,000. No Person by
himself, with an Associate or group of Persons Acting in Concert, may purchase more than $400,000 of the Common Stock offered in the Stock Offering except that: (i) the
Holding Company may, in its sole discretion and without further notice to or solicitation of subscribers or other prospective purchasers, increase such maximum purchase
limitation to 9.9% of the number of shares sold in the Stock Offering provided that the total number of shares purchased by Persons, their Associates and those Persons with
whom they are Acting in Concert, to the extent such purchases exceed 5% of the shares sold in the Stock Offering, shall not exceed, in the aggregate, 10% (or such higher
percentage as may be determined by the Board of Directors with the approval of the Bank Regulators) of the total number of the shares sold in the Offering; (ii) the Tax-
Qualified Employee Plans may purchase up to 10% of the shares offered in the Stock Offering; and (iii) for purposes of this subsection 12.B. shares to be held by any Tax-
Qualified Employee Plan and attributable to a Person shall not be aggregated with other shares purchased directly by or otherwise attributable to such Person.
C. The aggregate amount of Common Stock acquired in the Stock Offering, plus all prior issuances by the Holding Company, by any Non-Tax-Qualified Employee Plan or any
Management Person and his or her Associates, exclusive of any shares of Common Stock acquired by such plan or Management Person and his or her Associates in the
secondary market, shall not exceed 4.9% of the outstanding shares of Common Stock of the Holding Company at the conclusion of the Stock

18
 Offering. In calculating the number of shares held by any Management Person and his or her Associates under this paragraph, shares held by any Tax-Qualified Employee
Plan or Non-Tax-Qualified Employee Plan of the Holding Company or the Bank that are attributable to such Person shall not be counted.
D. The aggregate amount of Common Stock acquired in the Stock Offering, plus all prior issuances by the Holding Company, by any Non-Tax-Qualified Employee Plan or any
Management Person and his or her Associates, exclusive of any Common Stock acquired by such plan or Management Person and his or her Associates in the secondary
market, shall not exceed 4.9% of the stockholders’ equity of the Holding Company at the conclusion of the Stock Offering. In calculating the number of shares held by any
Management Person and his or her Associates under this paragraph, shares held by any Tax-Qualified Employee Plan or Non-Tax-Qualified Employee Plan of the Holding
Company or the Bank that are attributable to such Person shall not be counted.
E. The aggregate amount of Common Stock acquired in the Stock Offering, plus all prior issuances by the Holding Company, by any one or more Tax-Qualified Employee
Plans, exclusive of any shares of Common Stock acquired by such plans in the secondary market, shall not exceed 4.9% of the outstanding shares of Common Stock of the
Holding Company at the conclusion of the Stock Offering.
F. The aggregate amount of Common Stock acquired in the Stock Offering, plus all prior issuances by the Holding Company, by any one or more Tax-Qualified Employee
Plans, exclusive of any shares of Common Stock acquired by such plans in the secondary market, shall not exceed 4.9% of the stockholders’ equity of the Holding Company
at the conclusion of the Stock Offering
G. The amount of common stock that may be encompassed under all stock option plans and restricted stock plans of the Holding Company may not exceed, in the aggregate,
25% of the outstanding shares of common stock of the Holding Company held by persons other the MHC at the conclusion of the Stock Offering.
H. The aggregate amount of Common Stock acquired in the Stock Offering, plus all prior issuances by the Holding Company, by all Non-Tax-Qualified Employee Plans or
Management Persons and their Associates, exclusive of any Common Stock acquired by such plans or Management Persons and their Associates in the secondary market,
shall not exceed 31% (or such higher percentage as may be set by the Board of Directors with the approval of the Bank Regulators) of the outstanding shares of Common
Stock held by persons other than the MHC at the conclusion of the Stock Offering. In calculating the number of shares held by Management Persons and their Associates
under this paragraph or paragraph I. below, shares held by any Tax-Qualified Employee Plan or Non-Tax-Qualified Employee Plan that are attributable to such persons shall
not be counted.
I. The aggregate amount of Common Stock acquired in the Stock Offering, plus all prior issuances by the Holding Company, by all Non-Tax-Qualified Employee

19
 Plans or Management Persons and their Associates, exclusive of any Common Stock acquired by such plans or Management Persons and their Associates in the secondary
market, shall not exceed 31% of the stockholders’ equity of the Holding Company held by persons other than the MHC at the conclusion of the Stock Offering.
J. Notwithstanding any other provision of this Plan, no person shall be entitled to purchase any Common Stock to the extent such purchase would be illegal under any federal
law or state law or regulation or would violate regulations or policies of the Financial Industry Regulatory Authority, particularly those regarding free riding and withholding.
The Holding Company and/or its agents may ask for an acceptable legal opinion from any purchaser as to the legality of such purchase and may refuse to honor any purchase
order if such opinion is not timely furnished.
K. The Board of Directors of the Holding Company has the right in its sole discretion to reject any order submitted by a person whose representations the Board of Directors of
the Holding Company believes to be false or who it otherwise believes, either alone or Acting in Concert with others, is violating, circumventing, or intends to violate, evade
or circumvent the terms and conditions of this Plan.
L. A minimum of 25 shares of Common Stock must be purchased by each Person purchasing shares in the Stock Offering to the extent those shares are available; provided,
however, that in the event the minimum number of shares of Common Stock purchased times the price per share exceeds $500, then such minimum purchase requirement
shall be reduced to such number of shares which when multiplied by the price per share shall not exceed $500, as determined by the Board.

Subscription rights afforded under this Plan and by Bank Regulator requirements are non-transferable. No person may transfer, offer to transfer, or enter into any
agreement or understanding to transfer, the legal or beneficial ownership of any subscription rights under this Plan. No person may transfer, offer to transfer or enter into an
agreement or understanding to transfer legal or beneficial ownership of any shares of Common Stock except pursuant to this Plan.

EACH PERSON PURCHASING COMMON STOCK IN THE STOCK OFFERING WILL BE DEEMED TO CONFIRM THAT SUCH PURCHASE DOES NOT CONFLICT
WITH THE PURCHASE LIMITATIONS IN THIS PLAN. ALL QUESTIONS CONCERNING WHETHER ANY PERSONS ARE ASSOCIATES OR A GROUP ACTING IN
CONCERT OR WHETHER ANY PURCHASE CONFLICTS WITH THE PURCHASE LIMITATIONS IN THIS PLAN OR OTHERWISE VIOLATES ANY PROVISION OF THIS
PLAN SHALL BE DETERMINED BY THE BANK IN ITS SOLE DISCRETION. SUCH DETERMINATION SHALL BE CONCLUSIVE, FINAL AND BINDING ON ALL PERSONS,
AND THE BANK MAY TAKE ANY REMEDIAL ACTION INCLUDING, WITHOUT LIMITATION, REJECTING THE PURCHASE OR REFERRING THE MATTER TO THE
BANK REGULATORS FOR ACTION, AS THE BANK MAY IN ITS SOLE DISCRETION DEEM APPROPRIATE.

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13. Payment for Stock
All payments for Common Stock subscribed for or ordered in the Stock Offering must be delivered in full to the Bank, together with a properly completed and executed Order Form,
or purchase order in the case of the Syndicated Community Offering, on or prior to the expiration date specified on the Order Form or purchase order, as the case may be, unless such date is
extended by the Bank; provided, that if the Employee Plans subscribe for shares of Common Stock during the Subscription Offering, such plans may pay for such shares at the Actual
Purchase Price upon consummation of the Stock Offering. The Holding Company or the Bank may make scheduled discretionary contributions to the ESOP provided such contributions
from the Bank, if any, do not cause the Bank to fail to meet its regulatory capital requirements.

Payment for Common Stock shall be made either by personal check, bank draft or money order, or if a purchaser has a Deposit Account in the Bank, such purchaser may pay for the
shares subscribed for by authorizing the Bank to make a withdrawal from the purchaser’s Deposit Account in an amount equal to the purchase price of such shares. Such authorized
withdrawal, whether from a savings passbook or certificate account, shall be without penalty as to premature withdrawal. If the authorized withdrawal is from a certificate account, and the
remaining balance does not meet the applicable minimum balance requirements, the certificate shall be canceled at the time of withdrawal, without penalty, and the remaining balance will
earn interest at the Bank’s passbook rate. Funds for which a withdrawal is authorized will remain in the purchaser’s Deposit Account but may not be used by the purchaser until the
Common Stock has been sold or the 45-day period (or such longer period as may be approved by the Bank Regulators) following the Stock Offering has expired, whichever occurs first.
Thereafter, the withdrawal will be given effect only to the extent necessary to satisfy the subscription (to the extent it can be filled) at the Actual Purchase Price per share. Interest will
continue to be earned on any amounts authorized for withdrawal until such withdrawal is given effect.

Subscription funds received prior to the completion of the Stock Offering will be held in a segregated deposit account at the Bank or, in the Bank’s discretion, at another federally
insured depository institution. Interest on subscription funds made by personal check, bank draft or money order will be paid by the Bank at a rate no less than the Bank’s passbook rate.
Such interest will be paid from the date payment is received by the Bank until consummation or termination of the Stock Offering. If for any reason the Stock Offering is not consummated,
all payments made by subscribers in the Stock Offering will be refunded to them with interest. In case of amounts authorized for withdrawal from Deposit Accounts, refunds will be made
by canceling the authorization for withdrawal.

14. Manner of Exercising Subscription Rights Through Order Forms

As soon as practicable after the prospectus prepared by the Holding Company and the Bank has been declared effective by the SEC, and the Bank Regulators have approved the
Reorganization, copies of the prospectus and Order Forms will be distributed to all Eligible Account Holders, Supplemental Eligible Account Holders, Other Members and the Tax-
Qualified

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Employee Plans at their last known addresses appearing on the records of the Bank for the purpose of subscribing for shares of Common Stock in the Subscription Offering and will be
made available for use by those other persons to whom a prospectus is delivered.

Each Order Form will be preceded or accompanied by the prospectus describing the Holding Company, the Bank, the Common Stock and the Subscription and Community
Offerings. Each Order Form will contain, among other things, the following:
A. A specified date by which all Order Forms must be received by the Bank, which date shall be not less than 20, nor more than 45 days, following the date on which the Order
Forms are mailed by the Bank, and which date will constitute the termination of the Subscription Offering;
B. The purchase price per share for shares of Common Stock to be sold in the Subscription and Community Offerings;
C. A description of the minimum and maximum number of shares of Common Stock that may be subscribed for pursuant to the exercise of Subscription Rights or otherwise
purchased in the Community Offering;
D. Instructions as to how the recipient of the Order Form must indicate thereon the number of shares of Common Stock for which such Person elects to subscribe and the
available alternative methods of payment therefor;
E. An acknowledgment that the recipient of the Order Form has received a final copy of the prospectus prior to execution of the Order Form;
F. A statement indicating the consequences of failing to properly complete and return the Order Form, including a statement to the effect that all subscription rights are
nontransferable, will be void at the end of the Subscription Offering, and can only be exercised by delivering to the Bank within the subscription period such properly
completed and executed Order Form, together with a personal check, bank draft or money order in the full amount of the purchase price as specified in the Order Form for
the shares of Common Stock for which the recipient elects to subscribe in the Subscription Offering (or by authorizing on the Order Form that the Bank withdraw said
amount from the subscriber’s Deposit Account at the Bank); and
G. A statement to the effect that the executed Order Form, once received by the Bank, may not be modified or amended by the subscriber without the consent of the Bank.

Notwithstanding the above, the Bank and the Holding Company reserve the right in their sole discretion to accept or reject orders received on photocopied or facsimiled Order
Forms.

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15. Undelivered, Defective or Late Order Form; Insufficient Payment
In the event Order Forms (a) are not delivered and are returned to the Bank by the United States Postal Service or the Bank is unable to locate the addressee, (b) are not received
back by the Bank or are received by the Bank after the expiration date specified thereon, (c) are defectively filled out or executed, (d) are not accompanied by the full required payment for
the shares of Common Stock subscribed for (including cases in which Deposit Accounts from which withdrawals are authorized are insufficient to cover the amount of the required
payment), or (e) are not mailed pursuant to a “no mail” order placed in effect by the account holder, the subscription rights of the Person to whom such rights have been granted will lapse
as though such Person failed to return the completed Order Form within the time period specified thereon; provided, that the Bank may, but will not be required to, waive any immaterial
irregularity on any Order Form or require the submission of corrected Order Forms or the remittance of full payment for subscribed shares by such date as the Bank may specify. The
interpretation by the Bank of terms and conditions of this Plan and of the Order Forms will be final, subject to the authority of the Bank Regulators.

16. Completion of the Stock Offering

The Stock Offering will be terminated if not completed within 90 days from the date on which the Plan is approved by the Federal Reserve, unless an extension is approved by the
Federal Reserve.

17. Market for Common Stock

If the Holding Company has more than 100 stockholders of any class of stock upon completion of the Stock Offering, the Holding Company shall use its best efforts to:
(i) encourage and assist a Market Maker to establish and maintain a market for that class of stock; and
(ii) list that class of stock on a national or regional securities exchange, or on the Nasdaq quotation system.

18. Stock Purchases by Management Persons After the Stock Offering

For a period of three years after the Stock Offering, no Management Person or his or her Associates may purchase, without the prior written approval of the Bank Regulators, any
Common Stock of the Holding Company, except from a broker-dealer registered with the SEC, except that the foregoing shall not apply to:
A. Negotiated transactions involving more than 1% of the outstanding stock in the class of stock; or
B. Purchases of stock made by and held by any Tax-Qualified or Non-Tax Qualified Employee Plan even if such stock is attributable to Management Persons or their
Associates.

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19. Resales of Stock by Directors and Officers
Common Stock purchased by Management Persons and their Associates in the Stock Offering may not be resold for a period of at least one year following the date of purchase,
except in the case of death of a Management Person or an Associate.

20. Stock Certificates

Each stock certificate shall bear a legend giving appropriate notice of the restrictions set forth in Section 19 above. Appropriate instructions shall be issued to the Holding
Company’s transfer agent with respect to applicable restrictions on transfers of such stock. Any shares of stock issued as a stock dividend, stock split or otherwise with respect to such
restricted stock, shall be subject to the same restrictions as apply to the restricted stock.

21. Restriction on Financing Stock Purchases

The Holding Company and the Bank will not loan funds to any Person to purchase Common Stock in the Stock Offering, and will not knowingly offer or sell any of the Common
Stock to any Person whose purchase would be financed by funds loaned to the Person by the Holding Company, the Bank or any Affiliate.

22. Stock Benefit Plans

A. The Holding Company and the Bank are authorized to adopt Tax-Qualified Employee Plans in connection with the Reorganization, including without limitation, an ESOP.
Existing as well as any newly created Tax-Qualified Employee Plans may purchase shares of Common Stock in the Stock Offering, to the extent permitted by the terms of such benefit
plans and this Plan.

B. The Holding Company and the Bank are authorized to adopt stock option plans, restricted stock plans and other Non-Tax-Qualified Employee Plans no sooner than six months
after the completion of the Reorganization and Stock Offering, provided that such stock plans conform to any applicable requirements of Federal regulations, and the Holding Company
intends to implement such stock plans after the completion of the Reorganization and Stock Offering, subject to any necessary stockholder approvals.

23. Post-Reorganization Filing and Market Making

It is likely that there will be a limited market for the Common Stock sold in the Stock Offering, and purchasers must be prepared to hold the Common Stock for an indefinite period
of time. If the Holding Company has more than 35 stockholders of any class of stock upon completion of the Stock Offering, the Holding Company shall register its Common Stock with
the SEC pursuant to the Exchange Act, and shall undertake not to deregister such Common Stock for a period of three years thereafter.

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24. Payment of Dividends and Repurchase of Stock
The Holding Company may not declare or pay a cash dividend on its Common Stock if the effect thereof would cause the regulatory capital of the Holding Company to be reduced
below any applicable regulatory capital requirement. Otherwise, the Holding Company may declare dividends or make other capital distributions subject to compliance with any applicable
Regulations. Following completion of the Stock Offering, the Holding Company may repurchase its Common Stock consistent with Section 239.8(c) of the Federal Reserve’s Regulations
relating to stock repurchases, as long as such repurchases do not cause the regulatory capital of the Holding Company to be reduced below any applicable regulatory capital requirement.
The MHC may from time to time purchase Common Stock of the Holding Company, subject to compliance with any applicable Regulations. Subject to any notice or approval requirements
of the Federal Reserve, including the requirements of 12 C.F.R. § 239.8(d), the MHC may waive its right to receive dividends declared by the Holding Company.

25. Reorganization and Stock Offering Expenses

In accordance with the regulations of the Federal Reserve, the expenses incurred by the Bank and the Holding Company in effecting the Reorganization and the Stock Offering will
be reasonable.

26. Employment and Other Severance Agreements

Following or contemporaneously with the Reorganization, the Bank and/or the Holding Company may enter into employment and/or severance arrangements with one or more
executive officers of the Bank and/or the Holding Company. It is anticipated that any employment contracts entered into by the Bank and/or the Holding Company will be for terms not
exceeding three years and that such contracts will provide for annual renewals of the term of the contracts, subject to approval by the Board of Directors. The Bank and/or the Holding
Company also may enter into severance arrangements with one or more executive officers, which provide for the payment of severance compensation in the event of a change in control of
the Bank and/or the Holding Company. The terms of such employment and severance arrangements have not been determined as of this time, but if implemented, would be described in any
prospectus circulated in connection with the Stock Offering and would be subject to and comply with all applicable regulations of the Bank Regulators.

27. Residents of Foreign Countries and Certain States

The Holding Company will make reasonable efforts to comply with the securities laws of all States in the United States in which Persons entitled to subscribe for shares of Common
Stock pursuant to this Plan reside. However, no such Person will be issued subscription rights or be permitted to purchase shares of Common Stock in the Subscription Offering if such
Person resides in a foreign country or resides in a state of the United States with respect to which any of the following apply: (A) a small number of Persons otherwise eligible to subscribe
for shares under this Plan reside in such state; (B) the issuance of subscription rights or the offer or sale of shares of Common Stock to such Persons would require the Holding Company,
under the securities laws of such state, to register as a broker, dealer, salesman or agent or to register or otherwise qualify its securities for sale in such state; or (C) such registration or
qualification would be impracticable for reasons of cost or otherwise.

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28. Interpretation
All interpretations of this Plan and application of its provisions to particular circumstances by a majority of the Board of Directors of the Bank shall be final, subject to the authority
of the Bank Regulators.

29. Amendment or Termination of the Plan

If necessary or desirable, the terms of the Plan may be substantially amended by a majority vote of the Board of Directors of the Bank, as a result of comments from the Bank
Regulators or otherwise, at any time prior to the solicitation of proxies and submission of the Plan and proxy materials to a vote of the Members. At any time after the solicitation of proxies
and submission of the Plan and proxy materials to a vote of the Members, the terms of the Plan that relate to the Reorganization may be amended by a majority vote of the Board of
Directors of the Bank only with the concurrence of the Bank Regulators. Terms of the Plan relating to the Stock Offering including, without limitation, Sections 8 through 20, may be
amended by a majority vote of the Board of Directors of the Bank as a result of comments from the Bank Regulators or otherwise at any time prior to the approval of the Plan by the Bank
Regulators, and at any time thereafter with the concurrence of the Bank Regulators. The Plan may be terminated by a majority vote of the Board of Directors of the Bank at any time prior to
the earlier of approval of the Plan by the Bank Regulators and the date of the Special Meeting, and may be terminated by a majority vote of the Board of Directors of the Bank at any time
thereafter with the concurrence of the Bank Regulators. In its discretion, the Board of Directors of the Bank may modify or terminate the Plan upon the order of the Bank Regulators without
a resolicitation of proxies or another meeting of the Members; however, any material amendment of the terms of the Plan that relate to the Reorganization which occur after the Special
Meeting shall require a resolicitation of Members. Failure of the Members to approve the Plan will result in the termination of the Plan.

This Plan shall be terminated if the Reorganization is not completed within 24 months from the date upon which the Members approve the Plan, and may not be extended by the
Bank or the Bank Regulators.

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 EXHIBIT A
Charter and Bylaws of the Bank
 NEWTON FEDERAL BANK

FEDERAL STOCK CHARTER

Section 1. Corporate title. The full corporate title of the savings bank is Newton Federal Bank (the “Savings Bank”).

Section 2. Office. The home office shall be located in Covington, Georgia.

Section 3. Duration. The duration of the Savings Bank is perpetual.

Section 4. Purpose and powers . The purpose of the Savings Bank is to pursue any or all of the lawful objectives of a Federal savings bank chartered under section 5 of the Home
Owners’ Loan Act and to exercise all of the express, implied, and incidental powers conferred thereby and by all acts amendatory thereof and supplemental thereto, subject to the
Constitution and laws of the United States as they are now in effect, or as they may hereafter be amended, and subject to all lawful and applicable rules, regulations, and orders of the Office
of the Comptroller of the Currency (the “OCC”).

Section 5. Capital stock . The total number of shares of all classes of the capital stock that the Savings Bank has the authority to issue is 20,000,000, of which 19,000,000 shares
shall be common stock, par value $0.01 per share, and of which 1,000,000 shares shall be serial preferred stock, par value $0.01 per share. The shares may be issued from time to time as
authorized by the board of directors without the approval of its shareholders, except as otherwise provided in this Section 5 or to the extent that such approval is required by governing law,
rule, or regulation. The consideration for the issuance of the shares shall be paid in full before their issuance and shall not be less than the par or stated value. Neither promissory notes nor
future services shall constitute payment or part payment for the issuance of shares of the Savings Bank. The consideration for the shares shall be cash, tangible or intangible property (to the
extent direct investment in such property would be permitted to the Savings Bank), labor, or services actually performed for the Savings Bank, or any combination of the foregoing. In the
absence of actual fraud in the transaction, the value of such property, labor, or services, as determined by the board of directors of the Savings Bank, shall be conclusive. Upon payment of
such consideration, such shares shall be deemed to be fully paid and nonassessable. In the case of a stock dividend, that part of the retained earnings of the Savings Bank that is transferred
to common stock or paid-in capital accounts upon the issuance of shares as a stock dividend shall be deemed to be the consideration for their issuance.

Except for shares issued in the initial organization of the Savings Bank or in connection with the conversion of the Savings Bank from the mutual to the stock form of capitalization,
no shares of capital stock (including shares issuable upon conversion, exchange, or exercise of other securities) shall be issued, directly or indirectly, to officers, directors, or controlling
persons of the Savings Bank other than as part of a general public offering or as qualifying shares to a director, unless their issuance or the plan under which they would be issued has been
approved by a majority of the total votes eligible to be cast at a legal meeting.

Nothing contained in this Section 5 (or in any supplementary sections hereto) shall entitle the holders of any class or series of capital stock to vote as a separate class or series or to
more than one vote per share, and there shall be no cumulation of votes for the election of directors; p rovided , that this restriction on voting separately by class or series shall not apply:
(i) To any provision which would authorize the holders of preferred stock, voting as a class or series, to elect some members of the board of directors, less than a majority
thereof, in the event of default in the payment of dividends on any class or series of preferred stock;

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 (ii) To any provision which would require the holders of preferred stock, voting as a class or series, to approve the merger or consolidation of the Savings Bank with another
corporation or the sale, lease, or conveyance (other than by mortgage or pledge) of properties or business in exchange for securities of a corporation other than the Savings
Bank if the preferred stock is exchanged for securities of such other corporation; p rovided, that no provision may require such approval for transactions undertaken with the
assistance or pursuant to the direction of the OCC or the Federal Deposit Insurance Corporation;
(iii) To any amendment which would adversely change the specific terms of any class or series of capital stock as set forth in this Section 5 (or in any supplementary sections
hereto), including any amendment which would create or enlarge any class or series ranking prior thereto in rights and preferences. An amendment which increases the
number of authorized shares of any class or series of capital stock, or substitutes the surviving savings bank in a merger or consolidation for the Savings Bank, shall not be
considered to be such an adverse change.

A description of the different classes and series of the Savings Bank’s capital stock and a statement of the designations, and the relative rights, preferences and limitations of the
shares of each class of and series of capital stock are as follows:

A. Common stock. Except as provided in this Section 5 (or in any supplementary sections thereto) the holders of common stock shall exclusively possess all voting power.

Whenever there shall have been paid, or declared and set aside for payment, to the holders of the outstanding shares of any class of stock having preference over the common stock
as to payment of dividends, the full amount of dividends and of sinking fund, retirement fund or other retirement payments, if any, to which such holders are respectively entitled in
preference to the common stock, then dividends may be paid on the common stock and on any class or series of stock entitled to participate therewith as to dividends out of any assets
legally available for the payment of dividends.

In the event of any liquidation, dissolution, or winding up of the Savings Bank, the holders of the common stock (and the holders of any class or series of stock entitled to participate
with the common stock in the distribution of assets) shall be entitled to receive, in cash or in kind, the assets of the Savings Bank available for distribution remaining after: (i) payment or
provision for payment of the Savings Bank’s debts and liabilities; (ii) distributions or provision for distributions in settlement of its liquidation account; and (iii) distributions or provision
for distributions to holders of any class or series of stock having preference over the common stock in the liquidation, dissolution, or winding up of the Savings Bank. Each share of
common stock shall have the same relative rights as and be identical in all respects with all the other shares of common stock.

B. Preferred stock. The Savings Bank may provide in supplementary sections to its charter for one or more classes of preferred stock, which shall be separately identified. The
shares of any class may be divided into and issued in series, with each series separately designated so as to distinguish the shares thereof from the shares of all other series and classes. The
terms of each series shall be set forth in a supplementary section to the charter. All shares of the same class shall be identical, except as to the following relative rights and preferences, as to
which there may be variations between different series:
(a) The distinctive serial designation and the number of shares constituting such series;

2
 (b) The dividend rate or the amount of dividends to be paid on the shares of such series, whether dividends shall be cumulative and, if so, from which date(s), the payment
date(s) for dividends, and the participating or other special rights, if any, with respect to dividends;
(c) The voting powers, full or limited, if any, of shares of such series;
(d) Whether the shares of such series shall be redeemable and, if so, the price(s) at which, and the terms and conditions on which, such shares may be redeemed;
(e) The amount(s) payable upon the shares of such series in the event of voluntary or involuntary liquidation, dissolution, or winding up of the Savings Bank;
(f) Whether the shares of such series shall be entitled to the benefit of a sinking or retirement fund to be applied to the purchase or redemption of such shares, and if so entitled,
the amount of such fund and the manner of its application, including the price(s) at which such shares may be redeemed or purchased through the application of such fund;
(g) Whether the shares of such series shall be convertible into, or exchangeable for, shares of any other class or classes of stock of the Savings Bank and, if so, the conversion
price(s) or the rate(s) of exchange, and the adjustments thereof, if any, at which such conversion or exchange may be made, and any other terms and conditions of such
conversion or exchange;
(h) The price or other consideration for which the shares of such series shall be issued; and
(i) Whether the shares of such series which are redeemed or converted shall have the status of authorized but unissued shares of serial preferred stock and whether such shares
may be reissued as shares of the same or any other series of serial preferred stock.

Each share of each series of serial preferred stock shall have the same relative rights as and be identical in all respects with all the other shares of the same series.

The board of directors shall have authority to divide, by the adoption of supplementary charter sections, any authorized class of preferred stock into series and, within the limitations
set forth in this section and the remainder of this charter, fix and determine the relative rights and preferences of the shares of any series so established.

Prior to the issuance of any preferred shares of a series established by a supplementary charter section adopted by the board of directors, the Savings Bank shall file with the OCC a
dated copy of that supplementary section of this charter establishing and designating the series and fixing and determining the relative rights and preferences thereof.

Section 6. Preemptive rights. Holders of the capital stock of the Savings Bank shall not be entitled to preemptive rights with respect to any shares of the Savings Bank which may
be issued.

Section 7. Directors . The Savings Bank shall be under the direction of a board of directors. The authorized number of directors, as stated in the Savings Bank’s bylaws, shall not be
fewer than five nor more than fifteen except when a greater or lesser number is approved by the OCC.

3
 Section 8. Certain Provisions Applicable for Five Years. Notwithstanding anything contained in the Savings Bank’s charter or bylaws to the contrary, for a period of five years
from the date of completion of the conversion of the Savings Bank from mutual to stock form, the following provisions shall apply:

A. Beneficial Ownership Limitation. No person shall directly or indirectly offer to acquire or acquire the beneficial ownership of more than 10 percent of any class of an equity
security of the Savings Bank. This limitation shall not apply to a transaction in which the Savings Bank forms a holding company without change in the respective beneficial ownership
interests of its stockholders other than pursuant to the exercise of any dissenter and appraisal rights, the purchase of shares by underwriters in connection with a public offering, or the
purchase of less than 25 percent of a class of stock by a tax-qualified employee stock benefit plan as defined in §192.25 of the OCC’s regulations.

In the event shares are acquired in violation of this section 8, all shares beneficially owned by any person in excess of 10 percent shall be considered “excess shares” and shall not be
counted as shares entitled to vote and shall not be voted by any person or counted as voting shares in connection with any matters submitted to the stockholders for a vote.

B. Call for Special Meetings. Special meetings of stockholders relating to changes in control of the Savings Bank or amendments to its charter shall be called only upon direction of
the board of directors.

For purposes of this section 8, the following definitions apply:

1. The term “person” includes an individual, a group acting in concert, a corporation, a partnership, an association, a joint stock company, a trust, an unincorporated organization or
similar company, a syndicate or any other group formed for the purpose of acquiring, holding or disposing of the equity securities of the Savings Bank.

2. The term “offer” includes every offer to buy or otherwise acquire, solicitation of an offer to sell, tender offer for, or request or invitation for tenders of, a security or interest in a
security for value.

3. The term “acquire” includes every type of acquisition, whether effected by purchase, exchange, operation of law or otherwise.

4. The term “acting in concert” means (a) knowing participation in a joint activity or conscious parallel action towards a common goal whether or not pursuant to an express
agreement, or (b) a combination or pooling of voting or other interests in the securities of an issuer for a common purpose pursuant to any contract, understanding, relationship, agreement
or other arrangements, whether written or otherwise.

Section 9. Amendment of charter. Except as provided in Section 5, no amendment, addition, alteration, change or repeal of this charter shall be made, unless such is proposed by
the board of directors of the Savings Bank, approved by the shareholders by a majority of the votes eligible to be cast at a legal meeting, unless a higher vote is otherwise required, and
approved or preapproved by the OCC.

4
NEWTON FEDERAL BANK

ATTEST:
Gregory J. Proffitt
Corporate Secretary

BY:
Johnny S. Smith
President and Chief Executive Officer

OFFICE OF THE COMPTROLLER OF THE CURRENCY

ATTEST:
Deputy Comptroller for Licensing

BY:
Comptroller of the Currency

Effective Date:

5
 NEWTON FEDERAL BANK

BYLAWS

Article I - Home Office

The home office of Newton Federal Bank (the “Savings Bank”) shall be at 3175 Highway 278, Covington, Newton County, Georgia 30014.

Article II – Shareholders

Section 1. Place of Meetings. All annual and special meetings of shareholders shall be held at any convenient place as the board of directors may designate.

Section 2. Annual Meeting. A meeting of the shareholders of the Savings Bank for the election of directors and for the transaction of any other business of the Savings Bank shall
be held annually within 150 days after the end of the Savings Bank’s fiscal year.

Section 3. Special Meetings. Special meetings of the shareholders may be called at any time by the chairman of the board, the president, or a majority of the board of directors, and
shall be called by the chairman of the board, the president, or the secretary upon the written request of the holders of 10% or more of the shares of the Savings Bank entitled to vote at the
meeting. Such written request shall state the purpose or purposes of the meeting and shall be delivered to the home office of the Savings Bank addressed to the chairman of the board, the
president, or the secretary.

Section 4. Conduct of Meetings. Annual and special meetings shall be conducted in accordance with the most current edition of Robert’s Rules of Order, unless otherwise
prescribed by regulations of the Office of the Comptroller of the Currency (the “OCC”) or these bylaws or the board of directors adopts another written procedure for the conduct of
meetings. The board of directors shall designate, when present, either the chairman of the board or president to preside at such meetings.

Section 5. Notice of Meetings. Written notice stating the place, day, and hour of the meeting and the purpose(s) for which the meeting is called shall be delivered not fewer than 20
nor more than 50 days before the date of the meeting, either personally or by mail, by or at the direction of the chairman of the board, the president, or the secretary, or the directors calling
the meeting, to each shareholder of record entitled to vote at such meeting. If mailed, such notice shall be deemed to be delivered when deposited in the mail, addressed to the shareholder at
the address as it appears on the stock transfer books or records of the Savings Bank as of the record date prescribed in Section 6 of this Article II with postage prepaid. When any
shareholders’ meeting, either annual or special, is adjourned for 30 days or more, notice of the adjourned meeting shall be given as in the case of an original meeting. Notwithstanding
anything in this section, however, a federal stock association that is wholly owned shall not be subject to the shareholder notice requirement.

Section 6. Fixing of Record Date. For the purpose of determining shareholders entitled to notice of or to vote at any meeting of shareholders or any adjournment, or shareholders
entitled to receive

1
payment of any dividend, or in order to make a determination of shareholders for any other proper purpose, the board of directors shall fix in advance a date as the record date for any such
determination of shareholders. Such date in any case shall be not more than 60 days and, in case of a meeting of shareholders, not fewer than 10 days before the date on which the particular
action, requiring such determination of shareholders, is to be taken. When a determination of shareholders entitled to vote at any meeting of shareholders has been made as provided in this
section, such determination shall apply to any adjournment.

Section 7. Voting Lists. At least 20 days before each meeting of the shareholders, the officer or agent having charge of the stock transfer books for shares of the Savings Bank shall
make a complete list of the shareholders of record entitled to vote at such meeting, or any adjournment thereof, arranged in alphabetical order, with the address and the number of shares
held by each. This list of shareholders shall be kept on file at the home office of the Savings Bank and shall be subject to inspection by any shareholder of record or the shareholder’s agent
at any time during usual business hours for a period of 20 days before such meeting. Such list shall also be produced and kept open at the time and place of the meeting and shall be subject
to inspection by any shareholder of record or any shareholder’s agent during the entire time of the meeting. The original stock transfer book shall constitute prima facie evidence of the
shareholders entitled to examine such list or transfer books or to vote at any meeting of shareholders. Notwithstanding anything in this section, however, a federal stock association that is
wholly owned shall not be subject to the voting list requirements. In lieu of making the shareholder list available for inspection by shareholders as provided above, the board of directors
may elect to follow the procedures prescribed in § 5.22(k)(4)(ii) of the OCC’s regulations as now or hereafter in effect.

Section 8. Quorum. A majority of the outstanding shares of the Savings Bank entitled to vote, represented in person or by proxy, shall constitute a quorum at a meeting of
shareholders. If less than a majority of the outstanding shares is represented at a meeting, a majority of the shares so represented may adjourn the meeting from time to time without further
notice. At such adjourned meeting at which a quorum shall be present or represented, any business may be transacted that might have been transacted at the meeting as originally notified.
The shareholders present at a duly organized meeting may continue to transact business until adjournment, notwithstanding the withdrawal of enough shareholders to leave less than a
quorum. If a quorum is present, the affirmative vote of the majority of the shares represented at the meeting and entitled to vote on the subject matter shall be the act of the shareholders,
unless the vote of a greater number of shareholders voting together or voting by classes is required by law or the charter. Directors, however, are elected by a plurality of the votes cast at an
election of directors.

Section 9. Proxies. At all meetings of shareholders, a shareholder may vote by proxy executed in writing by the shareholder or by his or her duly authorized attorney in fact. Proxies
may be given telephonically or electronically as long as the holder uses a procedure for verifying the identity of the shareholder. Proxies solicited on behalf of the management shall be
voted as directed by the shareholder or, in the absence of such direction, as determined by a majority of the board of directors. No proxy shall be valid more than eleven months from the
date of its execution except for a proxy coupled with an interest.

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 Section 10. Shares Controlled by Savings Bank. Neither treasury shares of its own stock held by the Savings Bank nor shares held by another corporation, if a majority of the
shares entitled to vote for the election of directors of such other corporation are held by the Savings Bank, shall be voted at any meeting or counted in determining the total number of
outstanding shares at any given time for purposes of any meeting.

Section 11. Cumulative Voting. Shareholders may not cumulate their votes for election of directors.

Section 12. Inspectors of Election. In advance of any meeting of shareholders, the board of directors may appoint any person other than nominees for office as inspectors of
election to act at such meeting or any adjournment. The number of inspectors shall be either one or three. Any such appointment shall not be altered at the meeting. If inspectors of election
are not so appointed, the chairman of the board or the president may, or on the request of not fewer than 10 percent of the votes represented at the meeting shall, make such appointment at
the meeting. If appointed at the meeting, the majority of the votes present shall determine whether one or three inspectors are to be appointed. In case any person appointed as inspector fails
to appear or fails or refuses to act, the vacancy may be filled by appointment by the board of directors in advance of the meeting or at the meeting by the chairman of the board or the
president.

Unless otherwise prescribed by regulations of the OCC, the duties of such inspectors shall include: determining the number of shares and the voting power of each share, the shares
represented at the meeting, the existence of a quorum, and the authenticity, validity and effect of proxies; receiving votes, ballots, or consents; hearing and determining all challenges and
questions in any way arising in connection with the rights to vote; counting and tabulating all votes or consents; determining the result; and such acts as may be proper to conduct the
election or vote with fairness to all shareholders.

Section 13. Nominations and new business. Nominations for directors and new business submitted by shareholders shall be voted upon at the annual meeting if such nominations
or new business are submitted in writing and delivered to the secretary of the association at least five days before the date of the annual meeting. Ballots bearing the names of all the persons
nominated shall be provided for use at the annual meeting.

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 Section 14. Informal Action by Shareholders. Any action required to be taken at a meeting of the shareholders, or any other action that may be taken at a meeting of shareholders,
may be taken without a meeting if consent in writing, setting forth the action so taken, shall be given by all of the shareholders entitled to vote with respect to the subject matter.

Article III - Board of Directors

Section 1. General Powers. The business and affairs of the association shall be under the direction of its board of directors. The board of directors shall annually elect a chairman of
the board from among its members and shall designate, when present, either the chairman of the board or the President to preside at its meetings.

Section 2. Number and Term. The board of directors shall consist of eight (8) members, and shall be divided into three classes as nearly equal in number as possible. The members
of each class shall be elected for a term of three years and until their successors are elected and qualified. One class shall be elected by ballot annually.

Section 3. Regular Meetings. A regular meeting of the board of directors shall be held without other notice than this bylaw following the annual meeting of shareholders. The board
of directors may provide, by resolution, the time and place, for the holding of additional regular meetings without other notice than such resolution. Directors may participate in a meeting
by means of a conference telephone or similar communications device through which all persons participating can hear one another at the same time. Participation by such means shall
constitute presence in person for all purposes.

Section 4. Special Meetings. Special meetings of the board of directors may be called by or at the request of the chairman of the board, the president, or one-third of the directors.
The persons authorized to call special meetings of the board of directors may fix any place, within the Savings Bank’s normal lending territory, as the place for holding any special meeting
of the board of directors called by such persons.

Members of the board of directors may participate in special meetings by means of conference telephone or similar communications equipment by which all persons participating in
the meeting can hear one another. Such participation shall constitute presence in person for all purposes.

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 Section 5. Notice. Written notice of any special meeting shall be given to each director at least 24 hours prior thereto when delivered personally, by electronic mail or by telegram,
or at least five days prior thereto when delivered by mail at the address at which the director is most likely to be reached. Such notice shall be deemed to be delivered when deposited in the
mail so addressed, with postage prepaid if mailed, when delivered to the telegraph company if sent by telegram, or when the Savings Bank receives notice of delivery if electronically
transmitted. Any director may waive notice of any meeting by a writing filed with the secretary. The attendance of a director at a meeting shall constitute a waiver of notice of such meeting,
except where a director attends a meeting for the express purpose of objecting to the transaction of any business because the meeting is not lawfully called or convened. Neither the business
to be transacted at, nor the purpose of, any meeting of the board of directors need be specified in the notice of waiver of notice of such meeting.

Section 6. Quorum. A majority of the number of directors fixed by Section 2 of this Article III shall constitute a quorum for the transaction of business at any meeting of the board
of directors; but if less than such majority is present at a meeting, a majority of the directors present may adjourn the meeting from time to time. Notice of any adjourned meeting shall be
given in the same manner as prescribed by Section 5 of this Article III.

Section 7. Manner of Acting. The act of the majority of the directors present at a meeting at which a quorum is present shall be the act of the board of directors, unless a greater
number is prescribed by regulation of the OCC or by these bylaws.

Section 8. Action Without a Meeting. Any action required or permitted to be taken by the board of directors at a meeting may be taken without a meeting if a consent in writing,
setting forth the action so taken, shall be signed by all of the directors.

Section 9. Resignation. Any director may resign at any time by sending a written notice of such resignation to the home office of the Savings Bank addressed to the chairman of the
board or the president. Unless otherwise specified, such resignation shall take effect upon receipt by the chairman of the board or the president. More than three consecutive absences from
regular meetings of the board of directors, unless excused by resolution of the board of directors, shall automatically constitute a resignation, effective when such resignation is accepted by
the board of directors.

Section 10. Vacancies. Any vacancy occurring on the board of directors may be filled by the affirmative vote of a majority of the remaining directors although less than a quorum of
the board of directors. A director elected to fill a vacancy shall be elected to serve only until the next election of directors by the shareholders. Any directorship to be filled because of an
increase in the number of directors may be filled by election by the board of directors for a term of office continuing only until the next election of directors by the shareholders.

Section 11. Compensation. Directors, as such, may receive a stated salary for their services. By resolution of the board of directors, a reasonable fixed sum, and reasonable
expenses of attendance, if any, may be allowed for attendance at each regular or special meeting of the board of directors. Members of either standing or special committees may be allowed
such compensation for attendance at committee meetings as the board of directors may determine.

Section 12. Presumption of Assent. A director of the Savings Bank who is present at a meeting of the board of directors at which action on any Savings Bank matter is taken shall
be presumed to have assented to the action taken unless his or her dissent or abstention shall be entered in the minutes of the meeting or unless he or she shall file a written dissent to such
action with the person acting as the secretary of the meeting before the adjournment thereof or shall forward such dissent by registered mail to the secretary of the Savings Bank within five
days after the date a copy of the minutes of the meeting is received. Such right to dissent shall not apply to a director who voted in favor of such action.

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 Section 13. Removal of Directors. At a meeting of shareholders called expressly for that purpose, any director may be removed only for cause as defined in 12 CFR 5.21(j)(1)(x)
(B) (or any successor regulation) by a vote of the holders of a majority of the shares then entitled to vote at an election of directors. Whenever the holders of the shares of any class are
entitled to elect one or more directors by the provisions of the charter or supplemental sections thereto, the provisions of this section shall apply, in respect to the removal of a director or
directors so elected, to the vote of the holders of the outstanding shares of that class and not to the vote of the outstanding shares as a whole.

Section 14. Age Limitations. No person over the age of seventy-five (75) shall be eligible for election, reelection, appointment, or reappointment to the board of the Savings Bank.
No director shall serve as such beyond the annual meeting of the Savings Bank immediately following the director becoming 75 years of age. Notwithstanding the preceding two sentences,
the age limitation shall be eighty (80) for any director serving on the board of the Savings Bank at the time of the adoption of the Savings Bank’s Plan of Mutual Holding Company
Reorganization and Stock Issuance Plan.

Article IV - Executive and Other Committees

Section 1. Appointment. The board of directors, by resolution adopted by a majority of the full board, may designate the chairman of the board and two or more of the other
directors to constitute an executive committee. The designation of any committee pursuant to this Article IV and the delegation of authority shall not operate to relieve the board of
directors, or any director, of any responsibility imposed by law or regulation.

Section 2. Authority. The executive committee, when the board of directors is not in session, shall have and may exercise all of the authority of the board of directors except to the
extent, if any, that such authority shall be limited by the resolution appointing the executive committee; and except also that the executive committee shall not have the authority of the
board of directors with reference to: the declaration of dividends; the amendment of the charter or bylaws of the Savings Bank, or recommending to the shareholders a plan of merger,
consolidation, or conversion; the sale, lease, or other disposition of all or substantially all of the property and assets of the Savings Bank otherwise than in the usual and regular course of its
business; a voluntary dissolution of the Savings Bank; a revocation of any of the foregoing; or the approval of a transaction in which any member of the executive committee, directly or
indirectly, has any material beneficial interest.

Section 3. Tenure. Subject to the provisions of Section 8 of this Article IV, each member of the executive committee shall hold office until the next regular annual meeting of the
board of directors following his or her designation and until a successor is designated as a member of the executive committee.

Section 4. Meetings. Regular meetings of the executive committee may be held without notice at such times and places as the executive committee may fix from time to time by
resolution. Special meetings of the executive committee may be called by any member thereof upon not less than one day’s notice stating the place, date, and hour of the meeting, which
notice may be written or oral. Any member of the executive committee may waive notice of any meeting and no notice of any meeting need to be given to any member thereof who attends
in person. The notice of a meeting of the executive committee need not state the business proposed to be transacted at the meeting.

Section 5. Quorum. A majority of the members of the executive committee shall constitute a quorum for the transaction of business at any meeting thereof, and action of the
executive committee must be authorized by the affirmative vote of a majority of the members present at a meeting at which a quorum is present.

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 Section 6. Action Without a Meeting. Any action required or permitted to be taken by the executive committee at a meeting may be taken without a meeting if a consent in writing,
setting forth the action so taken, shall be signed by all of the members of the executive committee.

Section 7. Vacancies. Any vacancy in the executive committee may be filled by a resolution adopted by a majority of the full board of directors.

Section 8. Resignations and Removal. Any member of the executive committee may be removed at any time with or without cause by resolution adopted by a majority of the full
board of directors. Any member of the executive committee may resign from the executive committee at any time by giving written notice to the president or secretary of the association.
Unless otherwise specified, such resignation shall take effect upon its receipt; the acceptance of such resignation shall not be necessary to make it effective.

Section 9. Procedure. The executive committee shall elect a presiding officer from its members and may fix its own rules of procedure which shall not be inconsistent with these
bylaws. It shall keep regular minutes of its proceedings and report the same to the board of directors for its information at the meeting held next after the proceedings shall have occurred.

Section 10. Other Committees. The board of directors may by resolution establish an audit, loan, or other committee composed of directors as they may determine to be necessary
or appropriate for the conduct of the business of the Savings Bank and may prescribe the duties, constitution, and procedures thereof.

Article V - Officers

Section 1. Positions. The officers of the Savings Bank shall be a president, one or more vice presidents, a secretary, and a treasurer or comptroller, each of whom shall be elected by
the board of directors. The board of directors may also designate the chairman of the board as an officer. The offices of the secretary and treasurer or comptroller may be held by the same
person and a vice president may also be either the secretary or the treasurer or comptroller. The board of directors may designate one or more vice presidents as executive vice president or
senior vice president. The board of directors may also elect or authorize the appointment of such other officers as the business of the Savings Bank may require. The officers shall have such
authority and perform such duties as the board of directors may from time to time authorize or determine. In the absence of action by the board of directors, the officers shall have such
powers and duties as generally pertain to their respective offices.

Section 2. Election and Term of Office. The officers of the Savings Bank shall be elected annually at the first meeting of the board of directors held after each annual meeting of
the shareholders. If the election of officers is not held at such meeting, such election shall be held as soon thereafter as possible. Each officer shall hold office until a successor has been duly
elected and qualified or until the officer’s death, resignation, or removal in the manner hereinafter provided. Election or appointment of an officer, employee, or agent shall not of itself
create contractual rights. The board of directors may authorize the Savings Bank to enter into an employment contract with any officer in accordance with regulations of the OCC; but no
such contract shall impair the right of the board of directors to remove any officer at any time in accordance with Section 3 of this Article V.

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 Section 3. Removal. Any officer may be removed by the board of directors whenever in its judgment the best interests of the Savings Bank will be served thereby, but such removal,
other than for cause, shall be without prejudice to the contractual rights, if any, of the person so removed.

Section 4. Vacancies. A vacancy in any office because of death, resignation, removal, disqualification, or otherwise may be filled by the board of directors for the unexpired portion
of the term.

Section 5. Remuneration. The remuneration of the officers shall be fixed from time to time by the board of directors.

Article VI - Contracts, Loans, Checks, and Deposits

Section 1. Contracts. To the extent permitted by regulations of the OCC, and except as otherwise prescribed by these bylaws with respect to certificates for shares, the board of
directors may authorize any officer, employee, or agent of the Savings Bank to enter into any contract or execute and deliver any instrument in the name of and on behalf of the Savings
Bank. Such authority may be general or confined to specific instances.

Section 2.

Checks; Drafts, etc. All checks, drafts, or other orders for the payment of money, notes, or other evidences of indebtedness issued in the name of the Savings Bank shall be signed
by one or more officers, employees or agents of the Savings Bank in such manner as shall from time to time be determined by the board of directors.

Article VII - Certificates for Shares and Their Transfer

Section 1. Certificates for Shares. Certificates representing shares of capital stock of the Savings Bank shall be in such form as shall be determined by the board of directors and
approved by the OCC. The name and address of the person to whom the shares are issued, with the number of shares and date of issue, shall be entered on the stock transfer books of the
Savings Bank. All certificates surrendered to the Savings Bank for transfer shall be canceled and no new certificate shall be issued until the former certificate for a like number of shares has
been surrendered and canceled, except that in the case of a lost or destroyed certificate, a new certificate may be issued upon such terms and indemnity to the Savings Bank as the board of
directors may prescribe.

Section 2. Transfer of Shares. Transfer of shares of capital stock of the Savings Bank shall be made only on its stock transfer books. Authority for such transfer shall be given only
by the holder of record or by his or her legal representative, who shall furnish proper evidence of such authority, or by his or her attorney authorized by a duly executed power of attorney
and filed with the Savings Bank. Such

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transfer shall be made only on surrender for cancellation of the certificate for such shares. The person in whose name shares of capital stock stand on the books of the Savings Bank shall be
deemed by the association to be the owner for all purposes.

Article VIII—Fiscal Year

The fiscal year of the Savings Bank shall end on the last day of September of each year. The appointment of accountants shall be subject to annual ratification by the shareholders.

Article IX - Dividends

Subject to the terms of the Savings Bank’s charter and the regulations and orders of the OCC, the board of directors may, from time to time, declare, and the Savings Bank may pay,
dividends on its outstanding shares of capital stock.

Article X - Corporate Seal

The board of directors shall provide a Savings Bank seal which shall be two concentric circles between which shall be the name of the Savings Bank. The year of incorporation or an
emblem may appear in the center.

Article XI - Amendments

These bylaws may be amended in a manner consistent with regulations of the OCC and shall be effective after: (i) approval of the amendment by a majority vote of the authorized
board of directors, or by a majority vote of the votes cast by the shareholders of the Savings Bank at any legal meeting, and (ii) receipt of any applicable regulatory approval. When the
Savings Bank fails to meet its quorum requirements, solely due to vacancies on the board, then the affirmative vote of a majority of the sitting board will be required to amend the bylaws.

ARTICLE XII – Indemnification

The Savings Bank shall indemnify its personnel, including directors, officers and employees, to the fullest extent authorized by applicable law and regulations, as the same exists or
may hereafter be amended; provided, any indemnification by the Savings Bank of the Savings Bank’s personnel is subject to any applicable rules or regulations of the federal bank
regulators.

ARTICLE XIII – Reliance upon Books, Reports and Records

Each director, each member of any committee designated by the board of directors, and each officer of the Savings Bank shall, in the performance of his or her duties, be fully
protected in relying in good faith upon the books of account or other records of the Savings Bank and upon such information, opinions, reports or statements presented to the Savings Bank
by any of its officers or employees, or committees of the board of directors so designated, or by any other person as to matters which such director or committee member reasonably
believes are within such other person’s professional or expert competence and who has been selected with reasonable care by or on behalf of the Savings Bank.

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 EXHIBIT B
Charter and Bylaws of the Holding Company
 COMMUNITY FIRST BANCSHARES, INC.

STOCK HOLDING COMPANY CHARTER

Section 1. Corporate title . The full corporate title of the mutual holding company subsidiary holding company is Community First Bancshares, Inc. (the “Company”).

Section 2. Domicile. The domicile of the Company shall be in Newton County, Georgia.

Section 3. Duration. The duration of the Company is perpetual.

Section 4. Purpose and powers. The purpose of the Company is to pursue any or all of the lawful objectives of a federal mutual holding company chartered under Section 10(o) of
the Home Owners’ Loan Act, 12 U.S.C. 1467a(o), and to exercise all of the express, implied, and incidental powers conferred thereby and by all acts amendatory thereof and supplemental
thereto, subject to the Constitution and laws of the United States as they are now in effect, or as they may hereafter be amended, and subject to all lawful and applicable rules, regulations,
and orders of the Board of Governors of the Federal Reserve System (the “FRB”).

Section 5. Capital stock. The total number of shares of all classes of the capital stock that the Company has the authority to issue is 20,000,000, of which 19,000,000 shares shall be
common stock, par value $0.01 per share, and of which 1,000,000 shares shall be serial preferred stock, par value $0.01 per share. The shares may be issued from time to time as authorized
by the board of directors without the approval of its shareholders, except as otherwise provided in this Section 5 or to the extent that such approval is required by governing law, rule, or
regulation. The consideration for the issuance of the shares shall be paid in full before their issuance and shall not be less than the par or stated value. Neither promissory notes nor future
services shall constitute payment or part payment for the issuance of shares of the Company. The consideration for the shares shall be cash, tangible or intangible property (to the extent
direct investment in such property would be permitted to the Company), labor, or services actually performed for the Company, or any combination of the foregoing. In the absence of
actual fraud in the transaction, the value of such property, labor, or services, as determined by the board of directors of the Company, shall be conclusive. Upon payment of such
consideration, such shares shall be deemed to be fully paid and nonassessable. In the case of a stock dividend, that part of the retained earnings of the Company that is transferred to
common stock or paid-in capital accounts upon the issuance of shares as a stock dividend shall be deemed to be the consideration for their issuance.

Except for shares issued in the initial organization of the Company, no shares of capital stock (including shares issuable upon conversion, exchange, or exercise of other securities)
shall be issued, directly or indirectly, to officers, directors, or controlling persons (except for shares issued to the parent mutual holding company) of the Company other than as part of a
general public offering or as qualifying shares to a director, unless the issuance or the plan under which they would be issued has been approved by a majority of the total votes eligible to
be cast at a legal meeting.

Nothing contained in this Section 5 (or in any supplementary sections hereto) shall entitle the holders of any class or series of capital stock to vote as a separate class or series or to
more than one vote per share, and there shall be no cumulation of votes for the election of directors; provided , that this restriction on voting separately by class or series shall not apply:
(i) To any provision which would authorize the holders of preferred stock, voting as a class or series, to elect some members of the board of directors, less than a majority
thereof, in the event of default in the payment of dividends on any class or series of preferred stock;

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 (ii) To any provision which would require the holders of preferred stock, voting as a class or series, to approve the merger or consolidation of the Company with another
corporation or the sale, lease, or conveyance (other than by mortgage or pledge) of properties or business in exchange for securities of a corporation other than the Company
if the preferred stock is exchanged for securities of such other corporation; provided, that no provision may require such approval for transactions undertaken with the
assistance or pursuant to the direction of the FRB or the Federal Deposit Insurance Corporation;
(iii) To any amendment which would adversely change the specific terms of any class or series of capital stock as set forth in this Section 5 (or in any supplementary sections
hereto), including any amendment which would create or enlarge any class or series ranking prior thereto in rights and preferences. An amendment which increases the
number of authorized shares of any class or series of capital stock, or substitutes the surviving company in a merger or consolidation for the Company, shall not be
considered to be such an adverse change.

A description of the different classes and series of the Company’s capital stock and a statement of the designations, and the relative rights, preferences and limitations of the shares
of each class of and series of capital stock are as follows:

A. Common stock. Except as provided in this Section 5 (or in any supplementary sections thereto) the holders of common stock shall exclusively possess all voting power. Each
holder of shares of common stock shall be entitled to one vote for each share held by such holder and there shall be no cumulation of votes for the election of directors.

Whenever there shall have been paid, or declared and set aside for payment, to the holders of the outstanding shares of any class of stock having preference over the common stock
as to payment of dividends, the full amount of dividends and of sinking fund, retirement fund or other retirement payments, if any, to which such holders are respectively entitled in
preference to the common stock, then dividends may be paid on the common stock and on any class or series of stock entitled to participate therewith as to dividends out of any assets
legally available for the payment of dividends.

In the event of any liquidation, dissolution, or winding up of the Company, the holders of the common stock (and the holders of any class or series of stock entitled to participate
with the common stock in the distribution of assets) shall be entitled to receive, in cash or in kind, the assets of the Company available for distribution remaining after: (i) payment or
provision for payment of the Company’s debts and liabilities; (ii) distributions or provision for distributions in settlement of its liquidation account; and (iii) distributions or provisions for
distributions to holders of any class or series of stock having preference over the common stock in the liquidation, dissolution, or winding up of the Company. Each share of common stock
shall have the same relative rights as and be identical in all respects with all the other shares of common stock.

B. Preferred stock. The Company may provide in supplementary sections to its charter for one or more classes of preferred stock, which shall be separately identified. The shares of
any class may be divided into and issued in series, with each series separately designated so as to distinguish the shares thereof from the shares of all other series and classes. The terms of
each series shall be set forth in a supplementary section to the charter. All shares of the same class shall be identical, except as to the following relative rights and preferences, as to which
there may be variations between different series:
(a) The distinctive serial designation and the number of shares constituting such series;

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 (b) The dividend rate or the amount of dividends to be paid on the shares of such series, whether dividends shall be cumulative and, if so, from which date(s), the payment
date(s) for dividends, and the participating or other special rights, if any, with respect to dividends;
(c) The voting powers, full or limited, if any, of shares of such series;
(d) Whether the shares of such series shall be redeemable and, if so, the price(s) at which, and the terms and conditions on which, such shares may be redeemed;
(e) The amount(s) payable upon the shares of such series in the event of voluntary or involuntary liquidation, dissolution, or winding up of the Company;
(f) Whether the shares of such series shall be entitled to the benefit of a sinking or retirement fund to be applied to the purchase or redemption of such shares, and if so entitled,
the amount of such fund and the manner of its application, including the price(s) at which such shares may be redeemed or purchased through the application of such fund;
(g) Whether the shares of such series shall be convertible into, or exchangeable for, shares of any other class or classes of stock of the Company and, if so, the conversion
price(s) or the rate(s) of exchange, and the adjustments thereof, if any, at which such conversion or exchange may be made, and any other terms and conditions of such
conversion or exchange;
(h) The price or other consideration for which the shares of such series shall be issued; and
(i) Whether the shares of such series which are redeemed or converted shall have the status of authorized but unissued shares of serial preferred stock and whether such shares
may be reissued as shares of the same or any other series of serial preferred stock.

Each share of each series of serial preferred stock shall have the same relative rights as and be identical in all respects with all the other shares of the same series.

The board of directors shall have authority to divide, by the adoption of supplementary charter sections, any authorized class of preferred stock into series and, within the limitations
set forth in this section and the remainder of this charter, fix and determine the relative rights and preferences of the shares of any series so established.

Prior to the issuance of any preferred shares of a series established by a supplementary charter section adopted by the board of directors, the Company shall file with the appropriate
Reserve Bank a dated copy of that supplementary section of this charter establishing and designating the series and fixing and determining the relative rights and preferences thereof.

Section 6. Beneficial ownership limitation . No person other than Community First Bancshares, MHC may directly or indirectly offer to acquire or acquire the beneficial
ownership of more than 10 percent of the outstanding stock of any class of voting stock of the Company held by persons other than Community First Bancshares, MHC. This limitation
expires on , 2022 and does not apply to a transaction in which an underwriter purchases stock in connection with a public offering, or the purchase of stock by an employee stock
ownership plan or other tax-qualified employee stock benefit plan that is exempt from the approval requirements under the FRB’s Regulations.

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 In the event a person acquires stock in violation of this Section 6, all stock beneficially owned by such person in excess of 10 percent of the stock held by shareholders other than
Community First Bancshares, MHC shall be considered “excess shares” and shall not be counted as stock entitled to vote and shall not be voted by any person or counted as voting stock in
connection with any matters submitted to the shareholders for a vote.

For purposes of this section 8, the following definitions apply:

(1) The term “person” includes an individual, a group acting in concert, a corporation, a partnership, an association, a joint stock company, a trust, an unincorporated organization or
similar company, a syndicate or any other group formed for the purpose of acquiring, holding or disposing of the equity securities of the subsidiary holding company.

(2) The term “offer” includes every offer to buy or otherwise acquire, solicitation of an offer to sell, tender offer for, or request or invitation for tenders of, a security or interest in a
security for value.

(3) The term “acquire” includes every type of acquisition, whether effected by purchase, exchange, operation of law or otherwise.

(4) The term “acting in concert” means (a) knowing participation in a joint activity or conscious parallel action towards a common goal whether or not pursuant to an express
agreement, or (b) a combination or pooling of voting or other interests in the securities of an issuer for a common purpose pursuant to any contract, understanding, relationship, agreement
or other arrangements, whether written or otherwise.

Section 7. Preemptive rights. Holders of the capital stock of the Company shall not be entitled to preemptive rights with respect to any shares of the Company which may be
issued.

Section 8. Directors. The Company shall be under the direction of a board of directors. The authorized number of directors, as stated in the Company’s bylaws, shall not be fewer
than five nor more than fifteen except when a greater or lesser number is approved by the FRB, or its delegate.

Section 9. Amendment of charter. Except as provided in Section 5, no amendment, addition, alteration, change or repeal of this charter shall be made, unless such is proposed by
the board of directors of the Company, approved by the shareholders by a majority of the votes eligible to be cast at a legal meeting, unless a higher vote is otherwise required, and approved
or preapproved by the FRB.

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COMMUNITY FIRST BANCSHARES, INC.

ATTEST:
Gregory J. Proffitt
Corporate Secretary

BY:
Johnny S. Smith
President and Chief Executive Officer

BOARD OF GOVERNORS OF THE

FEDERAL RESERVE SYSTEM

BY:
Secretary of Board of Governors of the Federal
Reserve System

Effective Date:

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 COMMUNITY FIRST BANCSHARES, INC.

BYLAWS

Article I—Home Office

The home office of Community First Bancshares, Inc. (the “Company”) shall be at 3175 Highway 278, Covington, Newton County, Georgia 30014.

Article II—Shareholders

Section 1. Place of Meetings. All annual and special meetings of shareholders shall be held at the home office of the Company or at such other convenient place as the board of
directors may determine.

Section 2. Annual Meeting. A meeting of the shareholders of the Company for the election of directors and for the transaction of any other business of the Company shall be held
annually within 150 days after the end of the Company’s fiscal year on the fourth Thursday of February of each calendar year if not a legal holiday, and if a legal holiday, then on the next
day following which is not a legal holiday, or at such other date and time within such 150-day period as the board of directors may determine.

Section 3. Special Meetings. Special meetings of the shareholders for any purpose or purposes, unless otherwise prescribed by the regulations of the Board of Governors of the
Federal Reserve System (the “FRB”), may be called at any time by the chairman of the board, the president, or a majority of the board of directors, and shall be called by the chairman of
the board, the president, or the secretary upon the written request of the holders of not less than one-tenth of all of the outstanding capital stock of the Company entitled to vote at the
meeting. Such written request shall state the purpose or purposes of the meeting and shall be delivered to the home office of the Company addressed to the chairman of the board, the
president, or the secretary.

Section 4. Conduct of Meetings. Annual and special meetings shall be conducted in accordance with written procedures established by the board of directors, unless otherwise
prescribed by regulations of the FRB or these bylaws. The board of directors shall designate, when present, either the chairman of the board or president to preside at such meetings.

Section 5. Notice of Meetings. Written notice stating the place, day, and hour of the meeting and the purpose(s) for which the meeting is called shall be delivered not fewer than 20
nor more than 50 days before the date of the meeting, either personally or by mail, by or at the direction of the chairman of the board, the president, or the secretary, or the directors calling
the meeting, to each shareholder of record entitled to vote at such meeting. If mailed, such notice shall be deemed to be delivered when deposited in the mail, addressed to the shareholder at
the address as it appears on the stock transfer books or records of the Company as of the record date prescribed in section 6 of this Article II with postage prepaid. When any shareholders’
meeting, either annual or special, is adjourned for 30 days or more, notice of the adjourned meeting shall be given as in the case of an original meeting. It shall not be necessary to give any
notice of the time and place of any meeting adjourned for less than 30 days or of the business to be transacted at the meeting, other than an announcement at the meeting at which such
adjournment is taken.

Section 6. Fixing of Record Date. For the purpose of determining shareholders entitled to notice of or to vote at any meeting of shareholders or any adjournment, or shareholders
entitled to receive payment of any dividend, or in order to make a determination of shareholders for any other proper purpose, the board of directors shall fix in advance a date as the record
date for any such determination of shareholders. Such date in any case shall be not more than 60 days and, in case of a meeting of

1
shareholders, not fewer than 10 days prior to the date on which the particular action, requiring such determination of shareholders, is to be taken. When a determination of shareholders
entitled to vote at any meeting of shareholders has been made as provided in this section, such determination shall apply to any adjournment.

Section 7. Voting Lists. At least 20 days before each meeting of the shareholders, the officer or agent having charge of the stock transfer books for shares of the Company shall
make a complete list of the shareholders of record entitled to vote at such meeting, or any adjournment thereof, arranged in alphabetical order, with the address and the number of shares
held by each. This list of shareholders shall be kept on file at the home office of the Company and shall be subject to inspection by any shareholder of record or the shareholder’s agent at
any time during usual business hours for a period of 20 days prior to such meeting. Such list shall also be produced and kept open at the time and place of the meeting and shall be subject to
inspection by any shareholder of record or any shareholder’s agent during the entire time of the meeting. The original stock transfer book shall constitute prima facie evidence of the
shareholders entitled to examine such list or transfer books or to vote at any meeting of shareholders. In lieu of making the shareholder list available for inspection by shareholders as
provided in the preceding paragraph, the board of directors may elect to follow the procedures prescribed in § 239.26(d) of the FRB’s regulations as now or hereafter in effect.

Section 8. Quorum. A majority of the outstanding shares of the Company entitled to vote, represented in person or by proxy, shall constitute a quorum at a meeting of shareholders.
If less than a majority of the outstanding shares is represented at a meeting, a majority of the shares so represented may adjourn the meeting from time to time without further notice. At
such adjourned meeting at which a quorum shall be present or represented, any business may be transacted which might have been transacted at the meeting as originally notified. If a
quorum is present at a meeting of shareholders and the withdrawal of shareholders results in the presence of less than a quorum, the shareholders present may continue to transact business
until adjournment. If a quorum is present, the affirmative vote of the majority of the shares represented at the meeting and entitled to vote on the subject matter shall be the act of the
shareholders, unless the vote of a greater number of shareholders voting together or voting by classes is required by law or the charter. Directors, however, are elected by a plurality of the
votes cast at an election of directors.

Section 9. Proxies. At all meetings of shareholders, a shareholder may vote by proxy executed in writing by the shareholder or by his or her duly authorized attorney in fact. Proxies
may be given telephonically or electronically as long as the holder uses a procedure for verifying the identity of the shareholder. Proxies solicited on behalf of the management shall be
voted as directed by the shareholder or, in the absence of such direction, as determined by a majority of the board of directors. No proxy shall be valid more than eleven months from the
date of its execution except for a proxy coupled with an interest.

Section 10. Voting of Shares in the Name of Two or More Persons. When ownership stands in the name of two or more persons, in the absence of written directions to the
Company to the contrary, at any meeting of the shareholders of the Company any one or more of such shareholders may cast, in person or by proxy, all votes to which such ownership is
entitled. In the event an attempt is made to cast conflicting votes, in person or by proxy, by the several persons in whose names shares of stock stand, the vote or votes to which those
persons are entitled shall be cast as directed by a majority of those holding such and present in person or by proxy at such meeting, but no votes shall be cast for such stock if a majority
cannot agree.

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 Section 11. Voting of Shares by Certain Holders. Shares standing in the name of another corporation may be voted by any officer, agent, or proxy as the bylaws of such
corporation may prescribe, or, in the absence of such provision, as the board of directors of such corporation may determine. Shares held by an administrator, executor, guardian, or
conservator may be voted by him or her, either in person or by proxy, without a transfer of such shares into his or her name. Shares standing in the name of a trustee may be voted by him or
her, either in person or by proxy, but no trustee shall be entitled to vote shares held by him or her without a transfer of such shares into his or her name. Shares held in trust in an IRA or
Keogh Account, however, may be voted by the Company if no other instructions are received. Shares standing in the name of a receiver may be voted by such receiver, and shares held by
or under the control of a receiver may be voted by such receiver without the transfer into his or her name if authority to do so is contained in an appropriate order of the court or other public
authority by which such receiver was appointed. A shareholder whose shares are pledged shall be entitled to vote such shares until the shares have been transferred into the name of the
pledgee, and thereafter the pledgee shall be entitled to vote the shares so transferred. Neither treasury shares of its own stock held by the Company nor shares held by another corporation, if
a majority of the shares entitled to vote for the election of directors of such other corporation are held by the Company, shall be voted at any meeting or counted in determining the total
number of outstanding shares at any given time for purposes of any meeting.

Section 12. Cumulative Voting. Shareholders may not cumulate their votes for election of directors.

Section 13. Inspectors of Election. In advance of any meeting of shareholders, the board of directors may appoint any individual other than nominees for office as inspectors of
election to act at such meeting or any adjournment. The number of inspectors shall be either one or three. Any such appointment shall not be altered at the meeting. If inspectors of election
are not so appointed, the chairman of the board or the president may, or on the request of not fewer than 10 percent of the votes represented at the meeting shall, make such appointment at
the meeting. If appointed at the meeting, the majority of the votes present shall determine whether one or three inspectors are to be appointed. In case any individual appointed as inspector
fails to appear or fails or refuses to act, the vacancy may be filled by appointment by the board of directors in advance of the meeting or at the meeting by the chairman of the board or the
president. Unless otherwise prescribed by regulations of the FRB, the duties of such inspectors shall include: determining the number of shares and the voting power of each share, the
shares represented at the meeting, the existence of a quorum, and the authenticity, validity and effect of proxies; receiving votes, ballots, or consents; hearing and determining all challenges
and questions in any way arising in connection with the rights to vote; counting and tabulating all votes or consents; determining the result; and such acts as may be proper to conduct the
election or vote with fairness to all shareholders.

Section 14. Nominating Committee. The board of directors shall act as a nominating committee for selecting the management nominees for election as directors. Except in the case
of a nominee substituted as a result of the death or other incapacity of a management nominee, the nominating committee shall deliver written nominations to the secretary at least 20 days
prior to the date of the annual meeting. Upon delivery, such nominations shall be posted in a conspicuous place in each office of the Company. No nominations for directors except those
made by the nominating committee shall be voted upon at the annual meeting unless other nominations by shareholders are made in writing and delivered to the secretary of the Company at
least five days prior to the date of the annual meeting. Upon delivery, such nominations shall be posted in a conspicuous place in each office of the Company. Ballots bearing the names of
all persons nominated by the nominating committee and by shareholders shall be provided for use at the annual meeting. However, if the nominating committee shall fail or refuse to act at
least 20 days prior to the annual meeting, nominations for directors may be made at the annual meeting by any shareholder entitled to vote and shall be voted upon.

3
 Section 15. New Business. Any new business to be taken up at the annual meeting shall be stated in writing and filed with the secretary of the Company at least five days before the
date of the annual meeting, and all business so stated, proposed, and filed shall be considered at the annual meeting; but no other proposal shall be acted upon at the annual meeting. Any
shareholder may make any other proposal at the annual meeting and the same may be discussed and considered, but unless stated in writing and filed with the secretary at least five days
before the meeting, such proposal shall be laid over for action at an adjourned, special, or annual meeting of the shareholders taking place 30 days or more thereafter. This provision shall
not prevent the consideration and approval or disapproval at the annual meeting of reports of officers, directors, and committees; but in connection with such reports, no new business shall
be acted upon at such annual meeting unless stated and filed as herein provided.

Section 16. Informal Action by Shareholders. Any action required to be taken at a meeting of the shareholders, or any other action which may be taken at a meeting of
shareholders, may be taken without a meeting if consent in writing, setting forth the action so taken, shall be given by all of the shareholders entitled to vote with respect to the subject
matter.

Article III—Board of Directors

Section 1. General Powers. The business and affairs of the Company shall be under the direction of its board of directors. The board of directors shall annually elect a chairman of
the board from among its members and shall designate, when present, the chairman of the board to preside at its meetings.

Section 2. Number and Term. The board of directors shall consist of five (5) members, and shall be divided into three classes as nearly equal in number as possible. The members
of each class shall be elected for a term of three years and until their successors are elected and qualified. One class shall be elected by ballot annually.

Section 3. Regular Meetings. A regular meeting of the board of directors shall be held without other notice than this bylaw following the annual meeting of shareholders. The board
of directors may provide, by resolution, the time and place, for the holding of additional regular meetings without other notice than such resolution. Directors may participate in a meeting
by means of a conference telephone or similar communications device through which all individuals participating can hear each other at the same time. Participation by such means shall
constitute presence in person for all purposes.

Section 4. Director Qualification. Each director shall at all times be the beneficial owner of not less than 100 shares of capital stock of the Company unless the Company is a
wholly owned subsidiary of a holding company.

Section 5. Special Meetings. Special meetings of the board of directors may be called by or at the request of the chairman of the board, the president, or one-third of the directors.
The persons authorized to call special meetings of the board of directors may fix any place, within the Company’s normal lending territory, as the place for holding any special meeting of
the board of directors called by such persons. Members of the board of directors may participate in special meetings by means of conference telephone or similar communications
equipment by which all persons participating in the meeting can hear each other. Such participation shall constitute presence in person for all purposes.

Section 6. Notice. Written notice of any special meeting shall be given to each director at least 24 hours prior thereto when delivered personally or by telegram or at least five days
prior thereto when

4
delivered by mail at the address at which the director is most likely to be reached. Such notice shall be deemed to be delivered when deposited in the mail so addressed, with postage prepaid
if mailed, when delivered to the telegraph company if sent by telegram, or when the Company receives notice of delivery if electronically transmitted. Any director may waive notice of any
meeting by a writing filed with the secretary. The attendance of a director at a meeting shall constitute a waiver of notice of such meeting, except where a director attends a meeting for the
express purpose of objecting to the transaction of any business because the meeting is not lawfully called or convened. Neither the business to be transacted at, nor the purpose of, any
meeting of the board of directors need be specified in the notice of waiver of notice of such meeting.

Section 7. Quorum. A majority of the number of directors fixed by Section 2 of this Article III shall constitute a quorum for the transaction of business at any meeting of the board
of directors; but if less than such majority is present at a meeting, a majority of the directors present may adjourn the meeting from time to time. Notice of any adjourned meeting shall be
given in the same manner as prescribed by Section 5 of this Article III.

Section 8. Manner of Acting. The act of the majority of the directors present at a meeting at which a quorum is present shall be the act of the board of directors, unless a greater
number is prescribed by regulation of the FRB or by these bylaws.

Section 9. Action Without a Meeting. Any action required or permitted to be taken by the board of directors at a meeting may be taken without a meeting if a consent in writing,
setting forth the action so taken, shall be signed by all of the directors.

Section 10. Resignation. Any director may resign at any time by sending a written notice of such resignation to the home office of the Company addressed to the chairman of the
board or the president. Unless otherwise specified, such resignation shall take effect upon receipt by the chairman of the board or the president. More than three consecutive absences from
regular meetings of the board of directors, unless excused by resolution of the board of directors, shall automatically constitute a resignation, effective when such resignation is accepted by
the board of directors.

Section 11. Vacancies. Any vacancy occurring on the board of directors may be filled by the affirmative vote of a majority of the remaining directors although less than a quorum of
the board of directors. A director elected to fill a vacancy shall be elected to serve only until the next election of directors by the shareholders. Any directorship to be filled by reason of an
increase in the number of directors may be filled by election by the board of directors for a term of office continuing only until the next election of directors by the shareholders.

Section 12. Compensation. Directors, as such, may receive a stated salary for their services. By resolution of the board of directors, a reasonable fixed sum, and reasonable
expenses of attendance, if any, may be allowed for attendance at each regular or special meeting of the board of directors. Members of either standing or special committees may be allowed
such compensation for attendance at committee meetings as the board of directors may determine.

Section 13. Presumption of Assent. A director of the Company who is present at a meeting of the board of directors at which action on any Company matter is taken shall be
presumed to have assented to the action taken unless his or her dissent or abstention shall be entered in the minutes of the meeting or unless he or she shall file a written dissent to such
action with the individual acting as the secretary of the meeting before the adjournment thereof or shall forward such dissent by registered mail to the secretary of the Company within five
days after the date a copy of the minutes of the meeting is received. Such right to dissent shall not apply to a director who voted in favor of such action.

5
 Section 14. Removal of Directors. At a meeting of shareholders called expressly for that purpose, any director may be removed only for cause by a vote of the holders of a majority
of the shares then entitled to vote at an election of directors. Whenever the holders of the shares of any class are entitled to elect one or more directors by the provisions of the charter or
supplemental sections thereto, the provisions of this section shall apply, in respect to the removal of a director or directors so elected, to the vote of the holders of the outstanding shares of
that class and not to the vote of the outstanding shares as a whole.

For purposes of this section, removal for cause includes, as defined in 12 C.F.R. Section 163.39, or any successor regulation, “personal dishonesty, incompetence, willful
misconduct, breach of fiduciary duty involving personal profit, intentional failure to perform stated duties, [or a] willful violation of any law, rule or regulation (other than traffic violations
or similar offenses) or final cease-and-desist order.”

Section 15. Age Limitations No person over the age of seventy-five (75) shall be eligible for election, reelection, appointment, or reappointment to the board of the Company. No
director shall serve as such beyond the annual meeting of the Company immediately following the director becoming 75 years of age. Notwithstanding the preceding two sentences, the age
limitation shall be eighty (80) for any director serving on the board of Newton Federal Bank at the time of the adoption of Newton Federal Bank’s Plan of Mutual Holding Company
Reorganization and Stock Issuance Plan.

Article IV—Executive and Other Committees

Section 1. Appointment. The board of directors, by resolution adopted by a majority of the full board, may designate the chairman of the board and two or more of the other
directors to constitute an executive committee. The designation of any committee pursuant to this Article IV and the delegation of authority shall not operate to relieve the board of
directors, or any director, of any responsibility imposed by law or regulation.

Section 2. Authority. The executive committee, when the board of directors is not in session, shall have and may exercise all of the authority of the board of directors except to the
extent, if any, that such authority shall be limited by the resolution appointing the executive committee; and except also that the executive committee shall not have the authority of the
board of directors with reference to: the declaration of dividends; the amendment of the charter or bylaws of the Company, or recommending to the shareholders a plan of merger,
consolidation, or conversion; the sale, lease, or other disposition of all or substantially all of the property and assets of the Company otherwise than in the usual and regular course of its
business; a voluntary dissolution of the Company; a revocation of any of the foregoing; or the approval of a transaction in which any member of the executive committee, directly or
indirectly, has any material beneficial interest.

Section 3. Tenure. Subject to the provisions of Section 8 of this Article IV, each member of the executive committee shall hold office until the next regular annual meeting of the
board of directors following his or her designation and until a successor is designated as a member of the executive committee.

Section 4. Meetings. Regular meetings of the executive committee may be held without notice at such times and places as the executive committee may fix from time to time by
resolution. Special meetings of the executive committee may be called by any member thereof upon not less than one day’s notice stating the place, date, and hour of the meeting, which
notice may be written or oral. Any member

6
of the executive committee may waive notice of any meeting and no notice of any meeting need be given to any member thereof who attends in person. The notice of a meeting of the
executive committee need not state the business proposed to be transacted at the meeting.

Section 5. Quorum. A majority of the members of the executive committee shall constitute a quorum for the transaction of business at any meeting thereof, and action of the
executive committee must be authorized by the affirmative vote of a majority of the members present at a meeting at which a quorum is present.

Section 6. Action Without a Meeting. Any action required or permitted to be taken by the executive committee at a meeting may be taken without a meeting if a consent in writing,
setting forth the action so taken, shall be signed by all of the members of the executive committee.

Section 7. Vacancies. Any vacancy in the executive committee may be filled by a resolution adopted by a majority of the full board of directors.

Section 8. Resignations and Removal. Any member of the executive committee may be removed at any time with or without cause by resolution adopted by a majority of the full
board of directors. Any member of the executive committee may resign from the executive committee at any time by giving written notice to the president or secretary of the Company.
Unless otherwise specified, such resignation shall take effect upon its receipt; the acceptance of such resignation shall not be necessary to make it effective. No notice of any meeting need
be given to any member thereof who attends in person. The notice of a meeting of the executive committee need not state the business proposed to be transacted at the meeting.

Section 9. Procedure. The executive committee shall elect a presiding officer from its members and may fix its own rules of procedure, which shall not be inconsistent with these
bylaws. It shall keep regular minutes of its proceedings and report the same to the board of directors for its information at the meeting held next after the proceedings shall have occurred.

Section 10. Other Committees. The board of directors may by resolution establish an audit, loan, or other committee composed of directors as they may determine to be necessary
or appropriate for the conduct of the business of the Company and may prescribe the duties, constitution, and procedures thereof.

Article V—Officers

Section 1. Positions. The officers of the Company shall be a president, one or more vice presidents, a secretary, and a treasurer or comptroller, each of whom shall be elected by the
board of directors. The board of directors may also designate the chairman of the board as an officer. The offices of the secretary and treasurer or comptroller may be held by the same
individual and a vice president may also be either the secretary or the treasurer or comptroller. The board of directors may designate one or more vice presidents as executive vice president
or senior vice president. The board of directors may also elect or authorize the appointment of such other officers as the business of the Company may require. The officers shall have such
authority and perform such duties as the board of directors may from time to time authorize or determine. In the absence of action by the board of directors, the officers shall have such
powers and duties as generally pertain to their respective offices.

Section 2. Election and Term of Office. The officers of the Company shall be elected annually at the first meeting of the board of directors held after each annual meeting of the
shareholders. If the election of officers is not held at such meeting, such election shall be held as soon thereafter as possible.

7
Each officer shall hold office until a successor has been duly elected and qualified or until the officer’s death, resignation, or removal in the manner hereinafter provided. Election or
appointment of an officer, employee, or agent shall not of itself create contractual rights. The board of directors may authorize the Company to enter into an employment contract with any
officer in accordance with regulations of the FRB; but no such contract shall impair the right of the board of directors to remove any officer at any time in accordance with Section 3 of this
Article V.

Section 3. Removal. Any officer may be removed by the board of directors whenever in its judgment the best interests of the Company will be served thereby, but such removal,
other than for cause, shall be without prejudice to the contractual rights, if any, of the officer so removed.

Section 4. Vacancies. A vacancy in any office because of death, resignation, removal, disqualification, or otherwise may be filled by the board of directors for the unexpired portion
of the term.

Section 5. Remuneration. The remuneration of the officers shall be fixed from time to time by the board of directors.

Article VI—Contracts, Loans, Checks, and Deposits

Section 1. Contracts. To the extent permitted by regulations of the FRB, and except as otherwise prescribed by these bylaws with respect to certificates for shares, the board of
directors may authorize any officer, employee, or agent of the Company to enter into any contract or execute and deliver any instrument in the name of and on behalf of the Company. Such
authority may be general or confined to specific instances.

Section 2. Loans. No loans shall be contracted on behalf of the Company and no evidence of indebtedness shall be issued in its name unless authorized by the board of directors.
Such authority may be general or confined to specific instances.

Section 3. Checks; Drafts, etc. All checks, drafts, or other orders for the payment of money, notes, or other evidences of indebtedness issued in the name of the Company shall be
signed by one or more officers, employees or agents of the Company in such manner as shall from time to time be determined by the board of directors.

Section 4. Deposits. All funds of the Company not otherwise employed shall be deposited from time to time to the credit of the Company in any duly authorized depositories as the
board of directors may select.

Article VII—Certificates for Shares and Their Transfer

Section 1. Certificates for Shares. Certificates representing shares of capital stock of the Company shall be in such form as shall be determined by the board of directors and
approved by the FRB. The Company is also authorized to issue uncertificated shares of capital stock. Such certificates shall be signed by the chief executive officer or by any other officer
of the Company authorized by the board of directors, attested by the secretary or an assistant secretary, and sealed with the corporate seal or a facsimile thereof. The signatures of such
officers upon a certificate may be facsimiles if the certificate is manually signed on behalf of a transfer agent or a registrar other than the Company itself or one of its employees. Each
certificate for shares of capital stock shall be consecutively numbered or otherwise identified. Upon the issuance of uncertificated shares of capital stock, the Company shall send the
shareholder a written statement of the same information required above with respect to stock certificates. The name and address of the person to whom the shares are issued, with the
number of shares and date of

8
issue, shall be entered on the stock transfer books of the Company. All certificates surrendered to the Company for transfer shall be canceled and no new certificate shall be issued until the
former certificate for a like number of shares has been surrendered and canceled, except that in the case of a lost or destroyed certificate, a new certificate may be issued upon such terms
and indemnity to the Company as the board of directors may prescribe.

Section 2. Transfer of Shares. Transfer of shares of capital stock of the Company shall be made only on its stock transfer books. Authority for such transfer shall be given only by
the holder of record or by his or her legal representative, who shall furnish proper evidence of such authority, or by his or her attorney authorized by a duly executed power of attorney and
filed with the Company. Such transfer shall be made only on surrender for cancellation of the certificate for such shares. The person in whose name shares of capital stock stand on the
books of the Company shall be deemed by the Company to be the owner for all purposes.

Article VIII—Fiscal Year

The fiscal year of the Company shall end on the last day of September each year. The appointment of accountants shall be subject to annual ratification by the shareholders.

Article IX—Dividends

Subject to the terms of the Company’s charter and the regulations and orders of the FRB, the board of directors may, from time to time, declare, and the Company may pay,
dividends on its outstanding shares of capital stock.

Article X—Corporate Seal

The board of directors shall provide a Company seal, which shall be two concentric circles between which shall be the name of the Company. The year of incorporation or an
emblem may appear in the center.

Article XI—Amendments

These bylaws may be amended in a manner consistent with regulations of the FRB and shall be effective after: (i) approval of the amendment by a majority vote of the authorized
board of directors, or by a majority vote of the votes cast by the shareholders of the Company at any legal meeting, and (ii) receipt of any applicable regulatory approval. When a Company
fails to meet its quorum requirements solely due to vacancies on the board, then the affirmative vote of a majority of the sitting board will be required to amend the bylaws.

ARTICLE XII – Indemnification

The Company shall indemnify its personnel, including directors, officers and employees, to the fullest extent authorized by applicable law and regulations, as the same exists or may
hereafter be amended; provided, any indemnification by the Company of the Company’s personnel is subject to any applicable rules or regulations of the FRB.

ARTICLE XIII – Reliance upon Books, Reports and Records

Each director, each member of any committee designated by the board of directors, and each officer of the Company shall, in the performance of his or her duties, be fully protected
in relying in good faith upon the books of account or other records of the Company and upon such information, opinions,

9
reports or statements presented to the Company by any of its officers or employees, or committees of the board of directors so designated, or by any other person as to matters which such
director or committee member reasonably believes are within such other person’s professional or expert competence and who has been selected with reasonable care by or on behalf of the
Company.

10
 EXHIBIT C
Charter and Bylaws of the MHC
 COMMUNITY FIRST BANCSHARES, MHC

FEDERAL MUTUAL HOLDING COMPANY CHARTER

Section 1: Corporate title. The name of the mutual holding company is Community First Bancshares, MHC (the “Mutual Holding Company”).

Section 2: Home Office . The home office of the Mutual Holding Company shall be located in Newton County, Georgia.

Section 3: Duration. The duration of the Mutual Holding Company is perpetual.

Section 4: Purpose and powers. The purpose of the Mutual Holding Company is to pursue any or all of the lawful objectives of a federal mutual savings and loan holding company
chartered under section 10(o) of the Home Owners’ Loan Act, 12 U.S.C. 1467a(o), and to exercise all of the express, implied, and incidental powers conferred thereby and all acts
amendatory thereof and supplemental thereto, subject to the Constitution and the laws of the United States as they are now in effect, or as they may hereafter be amended, and subject to all
lawful and applicable rules, regulations, and orders of the Federal Reserve Board (the “FRB”).

Section 5: Capital. The Mutual Holding Company shall have no capital stock.

Section 6: Members. All holders of the savings, demand, or other authorized accounts of Newton Federal Bank (the “Savings Bank”) are members of the Mutual Holding Company.
With respect to all questions requiring action by the members of the Mutual Holding Company, each holder of an account in the Savings Bank shall be permitted to cast one vote for each
$100, or fraction thereof, of the withdrawal value of the member’s account. In addition, borrowers from the Savings Bank as of January 19, 1984 shall be entitled to one vote for the period
of time during which such borrowings are in existence. No member, however, shall cast more than one thousand votes. All accounts shall be nonassessable.

Section 7. Directors. The Mutual Holding Company shall be under the direction of a board of directors. The authorized number of directors shall not be fewer than five nor more
than fifteen, as fixed in the Mutual Holding Company’s bylaws, except that the number of directors may be decreased to a number less than five or increased to a number greater than
fifteen with the prior approval of the FRB.

Section 8: Capital, surplus, and distribution of earnings. The Mutual Holding Company shall distribute net earnings to account holders of the Savings Bank on such basis and in
accordance with such terms and conditions as may from time to time be authorized by the FRB, provided that the Mutual Holding Company may establish minimum account balance
requirements for account holders to be eligible for distributions of earnings.

All holders of accounts of the Savings Bank shall be entitled to equal distribution of the assets of the Mutual Holding Company, pro rata to the value of their accounts in the Savings
Bank, in the event of voluntary or involuntary liquidation, dissolution, or winding up of the Mutual Holding Company.

Section 9. Amendment. Adoption of any pre-approved charter amendment shall be effective after such pre-approved amendment has been approved by the members at a legal
meeting. Any other amendment, addition, change, or repeal of this charter must be approved by the FRB prior to approval by the members at a legal meeting and shall be effective upon
filing with the FRB in accordance with regulatory procedures.

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COMMUNITY FIRST BANCSHARES, MHC

ATTEST:
Gregory J. Proffitt
Corporate Secretary

BY:
Johnny S. Smith
President and Chief Executive Officer

BOARD OF GOVERNORS OF THE

FEDERAL RESERVE SYSTEM

BY:
Secretary of Board of Governors of the Federal
Reserve System

Effective Date:

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 COMMUNITY FIRST BANCSHARES, MHC

BYLAWS

1. Annual meeting of members. The annual meeting of the members of Community First Bancshares, MHC (the “Mutual Holding Company”) for the election of directors and for
the transaction of any other business of the Mutual Holding Company shall be held, as designated by the board of directors, at a location within the state that constitutes the principal place
of business of the Mutual Holding Company, or at any other convenient place the board of directors may designate, on the fourth Thursday in January of each year, if not a legal holiday, or
if a legal holiday then on the next succeeding day not a legal holiday. At each annual meeting, the officers shall make a full report of the financial condition of the Mutual Holding Company
and of its progress for the preceding year and shall outline a program for the succeeding year

2. Special meetings of members. Special meetings of the members of the Mutual Holding Company may be called at any time by the president or the board of directors and shall be
called by the president, a vice president, or the secretary upon the written request of members of record, holding in the aggregate at least one-tenth of the voting capital of the Mutual
Holding Company. Such written request shall state the purpose of the meeting and shall be delivered at the principal place of business of the Mutual Holding Company addressed to the
president. For purposes of this section, “voting capital” means FDIC-insured deposits as of the voting record date. Annual and special meetings shall be conducted in accordance with
written procedures agreed to by the board of directors.

3. Notice of meeting of members. Notice of each meeting shall be either published once a week for the two successive calendar weeks (in each instance on any day of the week)
immediately prior to the week in which such meeting shall convene, in a newspaper printed in the English language and of general circulation in the city or county in which the principal
place of business of the Mutual Holding Company is located, or mailed postage prepaid at least 15 days and not more than 45 days prior to the date on which such meeting shall convene, to
each of its members of record at the last address appearing on the books of the Mutual Holding Company. Such notice shall state the name of the Mutual Holding Company, the place of the
meeting, the date and time when it shall convene, and the matters to be considered. A similar notice shall be posted in a conspicuous place in each of the offices of the Mutual Holding
Company during the 14 days immediately preceding the date on which such meeting shall convene. If any member, in person or by authorized attorney, shall waive in writing notice of any
meeting of members, notice thereof need not be given to such member. When any meeting is adjourned for 30 days or more, notice of the adjournment and reconvening of the meeting shall
be given as in the case of the original meeting.

4. Fixing of record date. For the purpose of determining members entitled to notice of or to vote at any meeting of members or any adjournment thereof, or in order to make a
determination of members for any other proper purpose, the board of directors shall fix in advance a record date for any such determination of members. Such date shall be not more than 60
days nor fewer than 10 days prior to the date on which the action, requiring such determination of members, is to be taken. The member entitled to participate in any such action shall be the
member of record on the books of the Mutual Holding Company on such record date. The number of votes which each member shall be entitled to cast at any meeting of the members shall
be determined from the books of the Mutual Holding Company as of such record date. Any member of such record date who ceases to be a member prior to such meeting shall not be
entitled to vote at that meeting. The same determination shall apply to any adjourned meeting.

5. Member quorum. Any number of members present and voting, represented in person or by proxy, at a regular or special meeting of the members shall constitute a quorum. A
majority of all votes

1
cast at any meeting of the members shall determine any question, unless otherwise required by regulation. Directors, however, are elected by a plurality of the votes cast at an election of
directors. At any adjourned meeting any business may be transacted which might have been transacted at the meeting as originally called. Members present at a duly constituted meeting
may continue to transact business until adjournment.

6. Voting by proxy. Voting at any annual or special meeting of the members may be by proxy pursuant to the rules and regulations of the Board of Governors of the Federal Reserve
System (the “FRB”), provided, that no proxies shall be voted at any meeting unless such proxies shall have been placed on file with the secretary of the Mutual Holding Company, for
verification, prior to the convening of such meeting. Proxies may be given telephonically or electronically as long as the holder uses a procedure for verifying the identity of the member.
All proxies with a term greater than eleven months or solicited at the expense of the Mutual Holding Company must run to the board of directors as a whole, or to a committee appointed by
a majority of such board. Accounts held by an administrator, executor, guardian, conservator or receiver may be voted in person or by proxy by such person. Accounts held by a trustee may
be voted by such trustee either in person or by proxy, in accordance with the terms of the trust agreement, but no trustee shall be entitled to vote accounts without a transfer of such accounts
into the trustee name. Accounts held in trust in an IRA or Keogh Account, however, may be voted by the Mutual Holding Company if no other instructions are received. Joint accounts shall
be entitled to no more than 1,000 votes, and any owner may cast all the votes unless the Mutual Holding Company has otherwise been notified in writing.

7. Communication between members. Communication between members shall be subject to any applicable rules or regulations of the FRB. No member, however, shall have the
right to inspect or copy any portion of any books or records of the Mutual Holding Company containing: (i) a list of depositors in or borrowers from such Mutual Holding Company;
(ii) their addresses; (iii) individual deposit or loan balances or records; or (iv) any data from which such information could reasonably be constructed.

8. Number of directors, membership. The number of directors of the Mutual Holding Company shall be five (5). Each director shall be a member of the Mutual Holding Company.
The board of directors shall be divided into three classes as nearly equal in number as possible. The members of each class shall be elected for terms of three (3) years and until their
successors are elected and qualified. One class shall be elected annually.

9. Meetings of the board. The board of directors shall meet regularly without notice at the principal place of business of the Mutual Holding Company at least once per fiscal
quarter at an hour and date fixed by resolution of the board, provided that the place of meeting may be changed by the directors. Special meetings of the board may be held at any place
specified in a notice of such meeting and shall be called by the secretary upon the written request of the chairman or of three directors. All special meetings shall be held upon at least 24
hours written notice to each director unless notice is waived in writing before or after such meeting. Such notice shall state the place, date, time, and purposes of such meeting. A majority of
the authorized directors shall constitute a quorum for the transaction of business. The act of a majority of the directors present at any meeting at which there is a quorum shall be the act of
the board. Action may be taken without a meeting if unanimous written consent is obtained for such action. The board may also permit telephonic participation at meetings. The meetings
shall be under the direction of a chairman, appointed annually by the board, or in the absence of the chairman, the meetings shall be under the direction of the vice chairman, if any, or the
president.

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 10. Officers, employees, and agents. Annually at the meeting of the board of directors of the Mutual Holding Company following the annual meeting of the members of the Mutual
Holding Company, the board shall elect a president, one or more vice presidents, a secretary, and a treasurer or comptroller; provided, that the offices of president and secretary may not be
held by the same person and a vice president may also be the treasurer or comptroller. The board may appoint such additional officers, employees, and agents as it may from time to time
determine. The term of office of all officers shall be one year or until their respective successors are elected and qualified. Any officer may be removed at any time by the board with or
without cause, but such removal, other than for cause, shall be without prejudice to the contractual rights, if any, of the person so removed. In the absence of designation from time to time
of powers and duties by the board, the officers shall have such powers and duties as generally pertain to their respective offices. Any indemnification by the Mutual Holding Company of
the Mutual Holding Company’s personnel is subject to any applicable rules or regulations of the FRB.

11. Vacancies, resignation or removal of directors. Members of the Mutual Holding Company shall elect directors by ballot; provided, that in the event of a vacancy on the board
between meetings of members, the board of directors may, by their affirmative vote, fill such vacancy, even if the remaining directors constitute less than a quorum. A director elected to fill
a vacancy shall be elected to serve only until the next election of directors by the members. Any director may resign at any time by sending a written notice of such resignation to the
Mutual Holding Company delivered to the secretary. Unless otherwise specified therein such resignation shall take effect upon receipt by the secretary. More than three consecutive
absences from regular meetings of the board, unless excused by resolution of the board, shall automatically constitute a resignation, effective when such resignation is accepted by the
board. At a meeting of members called expressly for that purpose, directors or the entire board may be removed, only with cause, by a vote of the holders of a majority of the shares then
entitled to vote at an election of directors.

12. Powers of the board. The board of directors shall have the power:
(a) By resolution, to appoint from among its members and remove an executive committee, which committee shall have and may exercise the powers of the board between the
meetings of the board, but no such committee shall have the authority of the board to amend the charter or bylaws, adopt a plan of merger, consolidation, dissolution, or
provide for the disposition of all or substantially all the property and assets of the Mutual Holding Company. Such committee shall not operate to relieve the board, or any
member thereof, of any responsibility imposed by law;
(b) To appoint and remove by resolution the members of such other committees as may be deemed necessary and prescribe the duties thereof;
(c) To fix the compensation of directors, officers, and employees; and to remove any officer or employee at any time with or without cause;
(d) To limit payments on capital which may be accepted; and
(e) To exercise any and all of the powers of the Mutual Holding Company not expressly reserved by the charter to the members.

13. Execution of instruments, generally. All documents and instruments or writings of any nature shall be signed, executed, verified, acknowledged, and delivered by such
officers, agents, or employees of the Mutual Holding Company or any one of them and in such manner as from time to time

3
may be determined by resolution of the board. All notes, drafts, acceptances, checks, endorsements, and all evidences of indebtedness of the Mutual Holding Company whatsoever shall be
signed by such officer or officers or such agent or agents of the Mutual Holding Company and in such manner as the board may from time to time determine. Endorsements for deposit to
the credit of the Mutual Holding Company in any of its duly authorized depositories shall be made in such manner as the board may from time to time determine. Proxies to vote with
respect to shares or accounts of other mutual holding companies or stock of other corporations owned by, or standing in the name of, the Mutual Holding Company may be executed and
delivered from time to time on behalf of the Mutual Holding Company by the president or a vice president and the secretary or an assistant secretary of the Mutual Holding Company or by
any other persons so authorized by the board.

14. Nominating committee. The chairman, at least 30 days prior to the date of each annual meeting, shall appoint a nominating committee of three individuals who are members of
the Mutual Holding Company. Such committee shall make nominations for directors in writing and deliver to the secretary such written nominations at least 15 days prior to the date of the
annual meeting, which nominations shall then be posted in a prominent place in the principal place of business for the 15-day period prior to the date of the annual meeting, except in the
case of a nominee substituted as a result of death or other incapacity. Provided such committee is appointed and makes such nominations, no nominations for directors except those made by
the nominating committee shall be voted upon at the annual meeting unless other nominations by members are made in writing and delivered to the secretary of the Mutual Holding
Company at least 10 days prior to the date of the annual meeting, which nominations shall then be posted in a prominent place in the principal place of business for the 10-day period prior
to the date of the annual meeting, except in the case of a nominee substituted as a result of death or other incapacity. Ballots bearing the names of all individuals nominated by the
nominating committee and by other members prior to the annual meeting shall be provided for use by the members at the annual meeting. If at any time the chairman shall fail to appoint
such nominating committee, or the nominating committee shall fail or refuse to act at least 15 days prior to the annual meeting, nominations for directors may be made at the annual meeting
by any member and shall be voted upon.

15. New business. Any new business to be taken up at the annual meeting, including any proposal to increase or decrease the number of directors of the Mutual Holding Company,
shall be stated in writing and filed with the secretary of the Mutual Holding Company at least 30 days before the date of the annual meeting, and all business so stated, proposed, and filed
shall be considered at the annual meeting; but no other proposal shall be acted upon at the annual meeting. Any member may make any other proposal at the annual meeting and the same
may be discussed and considered; but unless stated in writing and filed with the secretary 30 days before the meeting, such proposal shall be laid over for action at an adjourned, special, or
regular meeting of the members taking place at least 30 days thereafter. This provision shall not prevent the consideration and approval or disapproval at the annual meeting of the reports of
officers and committees, but in connection with such reports no new business shall be acted upon at such annual meeting unless stated and filed as herein provided.

16. Seal. The seal shall be two concentric circles between which shall be the name of the Mutual Holding Company. The year of incorporation, the word “Incorporated” or an
emblem may appear in the center.

17. Amendment. Adoption of any bylaw amendment pursuant to § 239.15 of the FRB’s regulations, as long as consistent with applicable law, rules and regulations, and which
adequately addresses the subject and purpose of the stated bylaw section, shall be effective after (i) approval of the amendment by a majority vote of the authorized board, or by a vote of
the members of the Mutual

4
Holding Company at a legal meeting; and (ii) receipt of any applicable regulatory approval. When the Mutual Holding Company fails to meet its quorum requirement solely due to
vacancies on the board, the bylaws may be amended by an affirmative vote of a majority of the sitting board.

18. Age limitations. No person over the age of seventy-five (75) shall be eligible for election, reelection, appointment, or reappointment to the board of the Mutual Holding
Company. No director shall serve as such beyond the annual meeting of the Mutual Holding Company immediately following the director becoming 75 years of age. Notwithstanding the
preceding two sentences, the age limitation shall be eighty (80) for any director serving on the board of Newton Federal Bank at the time of the adoption of Newton Federal Bank’s Plan of
Mutual Holding Company Reorganization and Stock Issuance Plan.

5
 Exhibit 3.2

COMMUNITY FIRST BANCSHARES, INC.

BYLAWS

Article I—Home Office

The home office of Community First Bancshares, Inc. (the “Company”) shall be at 3175 Highway 278, Covington, Newton County, Georgia 30014.

Article II—Shareholders

Section 1. Place of Meetings. All annual and special meetings of shareholders shall be held at the home office of the Company or at such other convenient place as the board of
directors may determine.

Section 2. Annual Meeting. A meeting of the shareholders of the Company for the election of directors and for the transaction of any other business of the Company shall be held
annually within 150 days after the end of the Company’s fiscal year on the fourth Thursday of February of each calendar year if not a legal holiday, and if a legal holiday, then on the next
day following which is not a legal holiday, or at such other date and time within such 150-day period as the board of directors may determine.

Section 3. Special Meetings. Special meetings of the shareholders for any purpose or purposes, unless otherwise prescribed by the regulations of the Board of Governors of the
Federal Reserve System (the “FRB”), may be called at any time by the chairman of the board, the president, or a majority of the board of directors, and shall be called by the chairman of
the board, the president, or the secretary upon the written request of the holders of not less than one-tenth of all of the outstanding capital stock of the Company entitled to vote at the
meeting. Such written request shall state the purpose or purposes of the meeting and shall be delivered to the home office of the Company addressed to the chairman of the board, the
president, or the secretary.

Section 4. Conduct of Meetings. Annual and special meetings shall be conducted in accordance with written procedures established by the board of directors, unless otherwise
prescribed by regulations of the FRB or these bylaws. The board of directors shall designate, when present, either the chairman of the board or president to preside at such meetings.

Section 5. Notice of Meetings. Written notice stating the place, day, and hour of the meeting and the purpose(s) for which the meeting is called shall be delivered not fewer than 20
nor more than 50 days before the date of the meeting, either personally or by mail, by or at the direction of the chairman of the board, the president, or the secretary, or the directors calling
the meeting, to each shareholder of record entitled to vote at such meeting. If mailed, such notice shall be deemed to be delivered when deposited in the mail, addressed to the shareholder at
the address as it appears on the stock transfer books or records of the Company as of the record date prescribed in section 6 of this Article II with postage prepaid. When any shareholders’
meeting, either annual or special, is adjourned for 30 days or more, notice of the adjourned meeting shall be given as in the case of an original meeting. It shall not be necessary to give any
notice of the time and place of any meeting adjourned for less than 30 days or of the business to be transacted at the meeting, other than an announcement at the meeting at which such
adjournment is taken.

Section 6. Fixing of Record Date. For the purpose of determining shareholders entitled to notice of or to vote at any meeting of shareholders or any adjournment, or shareholders
entitled to receive payment of any dividend, or in order to make a determination of shareholders for any other proper purpose, the board of directors shall fix in advance a date as the record
date for any such determination of shareholders. Such date in any case shall be not more than 60 days and, in case of a meeting of

1
shareholders, not fewer than 10 days prior to the date on which the particular action, requiring such determination of shareholders, is to be taken. When a determination of shareholders
entitled to vote at any meeting of shareholders has been made as provided in this section, such determination shall apply to any adjournment.

Section 7. Voting Lists. At least 20 days before each meeting of the shareholders, the officer or agent having charge of the stock transfer books for shares of the Company shall
make a complete list of the shareholders of record entitled to vote at such meeting, or any adjournment thereof, arranged in alphabetical order, with the address and the number of shares
held by each. This list of shareholders shall be kept on file at the home office of the Company and shall be subject to inspection by any shareholder of record or the shareholder’s agent at
any time during usual business hours for a period of 20 days prior to such meeting. Such list shall also be produced and kept open at the time and place of the meeting and shall be subject to
inspection by any shareholder of record or any shareholder’s agent during the entire time of the meeting. The original stock transfer book shall constitute prima facie evidence of the
shareholders entitled to examine such list or transfer books or to vote at any meeting of shareholders. In lieu of making the shareholder list available for inspection by shareholders as
provided in the preceding paragraph, the board of directors may elect to follow the procedures prescribed in § 239.26(d) of the FRB’s regulations as now or hereafter in effect.

Section 8. Quorum. A majority of the outstanding shares of the Company entitled to vote, represented in person or by proxy, shall constitute a quorum at a meeting of shareholders.
If less than a majority of the outstanding shares is represented at a meeting, a majority of the shares so represented may adjourn the meeting from time to time without further notice. At
such adjourned meeting at which a quorum shall be present or represented, any business may be transacted which might have been transacted at the meeting as originally notified. If a
quorum is present at a meeting of shareholders and the withdrawal of shareholders results in the presence of less than a quorum, the shareholders present may continue to transact business
until adjournment. If a quorum is present, the affirmative vote of the majority of the shares represented at the meeting and entitled to vote on the subject matter shall be the act of the
shareholders, unless the vote of a greater number of shareholders voting together or voting by classes is required by law or the charter. Directors, however, are elected by a plurality of the
votes cast at an election of directors.

Section 9. Proxies. At all meetings of shareholders, a shareholder may vote by proxy executed in writing by the shareholder or by his or her duly authorized attorney in fact. Proxies
may be given telephonically or electronically as long as the holder uses a procedure for verifying the identity of the shareholder. Proxies solicited on behalf of the management shall be
voted as directed by the shareholder or, in the absence of such direction, as determined by a majority of the board of directors. No proxy shall be valid more than eleven months from the
date of its execution except for a proxy coupled with an interest.

Section 10. Voting of Shares in the Name of Two or More Persons. When ownership stands in the name of two or more persons, in the absence of written directions to the
Company to the contrary, at any meeting of the shareholders of the Company any one or more of such shareholders may cast, in person or by proxy, all votes to which such ownership is
entitled. In the event an attempt is made to cast conflicting votes, in person or by proxy, by the several persons in whose names shares of stock stand, the vote or votes to which those
persons are entitled shall be cast as directed by a majority of those holding such and present in person or by proxy at such meeting, but no votes shall be cast for such stock if a majority
cannot agree.

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 Section 11. Voting of Shares by Certain Holders. Shares standing in the name of another corporation may be voted by any officer, agent, or proxy as the bylaws of such
corporation may prescribe, or, in the absence of such provision, as the board of directors of such corporation may determine. Shares held by an administrator, executor, guardian, or
conservator may be voted by him or her, either in person or by proxy, without a transfer of such shares into his or her name. Shares standing in the name of a trustee may be voted by him or
her, either in person or by proxy, but no trustee shall be entitled to vote shares held by him or her without a transfer of such shares into his or her name. Shares held in trust in an IRA or
Keogh Account, however, may be voted by the Company if no other instructions are received. Shares standing in the name of a receiver may be voted by such receiver, and shares held by
or under the control of a receiver may be voted by such receiver without the transfer into his or her name if authority to do so is contained in an appropriate order of the court or other public
authority by which such receiver was appointed. A shareholder whose shares are pledged shall be entitled to vote such shares until the shares have been transferred into the name of the
pledgee, and thereafter the pledgee shall be entitled to vote the shares so transferred. Neither treasury shares of its own stock held by the Company nor shares held by another corporation, if
a majority of the shares entitled to vote for the election of directors of such other corporation are held by the Company, shall be voted at any meeting or counted in determining the total
number of outstanding shares at any given time for purposes of any meeting.

Section 12. Cumulative Voting. Shareholders may not cumulate their votes for election of directors.

Section 13. Inspectors of Election. In advance of any meeting of shareholders, the board of directors may appoint any individual other than nominees for office as inspectors of
election to act at such meeting or any adjournment. The number of inspectors shall be either one or three. Any such appointment shall not be altered at the meeting. If inspectors of election
are not so appointed, the chairman of the board or the president may, or on the request of not fewer than 10 percent of the votes represented at the meeting shall, make such appointment at
the meeting. If appointed at the meeting, the majority of the votes present shall determine whether one or three inspectors are to be appointed. In case any individual appointed as inspector
fails to appear or fails or refuses to act, the vacancy may be filled by appointment by the board of directors in advance of the meeting or at the meeting by the chairman of the board or the
president. Unless otherwise prescribed by regulations of the FRB, the duties of such inspectors shall include: determining the number of shares and the voting power of each share, the
shares represented at the meeting, the existence of a quorum, and the authenticity, validity and effect of proxies; receiving votes, ballots, or consents; hearing and determining all challenges
and questions in any way arising in connection with the rights to vote; counting and tabulating all votes or consents; determining the result; and such acts as may be proper to conduct the
election or vote with fairness to all shareholders.

Section 14. Nominating Committee. The board of directors shall act as a nominating committee for selecting the management nominees for election as directors. Except in the case
of a nominee substituted as a result of the death or other incapacity of a management nominee, the nominating committee shall deliver written nominations to the secretary at least 20 days
prior to the date of the annual meeting. Upon delivery, such nominations shall be posted in a conspicuous place in each office of the Company. No nominations for directors except those
made by the nominating committee shall be voted upon at the annual meeting unless other nominations by shareholders are made in writing and delivered to the secretary of the Company at
least five days prior to the date of the annual meeting. Upon delivery, such nominations shall be posted in a conspicuous place in each office of the Company. Ballots bearing the names of
all persons nominated by the nominating committee and by shareholders shall be provided for use at the annual meeting. However, if the nominating committee shall fail or refuse to act at
least 20 days prior to the annual meeting, nominations for directors may be made at the annual meeting by any shareholder entitled to vote and shall be voted upon.

3
 Section 15. New Business. Any new business to be taken up at the annual meeting shall be stated in writing and filed with the secretary of the Company at least five days before the
date of the annual meeting, and all business so stated, proposed, and filed shall be considered at the annual meeting; but no other proposal shall be acted upon at the annual meeting. Any
shareholder may make any other proposal at the annual meeting and the same may be discussed and considered, but unless stated in writing and filed with the secretary at least five days
before the meeting, such proposal shall be laid over for action at an adjourned, special, or annual meeting of the shareholders taking place 30 days or more thereafter. This provision shall
not prevent the consideration and approval or disapproval at the annual meeting of reports of officers, directors, and committees; but in connection with such reports, no new business shall
be acted upon at such annual meeting unless stated and filed as herein provided.

Section 16. Informal Action by Shareholders. Any action required to be taken at a meeting of the shareholders, or any other action which may be taken at a meeting of
shareholders, may be taken without a meeting if consent in writing, setting forth the action so taken, shall be given by all of the shareholders entitled to vote with respect to the subject
matter.

Article III—Board of Directors

Section 1. General Powers. The business and affairs of the Company shall be under the direction of its board of directors. The board of directors shall annually elect a chairman of
the board from among its members and shall designate, when present, the chairman of the board to preside at its meetings.

Section 2. Number and Term. The board of directors shall consist of five (5) members, and shall be divided into three classes as nearly equal in number as possible. The members
of each class shall be elected for a term of three years and until their successors are elected and qualified. One class shall be elected by ballot annually.

Section 3. Regular Meetings. A regular meeting of the board of directors shall be held without other notice than this bylaw following the annual meeting of shareholders. The board
of directors may provide, by resolution, the time and place, for the holding of additional regular meetings without other notice than such resolution. Directors may participate in a meeting
by means of a conference telephone or similar communications device through which all individuals participating can hear each other at the same time. Participation by such means shall
constitute presence in person for all purposes.

Section 4. Director Qualification. Each director shall at all times be the beneficial owner of not less than 100 shares of capital stock of the Company unless the Company is a
wholly owned subsidiary of a holding company.

Section 5. Special Meetings. Special meetings of the board of directors may be called by or at the request of the chairman of the board, the president, or one-third of the directors.
The persons authorized to call special meetings of the board of directors may fix any place, within the Company’s normal lending territory, as the place for holding any special meeting of
the board of directors called by such persons. Members of the board of directors may participate in special meetings by means of conference telephone or similar communications
equipment by which all persons participating in the meeting can hear each other. Such participation shall constitute presence in person for all purposes.

Section 6. Notice. Written notice of any special meeting shall be given to each director at least 24 hours prior thereto when delivered personally or by telegram or at least five days
prior thereto when

4
delivered by mail at the address at which the director is most likely to be reached. Such notice shall be deemed to be delivered when deposited in the mail so addressed, with postage prepaid
if mailed, when delivered to the telegraph company if sent by telegram, or when the Company receives notice of delivery if electronically transmitted. Any director may waive notice of any
meeting by a writing filed with the secretary. The attendance of a director at a meeting shall constitute a waiver of notice of such meeting, except where a director attends a meeting for the
express purpose of objecting to the transaction of any business because the meeting is not lawfully called or convened. Neither the business to be transacted at, nor the purpose of, any
meeting of the board of directors need be specified in the notice of waiver of notice of such meeting.

Section 7. Quorum. A majority of the number of directors fixed by Section 2 of this Article III shall constitute a quorum for the transaction of business at any meeting of the board
of directors; but if less than such majority is present at a meeting, a majority of the directors present may adjourn the meeting from time to time. Notice of any adjourned meeting shall be
given in the same manner as prescribed by Section 5 of this Article III.

Section 8. Manner of Acting. The act of the majority of the directors present at a meeting at which a quorum is present shall be the act of the board of directors, unless a greater
number is prescribed by regulation of the FRB or by these bylaws.

Section 9. Action Without a Meeting. Any action required or permitted to be taken by the board of directors at a meeting may be taken without a meeting if a consent in writing,
setting forth the action so taken, shall be signed by all of the directors.

Section 10. Resignation. Any director may resign at any time by sending a written notice of such resignation to the home office of the Company addressed to the chairman of the
board or the president. Unless otherwise specified, such resignation shall take effect upon receipt by the chairman of the board or the president. More than three consecutive absences from
regular meetings of the board of directors, unless excused by resolution of the board of directors, shall automatically constitute a resignation, effective when such resignation is accepted by
the board of directors.

Section 11. Vacancies. Any vacancy occurring on the board of directors may be filled by the affirmative vote of a majority of the remaining directors although less than a quorum of
the board of directors. A director elected to fill a vacancy shall be elected to serve only until the next election of directors by the shareholders. Any directorship to be filled by reason of an
increase in the number of directors may be filled by election by the board of directors for a term of office continuing only until the next election of directors by the shareholders.

Section 12. Compensation. Directors, as such, may receive a stated salary for their services. By resolution of the board of directors, a reasonable fixed sum, and reasonable
expenses of attendance, if any, may be allowed for attendance at each regular or special meeting of the board of directors. Members of either standing or special committees may be allowed
such compensation for attendance at committee meetings as the board of directors may determine.

Section 13. Presumption of Assent. A director of the Company who is present at a meeting of the board of directors at which action on any Company matter is taken shall be
presumed to have assented to the action taken unless his or her dissent or abstention shall be entered in the minutes of the meeting or unless he or she shall file a written dissent to such
action with the individual acting as the secretary of the meeting before the adjournment thereof or shall forward such dissent by registered mail to the secretary of the Company within five
days after the date a copy of the minutes of the meeting is received. Such right to dissent shall not apply to a director who voted in favor of such action.

5
 Section 14. Removal of Directors. At a meeting of shareholders called expressly for that purpose, any director may be removed only for cause by a vote of the holders of a majority
of the shares then entitled to vote at an election of directors. Whenever the holders of the shares of any class are entitled to elect one or more directors by the provisions of the charter or
supplemental sections thereto, the provisions of this section shall apply, in respect to the removal of a director or directors so elected, to the vote of the holders of the outstanding shares of
that class and not to the vote of the outstanding shares as a whole.

For purposes of this section, removal for cause includes, as defined in 12 C.F.R. Section 163.39, or any successor regulation, “personal dishonesty, incompetence, willful
misconduct, breach of fiduciary duty involving personal profit, intentional failure to perform stated duties, [or a] willful violation of any law, rule or regulation (other than traffic violations
or similar offenses) or final cease-and-desist order.”

Section 15. Age Limitations No person over the age of seventy-five (75) shall be eligible for election, reelection, appointment, or reappointment to the board of the Company. No
director shall serve as such beyond the annual meeting of the Company immediately following the director becoming 75 years of age. Notwithstanding the preceding two sentences, the age
limitation shall be eighty (80) for any director serving on the board of Newton Federal Bank at the time of the adoption of Newton Federal Bank’s Plan of Mutual Holding Company
Reorganization and Stock Issuance Plan.

Article IV—Executive and Other Committees

Section 1. Appointment. The board of directors, by resolution adopted by a majority of the full board, may designate the chairman of the board and two or more of the other
directors to constitute an executive committee. The designation of any committee pursuant to this Article IV and the delegation of authority shall not operate to relieve the board of
directors, or any director, of any responsibility imposed by law or regulation.

Section 2. Authority. The executive committee, when the board of directors is not in session, shall have and may exercise all of the authority of the board of directors except to the
extent, if any, that such authority shall be limited by the resolution appointing the executive committee; and except also that the executive committee shall not have the authority of the
board of directors with reference to: the declaration of dividends; the amendment of the charter or bylaws of the Company, or recommending to the shareholders a plan of merger,
consolidation, or conversion; the sale, lease, or other disposition of all or substantially all of the property and assets of the Company otherwise than in the usual and regular course of its
business; a voluntary dissolution of the Company; a revocation of any of the foregoing; or the approval of a transaction in which any member of the executive committee, directly or
indirectly, has any material beneficial interest.

Section 3. Tenure. Subject to the provisions of Section 8 of this Article IV, each member of the executive committee shall hold office until the next regular annual meeting of the
board of directors following his or her designation and until a successor is designated as a member of the executive committee.

Section 4. Meetings. Regular meetings of the executive committee may be held without notice at such times and places as the executive committee may fix from time to time by
resolution. Special meetings of the executive committee may be called by any member thereof upon not less than one day’s notice stating the place, date, and hour of the meeting, which
notice may be written or oral. Any member

6
of the executive committee may waive notice of any meeting and no notice of any meeting need be given to any member thereof who attends in person. The notice of a meeting of the
executive committee need not state the business proposed to be transacted at the meeting.

Section 5. Quorum. A majority of the members of the executive committee shall constitute a quorum for the transaction of business at any meeting thereof, and action of the
executive committee must be authorized by the affirmative vote of a majority of the members present at a meeting at which a quorum is present.

Section 6. Action Without a Meeting. Any action required or permitted to be taken by the executive committee at a meeting may be taken without a meeting if a consent in writing,
setting forth the action so taken, shall be signed by all of the members of the executive committee.

Section 7. Vacancies. Any vacancy in the executive committee may be filled by a resolution adopted by a majority of the full board of directors.

Section 8. Resignations and Removal. Any member of the executive committee may be removed at any time with or without cause by resolution adopted by a majority of the full
board of directors. Any member of the executive committee may resign from the executive committee at any time by giving written notice to the president or secretary of the Company.
Unless otherwise specified, such resignation shall take effect upon its receipt; the acceptance of such resignation shall not be necessary to make it effective. No notice of any meeting need
be given to any member thereof who attends in person. The notice of a meeting of the executive committee need not state the business proposed to be transacted at the meeting.

Section 9. Procedure. The executive committee shall elect a presiding officer from its members and may fix its own rules of procedure, which shall not be inconsistent with these
bylaws. It shall keep regular minutes of its proceedings and report the same to the board of directors for its information at the meeting held next after the proceedings shall have occurred.

Section 10. Other Committees. The board of directors may by resolution establish an audit, loan, or other committee composed of directors as they may determine to be necessary
or appropriate for the conduct of the business of the Company and may prescribe the duties, constitution, and procedures thereof.

Article V—Officers

Section 1. Positions. The officers of the Company shall be a president, one or more vice presidents, a secretary, and a treasurer or comptroller, each of whom shall be elected by the
board of directors. The board of directors may also designate the chairman of the board as an officer. The offices of the secretary and treasurer or comptroller may be held by the same
individual and a vice president may also be either the secretary or the treasurer or comptroller. The board of directors may designate one or more vice presidents as executive vice president
or senior vice president. The board of directors may also elect or authorize the appointment of such other officers as the business of the Company may require. The officers shall have such
authority and perform such duties as the board of directors may from time to time authorize or determine. In the absence of action by the board of directors, the officers shall have such
powers and duties as generally pertain to their respective offices.

Section 2. Election and Term of Office. The officers of the Company shall be elected annually at the first meeting of the board of directors held after each annual meeting of the
shareholders. If the election of officers is not held at such meeting, such election shall be held as soon thereafter as possible.

7
Each officer shall hold office until a successor has been duly elected and qualified or until the officer’s death, resignation, or removal in the manner hereinafter provided. Election or
appointment of an officer, employee, or agent shall not of itself create contractual rights. The board of directors may authorize the Company to enter into an employment contract with any
officer in accordance with regulations of the FRB; but no such contract shall impair the right of the board of directors to remove any officer at any time in accordance with Section 3 of this
Article V.

Section 3. Removal. Any officer may be removed by the board of directors whenever in its judgment the best interests of the Company will be served thereby, but such removal,
other than for cause, shall be without prejudice to the contractual rights, if any, of the officer so removed.

Section 4. Vacancies. A vacancy in any office because of death, resignation, removal, disqualification, or otherwise may be filled by the board of directors for the unexpired portion
of the term.

Section 5. Remuneration. The remuneration of the officers shall be fixed from time to time by the board of directors.

Article VI—Contracts, Loans, Checks, and Deposits

Section 1. Contracts. To the extent permitted by regulations of the FRB, and except as otherwise prescribed by these bylaws with respect to certificates for shares, the board of
directors may authorize any officer, employee, or agent of the Company to enter into any contract or execute and deliver any instrument in the name of and on behalf of the Company. Such
authority may be general or confined to specific instances.

Section 2. Loans. No loans shall be contracted on behalf of the Company and no evidence of indebtedness shall be issued in its name unless authorized by the board of directors.
Such authority may be general or confined to specific instances.

Section 3. Checks; Drafts, etc. All checks, drafts, or other orders for the payment of money, notes, or other evidences of indebtedness issued in the name of the Company shall be
signed by one or more officers, employees or agents of the Company in such manner as shall from time to time be determined by the board of directors.

Section 4. Deposits. All funds of the Company not otherwise employed shall be deposited from time to time to the credit of the Company in any duly authorized depositories as the
board of directors may select.

Article VII—Certificates for Shares and Their Transfer

Section 1. Certificates for Shares. Certificates representing shares of capital stock of the Company shall be in such form as shall be determined by the board of directors and
approved by the FRB. The Company is also authorized to issue uncertificated shares of capital stock. Such certificates shall be signed by the chief executive officer or by any other officer
of the Company authorized by the board of directors, attested by the secretary or an assistant secretary, and sealed with the corporate seal or a facsimile thereof. The signatures of such
officers upon a certificate may be facsimiles if the certificate is manually signed on behalf of a transfer agent or a registrar other than the Company itself or one of its employees. Each
certificate for shares of capital stock shall be consecutively numbered or otherwise identified. Upon the issuance of uncertificated shares of capital stock, the Company shall send the
shareholder a written statement of the same information required above with respect to stock certificates. The name and address of the person to whom the shares are issued, with the
number of shares and date of

8
issue, shall be entered on the stock transfer books of the Company. All certificates surrendered to the Company for transfer shall be canceled and no new certificate shall be issued until the
former certificate for a like number of shares has been surrendered and canceled, except that in the case of a lost or destroyed certificate, a new certificate may be issued upon such terms
and indemnity to the Company as the board of directors may prescribe.

Section 2. Transfer of Shares. Transfer of shares of capital stock of the Company shall be made only on its stock transfer books. Authority for such transfer shall be given only by
the holder of record or by his or her legal representative, who shall furnish proper evidence of such authority, or by his or her attorney authorized by a duly executed power of attorney and
filed with the Company. Such transfer shall be made only on surrender for cancellation of the certificate for such shares. The person in whose name shares of capital stock stand on the
books of the Company shall be deemed by the Company to be the owner for all purposes.

Article VIII—Fiscal Year

The fiscal year of the Company shall end on the last day of September each year. The appointment of accountants shall be subject to annual ratification by the shareholders.

Article IX—Dividends

Subject to the terms of the Company’s charter and the regulations and orders of the FRB, the board of directors may, from time to time, declare, and the Company may pay,
dividends on its outstanding shares of capital stock.

Article X—Corporate Seal

The board of directors shall provide a Company seal, which shall be two concentric circles between which shall be the name of the Company. The year of incorporation or an
emblem may appear in the center.

Article XI—Amendments

These bylaws may be amended in a manner consistent with regulations of the FRB and shall be effective after: (i) approval of the amendment by a majority vote of the authorized
board of directors, or by a majority vote of the votes cast by the shareholders of the Company at any legal meeting, and (ii) receipt of any applicable regulatory approval. When a Company
fails to meet its quorum requirements solely due to vacancies on the board, then the affirmative vote of a majority of the sitting board will be required to amend the bylaws.

ARTICLE XII – Indemnification

The Company shall indemnify its personnel, including directors, officers and employees, to the fullest extent authorized by applicable law and regulations, as the same exists or may
hereafter be amended; provided, any indemnification by the Company of the Company’s personnel is subject to any applicable rules or regulations of the FRB.

ARTICLE XIII – Reliance upon Books, Reports and Records

Each director, each member of any committee designated by the board of directors, and each officer of the Company shall, in the performance of his or her duties, be fully protected
in relying in good faith upon the books of account or other records of the Company and upon such information, opinions,

9
reports or statements presented to the Company by any of its officers or employees, or committees of the board of directors so designated, or by any other person as to matters which such
director or committee member reasonably believes are within such other person’s professional or expert competence and who has been selected with reasonable care by or on behalf of the
Company.

10
 Exhibit 23.2

Consent of Independent Registered Public Accounting Firm

We consent to the inclusion in this Registration Statement on Pre-effective Amendment No. 2 to Form S-1 of Newton Federal Bank filed with the Securities and Exchange Commission, the
Form H-(e)1 filed with the Board of Governors of the Federal Reserve System and the Form MHC-1/MHC-2 filed with the Board of Governors of the Federal Reserve System of our report
dated December 7, 2016 on our audit of the financial statements of Newton Federal Bank, appearing in the Prospectus, which is part of this Registration Statement, the Form H-(e)1 and the
Form MHC-1/MHC-2. We also consent to the references to our firm under the caption “The Reorganization and Offering,” “Experts” and “Legal and Tax Matters” in the Prospectus.

Atlanta, Georgia
February 8, 2017
 Exhibit 23.4

February 8, 2017

Board of Directors
Newton Federal Bank
3175 Highway 278
Covington, Georgia 30014

Members of the Board of Directors:

We hereby consent to the use of our firm’s name in the Registration Statement on Form S-1, and any amendments thereto, to be filed with the Securities and Exchange Commission
and the Form MHC-1/MHC-2 Notice of Mutual Holding Company Reorganization and Application for Approval of a Minority Stock Issuance by a Subsidiary of a Mutual Holding
Company, and any amendments thereto, to be filed with the Federal Reserve Board. We also hereby consent to the inclusion of, summary of and references to our Valuation Appraisal
Report and any Valuation Appraisal Report Updates and our statement concerning subscription rights and liquidation rights in such filings including the prospectus of Community First
Bancshares, Inc. We also consent to the reference to our firm under the heading “Experts” in the prospectus.

Sincerely,
RP ® FINANCIAL, LC.

Washington Headquarters
Three Ballston Plaza Telephone: (703) 528-1700
1100 North Glebe Road, Suite 600 Fax No.: (703) 528-1788
Arlington, VA 22201 Toll-Free No.: (866) 723-0594
www.rpfinancial.com E-Mail: mail@rpfinancial.com
Exhibit 99.6
 November 25, 2016

Boards of Directors
Community First Bancshares, MHC
Community First Bancshares, Inc.
Newton Federal Bank
3175 Highway 278
Covington, Georgia 30014

Members of the Boards of Directors:

At your request, we have completed and hereby provide an independent appraisal (“Appraisal”) of the estimated pro forma market value of the common stock which is to be issued
in connection with the stock issuance transaction described below.

This Appraisal is furnished pursuant to the requirements stipulated in the Code of Federal Regulations and has been prepared in accordance with the “Guidelines for Appraisal
Reports for the Valuation of Savings and Loan Associations Converting from Mutual to Stock Form of Organization” (the “Valuation Guidelines”) of the Office of Thrift Supervision
(“OTS”) and accepted by the Federal Reserve Board (“FRB”), the Office of the Comptroller of the Currency (“OCC”) and the Federal Deposit Insurance Corporation (“FDIC”) and
applicable regulatory interpretations thereof. This Original Appraisal is effective as of November 25, 2016 and amended as of February 3, 2017.

Description of Plan of Stock Issuance

On October 31, 2016, the Board of Directors of the Newton Federal Bank (“Newton Federal” or the “Bank”) adopted a Plan of Reorganization. Pursuant to the Plan, the Bank will
reorganize in to a three-tier mutual holding company structure, including Community First Bancshares, MHC (the “MHC”) and Community First Bancshares, Inc. (the “Company”). The
MHC will be a top-tier mutual holding company and the Company will be the mid-tier stock holding company, which will own 100% of the outstanding common stock of Newton Federal.
The Company will issue a majority of its common stock to the MHC and sell a minority of its common stock to the public. Concurrent with the completion of the public stock offering,
Newton Federal will receive at least 50.0% of the net stock proceeds and the balance will be retained by the Company. The MHC will own a controlling interest in the Company of at least
51%, and the Company will be the sole subsidiary of the MHC. For purposes of this document, the existing consolidated entity will hereinafter be referred to as Community First or the
Company.

The Company will offer its common stock in a subscription offering to Eligible Account Holders, Tax-Qualified Employee Plans, Supplemental Eligible Account Holders and Other
Members and the MHC as such terms are defined in the Company’s Plan for purposes of applicable federal regulatory guidelines governing stock offerings by mutual institutions. To the
extent that shares remain available for purchase after satisfaction of all subscriptions received in the subscription offering, the shares may be offered for sale to members of the general
public in a community offering and a syndicated offering

Washington Headquarters
Three Ballston Plaza Telephone: (703) 528-1700
1100 North Glebe Road, Suite 600 Fax No.: (703) 528-1788
Arlington, VA 22201 Toll-Free No.: (866) 723-0594
www.rpfinancial.com E-Mail: mail@rpfinancial.com
Boards of Directors
November 25, 2016
Page 2

A portion of the net proceeds received from the sale of the common stock will be used to purchase all of the then to be issued and outstanding capital stock of Newton Federal and
the balance of the net proceeds will be retained by the Company.

At this time, no other activities are contemplated for the Company other than the ownership of the Bank, a loan to the newly-formed employee stock ownership plan (“ESOP”) and
reinvestment of the proceeds that are retained by the Company. In the future, the Company may acquire or organize other operating subsidiaries, diversify into other banking-related
activities, pay dividends or repurchase its stock, although there are no specific plans to undertake such activities at the present time.

RP ® Financial, LC.
RP ® Financial, LC. (“RP Financial”) is a financial consulting firm serving the financial services industry nationwide that, among other things, specializes in financial valuations and
analyses of business enterprises and securities, including the pro forma valuation for savings institutions converting from mutual-to-stock form. The background and experience of RP
Financial is detailed in Exhibit V-1. We believe that, except for the fee we will receive for the Appraisal, we are independent of the MHC, the Company, the Bank and the other parties
engaged by the MHC, the Company or the Bank to assist in the stock conversion process.

Valuation Methodology
In preparing our Appraisal, we have reviewed the regulatory applications of the Company, the Bank and the MHC, including the prospectus as filed with the FDIC and the Securities
and Exchange Commission (“SEC”). We have conducted a financial analysis of the Company, the Bank and the MHC that has included a review of audited financial information for the
years ended September 30, 2013 through September 30, 2016, a review of various unaudited information and internal financial reports through September 30, 2016, and due diligence
related discussions with the Company’s management; Porter Keadle Moore, LLC, the Company’s independent auditor; Luse Gorman, PC, the Company’s counsel for the stock issuance and
BSP Securities , LLP, the Company’s marketing advisor in connection with the stock offering. All assumptions and conclusions set forth in the Appraisal were reached independently from
such discussions. In addition, where appropriate, we have considered information based on other available published sources that we believe are reliable. While we believe the information
and data gathered from all these sources are reliable, we cannot guarantee the accuracy and completeness of such information.

We have investigated the competitive environment within which Newton Federal operates and have assessed Newton Federal’s relative strengths and weaknesses. We have kept
abreast of the changing regulatory and legislative environment for financial institutions and analyzed the potential impact on Newton Federal and the industry as a whole. We have analyzed
the potential effects of the stock offering on Newton Federal’s operating characteristics and financial performance as they relate to the pro forma market value of the Company. We have
reviewed the economic and demographic characteristics of the Bank’s primary market area. We have compared Newton Federal’s financial performance and condition with selected
publicly-traded thrifts in accordance with the Valuation Guidelines, as well as all publicly-traded thrifts and thrift holding companies. We have reviewed the current conditions in the
securities
Boards of Directors
November 25, 2016
Page 3

markets in general and the market for thrift stocks in particular, including the market for existing thrift issues and initial public offerings by thrifts and thrift holding companies. We have
excluded from such analyses thrifts subject to announced or rumored acquisition, and/or institutions that exhibit other unusual characteristics.

The Appraisal is based on Newton Federal’s representation that the information contained in the regulatory applications and additional information furnished to us by Newton
Federal and its independent auditor, legal counsel and other authorized agents are truthful, accurate and complete. We did not independently verify the financial statements and other
information provided by Newton Federal, or its independent auditor, legal counsel and other authorized agents nor did we independently value the assets or liabilities of the Bank. The
valuation considers the Company only as a going concern and should not be considered as an indication of the Company’s liquidation value.

Our appraised value is predicated on a continuation of the current operating environment for the Company and for all thrifts and their holding companies. Changes in the local, state
and national economy, the legislative and regulatory environment for financial institutions and mutual holding companies, the stock market, interest rates, and other external forces (such as
natural disasters or significant world events) may occur from time to time, often with great unpredictability and may materially impact the value of thrift stocks as a whole or the value of
the Company’s stock alone. It is our understanding that there are no current plans for selling control of the Company following completion of the stock offering. To the extent that such
factors can be foreseen, they have been factored into our analysis.

The estimated pro forma market value is defined as the price at which the Company’s common stock, immediately upon completion of the stock offering, would change hands
between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts.

Valuation Conclusion
It is our opinion that, as of November 25, 2016, the estimated aggregate pro forma market value of the shares to be issued immediately following the offering, both shares issued
publicly as well as to the MHC, was $55,000,000 at the midpoint, equal to 5,500,000 shares issued at a per share value of $10.00. Pursuant to the conversion guidelines, the 15% offering
range indicates a minimum value of $46,750,000 and a maximum value of $63,250,000. Based on the $10.00 per share offering price determined by the Board, this valuation range equates
to total shares outstanding of 4,675,000 shares at the minimum of the valuation range and 6,325,000 total shares outstanding at the maximum of the valuation range. In the event that the
appraised value is subject to an increase, the aggregate pro forma market value may be increased up to a super maximum value of $72,737,500 without a resolicitation. Based on the $10.00
per share offering price, the super maximum value would result in total shares outstanding of 7,273,750. The Board of Directors has established a public offering range such that the public
ownership of the Company will constitute a 46.0% ownership interest of the Company. Accordingly, the offering range to the public of the minority stock will be $21,505,000 at the
minimum, $25,300,000 at the midpoint, $29,095,000 at the maximum and $33,459,250 at the super maximum.
Boards of Directors
November 25, 2016
Page 4

Limiting Factors and Considerations

The valuation is not intended, and must not be construed, as a recommendation of any kind as to the advisability of purchasing shares of the common stock. Moreover, because such
valuation is determined in accordance with applicable regulatory guidelines and is necessarily based upon estimates and projections of a number of matters, all of which are subject to
change from time to time, no assurance can be given that persons who purchase shares of common stock in the stock offering will thereafter be able to buy or sell such shares at prices
related to the foregoing valuation of the estimated pro forma market value thereof. The appraisal reflects only a valuation range as of this date for the pro forma market value of the
Company immediately upon issuance of the stock and does not take into account any trading activity with respect to the purchase and sale of common stock in the secondary market on the
date of issuance of such securities or at anytime thereafter following the completion of the stock offering.

RP Financial’s valuation was based on the financial condition and operations of Newton Federal as of September 30, 2016, the date of the financial data included in the prospectus
and amended as of February 3, 2017.

RP Financial is not a seller of securities within the meaning of any federal and state securities laws and any report prepared by RP Financial shall not be used as an offer or
solicitation with respect to the purchase or sale of any securities. RP Financial maintains a policy which prohibits RP Financial, its principals or employees from purchasing stock of its
client institutions.

This valuation will be updated as provided for in the conversion regulations and guidelines. These updates will consider, among other things, any developments or changes in the
financial performance and condition of the Bank, management policies, and current conditions in the equity markets for thrift shares, both existing issues and new issues. These updates may
also consider changes in other external factors which impact value including, but not limited to: various changes in the legislative and regulatory environment for financial institutions, the
stock market and the market for thrift stocks, and interest rates. Should any such new developments or changes be material, in our opinion, to the valuation of the shares, appropriate
adjustments to the estimated pro forma market value will be made. The reasons for any such adjustments will be explained in the update at the date of the release of the update. The
valuation will also be updated at the completion of the Company’s stock offering.

Respectfully submitted,
RP ® FINANCIAL, LC.

James J. Oren
Director
RP ® Financial, LC. TABLE OF CONTENTS
i

TABLE OF CONTENTS
NEWTON FEDERAL BANK
Covington, Georgia

PAGE
DESCRIPTION NUMBER

CHAPTER ONE OVERVIEW AND FINANCIAL ANALYSIS

Introduction I.1
Plan of Conversion I.1
Strategic Overview I.2
Balance Sheet Trends I.4
Income and Expense Trends I.8
Interest Rate Risk Management I.11
Lending Activities and Strategy I.12
Loan Originations and Sales I.16
Asset Quality I.16
Funding Composition and Strategy I.17
Subsidiary Operations I.17
Legal Proceedings I.18

CHAPTER TWO MARKET AREA ANALYSIS

Introduction II.1
National Economic Factors II.2
Interest Rate Environment II.4
Market Area Regional Economy II.5
Regional Employment II.6
Market Area Demographics II.7
Regional Economy II.9
Unemployment Data II.10
Market Area Deposit Characteristics/Competition II.10
Competition II.12

CHAPTER THREE PEER GROUP ANALYSIS

Peer Group Selection III.1
Financial Condition III.5
Income and Expense Components III.8
Loan Composition III.11
Credit Risk III.11
Interest Rate Risk III.14
Summary III.16
RP ® Financial, LC. TABLE OF CONTENTS
ii

TABLE OF CONTENTS
NEWTON FEDERAL BANK
Covington, Georgia
(continued)

PAGE
DESCRIPTION NUMBER

CHAPTER FOUR VALUATION ANALYSIS

Introduction IV.1
Appraisal Guidelines IV.1
RP Financial Approach to the Valuation IV.1
Valuation Analysis IV.2
1. Financial Condition IV.2
2. Profitability, Growth and Viability of Earnings IV.4
3. Asset Growth IV.6
4. Primary Market Area IV.6
5. Dividends IV.8
6. Liquidity of the Shares IV.9
7. Marketing of the Issue IV.9
A. The Public Market IV.10
B. The New Issue Market IV.14
C. The Acquisition Market IV.14
8. Management IV.17
9. Effect of Government Regulation and Regulatory Reform IV.18
Summary of Adjustments IV.18
Valuation Approaches IV.18
1. Price-to-Earnings (“P/E”) IV.20
2. Price-to-Book (“P/B”) IV.24
3. Price-to-Assets (“P/A”) IV.25
Comparison to Recent Offerings IV.29
Valuation Conclusion IV.30
RP ® Financial, LC. LIST OF TABLES
iii

LIST OF TABLES.
NEWTON FEDERAL BANK
Covington, Georgia

TABLE
NUMBER DESCRIPTION PAGE
1.1 Historical Balance Sheets I.5
1.2 Historical Income Statements I.9
2.1 Market Area Largest Employers II.6
2.2 Summary Demographic Data II.8
2.3 Primary Market Area Employment Sectors II.9
2.4 Unemployment Trends II.10
2.5 Deposit Summary II.11
2.6 Market Area Deposit Competitors – Newton County II.13
3.1 Peer Group of Publicly-Traded Thrifts III.3
3.2 Balance Sheet Composition and Growth Rates III.6
3.3 Income as a % of Average Assets and Yields, Costs, Spreads III.9
3.4 Loan Portfolio Composition and Related Information III.12
3.5 Credit Risk Measures and Related Information III.13
3.6 Interest Rate Risk Measures and Net Interest Income Volatility III.15
4.1 Market Area Unemployment Rates IV.8
4.2 Pricing Characteristics and After Market Trends IV.15
4.3 Public Market Pricing Versus Peer Group IV.16
4.4 Valuation Adjustments IV.18
4.5 Derivation of Core Earnings IV.21
4.6 Fully Converted Market Pricing Versus Peer Group IV.22
4.7 MHC Market Pricing Versus Peer Group IV.23
4.8 MHC Institutions Implied Ratios, Full Conversion Basis IV.27
4.9 Comparative MHC Pricing Data IV.29
RP ® Financial, LC. OVERVIEW AND FINANCIAL ANALYSIS
I.1

I. OVERVIEW AND FINANCIAL ANALYSIS

Introduction
Newton Federal is a federally-chartered mutual savings association headquartered in Covington, Georgia. The Bank was originally organized in 1928 as a Georgia chartered mutual
building and loan association under the name Newton County Building and Loan Association. In 1947, the Bank converted to a federal charter and changed its name to “Newton Federal
Savings and Loan Association.” In 2004 the name was changed to “Newton Federal Bank.

Newton Federal operates in the northeastern section of the state of Georgia, maintaining three banking offices in Newton County (about 30 miles east of the city of Atlanta) and a
loan production office in Oconee County, which is close to the city of Athens, Georgia. The Bank’s primary market area for deposit gathering thus consists of Newton County, while
lending activities are focused in Newton County (1-4 family residential and commercial lending) and Gwinnett, Clarke, Walton, Barrow, Oconee and Jackson Counties (commercial and
construction lending). A map of the Bank’s branch offices is provided in Exhibit I-1. Newton Federal is a member of the Federal Home Loan Bank (“FHLB”) system, and its deposits are
insured up to the regulatory maximums by the Deposit Insurance Fund of the Federal Deposit Insurance Corporation (“FDIC”). Newton Federal is subject to regulatory oversight and
examination by the Office of the Comptroller of the Currency (“OCC”) and the FDIC (for deposit insurance purposes). At September 30, 2016, Newton Federal reported $232.8 million in
assets, $181.7 million in deposits and total equity of $45.1 million, equal to 19.36% of total assets. Newton Federal’s audited financial statements are included by reference as Exhibit I-2.

Plan of Conversion
The Board of Directors of Newton Federal adopted a plan of conversion and reorganization on October 31, 2016. Pursuant to the Plan, the Bank will reorganize into a three-tier
mutual holding company structure, including Community First Bancshares, MHC (the “MHC”) and Community First Bancshares, Inc. (the “Company”). The MHC will be a top-tier mutual
holding company and the Company will be the mid-tier stock holding company, which will own 100% of the outstanding common stock of Newton Federal. The Company will issue a
majority of its common stock to the MHC and sell a minority of its common stock to the public. Concurrent with the completion of the public stock offering, Newton Federal will receive at
least 50% of the net stock proceeds and the balance will be retained by the Company. The MHC will own a controlling interest in the Company of at least 51%, and the Company will be the
sole subsidiary of the MHC. For purposes of this document, the post-conversion consolidated entity will hereinafter be referred to as Community First or the Company.
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The plan of conversion and reorganization provides that the Company will sell shares of its common stock in a subscription offering in descending order of priority to the Bank’s
members and other stakeholders as follows: Eligible Account Holders, Tax-Qualified Employee Plans, Supplemental Eligible Account Holders and Other Members. If all shares are not
subscribed for in the subscription offering, the Bank intends to offer common stock for sale to certain members of the public through a community offering. Shares not purchased in the
subscription and community offerings may be offered for sale to the general public in a syndicated community offering. The MHC will be issued shares as prescribed in the Plan.

At this time, no other activities are contemplated for Community First other than the ownership of the Bank, a loan to the newly-formed employee stock ownership plan (“ESOP”)
and reinvestment of the proceeds that are retained by the Company. In the future, the Company may acquire or organize other operating subsidiaries, diversify into other banking-related
activities, pay dividends to shareholders and/or repurchase its stock, although there are no specific plans to undertake such activities at the present time.

Strategic Overview
Newton Federal has been serving the Newton County area as a locally-owned and operated financial institution since its founding in 1928. Following a long history of serving the
local market area through a single office, the Bank expanded its customer reach by opening an “eastside office” in Covington in 2000, and a “southside office” in Covington in 2006. To
further the lending capabilities of the Bank, in January 2016 Newton Federal opened a loan production office in Bogart, Oconee County, which provides access to the Athens, Georgia
market and other surrounding counties , located approximately 45 miles northeast of Covington. Newton Federal thus operates within the Atlanta-Sandy Springs-Roswell metropolitan
statistical area (of which Newton County is part), and the Athens, Georgia metropolitan area (Athens-Clark County).

For many years Newton Federal operated as a traditional thrift institution, originating for portfolio long-term fixed rate residential loans funded with certificates of deposit. In recent
years, the Bank has strived to diversify the loan portfolio into commercial real estate, commercial and industrial and construction/land loans. The Bank’s products and services are focused
on the lending and investment needs of the local retail and commercial customer base as well as
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households in the market area. Based on the operating history and growth of the Bank since its founding, the Bank has established, to a notable degree, its name recognition and overall
reputation in the area. In addition, the Bank views itself as an integral part of the local communities served, and thus has historically strongly supported the retail customer base in Newton
County through providing residential loan products.

Newton Federal’s original market area of Newton County experienced a substantial downturn in economic activity and related housing prices during the “great recession” of 2007-
2009 which led to elevated levels of non-performing assets and net losses due to these asset quality issues. Since the end of the great recession, the economic condition of Newton County,
and Newton Federal’s customer base, have improved such that the local market area economy is currently expanding in terms of population, with economic activity relatively stable. A new
president and CEO and several other senior managers have been added over the past several years to direct the operations of the Bank.

The equity from the stock offering will increase the Bank’s liquidity, leverage and growth capacity and the overall financial strength. Newton Federal’s higher equity position
resulting from the infusion of stock proceeds is anticipated to reduce interest rate risk through enhancing the interest-earning assets to interest-bearing liabilities (“IEA/IBL”) ratio. The
increased equity is expected to reduce overall funding costs for the asset base. The Bank will also be better positioned to pursue growth and revenue diversification. The projected use of
proceeds is highlighted below.
• The Company. The Company is expected to retain an estimated 50% of the net conversion proceeds. At present, funds at the holding company level are expected to
be initially invested primarily into short-term liquid investments, along with providing the funds for the employee stock ownership plan purchases. Over time, the
funds may be utilized for various corporate purposes.
• The Bank. An estimated 50% of the net conversion proceeds will be infused into the Bank as cash and equity. Cash proceeds (i.e., net proceeds less deposits
withdrawn to fund stock purchases) infused into the Bank are expected to be deposited as an interest-earning deposit, providing additional funds for reinvestment in
earning assets.
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With the Bank’s enhanced equity position, following the completion of the offering, Newton Federal intends to implement the following strategies in order to grow and achieve the
Bank’s objective to develop into an independent high performing bank focused on meeting the needs of individuals, small businesses, and community organizations in Northeast Georgia
through providing enhanced service and competitive products:
• Controlled loan growth with a focus on diversifying the loan portfolio, particularly in commercial real estate and commercial and industrial lending;
• Continue to increase core deposits, with an emphasis on low cost commercial demand deposits, and add non-core funding opportunities;
• Manage credit risk to maintain a low level of nonperforming assets; and,
• Disciplined expansion through organic growth and opportunistic bank or branch acquisitions.

Balance Sheet Trends

Table 1.1 presents the Bank’s historical balance sheet data for the most recent five fiscal years, all of which reflects data for Newton Federal as a mutual savings bank. Over this
period, Newton Federal’s total assets have increased at a 0.4% annual rate, with loans receivable, representing the majority of the asset base, increasing at a 0.8% annual rate, a slightly
higher rate than assets over the same time period.

Assets fluctuated within a modest range from fiscal 2012 through 2016 as a result of the Bank’s focus on resolving problem assets and limited lending activities available as the
Newton County geographic area recovered from the recession of 2007-2009. Additional asset growth was also not required given the declining level of loans receivable experienced through
fiscal 2015, which resulted in sufficient available liquidity. Over the time period shown in Table 1.1 investments also recorded minimal annual changes. Since September 30, 2012 assets
have been funded with deposits and equity, as no borrowing have been required to fund the asset or liquidity base. Deposits declined by 1.3% annually over the past five years, while
continued profitability has resulted in an annual increase in equity of 7.0%. Equity reached $45.1 million at September 30, 2016, or 19.36% of assets. A summary of Newton Federal’s key
operating ratios for the past five years is presented in Exhibit I-3.

A key long term business strategy of Newton Federal is to maintain a significant investment in whole loans receivable. As such, the Bank’s loan portfolio totaled $190.1 million, or
81.6% of assets at September 30, 2016, an increase from $184.0 million, or 80.2% of assets as of September 30, 2012. From fiscal 2012 through September 30, 2016, the increase in the
loan balance was enabled though the overall increase in balance sheet funding, funds from the
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Table 1.1
Newton Federal Bank
Historical Balance Sheets

2012-2016
As of September 30, Annualized
2012 2013 2014 2015 2016 Growth
Amount Pct(1) Amount Pct(1) Amount Pct(1) Amount Pct(1) Amount Pct(1) Pct
($000) (%) ($000) (%) ($000) (%) ($000) (%) ($000) (%) (%)
Total Amount of:
Assets $229,519 100.00% $222,328 100.00% $227,089 100.00% $226,337 100.00% $232,832 100.00% 0.36%
Loans Receivable (net) (2) 183,958 80.15% 180,006 80.96% 174,132 76.68% 169,798 75.02% 190,050 81.63% 0.82%
Cash and Equivalents 27,823 12.12% 29,316 13.19% 34,140 15.03% 38,494 17.01% 25,693 11.03% -1.97%
Investment Securities 7,065 3.08% 5,431 2.44% 7,183 3.16% 7,694 3.40% 7,704 3.31% 2.19%
Deferred Tax Asset 0 0.00% 0 0.00% 4,999 2.20% 4,197 1.85% 3,536 1.52% NM
Fixed Assets 4,475 1.95% 4,394 1.98% 4,338 1.91% 4,261 1.88% 4,325 1.86% -0.85%
OREO 4,121 1.80% 1,880 0.85% 1,129 0.50% 532 0.24% 0 0.00% -100.00%
Other Assets 2,077 0.90% 1,301 0.59% 1,168 0.51% 1,361 0.60% 1,524 0.65% -7.45%
Deposits $191,389 83.39% $183,763 82.65% $179,264 78.94% $176,687 78.06% $181,699 78.04% -1.29%
Borrowings 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0.00%
Other Liabilities 3,779 1.65% 4,507 2.03% 5,514 2.43% 5,726 2.53% 6,052 2.60% 12.49%
Retained Earnings 34,351 14.97% 34,058 15.32% 42,311 18.63% 43,924 19.41% 45,081 19.36% 7.03%
Tangible Retained Earnings 34,351 14.97% 34,058 15.32% 42,311 18.63% 43,924 19.41% 45,081 19.36% 7.03%
Net Unrealized Gain/(Loss) on Investment/MBS Available
for Sale $ 0 0.00% $ 0 0.00% $ 0 0.00% $ 0 0.00% $ 0 0.00%
Loans/Deposits 96.12% 97.96% 97.14% 96.10% 104.60%
Offices Open 3 3 3 3 3

(1) Ratios are as a percent of ending assets.

(2) Includes loans held for sale.

Source: Community First’s preliminary prospectus, audited financial reports.

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I.6

resolution of other real estate owned (“OREO”), and additional investment of available funds in cash equivalents. The combination of the increase in loans receivable as a percent of assets
and a reduction in deposit funds resulted in the loan/deposit ratio increasing from 96.1% at September 30, 2012 to 104.6% at September 30, 2016.

Newton Federal’s investment in loans reflects the Bank’s historical concentration in traditional long-term fixed rate 1-4 family residential loans, along with an increasing level of
diversity into commercial real estate, commercial business and commercial construction lending. The 1-4 family residential loan first position portfolio comprised 69% of total loans as of
September 30, 2016. Over the last five years, the Bank has been pursuing a diversification strategy and emphasizing growth in the commercial and construction/land portfolio, as such loans
totaled 30.3% at the same date. Such loans increased from $33.2 million, or 17.5% of loans at September 30, 2012 to $58.7 million at September 30, 2016. The commercial and
construction/land lending activities represent a primary part of the Bank’s business strategy to maximize revenue (in terms of yield on portfolio loans) and provide benefits in areas such as
interest rate risk, and such activities have been focused in the loan production office operations in the Athens, Georgia area. The lending area for these types of loans has been expanded to
include the region between Covington and Athens. Newton Federal historically originated consumer loans to customers, primarily second position home equity lines of credit and home
equity loans, and other consumer type loans. This type of lending has remained modest in recent years, and consumer loans totaled $2.3 million, or 1.2% of loans as of September 30, 2016.
The Bank has not typically sold loans into the secondary market, although there was a modest balance of loans held for sale ($472,000) as of September 30, 2016.

As indicated above, the Bank’s loan portfolio comprises over 80% of assets. The intent of the Bank’s cash and investment policy is to provide adequate liquidity and to generate a
favorable return within the context of supporting Newton Federal’s cash operating needs and credit and interest rate risk objectives. Historically, the level of cash and equivalents has
remained in the range of 11% to 17% of assets, which has been sufficient for daily operational needs. The ratio decreased as of September 30, 2016 primarily due to the use of funds for
additional loan originations. As of September 30, 2016, the portfolio of cash and cash equivalents totaled $25.7 million, equal to 11.0% of assets. Within this portfolio, the Bank maintained
insured investments in certificates of deposit in other financial institutions of approximately $11 million.
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Regarding the investment securities portfolio, as of September 30, 2016 the Bank held a modest portfolio of investments in the form of three government agency bonds that mature
within three years. The only other investment security consisted of the required investment of FHLB of Atlanta stock of $205,000. The level of cash and investments is anticipated to
increase initially following conversion, pending gradual redeployment into higher yielding loans. Details of the Bank’s investment securities portfolio are presented in Exhibit I-4.

Newton Federal owns the headquarters office and eastside office land and building and leases the land but owns the building for the southside office, while leasing the loan
production office in Oconee County. The headquarters office was originally constructed in 1974, and was carried with a net book value of $1.2 million at September 30, 2016. This office,
along with investment in the other branch offices (including land, buildings, and furniture, fixtures and equipment), totaled $4.3 million, or 1.9% of assets as of September 30, 2016. The
investment in fixed assets has declined slightly since fiscal 2012 as only minimal costs were incurred in the opening of the Athens area LPO, and the remaining offices were opened fairly
recently. The Bank has in place plans to build an operations center adjacent to one of the branch locations, which will open up space in the headquarters office for additional lending,
customer service and marketing personnel.

As a result of the operating losses incurred prior to 2014, Newton Federal accumulated a notable balance of net operating loss carryforwards that created a net deferred tax asset
(“DTA”). For a period of time the DTA was fully reserved on the balance sheet, given the uncertain time frame for the Bank to return to profitability. During fiscal 2014, the valuation
allowance was removed in light of the expected future levels of profitability. Thus, a DTA of $5.0 million was added to the balance sheet as of September 30, 2014. As a result of continued
profitability through September 30, 2016, this DTA has been reduced to $3.5 million, as the Bank can offset taxes payable by reducing this account.

Reflecting the overall improvement of the asset quality since the end of the 2007-2009 recession, the balance of OREO was reduced to a zero balance at September 30, 2016. Such
OREO reached a high of $4.1 million as of September 30, 2012, and declined consistently over the last five years as a result of resolutions of existing properties and the lack of substantial
additions of foreclosed properties from the loan portfolio.

Since December 31, 2012, Newton Federal’s funding needs have been provided by retail deposits and retained earnings. In contrast to the modest increase in assets, the balance of
the Bank’s deposits has decreased slightly since 2012, reaching a low of $176.7 million as of September 30, 2015. Deposits increased by $5.0 million during fiscal 2016, primarily due to
funds raised through the Bank’s “Kasasa” deposit program, which motivates customers to maintain
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I.8

checking accounts at the Bank. As a result of the growth in assets, the proportion of assets funded with deposits has declined from 83.4% to 78.0% over the past five years. The Bank
maintains a concentration of deposits in certificates of deposit (reflective of the traditional thrift operations), which comprised 47.1% of deposits at September 30, 2016, although this ratio
has declined notably from versus 59.0% of total deposits at fiscal year-end 2012.

Newton Federal has not historically utilized borrowings for funding. The Bank has not needed such funds due to the level of lending activities and available cash and liquidity,
which has been used for recent increases in portfolio loans.

The balance of equity increased between fiscal 2012 and 2016 as the Bank recorded profitable operations, including the capture of the DTA. Reflecting the combination of this
increase in equity and the increase in assets over that time period, the equity-to-assets ratio increased from 14.97% at year end 2012 to 19.36% at September 30, 2016. All of the Bank’s
equity is tangible, and the Bank maintained surpluses relative to all of its regulatory capital requirements at September 30, 2016. The pro forma return on equity (“ROE”) is expected to
initially decline given the increased equity position.

Income and Expense Trends

Table 1.2 presents the Bank’s income and expense trends over the past five fiscal years. The effects of the last years of the economic recession are evident in the net losses and
provisions for loan losses recorded for fiscal 2012 and 2013, followed by the recovery of the fully-reserved deferred tax asset in fiscal 2014 and the return to profitability since that year.
Profitability for fiscal 2015 and 2016 averaged $1.4 million, or 0.61% of average assets. The income statement has been affected to a modest degree by non-operating income or expense
items over the past five years. Net interest income and operating expenses represent the primary components of the Bank’s income statement. Other revenues for the Bank largely are
derived from customer service fees and charges on the deposit base and lending operations. The level of loan loss provisions has also followed the improvement in assets quality over the
past five years.

The Bank’s net interest income to average assets ratio has reflected the impact of market interest rate trends and internal lending strategies over the time period shown in Table 1.2.
Net interest income as a percent of average assets has increased from a low of 3.87% during fiscal 2012 to a high of 4.33% for fiscal 2016. The net interest income ratio is supported by
several factors, including: (1) the high proportion of loans on the balance sheet as a percent of assets;
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I.9

Table 1.2
Newton Federal Bank
Historical Income Statements

For the Fiscal Year Ended September 30,

2012 2013 2014 2015 2016
Amount Pct(1) Amount Pct(1) Amount Pct(1) Amount Pct(1) Amount Pct(1)
($000) (%) ($000) (%) ($000) (%) ($000) (%) ($000) (%)
Interest Income $ 12,571 5.25% $ 11,401 5.06% $ 11,570 5.22% $ 11,045 4.93% $ 11,248 4.96%
Interest Expense (3,311) -1.38% (2,700) -1.20% (2,156) -0.97% (1,813) -0.81% (1,415) -0.62%
Net Interest Income $ 9,260 3.87% $ 8,701 3.86% $ 9,414 4.24% $ 9,232 4.12% $ 9,833 4.33%
Provision for Loan Losses (9,017) -3.76% (3,147) -1.40% 0 0.00% 0 0.00% 0 0.00%
Net Interest Income after Provisions $ 243 0.10% $ 5,554 2.46% $ 9,414 4.24% $ 9,232 4.12% $ 9,833 4.33%
Other Income $ 945 0.39% $ 876 0.39% $ 840 0.38% $ 921 0.41% $ 1,208 0.53%
Gain(Loss) on Sale of Loans 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
Operating Expense (7,259) -3.03% (6,723) -2.98% (6,603) -2.98% (7,486) -3.34% (8,764) -3.86%
Net Operating Income ($ 6,071) -2.53% ($ 293) -0.13% $ 3,652 1.65% $ 2,667 1.19% $ 2,277 1.00%
OREO Expense $ 0 0.00% $ 0 0.00% ($ 366) -0.16% ($ 174) -0.08% ($ 172) -0.08%
Termination Expense-Former CEO 0 0.00% 0 0.00% 0 0.00% 0 0.00% (251) -0.11%
Gain on Sale of Investments 0 0.00% 0 0.00% 31 0.01% 0 0.00% 0 0.00%
Total Non-Operating Income (Exp.) $ 0 0.00% $ 0 0.00% ($ 335) -0.15% ($ 174) -0.08% ($ 423) -0.19%
Net Income Before Tax ($ 6,071) -2.53% ($ 293) -0.13% $ 3,317 1.50% $ 2,493 1.11% $ 1,854 0.82%
Income Taxes (349) -0.15% 0 0.00% 4,935 2.22% (879) -0.39% (697) -0.31%
Net Income (Loss) ($ 6,420) -2.68% ($ 293) -0.13% $ 8,252 3.72% $ 1,614 0.72% $ 1,157 0.51%
Adjusted Earnings:
Net Income ($ 6,420) -2.68% ($ 293) -0.13% $ 8,252 3.72% $ 1,614 0.72% $ 1,157 0.51%
Add(Deduct): Non-Operating (Inc)/Exp 0 0.00% 0 0.00% 31 0.01% 0 0.00% 251 0.11%
Tax Effect 0 0.00% 0 0.00% (12) -0.01% 0 0.00% (95) -0.04%
Adjusted Earnings: ($ 6,420) -2.68% ($ 293) -0.13% $ 8,271 3.73% $ 1,614 0.72% $ 1,313 0.58%
Memo:
Efficiency Ratio (%) 71.13% 70.20% 64.39% 73.73% 79.38%
Return on Equity (%) -15.70% -0.88% 23.39% 3.83% 2.60%
Effective Tax Rate (%) -
-5.75% 0.00% 148.78% 35.26% 37.59%

(1) Ratios are as a percent of average assets.

Source: Community First’s preliminary prospectus, audited financial reports.

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(2) the practice of originating long-term fixed rate loans that do not meet all requirements for secondary market sales, and thus bear higher interest rates; (3) the prevailing low interest rate
environment, which has kept deposit funding costs low; (3) an effort to cause higher costing deposit funds to be withdrawn and replaced by low cost checking accounts through the Kasasa
program; and, (4) the relatively significant fixed rate residential loan portfolio and increasing diversification into higher yielding commercial real estate and non-real estate loans, which has
supported the interest income ratio. Interest income as a percent of average assets has increased from 4.93% for fiscal 2010 to 4.96% for the latest 12 month period. The Bank’s level of
interest income is also supported by the relatively modest level of non- accruing loans, which would act to reduce the level of interest income recognized. The Bank’s interest rate spreads
and yields and costs for the past three years are set forth in Exhibits I-3 and I-5.

Non-interest operating income (“other income”) has historically been a notable contributor to the Bank’s income statement, and averaged 0.42% of average assets for fiscal years
2012 through 2016. The non-interest operating income ratio is dependent upon the level of banking activities, including core deposit accounts, with customer service fees constituting the
primary source of non-interest income for the Bank. For the 12 months ended September 30, 2016 other income totaled $1.2 million, or 0.53% of average assets.

Operating expenses represent the other major component of the Bank’s income statement, with such expenses showing a level of fluctuation over the time period covered in Table
1.2 as a percent of average assets. Total operating expenses equaled $8.8 million, or 3.86% of average assets during the 12 months ended September 30, 2016. Such expenses declined
through fiscal 2014 as asset resolution costs declined substantially. The increase in operating expenses since 2014 reflects general inflation costs, the overall costs of operations and the
hiring of a number of new mid-level managers in various operating departments of the Bank, including the LPO operations. The Bank’s level of operating expenses is indicative of the
higher staffing needs associated with the intended diversification of the loan portfolio and lending operations. Additional increasing operating expenses include data processing and
marketing as the Bank attempts to grow the balance sheet and loan portfolio. Upward pressure will be placed on the Bank’s expense ratio following the stock offering, due to expenses
associated with operating as a publicly-traded company, including expenses related to the stock benefit plans.
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The trends in the net interest income and operating expense ratios since fiscal 2009 have caused the expense coverage ratio (net interest income divided by operating expenses) to
decrease gradually from a high of 127.7% in fiscal 2012 to 112.2% in fiscal 2016. Also reflecting a similar trend, Newton Federal’s efficiency ratio (operating expenses, net of amortization
of intangibles, as a percent of the sum of net interest income and other operating income) has increased from 71.1% for fiscal 2012 to 79.4% for fiscal 2016. The level of other income has
assisted in maintaining the efficiency ratio. Going forward, the Bank believes the efficiency ratio should improve with continued efforts to control operating expenses and reinvestment of
the offering proceeds.

As noted earlier, loan loss provisions had a significant impact on the income statement through fiscal 2013 as the Bank continued to work out of post-recession asset quality issues.
In contrast, Newton Federal has not recorded any loan loss provisions since fiscal 2013, reflecting the Bank’s favorable asset quality and the decreasing need for increased reserve coverage.
Reflecting the Bank’s asset quality position, chargeoffs have been relatively modest and generally decreasing in recent periods from a high reached in fiscal 2012. As of September 30,
2016, ALLLs equaled 132.87% of non-performing loans and non-performing assets and 2.22% of total loans receivable. Exhibit I-6 sets forth the Bank’s allowance for loan loss activity
during the past five years.

Non-operating items have had a minimal impact on the Bank’s income statement in past five years and have consisted losses on the resolution of OREO, a small amount of gains on
the sale of securities, and the costs related to the separation of the former CEO in 2016.

As noted above, the Bank’s income tax status has been impacted by operating losses incurred through fiscal 2013, which resulted in a DTA that was fully reserved until fiscal 2014.
For fiscal years 2015 and 2016, Newton Federal recorded tax expense based on recorded taxable income, with the DTA utilized to offset required payments to the US Treasury. The
effective tax rates for those years were within a narrow range and equaled 37.6% for fiscal 2016. The Bank’s marginal effective statutory tax rate approximates 38.0%, and this is the rate
utilized to calculate the net reinvestment benefit from the offering proceeds.

Interest Rate Risk Management

Newton Federal’s balance sheet is liability-sensitive in the shorter-term and, thus, the net interest margin will typically be unfavorably affected during periods of rising and higher
interest rates. Newton Federal measures its interest rate risk exposure by use of the net economic value risk (“NEV”) methodology, which provides an analysis of estimated changes in the
Bank’s NEV under the assumed instantaneous changes in the U.S. treasury yield curve. Utilizing figures as of September 30, 2016, based on a 2.0% instantaneous and sustained increase in
interest rates, the NEV model indicates that the Bank’s NEV would decrease by 12.3% (see Exhibit I-7).
RP ® Financial, LC. OVERVIEW AND FINANCIAL ANALYSIS
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In recent periods, the Bank has pursued a number of strategies to manage interest rate risk, particularly with respect to seeking to limit the repricing mismatch between interest rate
sensitive assets and liabilities. The Bank manages interest rate risk from the asset side of the balance sheet through pricing 1-4 family residential real estate loans in a way that encourages
borrowers to select balloon loans as opposed to longer-term fixed rate loans, and diversifying into other types of lending beyond 1-4 family permanent mortgage loans such as originating
commercial real estate, commercial business and construction/land loans, all of which have shorter terms to repricing or maturity, and carry higher interest rates. On the liability side of the
balance sheet, management of interest rate risk has been pursued through growing the volume of deposits in lower cost and less interest rate sensitive transaction and savings accounts, and
reducing dependence on certificates of deposits and wholesale funding. Core deposits, which consist of transaction and savings accounts, comprised 52.9% of the Bank’s deposits at
September 30, 2016. As of September 30, 2016, of the Bank’s total loans due after September 30, 2017, ARM loans comprised 2.5% of those loans (see Exhibit I-8). In addition, the Bank
maintains a notable balance of cash and cash equivalents, which provide for short-term to maturity funds on the balance sheet. Further, the Bank holds a relatively large percentage of the
balance sheet in interest-free equity (19.36%), which funds interest earning assets at no repricing risk. The infusion of stock proceeds will serve to further limit the Bank’s interest rate risk
exposure, as most of the net proceeds will be redeployed into interest-earning assets and the increase in the Bank’s capital will lessen the proportion of interest rate sensitive liabilities
funding assets.

There are numerous limitations inherent in interest rate risk analyses such as the credit risk of Bank’s loans pursuant to changing interest rates. Additionally, such analyses do not
measure the impact of changing spread relationships, as interest rates among various asset and liability accounts rarely move in tandem, as the shape of the yield curve for various types of
assets and liabilities is constantly changing in response to investor perceptions and economic events and circumstances.

Lending Activities and Strategy

Newton Federal operates two principal lending activities: (1) the origination of 1-4 family residential first mortgage loans, originated primarily for retention in portfolio; and,
(2) commercial real estate, commercial business and construction/land loans as part of a commercial lending
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focus. In recent periods, Newton Federal has increased its focus on commercial lending in an effort to diversify its overall loan portfolio, shorten the term-to-maturity or repricing, and
increase the overall yield earned on loans. Details of the Bank’s loan portfolio composition are shown in Exhibit I-9, while Exhibit I-10 provides details of the Bank’s loan portfolio by
contractual maturity date.

Residential Real Estate Lending

Newton Federal’s historical lending focus has been the origination of first position fixed-rate 1-4 family residential real estate loans, and depending on interest rate, local and
regional real estate market conditions and borrower preferences, also offers 1-4 family residential real estate loans with balloon features, secured by traditional 1-4 family residential real
estate property. The Bank typically retains such loans in portfolio, but occasionally sells loans to the secondary market. Newton Federal also originates to a much more limited extent
second position home equity and home equity lines of credit. As of September 30, 2016, residential first and second position mortgage loans equaled $132.9 million, or 68.5% of total loans,
with adjustable rate loans totaling less than 1% of total residential first mortgage loans. As shown in Exhibit I-9, the balance of first and second position residential mortgage loans has
declined since September 30, 2012, given the increased focus on other lending activities.

Newton Federal’s first mortgage loans are generally underwritten to internal guidelines, although the Bank generally follows documentation practices of Fannie Mae guidelines. The
guidelines allow for loans to be originated at higher interest rates given the non-conforming characteristics. Most of the 1-4 family mortgage loans secured by residences in the Newton
County market surrounding the branch office locations. Loan-to-value ratios (“LTV”) of mortgage loans are generally limited to 90% LTV or the purchase price, whichever is lower, or
above 90% if the loans carry private mortgage insurance. 1-4 family residential real estate loans typically have terms of up to 30 years and balances up to $150,000, although loans with
balances above that amount will be originated. The balloon loans generally have terms of five to seven years and amortize over 30 years. The Bank will originate balloon loans with initial
terms of ten years. Newton Federal does not offer “interest only”, “negative amortization” or “subprime” loans, all of which are loans with higher risk underwriting characteristics.

Second position residential loans totaled a minimal $1.3 million as of September 30, 2016, consisting of $1.2 million of home equity lines of credit and $0.1 million of home equity
loans. These loans are provided as an additional lending service to customers.
RP ® Financial, LC. OVERVIEW AND FINANCIAL ANALYSIS
I.14

Commercial Real Estate/Multi-Family Lending

As of September 30, 2016, commercial real estate/multi-family loans totaled $29.2 million, or 15.0% of the total loan portfolio, and the balances of these loans have been trending
upward in recent years due to the Bank’s focus to diversify its loan portfolio and increase yield. As of September 30, 2012, commercial real estate/multi-family loans totaled $27.1 million,
or 14.3% of the total loan portfolio. These types of loans are attractive credits given the higher yields, larger balances, shorter duration and prospective relationship potential. Commercial
real estate loans are generally balloon loans with an initial term of five years and an amortization term of 20 years, with a balloon payment at the end of the initial term. The maximum
LTVs are generally 80% of the lower of cost or appraised value of the property securing the loan. Debt service coverage ratios are generally required at 1.20x.

These loans are generally priced at a higher rate of interest, have larger balances and involve a greater risk profile than 1-4 residential mortgage loans. Often the payments on
commercial real estate loans are dependent on successful operations and management of the property. When originating commercial real estate loans, the Bank evaluates the qualifications
and financial condition of the borrower, as well as the value and condition of the property securing the loan. The Bank will also generally require and obtain personal guarantees from the
principals. The commercial real estate loans are generally secured by office buildings, industrial facilities, retail facilities, churches and 1-4 family non-owner occupied investment
properties in the primary market area. As of September 30, 2016, the largest commercial real estate loan was $3.1 million and was secured by an owner occupied funeral home located in the
primary market area. A certain portion of recent originations have been sourced from the Athens, Georgia LPO.

Construction/Land Loans
Construction and land loans totaled $13.3 million, or 6.9% of loans outstanding, at September 30, 2016, representing a modest, but increasing level of lending activity for the Bank.
Most of the recent construction/land loans have been originated from the newly opened LPO near Athens. Such balances have increased from $2.0 million, or 1.0% of total loans as of
September 30, 2012. Construction loans are made to individuals for the construction of their primary residences and loans to contractors and builders of single family homes. The Bank also
makes land loans consisting of lots that will be used for future residential development. Newton Federal also originates construction loans for commercial development projects, including
retail buildings, churches, small industrial, hotels and office buildings. Construction loans generally have initial
RP ® Financial, LC. OVERVIEW AND FINANCIAL ANALYSIS
I.15

terms of up to 12 months, during which the borrow pays interest only. Upon completion of construction, these loans may convert to permanent loans or may be paid off in full. Construction
loans have loans and terms comparable to permanent commercial real estate loan originations, with maximum LTV is 80% of the lesser of the appraised value of the completed property.

Construction loans generally involve greater credit risk than improved owner-occupied real estate lending. Newton Federal reviews and inspects each property before disbursement
of loan funds, and also requires detailed cost estimates to complete the construction project and an appraisal of the property. As of September 30, 2016, the largest construction/land loan
had a total balance of $655,000, all of which was secured by improved building lots. This loan was performing according to its terms as of September 30, 2016.

Commercial Business Lending

As part of the full-service business lending philosophy, Newton Federal originates commercial business loans on non-real estate commercial business assets including lines of credit
and term loans. The Bank originates commercial business loans to small businesses, professionals and sole proprietorships in the located regionally in its market area, including loans
secured by business assets. As of September 30, 2016, the Bank had $16.2 million of commercial business loans in portfolio, equal to 8.4% of total loans, an increase from $4.2 million, or
2.2% of loans as of September 30, 2016. Newton Federal encourages the borrowers to maintain their primary deposit accounts with the Bank.

Commercial business term loans are either fixed rate or adjustable rate, with such rates based on the prime rate as published in the Wall Street Journal, plus a margin. Commercial
business loans have greater credit risk compared to 1-4 family residential real estate loans, because the availability of funds for the repayment of commercial business loans are dependent
on the success of the business and the general economic environment of the Bank’s market area. The Bank generally obtains personal guarantees with these loans. LTV’s are generally
made up to 80% of the value of the collateral securing the loan.

Consumer Lending
To a minor extent, Newton Federal originates a variety of consumer loans to individuals who reside or work in the Bank’s market area, including loans secured by new and used
automobiles, certificates of deposits, and unsecured personal loans. As of September 30, 2016, consumer loans totaled $2.3 million, or 1.2% of total loans. The Bank offers such loans since
RP ® Financial, LC. OVERVIEW AND FINANCIAL ANALYSIS
I.16

they tend to have shorter maturities and higher interest rates than mortgage loans. These loans also help to expand and create stronger customer relationships and opportunities for cross-
marketing. Consumer loans have greater risk compared to mortgage loans, due to their dependence on the borrower’s continuing financial stability.

Loan Originations and Sales

All lending activities are conducted by bank personnel located at the office locations, including the LPO, underwritten pursuant to bank policies and procedures. Loan sources
typically include loan officers, marketing efforts, the existing customer base, walk-in customers and referrals from real estate brokers, builders and attorneys. Newton Federal occasionally
purchases whole loans from third parties to supplement internal loan production. These loans usually consist of loans to health care professionals and loans secured by manufactured
housing. The majority of purchased loans are to borrowers who are not located in the primary market area.

Further, the Bank may purchase or sell participation interests in loans. Such loans are underwritten pursuant to existing bank underwriting criteria and procedures. The Bank has not
historically sold participation interests in loans originated by the Bank. Historically, Newton Federal has not originated significant amounts of loans for sale, but such activity may increase
in the future in order to assist in management of interest rate risk and to generate fee income. The Bank currently sell loans through the LenderSelect Mortgage Group. At September 30,
2016, there were a total of $472,000 of loans held for sale, and the Bank sold $2.3 million of loans during the year ended September 30, 2016.

Asset Quality
Newton Federal’s lending operations include originations of commercial real estate/multi-family, commercial business, construction/land and consumer loans for portfolio, all of
which carry a higher risk profile than traditional 1-4 family mortgage lending. Since fiscal 2012 the Bank has recorded a declining level of non-performing assets (“NPAs”), consisting of
non-accruing loans and OREO. NPAs have ranged from a low of $3.1 million as of September 30, 2015 to a high of $18.9 million at September 30, 2012, and totaled $3.2 million at
September 30, 2016. This balance consisted solely of non-accruing loans, as the OREO balance was zero. The non-accruing loans were comprised of 1-4 family first and second position
loans (93%) and commercial loans (7%). Exhibit I-11 presents a history of NPAs for the Bank since 2012.
RP ® Financial, LC. OVERVIEW AND FINANCIAL ANALYSIS
I.17

To track the Bank’s asset quality and the adequacy of valuation allowances, Newton Federal has established detailed asset classification policies and procedures which are consistent
with regulatory guidelines. Detailed asset classifications are reviewed quarterly by senior management and the Board. Pursuant to these procedures, when needed, the Bank establishes
additional valuation allowances to cover anticipated losses in classified or non-classified assets. As of September 30, 2016, the Bank maintained an allowance for loan losses of $4.3
million, equal to 2.22% of total loans receivable and 132.87% of non-accruing loans.

Funding Composition and Strategy

Deposits have traditionally accounted for all of the Bank’s IBL, as no borrowings has been used over the past five fiscal years. At September 30, 2016, deposits equaled $181.7
million. Exhibit I-12 sets forth the Bank’s deposit composition for the past three years and Exhibit I-13 provides the maturity composition of the certificate of deposit (“CD”) portfolio at
September 30, 2016 for all CDs in excess of $250,000 in balance. CDs constitute the largest but decreasing portion of the Bank’s deposit base, totaling 47.1% of deposits at September 30,
2016 versus 59.0% of deposits as of September 30, 2012. Checking and savings accounts equaled $73.6 million, or 40.5% of total deposits as of September 30, 2016, versus $49.8 million,
or 27.8% of total deposits at September 30, 2012.

Newton Federal’s current CD composition reflects a concentration of short-term CDs (maturities of one year or less). As of September 30, 2016, the CD portfolio totaled $85.5
million, and $35.0 million of CDs with balances in excess of $250,000. Of the CDs with balances greater than $250,000, 39.6% of the CDs were scheduled to mature in one year or less.
There were no brokered CDs in portfolio as of September 30, 2016.

Newton Federal has not historically utilized borrowings for funding. The Bank has not needed such funds due to the level of lending activities and available cash and liquidity,
which has been used for recent increases in portfolio loans. The Bank maintains a $58.0 million line of credit with the FHLB of Atlanta as a contingent funding source. Newton Federal also
has two un-secured federal funds lines of credit for a total amount of $12.5 million. No amounts have been utilized under these borrowing relationships except for annual testing of the
funding sources.

Subsidiary Operations
The Bank currently does not operate any subsidiaries. Upon completion of the conversion, Newton Federal will become the wholly-owned subsidiary of the Company.
RP ® Financial, LC. OVERVIEW AND FINANCIAL ANALYSIS
I.18

Legal Proceedings
The Bank is not involved in any pending legal proceedings other than routine legal proceedings occurring in the ordinary course of business which, in the aggregate, are believed by
management to be immaterial to the financial condition of the Bank.
RP ® Financial, LC. MARKET AREA
II.1

II. MARKET AREA ANALYSIS

Introduction
Newton Federal currently conducts operations through three banking offices in Newton County, Georgia and an LPO in Bogart, Oconee County, Georgia. Newton County is located
approximately 35 miles east of Atlanta, Georgia, while Oconee County is part of the Athens, Georgia metropolitan area. The Bank’s primary market area for deposit gathering thus consists
of Newton County, while lending activities are focused in Newton County (1-4 family residential and commercial lending) and Gwinnett, Clarke, Walton, Barrow, Oconee and Jackson
Counties (commercial and construction lending). The expansion of the lending market beyond Newton County (all of the additional counties are located to the north and northeast of
Newton County extending to the city of Athens, Georgia), has been recently pursued in order to gain access to a larger market for business activities that has more favorable demographic
and economic characteristics and trends. The LPO in Oconee County was opened in January 2016 and is staffed by loan originators that have experience and knowledge of the market area
counties outside of Newton County. The primary market area contains small towns and has suburban and rural areas, all of which are exurbs of the Atlanta metropolitan area. The LPO is
located close to the city of Athens, Georgia (Clarke County), the site of the University of Georgia. Details of the Bank’s office buildings are presented in Exhibit II-1.

The regional market area has a diversified economy, with services, wholesale/retail trade, construction, health care, manufacturing and state and local government constituting the
primary sectors of employment. Within the expanded market area counties, income levels and housing values are generally higher than levels found in the Bank’s traditional Newton
County market. The regional banking environment is highly competitive, and includes a large number of commercial banks, along with a number of credit unions and other financial
services companies, some of which have a national presence. Within this region, community banking institutions remain a part of the banking industry.

Future business and growth opportunities will be partially influenced by economic and demographic characteristics of the markets served by the Bank, particularly the future growth
trends of the regional economy, demographic growth trends, and the nature and intensity of the competitive environment for financial institutions. These factors outlined herein have been
accounted for in the determination of the Company’s pro forma market value.
RP ® Financial, LC. MARKET AREA
II.2

National Economic Factors

The business potential of a financial institution is partially dependent on the future operating environment and growth opportunities for the financial services industry and the
economy as a whole. Since the end of the “great recession” in 2009, the national economy has recorded modest growth rates, in terms of gross domestic product (“GDP”), ranging from a
low of 1.6% in calendar year 2011 to a high of 2.5% in calendar year 2010. GDP growth was 2.2% for calendar year 2013, 2.4% for calendar years 2014 and 2015, and an annualized 1.8%
for the nine months ended September 30, 2016, indicating positive, yet modest growth for the US economy. As a result of the recession, approximately 8 million jobs were lost as
consumers cut back on spending, causing a reduction in the need for many products and services. Total personal wealth declined notably due to the housing crisis and the drop in real estate
values. The economy has recorded slow, but steady job growth since reaching a low in early 2010, with approximately 2.5 million jobs added in 2015, and a total of 1.6 million jobs created
for the nine months ended September 30, 2016.

For the 12 months ended October 2016, the national inflation rate was 1.06%, showing that inflation remains under control. Indicating a level of continued improvement, the national
unemployment rate equaled 4.7% as of October 2016, slightly lower than the 4.8% rate as of October 2015. Job growth is expected to slow as baby boomers are aging and economy is
approaching full employment level nationally. The Federal Reserve has indicated that it will continue efforts to stimulate growth in the economy through maintaining low interest rates,
although certain signals have been given that rates may start to rise by the end of 2016. Low interest rates are expected to remain a focus in order to support a continued recovery of the
economy in general and the housing sector specifically.

The major stock exchange indices have fluctuated, but trended upward over the last 12 months. Stock prices continue to be impacted by world events, including during the second
half of June 2016, with Britain’s late-June vote on exiting the European Union (“Brexit”) impacting global stock markets. Stocks traded higher ahead of the Brexit vote and then plunged
sharply lower, as the shock from Britain’s vote to leave the European Union swept across global stock markets. Further impacts to the stock market included the national election through
November 2016 and the implications of the new administration that will be in place in early 2017. As an indication of the changes in the nation’s stock markets over the last 12 months, on
September 30, 2016, the DJIA closed at 18,308.15, an increase of 12.4% from September 30, 2015, and the
RP ® Financial, LC. MARKET AREA
II.3

NASDAQ Composite Index closed at 5,312.00 an increase of 15.0% over the same time period. The S&P 500 closed at 2,168.27 on September 30, 2016, an increase of 13.0% from
September 30, 2015. Forecasts indicate mediocre economic growth through 2017, with an expectation of a mild recession in 2018, given that the economic recovery is already the third
longest in history.

Regarding factors that most directly impact the banking and financial services industries, the residential real estate industry has, to a large extent, recovered from the 2007-2009
housing crisis and recession. Following a relatively slow recovery through early 2012, in recent periods the number of housing foreclosures has remained modest, new and previously-
owned home sales have increased, and residential housing prices have continued to trend upward in most metropolitan areas of the country. Home builders continue to report strong activity
for new home construction. National home price indices have, to a large extent, recovered from the lows reached in 2009, with the national median home price reaching $236,450 in June
2016, versus $169,000 in March 2009. The commercial real estate market has also generally improved through mid-2016, in terms of sales activity, lease terms, and vacancy
rates. However, competition among lenders remains high in most regions of the country.

According to the September 2016 housing forecast from the Mortgage Bankers Association (the “MBA”), existing home sales are projected to increase by approximately 4.8% and
new home sales are expected to increase by 15.7% through the course of 2016. The MBA forecast also showed modest increase in the median sales prices for existing homes in 2016 and
2017. Total mortgage production is forecasted to increase in 2016 to $1.838 trillion compared to $1.630 trillion in 2015. The growth in 2016 originations is due in part to 11.4% increase in
home purchase mortgage originations, with purchase lending forecasted to total $981 billion in 2016. Comparatively, refinancing volumes are predicted to increase by 14.4% in 2016, with
refinancing volume forecasted to total $857 billion in 2016. For 2017, refinancing volume is projected to decline significantly, while home purchase mortgage originations are projected to
continue growing.

Based on the consensus outlook of nearly 63 economists surveyed by The Wall Street Journal in September 2016, the U.S. economy is poised for stronger growth in 2016, with GDP
growth forecasted at 1.8% for the year, due to lower gas prices, a tighter job market and expectation of steady wage gains. The forecast reveals the U.S. economy should grow at a faster
pace of 2.2% in 2017. Economists expect that the unemployment rate will continue to steadily decline, from 5.0% in August 2016 to 4.7% by December 2016, and is forecasted to fall to
4.6%
RP ® Financial, LC. MARKET AREA
II.4

by the end of 2017, which would be the lowest jobless rate since April 2008. On average, the economists expect the Federal Reserve to begin raising its target rate in fourth quarter of 2016,
and forecast an increase in 10-year Treasury yield to 1.8% by the end of 2016; thereafter increasing to 2.0% through June 2017. Inflation pressures were forecasted to remain below 2.5%
through the end of 2017 and the price of oil was expected to increase to approximately $47 a barrel through the end of 2016.

Interest Rate Environment

The Federal Reserve manages interest rates in order to promote economic growth and to avoid inflationary periods. Amid increased indications of the economic downturn
developing in 2007, the Fed began reducing market interest rates. Beginning in August 2007 and through December 2008, the Fed decreased market interest rates a total of 12 times in an
effort to stimulate the economy, both for personal and business spending. As of January 2009, the Discount Rate had been lowered to 0.50%, and the Federal Funds rate target was 0.00% to
0.25%. These historically low rates were intended to enable a faster recovery of the housing industry, while at the same time lower business borrowing costs, and such rates remained in
effect through early 2010. In February 2010, the Fed increased the discount rate to 0.75%, reflecting a slight change to monetary strategy. The effect of the interest rate decreases since mid-
2008 has been most evident in short term rates, which decreased more than longer term rates, increasing the slope of the yield curve. The low interest rate environment has been maintained
as part of a strategy to stimulate the economy by keeping both personal and business borrowing costs as low as possible. The strategy has achieved its goals, as borrowing costs for
residential housing have been at historical lows, and the prime rate of interest remains at a low level.

As of September 30, 2016, the bond equivalent yields for U.S. Treasury bonds with terms of one and ten years equaled 0.59% and 1.60%, respectively, versus comparable year ago
yields of 0.33% and 2.06%. The overall low interest rates have had an unfavorable impact on the net interest margins of many financial institutions, as they rely on a spread between the
yields on longer term assets and the costs of shorter term funding sources. In the last couple of years, asset yields have continued to decline, while material reductions in liability costs have
ceased, resulting a gradual reduction in yield/cost spreads for many institutions. In addition, institutions who originate substantial volumes of prime-based loans have also given up yield as
the prime
RP ® Financial, LC. MARKET AREA
II.5

rate declined from 5.00% as of June 30, 2008 to 3.25% as of December 31, 2008. The rate remained at that level until January 2016, when it increased to 3.50%. This low interest rate
environment, along with continued competition in the industry for quality loans, has placed downward pressure on net interest margins. Historical interest rate trends are presented in
Exhibit II-2.

Market Area Regional Economy

Newton Federal’s primary market area (extending from Newton County in the south to the city of Athens in the north), lies in the heart of Georgia’s “Innovation Crescent”, a multi-
county region anchored by Hartsfield-Jackson Atlanta International Airport and the Georgia Institute of Technology at the southern end and the University of Georgia and the Interstate 85
corridor on the northern end, with the region between Atlanta and Athens connected by the “Innovation Corridor”, Georgia Highway 316. The Crescent spans the area of Georgia to the east
of the Atlanta metropolitan area. This region, typically one of the nation’s most economically active and diverse areas, is home to 40% of Georgia’s population, 16 Fortune 500 company
headquarters, and 7 of the top 100 Health Information Technology company headquarters.

The Innovation Crescent serves as a hub for the life sciences, biotech and technology firms and contains highly rated research universities and government facilities such as the
Centers for Disease Control. The higher education universities include the University of Georgia, Georgia Tech, Emory University, Morehouse School of Medicine, The Technical College
System of Georgia and Georgia State University. There also is a concentration in advanced manufacturing firms and logistics and distribution centers. The region is centrally located in the
southeastern US, with easy access to transportation facilities both nationally and internationally.

Newton Federal’s specific market area counties are also impacted by the economy and presence of the Atlanta metropolitan area, as a portion of the market area residents commute
to employment in the city of Atlanta or in the close-in suburbs of Atlanta. The city of Covington, Georgia lies approximately 35 miles east of downtown Atlanta, with easy access along
Interstate 20. The other market area counties also are within reasonable commuting distance to Atlanta.
RP ® Financial, LC. MARKET AREA
II.6

Regional Employment
Table 2.1 details the largest employers in the Bank’s market area counties. The market area contains a diverse cross section of employment sectors, which partially mitigates the risk

Table 2.1
Newton Federal Bank
Market Area Largest Employers

Company/Institution County Employees

Newton County Board of Education Newton 2,324
Shire Pharmaceuticals Newton 1,500
CR Bard Newton 650
Newton County Government Newton 615
Piedmont Newton Hospital Newton 600
General Mills Newton 575
Pactiv Corp. Newton 500
SRG Global Newton 385
Walton County Board of Education Walton 1,876
Wal-Mart Supply Chain Walton 1,718
Hitachi Automotive Systems Walton 900
Walton County Government Walton 721
Gwinnett County Public School System Gwinnett 20,479
Gwinnett County Government Gwinnett 4,854
Gwinnett Health Care System Gwinnett 3,566
Publix Gwinnett 3,558
Barrow County School System Barrow 2,100
Chico’s FAS, Inc. Barrow 1,200
Harrison Poultry Barrow 1,100
University of Georgia Clark, Madison, Oconee 9,400
Athens Regional Medical Center Clark, Madison, Oconee 2,720
Clarke County School District Clark, Madison, Oconee 2,100
ConAgra Clark, Madison, Oconee 1,590
Athens-Clarke County Government Clark, Madison, Oconee 1,500

Source: County and Government Websites.

associated with a decline in any particular economic sector or industry. Similar to many areas of the country, the largest employers typically include local school systems and local
governments. Further, health care employment continues to expand in the nation, and the Bank’s market area also includes certain regional health care facilities. The above described
Innovation Crescent has resulted in significant employment in the life sciences and technology, including employment in areas such as bio-medical, agriculture and food sciences, bio-
chemistry and bio-physics, and nuclear medicine. There is further employment in services, retail and trade, with the size and scope of the market area employment resulting in a diversified
employment base. As indicated earlier, a notable portion of residents also commute into the Atlanta metropolitan area for employment.
RP ® Financial, LC. MARKET AREA
II.7

Market Area Demographics

Demographic and economic growth trends, measured by changes in population, number of households, age distribution and median household income, provide key insight into the
health of the Bank’s market area. Trends in these key measures are summarized by the data presented in Table 2.2 from 2010 to 2017 (estimated by the census) and projected through 2022,
with additional detail shown in Exhibit II-3. The Bank’s market area population base totaled 108,000 in Newton County, the location of most residential lending and the deposit gathering
branch offices. The other expanded market area counties contained a total population of 1.3 million, including 0.9 million in Gwinnett County. This recent market area expansion thus
provides a significant population base for access to additional loan and deposit customers.

The original market area county of Newton recorded population growth from 2010 to 2017 of 1.1% annually, which was slightly higher than the state growth rate of 1.0%, and much
higher than the national growth rate of 0.7%. The expanded market area counties are also included in Table 2.2, revealing that all such counties recorded annual population growth equal to
or higher than the state growth rate from 2010-2017, with such growth rates ranging from a low of 1.0% in Walton and Jackson Counties to a high of 2.0% in Barrow County. Projections
for the next five years indicate that these growth trends are expected to continue, with Newton County also recording relatively comparable population growth. This data supports the efforts
by the Bank of expanding the market area counties to areas outside of Newton County, and into areas of strong growth trends. Household growth rates showed similar relative trends for all
of the market area counties, the state and nation.

Age distribution figures in Table 2.2 indicate that the state of Georgia has a generally lower age profile than the nation as a whole. This characteristic is also present in the Bank’s
market area counties, including the home county of Newton. This indicates that a larger portion of the residents are in their higher income or higher wealth years, a favorable characteristic
for financial institutions such as the Bank.

Income levels in the market area tend to reflect the nature of the markets served, with the expanded market area counties recording higher income levels than Newton County in
terms of median household and per capita incomes. Such levels of income reinforce the attractiveness of the expanded market area, which contains a higher proportion of professional and
technical jobs
RP ® Financial, LC. MARKET AREA
II.8

Table 2.2
Newton Federal Bank
Summary Demographic Data

Year Growth Rate

2010 2017 2022 2010-2017 2017-2022
(%) (%)
Population (000)
USA 308,746 325,139 337,393 0.7% 0.7%
Georgia 9,688 10,375 10,911 1.0% 1.0%
Newton County 100 108 114 1.1% 1.2%
Gwinnett County 805 923 998 2.0% 1.6%
Barrow County 69 78 84 1.7% 1.6%
Walton County 84 90 95 1.0% 1.1%
Jackson County 60 65 69 1.0% 1.2%
Clark County 117 126 134 1.2% 1.2%
Oconee County 33 37 40 1.8% 1.6%
Households (000)
USA 116,716 123,357 128,247 0.8% 0.8%
Georgia 3,586 3,854 4,062 1.0% 1.1%
Newton County 34 37 39 0.9% 1.1%
Gwinnett County 269 304 327 1.8% 1.5%
Barrow County 24 27 29 1.5% 1.5%
Walton County 30 32 34 1.1% 1.1%
Jackson County 21 23 24 0.8% 1.1%
Clark County 45 48 51 0.9% 1.3%
Oconee County 12 13 14 1.9% 1.7%
Median Household Income ($)
USA NA 57,462 61,642 NA 1.4%
Georgia NA 52,421 56,517 NA 1.5%
Newton County NA 49,669 52,667 NA 1.2%
Gwinnett County NA 63,148 66,521 NA 1.0%
Barrow County NA 52,405 54,971 NA 1.0%
Walton County NA 54,096 56,950 NA 1.0%
Jackson County NA 57,111 62,006 NA 1.7%
Clark County NA 32,847 34,181 NA 0.8%
Oconee County NA 76,548 80,089 NA 0.9%
Per Capita Income ($)
USA NA 31,459 34,068 NA 1.6%
Georgia NA 28,400 30,771 NA 1.6%
Newton County NA 22,448 23,538 NA 1.0%
Gwinnett County NA 27,361 28,974 NA 1.2%
Barrow County NA 21,267 22,235 NA 0.9%
Walton County NA 24,268 25,757 NA 1.2%
Jackson County NA 24,987 27,123 NA 1.7%
Clark County NA 22,369 23,519 NA 1.0%
Oconee County NA 36,468 38,488 NA 1.1%

15-
2017 Age Distribution (%) 0-14 Yrs. 34 Yrs. 35-54 Yrs. 55-69 Yrs. 70+ Yrs.
USA 18.8 27.1 25.7 18.1 10.3
Georgia 20.0 27.7 26.8 16.9 8.6
Newton County 21.4 26.9 27.4 16.0 8.3
Gwinnett County 22.0 27.4 29.3 15.3 5.9
Barrow County 22.3 26.8 27.6 15.5 7.8
Walton County 20.3 25.5 26.8 17.6 9.9
Jackson County 20.7 24.7 27.7 17.4 9.5
Clark County 15.4 45.6 20.4 11.8 6.8
Oconee County 19.8 24.0 27.7 19.1 9.4

$25,000
Less Than to $50,000 to
2017 HH Income Dist. (%) 25,000 50,000 100,000 $100,000+
USA 21.9 22.9 29.5 25.7
Georgia 24.2 24.1 29.2 22.5
Newton County 24.4 26.0 31.5 18.1
Gwinnett County 16.5 23.6 32.1 27.8
Barrow County 19.5 28.3 36.7 15.5
Walton County 21.1 25.4 33.5 19.9
Jackson County 21.6 23.0 32.4 23.0
Clark County 40.8 24.1 22.0 13.1
Oconee County 13.5 18.8 30.7 37.0

Source: SNL Financial, LC.

RP ® Financial, LC. MARKET AREA
II.9

in the life sciences and other employment areas that require a higher level of skills and education. Such incomes, with the exception of Clarke County (which contains a large student
population base), were also in-line with or higher than statewide averages. The greater wealth of these markets confirms the efforts by the Crescent region to build a higher income
employment base.

Household income levels shown in Table 2.2 also support this income data, with the market area having a higher proportion of households earning incomes in the $25,000 to
$100,000 range, the type of incomes expected to be seen in the expanded market area counties and the employment characteristics implied by the Innovation Crescent.

Regional Economy
Comparative employment sector data for Newton Federal’s market area presented in Table 2.3 shows that employment in the services industry constituted the major source of jobs in
Newton County and the expanded market area counties, while wholesale/retail employment and construction generally were the second and third largest employment sectors for the Bank’s
primary market area counties. The level of construction employment is consistent with the higher demographic and economic growth characteristics of the market
area. Finance/insurance/real estate employment represented a fourth significant employment sector. The data indicates that the Bank’s market area counties have economies that are
relatively diversified.

Table 2.3
Newton Federal Bank
Primary Market Area Employment Sectors
(Percent of Labor Force)

Newton Gwinnett Barrow Walton Jackson Clarke Oconee

Employment Sector Georgia County County County County County County County
(% of Total Employment)
Services 34.5% 32.9% 32.9% 30.9% 31.4% 29.2% 34.9% 33.0%
Healthcare 4.9% 4.1% 4.6% 4.3% 4.2% 3.2% 6.4% 5.8%
Government 3.7% 2.9% 0.7% 5.1% 3.9% 6.0% 4.8% 4.0%
Wholesale/Retail Trade 25.7% 24.5% 26.4% 25.5% 23.4% 28.4% 26.9% 21.4%
Finance/Ins/Real Estate 10.2% 8.4% 9.8% 8.2% 9.1% 9.0% 11.4% 12.4%
Manufacturing 2.9% 3.6% 3.8% 3.9% 2.8% 4.2% 2.5% 2.1%
Construction 7.9% 12.0% 9.6% 10.8% 14.1% 10.0% 5.7% 10.3%
Information 1.0% 0.7% 1.2% 0.8% 0.7% 0.5% 0.9% 1.0%
Transportation/Utility 3.4% 3.7% 2.9% 3.8% 3.4% 3.4% 2.6% 2.7%
Agriculture 2.5% 3.8% 2.1% 3.7% 4.0% 3.6% 2.2% 5.5%
Other 3.3% 3.2% 5.9% 2.8% 3.0% 2.4% 1.7% 1.9%
100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Source: SNL Financial, LC.

RP ® Financial, LC. MARKET AREA
II.10

Unemployment Data
Comparative unemployment rates for Newton County and the expanded market area counties, as well as for the U.S. and Georgia, are shown in Table 2.4. As of September 2016,
Newton County reported a notably higher unemployment level than the state of Georgia and the expanded market area counties. This also provides an indication of the economic strength of
the expanded market area that is located within the Innovation Crescent, and the more limited market in Newton County. Newton County’s unemployment rate of 5.9% was about 1.0%
higher than the comparative rates, with such rate declining somewhat over the past 12 months. The statewide and expanded market area counties reported relatively stable unemployment
rates over the past year, with such rates in general at a “full employment” level of just under 5.0%.

Table 2.4
Newton Federal Bank
Unemployment Trends

Sept. 2015 Sept. 2016

Region Unemployment Unemployment Change
USA 4.9% 4.8% -0.1%
Georgia 5.6% 5.3% -0.3%
Newton County 6.3% 5.9% -0.4%
Expanded Market Area Avg 4.8% 4.9% 0.1%
Gwinnett County 4.9% 4.7% -0.2%
Clarke County 5.6% 6.0% 0.4%
Walton County 5.0% 5.1% 0.1%
Barrow County 4.9% 4.9% 0.0%
Oconee County 4.2% 4.4% 0.2%
Jackson County 4.4% 4.3% -0.1%

Source: U.S. Bureau of Labor Statistics.

Market Area Deposit Characteristics/Competition

The Bank’s deposit base is closely tied to the economic fortunes of Newton County, the location of the Bank’s three branches. Table 2.5 displays deposit market trends from June
30, 2013 through June 30, 2016 for Newton Federal, as well as for all commercial bank and savings institution branches located in Newton County, the expanded market area counties and
the state
RP ® Financial, LC. MARKET AREA
II.11

Table 2.5
Newton Federal Bank
Deposit Summary

As of June 30,
2013 2016 Deposit
Market No. of Market No. of Growth Rate
Deposits Share Branches Deposits Share Branches 2013-2016
(Dollars in Thousands) (%)
Georgia $187,642,000 100.0% 2,576 $225,317,000 100.0% 2,440 6.3%
Commercial Banks 183,988,000 98.1% 2,466 222,313,000 98.7% 2,351 6.5%
Savings Institutions 3,654,000 1.9% 110 3,004,000 1.3% 89 -6.3%
Newton County $ 827,798 100.0% 109 $ 873,294 100.0% 16 1.8%
Commercial Banks 634,731 76.7% 103 683,101 78.2% 10 2.5%
Savings Institutions 193,067 23.3% 6 190,193 21.8% 6 -0.5%
Newton Federal 186,895 22.6% 3 182,100 20.9% 3 -0.9%
Expanded Market Area-Below Listed Counties
Total Deposits $ 16,326,575 100.0% 282 $ 19,872,009 100.0% 268 6.8%
Commercial Banks 16,180,674 99.1% 273 19,779,412 99.5% 260 6.9%
Savings Institutions 145,901 0.9% 9 92,597 0.5% 8 -14.1%
Gwinnett County $ 11,907,835 100.0% 201 $ 14,724,037 100.0% 192 7.3%
Commercial Banks 11,827,006 99.3% 193 14,697,379 99.8% 185 7.5%
Savings Institutions 80,829 0.7% 8 26,658 0.2% 7 -30.9%
Clarke County $ 2,398,139 100.0% 33 $ 2,826,332 100.0% 32 5.6%
Commercial Banks 2,398,139 100.0% 33 2,826,332 100.0% 32 5.6%
Savings Institutions 0 0.0% 0 0 0.0% 0 0.0%
Walton County $ 821,785 100.0% 17 $ 958,386 100.0% 17 5.3%
Commercial Banks 819,021 99.7% 16 958,386 100.0% 17 5.4%
Savings Institutions 2,764 0.3% 1 0 0.0% 0 -100.0%
Barrow County $ 740,024 100.0% 16 $ 804,449 100.0% 14 2.8%
Commercial Banks 740,024 100.0% 16 804,449 100.0% 14 2.8%
Savings Institutions 0 0.0% 0 0 0.0% 0 0.0%
Oconee County $ 596,989 100.0% 13 $ 802,433 100.0% 13 10.4%
Commercial Banks 531,917 89.1% 12 736,494 91.8% 12 11.5%
Savings Institutions 65,072 10.9% 1 65,939 8.2% 1 0.4%
Jackson County $ 680,824 100.0% 18 $ 714,758 100.0% 17 1.6%
Commercial Banks 680,824 100.0% 18 714,758 100.0% 17 1.6%
Savings Institutions 0 0.0% 0 0 0.0% 0 0.0%

Source: FDIC.

of Georgia. In the state of Georgia, commercial banks hold essentially all financial institution deposits, with a market share of 98.7% as of June 30, 2016. Since June 30, 2010, commercial
banks increased deposits at an annual rate of 6.5%, versus a decline of 6.3% annually for savings institutions.
RP ® Financial, LC. MARKET AREA
II.12

Consistent with the state of Georgia, commercial banks maintained a dominant market share of deposits versus savings institutions in all of Newton Federal’s market area counties,
except for Newton County, which recorded the deposits held by the Bank. For the three-year period covered in Table 2.5, savings institutions experienced a decrease in deposit market share
in Newton County of 0.5% annually, while overall deposits increased at an annual rate of 1.8%. This deposit growth rate is lower than the expanded market area counties, which together
recorded an annual increase in deposits of 6.8% over the most recent three year period, and the statewide rate of 6.3% over the same time period. The most rapid deposit growth over the
time period shown in Table 2.5 was recorded in Oconee County (10.4% annually), with other high growth counties including Gwinnett County (7.4% annually) and Clarke County (5.6%
annually). This implies that the expanded market area counties are a more attractive market area for financial institutions and future growth capabilities, and confirms the Bank’s efforts to
expand the market area.

Based on June 30, 2016 deposit data, Newton Federal’s $182.1 million of deposits provided for a 20.9% market share of bank and thrift deposits in Newton County, indicating a
relatively strong market presence. Due to the Bank’s net deposit shrinkage since June 30, 2014, the Bank’s deposit market share declined from 22.6% as of June 30, 2013. This data
indicates a reduction in the competitiveness of the Bank given the overall market growth.

Competition
Newton Federal faces notable competition in both deposit gathering and lending activities, including direct competition with financial institutions that primarily have a local,
regional or national presence. Securities firms and mutual funds also represent major sources of competition in raising deposits. In many cases, these competitors are also seeking to provide
some or all of the community-oriented services as the Bank. With regard to lending competition, the Bank encounters the most significant competition from the same institutions providing
deposit services. In addition, the Bank competes with mortgage companies, independent mortgage brokers, and credit unions. Table 2.6 lists the Bank’s largest competitors in the Newton
County market area based on deposit market share as noted parenthetically, indicating that the large commercial banks with national operations dominate the local markets, with Newton
Federal having a relatively high market share position. This is a positive factor in terms of competitive position for the Bank.
RP ® Financial, LC. MARKET AREA
II.13

Table 2.6
Newton Federal Bank
Market Area Deposit Competitors - Newton County

Location Name Market Share Rank

Newton County, GA Synovus Bank 24.38%
Branch Banking and Trust Co. 24.27%
Newton Federal Bank 20.85% 3 out of 8
United Bank 9.73%
Pinnacle Bank 8.58%
Wells Fargo Bank, NA 7.96%
United Community Bank 3.30%
Guaranty Bank 0.93%

Source: SNL Financial, LC.

RP ® Financial, LC. PEER GROUP ANALYSIS
III.1

III. PEER GROUP ANALYSIS

This chapter presents an analysis of Newton Federal’s operations versus a group of comparable banks (the “Peer Group”) selected from the universe of all publicly-traded savings
institutions in a manner consistent with the regulatory valuation guidelines. The basis of the pro forma market valuation of Newton Federal is derived from the pricing ratios of the Peer
Group institutions, incorporating valuation adjustments for key differences in relation to the Peer Group. Since no Peer Group can be exactly comparable to Newton Federal, key areas
examined for differences are: financial condition; profitability, growth and viability of earnings; asset growth; primary market area; dividends; liquidity of the shares; marketing of the issue;
management; and effect of government regulations and regulatory reform.

Peer Group Selection

The Peer Group selection process is governed by the general parameters set forth in the regulatory valuation guidelines. Accordingly, the Peer Group is comprised of only those
publicly-traded savings institutions whose common stock is either listed on a national exchange (NYSE or AMEX), or is NASDAQ listed, since their stock trading activity is regularly
reported and generally more frequent than non-publicly traded and closely-held institutions. Institutions that are not listed on a national exchange or NASDAQ are inappropriate, since the
trading activity for thinly-traded or closely-held stocks is typically highly irregular in terms of frequency and price and thus may not be a reliable indicator of market value. We have also
excluded from the Peer Group those companies those under acquisition or subject to rumored acquisition and recent conversions, since their pricing ratios are subject to unusual distortion
and/or have limited trading history. A recent listing of the universe of all publicly-traded savings institutions is included as Exhibit III-1.

Ideally, the Peer Group, which must have at least 10 members to comply with the regulatory valuation guidelines, should be comprised of publicly-traded MHCs with comparable
resources, strategies and financial characteristics as Newton Federal. However, there are currently only eight publicly-traded MHCs. Accordingly, in deriving a Peer Group comprised of
institutions with relatively comparable characteristics as Newton Federal, the companies selected for Newton Federal’s Peer Group are all fully-converted companies. The valuation
adjustments applied in the Chapter IV analysis will take into consideration differences between the Company’s MHC form of ownership relative to the fully-converted Peer Group
companies. Also included in Chapter IV is a pricing analysis of the publicly-traded MHCs on a fully-converted basis.
RP ® Financial, LC. PEER GROUP ANALYSIS
III.2

From the universe of publicly-traded thrifts, we selected 10 institutions with characteristics similar to those of Newton Federal. In the selection process, we applied one “screen” to
the universe of all public companies that were eligible for consideration:
• Screen: Savings institutions with assets less than $600 million, equity/assets ratios above 12.50% and having been fully converted for at least one year. Ten companies met
the criteria for the screen and were included in the Peer Group.

Exhibit III-1 provides financial and public market pricing characteristics of all publicly-traded thrifts, while Exhibit III-2 provides financial and public market pricing characteristics
for all savings institutions with assets greater than $600 million. Table 3.1 shows the general characteristics of each of the 10 Peer Group companies and Exhibit III-3 provides summary
demographic and deposit market share data for the primary market areas served by each of the Peer Group companies. While there are expectedly some differences between the Peer Group
companies and Newton Federal, we believe that the Peer Group companies, on average, provide a good basis for valuation subject to valuation adjustments. The following sections present a
comparison of Newton Federal’s financial condition, income and expense trends, loan composition, credit risk and interest rate risk versus the Peer Group as of the most recent publicly
available date. Comparative data for all publicly-traded thrifts have been included in the Chapter III tables as well.

A summary description of the key comparable characteristics of each of the Peer Group companies relative to Peer Group as a whole is detailed below.
• Anchor Bancorp of Washington. Comparable due to elevated equity/asset ratio, similar yield/cost spread, similar earning asset concentration in loans, elevated level of interest
income and operating expenses.
• Equitable Financial Corp. of Nebraska. Comparable due to elevated equity/asset ratio, similar earning asset concentration in loans, costing liability funding composition, similar
return on assets with comparable non-interest income, limited investment in MBS, relatively favorable asset quality.
• IF Bancorp, Inc. of Illinois. Comparable due to elevated equity/asset ratio, relatively limited asset growth in most recent year, similar funding costs, level of non-interest income and
effective tax rate, level of construction loans.
• Jacksonville Bancorp of Illinois. Comparable due to elevated equity/asset ratio, similar balance sheet funding composition, limited levels of non-recurring income or losses, similar
operating expense ratio, elevated yield on interest earning assets and similar
RP ® Financial, LC. PEER GROUP ANALYSIS
III.3

Table 3.1
Peer Group of Publicly-Traded Thrifts
As of November 25, 2016 or the Most Recent Date Available

As of
November 25, 2016
Total Fiscal Conv. Stock Market
Ticker Financial Institution Exchange Region City State Assets Offices Mth End Date Price Value
($Mil) ($) ($Mil)
ANCB Anchor Bancorp NASDAQ WE Lacey WA 436 10 Jun 1/26/11 25.40 64
EQFN Equitable Financial Corp. NASDAQ MW Grand Island NE 228 6 Jun 7/9/15 9.10 32
IROQ IF Bancorp, Inc. NASDAQ MW Watseka IL 589 6 Jun 7/8/11 19.35 76
JXSB Jacksonville Bancorp, Inc. NASDAQ MW Jacksonville IL 331 6 Dec 7/15/10 29.26 53
MELR Melrose Bancorp, Inc. NASDAQ NE Melrose MA 267 1 Dec 10/22/14 15.91 41
MSBF MSB Financial Corp. NASDAQ MA Millington NJ 434 5 Dec 7/17/15 13.70 78
PBSK Poage Bankshares, Inc. NASDAQ MW Ashland KY 449 10 Dec 9/13/11 18.95 70
PBIP Prudential Bancorp, Inc. NASDAQ MA Philadelphia PA 559 6 Sep 10/10/13 15.81 127
UCBA United Community Bancorp NASDAQ MW Lawrenceburg IN 528 8 Jun 1/10/13 16.20 68
WBKC Wolverine Bancorp, Inc. NASDAQ MW Midland MI 369 3 Dec 1/20/11 27.97 59

Source: SNL Financial, LC.

RP ® Financial, LC. PEER GROUP ANALYSIS
III.4

levels of commercial real estate and commercial business loans as a percent of assets, and comparable reserve coverage ratios.
• Melrose Bancorp, Inc. of Massachusetts. Comparable due to elevated equity/asset ratio, comparable level of cash and investments, relatively similar earning asset/funding liabilities
composition, similar return on assets and cost of interest-bearing liabilities, level of 1-4 family residential loans as a percent of assets, limited diversification into construction/land
loans.
• MSB Financial Corp. of New Jersey. Comparable due to elevated equity/asset ratio, similar earning asset/costing liability structure, costs of interest bearing liabilities, similar lending
focus on 1-4 family residential loans and diversification into commercial real estate loans, comparable level of NPAs+90 day delinquencies and NPAs as a percent of loans.
• Poage Bankshares, Inc. of Kentucky. Comparable due to elevated equity/asset ratio, similar earning asset/costing liability structure, similar level of interest income, non-interest
income and operating expenses as a percent of average assets, similar yield cost spread, similar level of loan portfolio diversification as a percent of assets.
• Prudential Bancorp, Inc. of Pennsylvania. Comparable due to elevated equity/asset ratio, level of net income and interest expense as a percent of average assets, similar level of cost
of funds, lending diversification on commercial real estate and low risk-weighted assets/assets ratio.
• United Community Bancorp of Indiana. Comparable due to elevated equity/asset ratio, similar composition of balance sheet liability base, limited asset growth in past 12 months,
similar investment in 1-4 family residential assets in the form of MBS and whole loans, similar loan diversification into non-residential lending, relatively more favorable asset
quality.
• Wolverine Bancorp, Inc. of Michigan. Comparable due to elevated equity/asset ratio, similar loans/assets ratio, similar level of interest income and yield on interest earning assets,
comparable levels of construction loans and commercial business loans, and relatively more favorable asset quality.

In aggregate, the Peer Group companies maintained a higher level of equity as the industry average (15.88% of assets versus 12.51% for all public companies), but recorded a lower
level of profitability as a percent of average assets (0.57% ROAA versus 0.63% for all public companies), as well as a less favorable ROE (3.59% ROE versus 5.40% for all public
companies). The Peer Group’s average P/TB ratio was lower than the industry average, while the average P/CE multiple was above the respective average for all publicly-traded thrifts.
RP ® Financial, LC. PEER GROUP ANALYSIS
III.5

All Fully-Conv.
Publicly-Traded Peer Group
Financial Characteristics (Averages)
Assets ($Mil) $ 1,882 $ 419
Market capitalization ($Mil) $ 318 $ 67
Equity/assets (%) 12.51% 15.88%
Return on average assets (%) 0.63% 0.57%
Return on average equity (%) 5.40% 3.59%
Pricing Ratios (Averages) (1)
Price/core earnings (x) 18.23x 21.94x
Price/tangible book (%) 119.15% 100.73%
Price/assets (%) 13.58% 15.84%

(1) Based on market prices as of November 25, 2016.

Ideally, the Peer Group companies would be comparable to Newton Federal in terms of all of the selection criteria, but the universe of publicly-traded thrifts does not provide for an
appropriate number of such companies. However, in general, the companies selected for the Peer Group were fairly comparable to Newton Federal, as will be highlighted in the following
comparative analysis.

Financial Condition
Table 3.2 shows comparative balance sheet measures for Newton Federal and the Peer Group, reflecting the expected similarities and some differences given the selection
procedures outlined above. The Bank’s and Peer Group ratios reflect balances as of September 30, 2016. Newton Federal’s equity-to-assets ratio of 19.36% was higher than the Peer
Group’s average equity ratio of 15.88%. The Bank’s pro forma capital position will increase with the addition of stock proceeds, providing the Bank with an increased advantage in for this
metric in comparison to the Peer Group. Tangible equity-to-assets ratios for the Bank and the Peer Group equaled 19.36% and 15.70%, respectively. The increase in Newton Federal’s pro
forma capital position will be favorable from a risk perspective and in terms of future earnings potential that could be realized through leverage and lower funding costs. At the same time,
the Bank’s higher pro forma capitalization will depress return on equity. Both Newton Federal’s and the Peer Group’s capital ratios reflected capital surpluses with respect to the regulatory
capital requirements, with the Bank’s ratios currently higher than the Peer Group’s ratios. On a pro forma basis, the Bank’s regulatory surpluses will become more significant.
RP ® Financial, LC. PEER GROUP ANALYSIS
III.6

Table 3.2
Balance Sheet Composition and Growth Rates
Comparable Institution Analysis
As of September 30, 2016 or the Most Recent Date Available

Balance Sheet as a Percent of Assets Balance Sheet Annual Growth Rates Regulatory Capital
Cash & MBS & Net Borrowed Sub. Total Goodwill Tangible MBS, Cash & Borrows. Total Tangible Tier 1 Tier 1 Risk-Based
Equivalents Invest BOLI Loans (1) Deposits Funds Debt Equity & Intang Equity Assets Investments Loans Deposits &Subdebt Equity Equity Leverage Risk-Based Capital
Newton Federal Bank
September 30, 2016 11.03% 3.31% 0.00% 81.63% 78.04% 0.00% 0.00% 19.36% 0.00% 19.36% 2.87% -27.69% 11.93% 2.84% 0.00% 2.63% 2.63% 19.32% 30.86% 32.13%
All Thrifts
Averages 7.18% 14.77% 1.59% 72.36% 75.70% 10.29% 0.44% 12.50% 0.46% 12.26% 12.67% 9.53% 14.59% 13.78% 9.00% 10.70% 8.51% 12.08% 18.54% 19.67%
Medians 5.28% 12.31% 1.63% 74.94% 76.84% 9.04% 0.00% 11.42% 0.00% 11.12% 8.34% 3.59% 10.46% 9.16% 0.00% 3.98% 3.31% 10.91% 15.60% 16.85%
State of GA
CHFN Charter Financial
Corporation GA 7.37% 14.55% 3.41% 69.09% 80.52% 3.46% 0.46% 14.08% 2.25% 11.83% 40.50% 44.93% 39.21% 57.25% -8.73% -0.87% -14.83% 11.51% 14.34% 15.26%
Comparable Group
Averages 5.80% 16.22% 2.05% 73.05% 76.78% 6.29% 0.06% 15.88% 0.19% 15.70% 10.11% -1.03% 13.84% 10.83% 147.65% -0.35% -0.27% 14.28% 20.76% 21.91%
Medians 5.06% 12.96% 2.09% 75.87% 78.67% 4.04% 0.00% 15.73% 0.00% 15.46% 7.82% -13.63% 10.77% 7.90% 0.00% -0.11% -0.04% 13.71% 19.80% 20.82%
Comparable Group
ANCB Anchor Bancorp WA 2.83% 7.23% 4.51% 80.82% 69.78% 14.11% 0.00% 14.63% 0.00% 14.63% 14.45% -21.43% 23.59% 1.04% 515.00% 0.77% 0.77% 14.20% 15.30% 16.20%
EQFN Equitable
Financial Corp. NE 3.92% 0.70% 0.00% 90.74% 83.23% 0.00% 0.00% 15.92% 0.00% 15.92% 7.67% -30.32% 11.21% 8.53% 0.00% 3.29% 3.29% 11.83% 13.00% 14.25%
IROQ IF Bancorp, Inc. IL 2.01% 20.17% 1.46% 74.73% 71.96% 12.74% 0.00% 14.23% 0.00% 14.23% 5.50% -13.63% 12.99% 3.82% 19.46% 3.27% 3.27% 13.80% 18.80% 20.10%
JXSB Jacksonville
Bancorp, Inc. IL 9.47% 28.31% 2.19% 56.14% 81.25% 2.04% 0.00% 14.60% 0.82% 13.77% 7.97% 31.18% -2.45% 15.16% -65.61% 3.35% 3.56% 13.16% 18.96% 20.21%
MELR Melrose Bancorp,
Inc. MA 7.91% 12.31% 2.00% 77.06% 81.69% 1.87% 0.00% 16.23% 0.00% 16.23% 19.29% -17.97% 36.29% 23.06% NA -5.74% -5.74% 13.61% 21.04% 22.14%
MSBF MSB Financial
Corp. NJ 7.30% 10.63% 3.15% 75.92% 77.18% 5.23% 0.00% 16.74% 0.00% 16.74% 16.94% -20.85% 30.52% 29.67% -30.60% -4.95% -4.95% 13.52% 17.68% 18.93%
PBSK Poage
Bankshares, Inc. KY 4.79% 13.61% 1.58% 75.81% 80.15% 2.85% 0.63% 15.54% 0.53% 15.01% 5.54% -3.87% 9.51% 7.28% 3.00% -1.53% -1.08% 13.85% 20.64% 21.43%
PBIP Prudential
Bancorp, Inc. PA 2.55% 31.93% 2.33% 61.66% 69.56% 9.05% 0.00% 20.38% 0.00% 20.38% 14.84% NA 10.34% 6.61% 895.28% -2.56% -2.56% 20.41% 38.57% 39.70%
UCBA United
Community
Bancorp IN 5.34% 36.45% 3.29% 52.04% 83.70% 2.27% 0.00% 13.38% 0.53% 12.85% 1.57% -0.57% 3.96% 2.50% -7.69% -0.98% -0.85% 11.42% 21.11% 22.36%
WBKC Wolverine
Bancorp, Inc. MI 11.88% 0.87% 0.00% 85.56% 69.25% 12.73% 0.00% 17.20% 0.00% 17.20% 7.33% 68.18% 2.44% 10.63% 0.00% 1.54% 1.54% 17.02% 22.50% 23.78%

(1) Includes loans held for sale.

Source: SNL Financial, LC. and RP ® Financial, LC. calculations. The information provided in this table has been obtained from sources we believe are reliable, but we cannot guarantee
the accuracy or completeness of such information.

Copyright (c) 2016 by RP ® Financial, LC.

RP ® Financial, LC. PEER GROUP ANALYSIS
III.7

The interest-earning asset compositions for the Bank and the Peer Group were similar, with loans constituting the bulk of interest-earning assets for both. The Bank’s loans-to-assets
ratio of 81.63% was higher than the comparable Peer Group ratio of 73.05%. Comparatively, the Bank’s cash-to-assets ratio of 11.03% was also higher than the ratio for the Peer Group of
5.80%. Newton Federal reported a smaller level of investment securities (3.31%) and no investments in BOLI at all, compared to a combined ratio of 18.27% for the Peer Group. Overall,
Newton Federal’s earning assets amounted to 95.97% of assets, which was slightly lower than the comparable Peer Group ratio of 97.12%.

Newton Federal’s funding liabilities reflected a funding strategy that relied on a similar level of deposits as the Peer Group’s funding composition. The Bank’s deposits equaled
78.04% of assets, which was slightly above the Peer Group’s ratio of 76.78%. Comparatively, the Bank maintained a zero level of borrowings, while the Peer Group reported a borrowings-
to-assets ratio of 6.35%.

Total interest-bearing liabilities maintained by the Bank and the Peer Group, as a percent of assets, equaled 78.04% and 83.13%, respectively. Following the increase in equity
provided by the net proceeds of the stock offering, the Bank’s ratio of interest-bearing liabilities as a percent of assets will further decline in comparison to the Peer Group’s ratio. A key
measure of balance sheet strength for a thrift institution is its IEA/IBL ratio. Presently, the Bank’s IEA/IBL ratio is lower than the Peer Group’s ratio, based on IEA/IBL ratios of 122.98%
and 116.83%, respectively. The additional equity realized from stock proceeds will serve to strengthen Newton Federal’s IEA/IBL ratio in comparison to the Peer Group ratio, as the
increase in capital provided by the infusion of stock proceeds will lower the level of interest-bearing liabilities funding assets and will be primarily deployed into interest-earning assets.

The growth rate section of Table 3.2 shows annual growth rates for key balance sheet items, with growth rates for both Newton Federal and the Peer Group based on annual growth
rates for the 12 months ended September 30, 2016. Newton Federal recorded asset growth of 2.87%, lower than the Peer Group’s asset growth of 10.11%. The Bank’s cash and investments
declined by 27.69% over the past year, with the funds reinvested into loans, which increased at a rate of 11.93%. The asset growth for the Peer Group was also evident in the higher loan
growth, with a corresponding decrease in cash/investments. Funding of Newton Federal’s growth was obtained from a deposit increase of 2.84%, with no change in borrowings. The Peer
Group recorded an increase in deposits and also increased borrowings as a funding base, although the percent increase in borrowings reflected the low initial balance.
RP ® Financial, LC. PEER GROUP ANALYSIS
III.8

Reflecting the recent levels of net income, the Bank’s equity increased at a 2.63% annual rate, versus a reduction in equity of 0.87% for the Peer Group. The increase in equity
realized from stock proceeds will likely depress the Bank’s equity growth rate initially following the stock offering. Dividend payments and stock repurchases, pursuant to regulatory
limitations and guidelines could also potentially slow the Bank’s equity growth rate in the longer term following the stock offering.

Income and Expense Components

Table 3.3 displays statements of operations for the Bank and the Peer Group, with the income ratios based on earnings for the 12 months ended September 30, 2016 for the Bank and
the Peer Group.

Newton Federal reported net income of 0.51% of average assets for the 12 months ended September 30, 2016, similar to average net income of 0.57% of average assets for the Peer
Group. A higher level of net operating expenses and lower non-interest income accounted for the Bank’s slightly less favorable reported results, despite of the Bank’s higher level of net
interest income.

The Bank’s net interest income ratio was higher than the Peer Group’s ratio, due to a much higher level of interest income despite a slightly higher level of interest expense. The
Bank’s interest income is supported by the higher ratio of loans in the asset base than the Peer Group, along with the traditional lending practice which provides for higher interest rates on
residential loans that do not generally meet secondary market standards and thus carry higher interest rates. Newton Federal’s overall yield earned on interest-earning assets (5.02%) was
higher than the 3.97% ratio for the Peer Group. The Bank’s cost of funds was somewhat higher than the Peer Group (0.87% versus 0.79% for the Peer Group), reflecting the deposit base
that contains a level of higher costing certificates of deposit. Overall, Newton Federal reported a significantly higher net interest income to average assets ratio than the Peer Group, at
4.33% and 3.11%, respectively.

In another key area of core earnings strength, the Bank reported a higher ratio of operating expenses, 3.94% of average assets versus the Peer Group (2.86% of average assets). In
connection with the operating expense ratios, Newton Federal maintained a comparatively higher number of employees relative to its asset size. Assets per full time equivalent employee
equaled $3.5 million for the Bank versus a comparable measure of $5.8 million for the Peer Group.
RP ® Financial, LC. PEER GROUP ANALYSIS
III.9

Table 3.3
Income as Percent of Average Assets and Yields, Costs, Spreads
Comparable Institution Analysis
For the 12 Months Ended September 30, 2016 or the Most Recent 12 Months Available

Non- Yields, Costs, and

Net Interest Income Interest Income Non-Op. Items Spreads
Loss NII Gain Other Total Provision MEMO: MEMO:
Net Provis. After on Sale of Non-Int Non-Int Net Gains/ Extrao. for Yield Cost Yld-Cost Assets/ Effective
Income Income Expense NII on IEA Provis. Loans Income Expense Losses (1) Items Taxes On IEA Of IBL Spread FTE Emp. Tax Rate
(%)
Newton Federal Bank
September 30, 2016 0.51% 4.96% -0.62% 4.33% 0.00% 4.33% 0.00% 0.53% -3.94% -0.11% 0.00% 0.31% 5.02% 0.87% 4.15% $ 3,537 38.00%
All Public Thrifts
Averages 0.62% 3.66% 0.60% 3.07% 0.07% 0.30% 0.33% 0.46% 2.91% -0.01% 0.00% 0.22% 3.89% 0.77% 3.10% $ 6,075 24.55%
Medians 0.59% 3.59% 0.57% 3.03% 0.06% 0.00% 0.05% 0.38% 2.84% 0.00% 0.00% 0.24% 3.81% 0.73% 3.05% $ 5,273 32.93%
State of GA
CHFN Charter Financial Corporation GA 0.98% 3.96% 0.47% 3.49% -0.02% 0.00% 0.18% 1.24% 3.33% -0.10% 0.00% 0.51% 4.40% 0.67% 3.73% $ 4,474 33.98%
Comparable Group
Averages 0.57% 3.70% 0.58% 3.11% 0.08% 0.36% 0.09% 0.60% 2.86% 0.04% 0.00% 0.26% 3.97% 0.79% 3.18% $ 5,824 30.15%
Medians 0.48% 3.67% 0.57% 3.14% 0.11% 0.00% 0.08% 0.67% 2.66% 0.01% 0.00% 0.24% 3.83% 0.77% 3.12% $ 5,394 33.93%
Comparable Group
ANCB Anchor Bancorp WA 0.17% 4.37% 0.70% 3.68% 0.10% 3.58% 0.05% 0.99% 4.41% 0.00% 0.00% 0.04% 5.01% 1.00% 4.01% $ 3,824 17.75%
EQFN Equitable Financial Corp. NE 0.46% 3.73% 0.47% 3.26% 0.16% 0.00% 0.34% 0.76% 3.47% -0.02% 0.00% 0.26% 3.95% 0.68% 3.27% $ 3,209 35.69%
IROQ IF Bancorp, Inc. IL 0.70% 3.61% 0.60% 3.02% 0.17% 0.00% 0.05% 0.57% 2.46% 0.10% 0.00% 0.41% 3.71% 0.75% 2.96% $ 6,197 36.60%
JXSB Jacksonville Bancorp, Inc. IL 0.99% 3.76% 0.33% 3.42% 0.04% 0.00% 0.07% 1.20% 3.43% 0.11% 0.00% 0.35% 4.02% 0.45% 3.57% $ 3,518 25.99%
MELR Melrose Bancorp, Inc. MA 0.42% 2.91% 0.64% 2.27% 0.12% 0.00% 0.00% 0.10% 1.81% 0.20% 0.00% 0.22% 3.18% 0.85% 2.33% $ 9,525 34.82%
MSBF MSB Financial Corp. NJ 0.18% 3.47% 0.55% 2.92% 0.15% 0.00% 0.00% 0.26% 2.62% -0.13% 0.00% 0.09% 3.68% 0.79% 2.89% $ 6,883 33.04%
PBSK Poage Bankshares, Inc. KY 0.43% 4.45% 0.53% 3.92% 0.19% 0.00% 0.13% 0.40% 3.57% -0.02% 0.00% 0.24% 4.75% 0.70% 4.05% $ 4,081 35.44%
PBIP Prudential Bancorp, Inc. PA 0.51% 3.27% 0.62% 2.64% 0.04% 0.00% 0.09% 0.80% 2.05% 0.02% 0.00% 0.24% 3.49% 0.83% 2.66% $ 9,024 31.64%
UCBA United Community Bancorp IN 0.68% 3.02% 0.43% 2.59% 0.03% 0.00% 0.09% 0.76% 2.70% 0.09% 0.00% 0.13% 3.25% 0.56% 2.69% $ 4,592 15.62%
WBKC Wolverine Bancorp, Inc. MI 1.13% 4.38% 0.98% 3.40% -0.16% 0.00% 0.13% 0.15% 2.11% 0.00% 0.00% 0.60% 4.65% 1.28% 3.37% $ 7,383 34.87%

(1) Net gains/losses includes gain/loss on sale of securities and nonrecurring income and expense.
(2) For the twelve months ended March 31, 2015 or the most recent date available.

Source: SNL Financial, LC. and RP ® Financial, LC. calculations. The information provided in this table has been obtained from sources we believe are reliable, but we cannot guarantee
the accuracy or completeness of such information.

Copyright (c) 2016 by RP ® Financial, LC.

RP ® Financial, LC. PEER GROUP ANALYSIS
III.10

On a post-offering basis, the Bank’s operating expenses can be expected to further increase with the addition of the ESOP and certain expenses that result from being a publicly-traded
savings institution, with such expenses already impacting the Peer Group’s operating expenses. At the same time, Newton Federal’s capacity to leverage operating expenses will be
enhanced following the increase in capital realized from the infusion of net stock proceeds.

When viewed together, net interest income and operating expenses provide considerable insight into a bank’s earnings strength, since those sources of income and expenses are
typically the most prominent components of earnings and are generally more predictable than losses and gains realized from the sale of assets or other non-recurring activities. In this
regard, as measured by their expense coverage ratios (net interest income divided by operating expenses), the Bank’s earnings were similar to the Peer Group’s, based on respective expense
coverage ratios of 1.10x for Newton Federal and 1.09x for the Peer Group. A ratio less than 1.00x indicates that an institution depends on non-interest operating income to achieve
profitable operations.

Sources of non-interest operating income provided a somewhat lower contribution to Newton Federal’s earnings compared to the Peer Group. Non-interest operating income equaled
0.53% and 0.60% of Newton Federal’s and the Peer Group’s average assets, respectively. Taking non-interest operating income into account in comparing the Bank’s and the Peer Group’s
earnings, Newton Federal’s efficiency ratio (operating expenses, net of amortization of intangibles, as a percent of the sum of non-interest operating income and net interest income) of
81.1% was less favorable than the Peer Group’s efficiency ratio of 77.1%.

Loan loss provisions had a modest, but larger impact on the Peer Group’s earnings, with loan loss provisions established by the Bank and the Peer Group equaling 0.00% and 0.08%
of average assets, respectively. The impact of loan loss provisions on the Bank’s and the Peer Group’s earnings, particularly when taking into consideration the prevailing credit market
environment for mortgage based lenders, were indicative of the asset quality position of the Bank and Peer Group.

For the 12 months ended September 30, 2016, the Bank reported net non-operating losses equal to 0.11% of average assets, while the Peer Group reported, on average, 0.04% of
average assets of net non-operating gains. Non-operating items for the Bank consisted of one-time payments for the termination of a senior manager. Typically, gains and losses generated
from non-operating items are viewed as non-recurring in nature, particularly to the extent that such gains and losses result from the sale of investments or other assets that are not considered
to be part of an institution’s core operations. Extraordinary items were not a factor in either the Bank’s or the Peer Group’s earnings.
RP ® Financial, LC. PEER GROUP ANALYSIS
III.11

On average, the Peer Group reported an average effective tax rate of 30.15%, while Newton Federal reported an effective tax rate of 37.60%. As indicated in the prospectus, the
Bank’s effective marginal tax rate is assumed to equal 38.0% when calculating the after tax return on conversion proceeds.

Loan Composition
Table 3.4 presents data related to the Bank’s and the Peer Group’s loan portfolio compositions (including any investment in MBS). The Bank’s loan portfolio composition reflected
a higher concentration of investment in 1-4 family property secured assets (permanent mortgage loans and MBS) than maintained by the Peer Group (57.45% of assets versus 41.10% for
the Peer Group). The Bank reported no investments in MBS, while the Peer Group reported an MBS investment at 7.3% of assets on average. Newton Federal did not have a portfolio of
loans serviced for others, while six members of the Peer Group reported a loan servicing portfolio and related capitalized servicing right.

Diversification into higher risk and higher yielding types of lending was greater for the Peer Group, as the Bank reported total loans other than 1-4 family and MBS of 26.21% of
assets, versus 40.78% for the Peer Group. Commercial real estate/multi-family loans represented the most significant area of lending diversification for the Bank (12.47% of assets),
followed by commercial business loans (6.97% of assets). The Peer Group’s lending diversification consisted primarily also of commercial real estate/multi-family loans (22.16% of assets),
followed by commercial business loans (6.48% of assets). The relative concentration of assets in loans and diversification into higher risk types of loans by the Peer Group translated into a
lower risk weighted assets-to-assets ratio for the Bank (62.35%) than the Peer Group (71.04%).

Credit Risk
Based on a comparison of credit quality measures, the Bank’s credit risk exposure was considered to be somewhat unfavorable to that of the Peer Group. As shown in Table 3.5, the
Bank’s non-performing assets/assets (excluding performing troubled debt restructured loans)
RP ® Financial, LC. PEER GROUP ANALYSIS
III.12

Table 3.4
Loan Portfolio Composition and Related Information
Comparable Institution Analysis
As of September 30, 2016 or the Most Recent Date Available

Portfolio Composition as a Percent of Assets

1-4 Constr. Multi- Comm Commerc. RWA/ Serviced Servicing
MBS Family & Land Family RE Business Consumer Assets For Others Assets
(%) (%) (%) (%) (%) (%) (%) (%) ($000) ($000)
Newton Federal Bank
September 30, 2016 0.00% 57.45% 5.73% 0.05% 12.47% 6.97% 0.99% 62.35% $ 0 $ 0
All Public Thrifts
Averages 8.18% 37.85% 4.10% 7.38% 16.80% 0.67% 1.72% 67.10% $909,667 $ 5,583
Medians 5.80% 38.18% 2.67% 2.79% 15.82% 0.00% 0.51% 65.91% $ 17,083 $ 148
State of GA
CHFN Charter Financial Corporation GA 11.37% 18.74% 10.12% 1.89% 32.67% 0.00% 1.47% 77.55% $ 0 $ 820
Comparable Group
Averages 7.30% 33.80% 4.47% 6.24% 22.16% 6.48% 1.43% 71.04% $ 47,761 $ 317
Medians 5.90% 32.83% 3.71% 3.34% 18.67% 6.87% 1.12% 69.44% $ 42,482 $ 281
Comparable Group
ANCB Anchor Bancorp WA 6.51% 17.87% 8.80% 12.51% 35.03% 8.42% 1.21% 90.76% $ 79,237 $ 216
EQFN Equitable Financial Corp. NE 0.34% 22.51% 8.13% 2.93% 39.32% 17.60% 1.58% 90.75% $103,050 $ 748
IROQ IF Bancorp, Inc. IL 4.84% 26.20% 3.79% 13.98% 21.02% 8.88% 1.56% 73.94% $ 81,378 $ 518
JXSB Jacksonville Bancorp, Inc. IL 9.59% 16.99% 2.79% 1.82% 19.90% 10.99% 4.21% 66.19% $128,982 $ 585
MELR Melrose Bancorp, Inc. MA 0.00% 64.83% 4.59% 3.07% 4.86% 0.00% 0.05% 58.80% $ 0 $ 0
MSBF MSB Financial Corp. NJ 5.80% 44.26% 2.04% 6.07% 17.44% 3.56% 0.11% 72.00% $ 0 $ 0
PBSK Poage Bankshares, Inc. KY 6.01% 43.22% 3.64% 1.26% 14.59% 8.19% 4.12% 66.89% $ 0 $ 345
PBIP Prudential Bancorp, Inc. PA 17.52% 42.09% 2.94% 2.23% 14.22% 0.02% 0.14% 52.30% $ 0 $ 0
UCBA United Community Bancorp IN 22.36% 39.46% 1.80% 3.60% 14.68% 1.55% 1.04% 62.51% $ 72,752 $ 694
WBKC Wolverine Bancorp, Inc. MI 0.00% 20.59% 6.20% 14.93% 40.53% 5.56% 0.26% 76.28% $ 12,211 $ 60

Source: SNL Financial LC. and RP ® Financial, LC. calculations. The information provided in this table has been obtained from sources we believe are reilable, but we cannot guarantee
the accuracy or completeness of such information.

Copyright (c) 2016 by RP ® Financial, LC.

RP ® Financial, LC. PEER GROUP ANALYSIS
III.13

Table 3.5
Credit Risk Measures and Related Information
Comparable Institution Analysis
As of September 30, 2016 or the Most Recent Date Available

NPAs & Adj NPAs & Rsrves/

REO/ 90+Del/ 90+Del/ NPLs/ Rsrves/ Rsrves/ NPAs & Net Loan NLCs/
Assets Assets (1) Assets (2) Loans (3) Loans HFI NPLs (3) 90+Del (1) Chargeoffs (4) Loans
(%) (%) (%) (%) (%) (%) (%) ($000) (%)
Newton Federal Bank
September 30, 2016 0.00% 3.77% 1.39% 4.62% 2.27% 49.11% 49.11% $ 1,565 0.82%
All Public Thrifts
Averages 0.15% 1.33% 0.86% 1.57% 1.09% 120.47% 102.06% $ 997 0.07%
Medians 0.06% 1.13% 0.64% 1.20% 0.99% 85.51% 68.00% $ 121 0.04%
State of GA
CHFN Charter Financial Corporation GA 0.19% 0.76% 0.45% 0.83% 1.03% 124.65% 94.06% -$ 1,132 -0.13%
Comparable Group
Averages 0.07% 1.81% 1.06% 2.29% 1.31% 66.93% 63.94% $ 140 0.05%
Medians 0.05% 1.85% 0.81% 2.10% 1.22% 71.34% 67.78% $ 90 0.04%
Comparable Group
ANCB Anchor Bancorp WA 0.06% 2.26% 0.63% 2.69% 1.08% 39.88% 38.78% $ 258 0.08%
EQFN Equitable Financial Corp. NE 0.20% 1.93% 0.98% 0.98% 1.47% 77.76% 69.57% -$ 17 -0.01%
IROQ IF Bancorp, Inc. IL 0.04% 0.82% 0.47% 1.03% 1.22% 118.60% 112.83% $ 187 0.04%
JXSB Jacksonville Bancorp, Inc. IL 0.07% 1.33% 0.57% 2.22% 1.58% 71.34% 67.78% $ 52 0.03%
MELR Melrose Bancorp, Inc. MA 0.00% 0.00% 0.00% 0.00% 0.42% NA NA $ 0 0.00%
MSBF MSB Financial Corp. NJ 0.00% 3.60% 1.45% 4.59% 1.21% 26.42% 25.94% $ 127 0.05%
PBSK Poage Bankshares, Inc. KY 0.22% 1.78% 1.07% 2.04% 0.68% 33.13% 29.03% $ 537 0.16%
PBIP Prudential Bancorp, Inc. PA 0.10% 3.39% 2.94% 5.28% 0.94% 17.79% 17.24% -$ 114 -0.03%
UCBA United Community Bancorp IN 0.01% 1.03% 0.60% 1.90% 1.62% 84.53% 82.99% $ 818 0.30%
WBKC Wolverine Bancorp, Inc. MI 0.02% 1.92% 1.87% 2.16% 2.87% 132.93% 131.27% -$ 448 -0.14%

(1) NPAs are defined as nonaccrual loans, performing TDRs, and OREO.
(2) Adjusted NPAs are defined as nonaccrual loans and OREO (performing TDRs are excluded).
(3) NPLs are defined as nonaccrual loans and performing TDRs.
(4) Net loan chargeoffs are shown on a last twelve month basis.

Source: SNL Financial, LC and RP ® Financial, LC. calculations. The information provided in this table has been obrained from sources we believe are reliable, but we cannot guarantee
the accuracy or completeness of such information.

Copyright (c) 2016 by RP ® Financial, LC.

RP ® Financial, LC. PEER GROUP ANALYSIS
III.14

and foreclosed real estate/assets equaled 1.39% and 0.00%, respectively, versus comparable measures of 1.06% and 0.07% for the Peer Group, indicating a disadvantage for the Bank. At
the same time, the Bank recorded a higher non-performing loans/loans ratio than the Peer Group, at 4.62% and 1.88% respectively. The Bank maintained a lower reserve coverage ratio,
loss reserves as a percent of total NPAs, which equaled 49.11% for the Bank versus 63.94% for the Peer Group. Reflecting a more favorable ratio for the Bank, loss reserves maintained as
percent of net loans receivable equaled 2.27% for the Bank versus 1.31% for the Peer Group. Net loan charge-offs were much higher for Newton Federal than the Peer Group, based on
ratios of 0.82% and 0.05% of net loans receivable, respectively, indicating a higher more recent level of activities in terms of addressing problem assets.

Interest Rate Risk

Table 3.6 reflects various key ratios highlighting the relative interest rate risk exposure of the Bank versus the Peer Group. In terms of balance sheet ratios, Newton Federal’s interest
rate risk characteristics were considered to be more favorable than the Peer Group. The Bank’s equity-to-assets and IEA/IBL ratios were higher than the Peer Group, thereby implying a
lower dependence on the yield-cost spread to sustain the net interest margin for the Bank. The Bank also reported a lower level of non-interest earning assets, which provides an indication
of the earnings capabilities and interest rate risk of the balance sheet. On a pro forma basis, the infusion of stock proceeds can be expected to provide the Bank with more favorable balance
sheet interest rate risk characteristics than currently maintained by the Peer Group, particularly with respect to the increases that will be realized in the Bank’s equity-to-assets and IEA/IBL
ratios.

To analyze interest rate risk associated with the net interest margin, we reviewed quarterly changes in net interest income as a percent of average assets for Newton Federal and the
Peer Group. The relative fluctuations in the Bank’s net interest income to average assets ratio were considered to be higher than the Peer Group and, thus, based on the interest rate
environment that prevailed during the period analyzed in Table 3.6, Newton Federal was viewed as maintaining a higher degree of interest rate risk exposure in the net interest margin. The
stability of the Bank’s net interest margin should be enhanced by the infusion of stock proceeds, as the increase in capital will reduce the level of interest rate sensitive liabilities funding
Newton Federal’s assets.
RP ® Financial, LC. PEER GROUP ANALYSIS
III.15

Table 3.6
Interest Rate Risk Measures and Net Interest Income Volatility
Comparable Institution Analysis
As of September 30, 2016 or the Most Recent Date Available

Balance Sheet Measures

Tangible Avg Non-Earn. Quarterly Change in Net Interest Income
Equity/ IEA/ Assets/
Assets Avg IBL Assets 9/30/2016 6/30/2016 3/31/2016 12/31/2015 9/30/2015 6/30/2015
(%) (%) (%) (change in net interest income is annualized in basis points)
Newton Federal Bank
September 30, 2016 19.4% 138.5% 4.0% 4 5 7 8 -9 -6
All Public Thrifts 12.3% 125.7% 7.3% -2 2 -4 0 1 1
State of GA 12.1% 124.8% 11.4% -12 18 -29 0 41 10
Comparable Group
Average 15.7% 124.3% 6.4% 4 3 -5 -1 13 0
Median 15.5% 126.6% 6.3% 3 2 3 2 10 0
Comparable Group
ANCB Anchor Bancorp WA 14.6% 127.7% 9.3% 5 7 4 -11 1 5
EQFN Equitable Financial Corp. NE 15.9% 131.0% 5.9% 18 17 -20 -26 38 22
IROQ IF Bancorp, Inc. IL 14.2% 118.2% 3.0% 4 2 -5 9 5 5
JXSB Jacksonville Bancorp, Inc. IL 13.9% 126.3% 9.9% -18 -12 7 13 -4 0
MELR Melrose Bancorp, Inc. MA 16.2% 126.9% 6.3% 6 -3 8 2 15 0
MSBF MSB Financial Corp. NJ 16.7% 130.3% 11.0% -14 5 18 6 -5 -1
PBSK Poage Bankshares, Inc. KY 15.1% 129.6% 6.4% 0 -11 -40 36 15 -15
PBIP Prudential Bancorp, Inc. PA 20.4% 116.3% 3.6% 2 1 4 -4 15 -14
UCBA United Community Bancorp IN 12.9% 117.5% 6.8% -12 0 1 2 4 5
WBKC Wolverine Bancorp, Inc. MI 17.2% 119.5% 1.6% 45 26 -31 -31 50 -7

NA=Change is greater than 100 basis points during the quarter.

Source: SNL Financial LC. and RP ® Financial, LC. calculations. The information provided in this table has been obtained from sources we believe are reliable, but we cannot guarantee
the accuracy or completeness of such information.

Copyright (c) 2015 by RP ® Financial, LC.

RP ® Financial, LC. PEER GROUP ANALYSIS
III.16

Summary
Based on the above analysis, RP Financial concluded that the Peer Group forms a reasonable basis for determining the pro forma market value of the Bank. Such general
characteristics as asset size, capital position, interest-earning asset composition, funding composition, core earnings measures, loan composition, credit quality and exposure to interest rate
risk all tend to support the reasonability of the Peer Group from a financial standpoint. Those areas where differences exist will be addressed in the form of valuation adjustments to the
extent necessary.
RP ® Financial, LC. VALUATION ANALYSIS
IV.1

IV. VALUATION ANALYSIS

Introduction
This chapter presents the valuation analysis and methodology, prepared pursuant to the regulatory valuation guidelines, and valuation adjustments and assumptions used to
determine the estimated pro forma market value of the common stock to be issued in conjunction with the Company’s minority stock offering.

Appraisal Guidelines
The federal regulatory appraisal guidelines utilized by the OCC specify the pro forma market value methodology for estimating the pro forma market value of an institution.
Pursuant to this methodology: (1) a peer group of comparable publicly-traded institutions is selected; (2) a financial and operational comparison of the subject company relative to the peer
group is conducted to discern key differences, leading to valuation adjustments; and, (3) a valuation analysis in which the pro forma market value of the converting thrift is determined
based on the market pricing of the peer group as of the date of the valuation, incorporating valuation adjustments for key differences. In addition, the pricing characteristics of recent
conversions, both at conversion and in the aftermarket, must be considered. Given the unique differences in the pricing characteristics of publicly-traded MHCs relative to fully-converted
thrift stocks, we have also reviewed the pricing characteristics of publicly-traded and non-publicly-traded MHCs on a fully-converted basis.

RP Financial Approach to the Valuation

The valuation analysis herein complies with such regulatory approval guidelines. Accordingly, the valuation incorporates a detailed analysis based on the Peer Group, discussed in
Chapter III, which constitutes “fundamental analysis” techniques. Additionally, the valuation incorporates a “technical analysis” of recently completed conversions, including closing
pricing and aftermarket trading of such offerings. It should be noted that these valuation analyses cannot possibly fully account for all the market forces which impact trading activity and
pricing characteristics of a particular stock on a given day.

The pro forma market value determined herein is a preliminary value for the Company’s to-be-issued stock. Throughout the stock issuance process, RP Financial will: (1) review
changes in Newton Federal’s operations and financial condition; (2) monitor the Bank’s
RP ® Financial, LC. VALUATION ANALYSIS
IV.2

operations and financial condition relative to the Peer Group to identify any fundamental changes; (3) monitor the external factors affecting value including, but not limited to, local and
national economic conditions, interest rates, and the stock market environment, including the market for thrift stocks; and, (4) monitor pending conversion offerings, both regionally and
nationally. If material changes should occur prior to closing of the offering, RP Financial will evaluate if updated valuation reports should be prepared reflecting such changes and their
related impact on value, if any. RP Financial will also prepare a final valuation update at the closing of the offering to determine if the prepared valuation analysis and resulting range of
value continues to be appropriate.

The appraised value determined herein is based on the current market and operating environment for the Bank and for all thrifts. Subsequent changes in the local and national
economy, the legislative and regulatory environment, the stock market, interest rates, and other external forces (such as natural disasters or major world events), which may occur from time
to time (often with great unpredictability) may materially impact the market value of all thrift stocks, including the Company’s value, or the Company’s value alone. To the extent a change
in factors impacting the Bank’s value can be reasonably anticipated and/or quantified, RP Financial has incorporated the estimated impact into the analysis.

Valuation Analysis
A fundamental analysis discussing similarities and differences relative to the Peer Group was presented in Chapter III. The following sections summarize the key differences
between the Bank and the Peer Group and how those differences affect the pro forma valuation. Emphasis is placed on the specific strengths and weaknesses of Newton Federal relative to
the Peer Group in such key areas as financial condition, profitability, growth and viability of earnings, asset growth, primary market area, dividends, liquidity of the shares, marketing of the
issue, management, and the effect of government regulations and/or regulatory reform. We have also considered the market for thrift stocks, in particular new issues, to assess the impact on
value of the Bank coming to market at this time.
RP ® Financial, LC. VALUATION ANALYSIS
IV.3

1. Financial Condition
The financial condition of an institution is an important determinant in pro forma market value because investors typically look to such factors as liquidity, capital, asset composition
and quality, and funding sources in assessing investment attractiveness. The similarities and differences in the Bank’s and the Peer Group’s financial strengths are noted as follows:
• Overall A/L Composition . In comparison to the Peer Group, the Bank’s IEA composition was slightly more favorable, reflecting a higher concentration of loans, and a lower
concentration of cash and investments, resulting in a higher earnings capacity. In terms of funding liabilities, Newton Federal’s deposits were lower and borrowings were
lower as a percent of assets compared to the Peer Group, resulting from the higher equity position of the Bank. Lending diversification into higher yielding types of loans
(albeit higher risk loans) was more significant for the Peer Group, with such loans approximating 41% percent of assets for the Peer Group versus 26% for Newton Federal.
Recent loan growth has occurred in the construction loan portfolio, and the relative unseasoned nature of this portfolio provides additional risk. The lower investment in
higher risk loans resulted in Newton Federal reporting a lower risk weighted assets-to-assets ratio in comparison to the Peer Group’s ratio, as well as all, but two of the Peer
Group members. The Bank’s IEA composition also resulted in a higher yield earned on IEA, while the Bank’s cost of IBL was slightly higher than the Peer Group’s cost of
funds. As a percent of assets, Newton Federal maintained a lower level of IEA and a lower level of IBL, given the higher pre-conversion equity position of the Bank. The
Bank’s IEA/IBL ratio of 123.0% was higher than the 116.8% ratio for the Peer Group. After factoring in the impact of the net stock proceeds, the Company’s IEA/IBL ratio
will continue to exceed the Peer Group’s ratio. RP Financial concluded that A/L composition was a slight upward factor in the adjustment for financial condition.
• Credit Quality. Newton Federal’s NPAs/assets and NPLs/loans ratios were higher than the comparable Peer Group ratios. Additionally, when excluding performing TDRs
from the NPA/assets ratio, Newton Federal’s ratio remained higher than the Peer Group average. Loan loss reserves as a percent of NPLs and NPAs were lower than the Peer
Group averages, while Newton Federal reported a higher ratio of loan loss reserves as a percent of loans. Net loan charge-offs as a percent of loans for Newton Federal were
much higher than the Peer Group average. As noted above, Newton Federal’s risk weighted assets-to-assets ratio was lower than the Peer Group’s ratio. In addition, the
Bank’s loan portfolio composition was concentrated in lower risk residential assets, including MBS. Overall, RP Financial concluded that credit quality was a slight
downward factor in the adjustment for financial condition.
• Balance Sheet Liquidity . As of the valuation date, Newton Federal reported a lower level of cash and investment securities relative to the Peer Group, with the Bank’s
investments concentrated in cash and equivalents. Following the infusion of stock proceeds, the Bank’s cash and investments ratio is expected to increase as the proceeds
retained at the holding company level will be initially deployed into shorter term investment securities while the Bank’s portion of the proceeds will also be deployed into
investments pending the longer term reinvestment into loans. The Bank’s future borrowing capacity was considered to be higher than the Peer Groups’, given current zero
level of borrowings currently utilized by the Bank in funding the asset base. Overall, RP Financial concluded that pro forma balance sheet liquidity was a neutral factor in our
adjustment for financial condition.
RP ® Financial, LC. VALUATION ANALYSIS
IV.4

• Funding Liabilities . Newton Federal’s IBL composition reflected a slightly higher concentration of deposits and lower use of borrowings relative to the comparable Peer
Group ratios, although Newton Federal’s cost of funds was somewhat higher than the Peer Group’s ratio. Total IBL as a percent of assets were lower for the Bank as
compared to the Peer Group’s ratio due to the higher pre-conversion equity ratio maintained by the Bank. Following the stock offering, the increase in the Bank’s equity
position will reduce the level of IBL, further expanding this advantage in comparison to the Peer Group. Overall, RP Financial concluded that funding liabilities were a
slightly positive factor in our adjustment for financial condition.
• Tangible Equity/Return on Equity . Newton Federal currently operates with a higher tangible equity-to-assets ratio as compared to the Peer Group. Following the stock
offering, Newton Federal’s pro forma tangible equity position will further exceed the Peer Group’s ratio, which will result in greater growth potential. At the same time, the
Bank’s more significant equity surplus will likely result in a lower ROE. On balance, RP Financial concluded that the tangible equity position was a neutral factor in our
adjustment for financial condition, as the greater leverage potential was offset by lower return on equity.

On balance, Newton Federal’s financial condition, taking into account the above factors, was considered to be similar to that of the Peer Group, and thus no adjustment was applied
for this valuation factor.

2. Profitability, Growth and Viability of Earnings

Earnings are a key factor in determining pro forma market value, as the level and risk characteristics of a financial institution’s earnings stream and the prospects and ability to
generate future earnings, heavily influence the multiple that the investment community will pay for earnings. The major factors considered in the valuation are described below.
• Reported Profitability . For the most recent 12 month period, Newton Federal reported net income of $1.2 million, or 0.51% of average assets, versus average and median
profitability of 0.57% and 0.48% of average assets for the Peer Group. The Bank’s lower income in comparison to the Peer Group was attributable a higher level of operating
expense and lower non-interest income, which was partially offset by higher net interest income (a result of higher interest income and slightly higher interest expense). The
Peer Group relied to a limited extent on gains on the sale of loans. A key difference between the Bank and the Peer Group is Newton Federal’s higher interest income ratio, a
result of the higher loans/assets ratio and the Bank’s higher yield on earning assets and overall yield/cost spread. Reinvestment and leveraging of stock proceeds into interest-
earning assets will serve to increase the Bank’s bottom line income, with the benefit of reinvesting proceeds expected to be somewhat offset by higher operating expenses
associated with operating as a publicly-traded company. The Bank’s level of NPAs will remain as a potential negative factor in future earnings as additional loan loss
reserves may be incurred. However, the Peer Group can also be expected to experience losses related to problem assets. On balance, RP Financial concluded that the Bank’s
reported earnings were a neutral factor in our adjustment for profitability, growth and viability of earnings.
RP ® Financial, LC. VALUATION ANALYSIS
IV.5

• Core Profitability . Net interest income, operating expenses, non-interest operating income and loan loss provisions were reviewed in assessing the relative strengths and
weaknesses of core profitability. Newton Federal operated with a higher net interest income ratio and a lower level of non-interest operating income, based on a comparison
to the Peer Group averages and medians. The advantage in terms of revenues were mitigated to an extent by the Bank’s higher operating expense ratio such that the Bank’s
efficiency ratio was modestly less favorable to the Peer Group’s ratio. Loan loss provisions had a larger impact on the Peer Group’s earnings, although Peer Group provisions
were modest in total. The expected earnings benefits the Bank should realize from the redeployment of stock proceeds into IEA and leveraging of post-conversion equity will
be somewhat negated by expenses associated with the stock benefit plans, as well as incremental costs associated with the growth oriented business plan. On balance we
believe the Bank’s core profitability was a neutral factor in this valuation adjustment.
• Interest Rate Risk . Quarterly changes in the net interest income ratio for Newton Federal indicated a somewhat higher degree of volatility. Other measures of interest rate
risk, such as tangible equity and the IEA/IBL ratio were more favorable than the Peer Group. On a pro forma basis, the infusion of stock proceeds can be expected to provide
the Bank with equity-to-assets and IEA/IBL ratios that will further exceed the Peer Group ratios, as well as enhance the stability of the Bank’s net interest margin through the
reinvestment of stock proceeds into IEA. On balance, RP Financial concluded that interest rate risk was a neutral factor in our adjustment for profitability, growth and
viability of earnings.
• Credit Risk . Loan loss provisions were a lower factor in the Bank’s income statement over the most recent 12 month time period. In terms of future exposure to credit quality
related losses, Newton Federal maintained a higher concentration of assets in loans and less lending diversification into higher credit risk loans. The Bank’s risk weighted
assets-to-assets ratio was lower than the Peer Group’s ratio, as well as all but one of the Peer Group member ratios. The Bank’s NPAs/assets ratio was less favorable than the
Peer Group and loss reserves also were less favorable for the Bank in comparison to NPAs and NPLs but more favorable in terms of loans receivable. Net loan charge-offs
over the last 12 months as a percent of loans were higher for the Bank as a percent of loans as compared to the Peer Group. Overall, RP Financial concluded that credit risk
was a slightly negative factor in the adjustment for profitability, growth and viability of earnings.
• Earnings Growth Potential . Newton Federal maintained a higher level of net interest income and a higher interest rate spread as compared to the Peer Group. The Bank’s
earnings growth potential is dictated by the growth capabilities of the balance sheet in general – a key part of the future operating strategy. The timing of such asset and loan
growth, and quality of such loans to be obtained, remains uncertain. While the Bank’s original primary market area reveals less favorable current demographic and economic
data and future trends, Newton Federal’s eventual success in transitioning to the expanded market area between Covington and Athens also will determine future profitability
growth. The infusion of stock proceeds will provide the Bank with greater leverage potential than the Peer Group. On balance, we viewed the growth potential from the
higher post-conversion equity ratio as a favorable valuation comparison to the Peer Group, which would be expected to result in favorable earnings growth over time. On
balance, we concluded that a slight upward valuation adjustment was warranted for this factor.
RP ® Financial, LC. VALUATION ANALYSIS
IV.6

• Return on Equity . Currently, the Bank’s trailing 12 month ROE on either a reported or core basis is lower than the Peer Group’s ROE. On a pro forma basis, immediately
following the conversion the Bank’s earnings increase will be limited whereas the equity will increase considerably, thus resulting in a lower pro forma ROE relative to the
Peer Group, however the Bank will have higher growth potential in terms of earning assets and earnings given the higher equity position. On balance, RP Financial concluded
that the tangible equity position was a neutral factor in our adjustment for financial condition, as the greater leverage potential was offset by lower return on equity.

On balance, Newton Federal’s pro forma earnings strength was considered to be somewhat less favorable than the Peer Group’s and, thus, a slight downward adjustment was
warranted for profitability, growth and viability of earnings.

3. Asset Growth
Newton Federal’s assets increased at an annual rate of 2.9% during the most recent 12 month period, while the Peer Group’s assets increased by 10.1% over the same time period.
All ten of the Peer Group companies reported increases in assets, with the highest growth of a peer member equal to 19.29% (due to loan growth). The recent modest asset growth reported
by Newton Federal is primarily the result of lower needs for additional funds given the current level of liquidity and overall loan demand. On a pro forma basis, Newton Federal’s tangible
equity-to-assets ratio will further exceed the Peer Group’s tangible equity-to-assets ratio, indicating greater leverage capacity for the Bank. Newton Federal’s original market area location
in Newton County and the related size and growth rate of the population base implies a restricted growth capability. The Bank has begun a movement north and northeastward to higher
population centers and geographic areas that have more favorable demographic and economic trends. After taking into account the lower historical asset growth rate, and based on the
greater leverage capacity with the enhanced equity base following the offering, and the market area expansion in process, we concluded that no valuation adjustment was warranted for asset
growth.

4. Primary Market Area

The general condition of an institution’s market area has an impact on value, as future success is in part dependent upon opportunities for profitable activities in the local market
RP ® Financial, LC. VALUATION ANALYSIS
IV.7

served. Newton Federal’s primary market area for loans and deposits is considered to be Newton County (1-4 family residential), with additional lending activities in the expanded market
area counties to the north and northeast of Newton County, extending to the Athens, Georgia metropolitan area where the Bank maintains its LPO. Within this market, the Bank faces
significant competition for loans and deposits from both community based institutions and larger regional financial institutions, which provide a broader array of services and have
significantly larger branch networks. However, the Peer Group companies by virtue of their relatively comparable size relative to Newton Federal also face numerous and/or large
competitors.

Demographic and economic trends and characteristics in the Bank’s primary market area are presented in Exhibit III-3 along with Peer Group comparable data. In this regard, the
total population of Newton County is lower than the average and higher than the median primary market areas of the Peer Group. In addition, the historical and projected population growth
rate in Newton County is well above the Peer Group average over the 2010-2016 and 2016-2022 periods. While these demographic trends are more favorable, the per capita income level in
Newton County ($22,587 as of 2016) is well below the average and median of the Peer Group’s markets. As a percentage of the state average, Newton County is also below the average and
median of the Peer Group. This low income characteristic of Newton County is a notable limitation on business activities such as financial institutions, as income levels translate to an
extent to average home prices and value appreciation. The deposit market share exhibited by the Bank in Newton County is above the Peer Group average and median, however, indicative
of the smaller market within which the Bank operates, as several of the Peer Group members operate in large metropolitan areas. As shown in Table 4.1, the average unemployment rate for
the primary market area counties served by the Peer Group companies was below the unemployment rate reflected for Newton County.

The size of the Bank’s original market area of Newton County in terms of population was more favorable than the Peer Group, although the economic base is less favorable. The
Bank has recently expanded the lending market area beyond Newton County to include a number of counties with more attractive demographic and economic trends. The ability to
successfully expand operations in a reasonable time period and at acceptable costs remains uncertain. There also remains significant uncertainty as to the timing and level of loan
originations to be obtained in these new markets. On balance, we concluded that no adjustment was appropriate for the Bank’s market area.
RP ® Financial, LC. VALUATION ANALYSIS
IV.8

Table 4.1
Market Area Unemployment Rates
Newton Federal and the Peer Group Companies (1)

September 2016
County Unemployment
Newton Federal—GA Newton 5.9%
Peer Group Average 4.9
The Peer Group
Anchor Bancorp—WA Thurston 5.7
Equitable Financial Corp.—NE Hall 3.2
IF Bancorp, Inc.–IL Iroquois 5.3
Jacksonville Bancorp, Inc.—IL Morgan 4.8
Melrose Bancorp, Inc.—MA Middlesex 2.8
MSB Financial Corp.—NJ Morris 4.2
Poage Bankshares, Inc.—KY Boyd 7.9
Prudential Bancorp, Inc.—PA Philadelphia 7.0
United Community Bancorp, Inc.—IN Dearborn 4.4
Wolverine Bancorp, Inc.—MI Midland 3.6

(1) Unemployment rates are not seasonally adjusted.

Source: SNL Financial, LC; Department of Labor.

5. Dividends

At this time the Bank has not established a dividend policy. Future declarations of dividends by the Board of Directors will depend upon a number of factors, including investment
opportunities, growth objectives, financial condition, profitability, tax considerations, minimum capital requirements, regulatory limitations, stock market characteristics and general
economic conditions.

Five of the ten Peer Group companies pay regular cash dividends, with implied dividend yields ranging from 0.76% to 1.69%. The median dividend yield on the stocks of the Peer
Group institutions was 1.10% as of November 25, 2016, representing a median payout ratio of 40.03% of earnings. Comparatively, as of November 25, 2016, the median dividend yield on
the stocks of all fully-converted publicly-traded thrifts equaled 1.41%.

Our valuation adjustment for dividends for Newton Federal also considered the regulatory policy with regard to payment of dividends to the MHC. Under current FRB policy, any
dividends declared by Newton Federal would be required to be paid to all shareholders. Accordingly, dividends paid by Newton Federal would increase the amount of assets held by the
MHC, after adjusting for applicable income taxes, and, thereby, increase the implied dilution incurred by the minority shareholders in a second-step conversion pursuant to the calculation to
account for net assets held by the MHC in a second-step offering.
RP ® Financial, LC. VALUATION ANALYSIS
IV.9

Overall, while the Bank has not established a definitive dividend policy prior to its stock offering, the Bank will have the capacity to pay a dividend comparable to the Peer Group’s
average dividend yield based on pro forma earnings and capitalization. At the same time, dividend payments retained by the MHC would increase the implied dilution to minority
shareholders in a second-step offering. On balance, we concluded that a slight downward adjustment was warranted for purposes of the Bank’s dividend policy.

6. Liquidity of the Shares

The Peer Group is by definition composed of companies that are traded in the public markets. All ten of the Peer Group members trade on NASDAQ. Typically, the number of
shares outstanding and market capitalization provides an indication of how much liquidity there will be in a particular stock. The market capitalization of the Peer Group companies ranged
from $31.6 million to $127.2 million as of November 25, 2016, with average and median market values of $66.8 million and $65.8 million, respectively. The shares issued and outstanding
to the public shareholders of the Peer Group members ranged from 1.8 million to 8.0 million, with average and median shares outstanding of 3.8 million and 3.6 million, respectively. The
Bank’s stock offering at the midpoint is expected to provide for pro forma shares outstanding that will be lower than the average and median shares outstanding indicated for the Peer Group
companies. Likewise, the market capitalization of the Bank at the midpoint of the offering range will be lower than the Peer Group average and median values. Like all of the Peer Group
companies, the Company’s stock is expected to be quoted on NASDAQ following the conversion offering, however the stock will retain characteristics of an initial public offering. Based
on the above factors and the comparability of the anticipated trading market on NASDAQ, we concluded that a slight downward valuation adjustment was warranted for this factor.

7. Marketing of the Issue

We believe that three separate markets exist for thrift stocks, including those coming to market such as Newton Federal’s: (A) the after-market for public companies both fully-
converted and MHCs, in which trading activity is regular and investment decisions are made
RP ® Financial, LC. VALUATION ANALYSIS
IV.10

based upon financial condition, earnings, capital, ROE, dividends and future prospects; (B) the new issue market in which converting thrifts are evaluated on the basis of the same factors,
but on a pro forma basis without the benefit of prior operations as a fully-converted publicly-held company and stock trading history; and, (C) the thrift acquisition market. All three of these
markets were considered in the valuation of the Bank’s to-be-issued stock.

A. The Public Market

The value of publicly-traded thrift stocks is easily measurable, and is tracked by most investment houses and related organizations. Exhibit IV-1 provides pricing and financial data
on all publicly-traded thrifts. In general, thrift stock values react to market stimuli such as interest rates, inflation, perceived industry health, projected rates of economic growth, regulatory
issues, and stock market conditions in general. Exhibit IV-2 displays historical stock market trends for various indices and includes historical stock price index values for thrifts and
commercial banks. Exhibit IV-3 displays historical stock price indices for thrifts only.

In terms of assessing general stock market conditions, the overall stock market has generally trended higher in recent quarters. Stocks traded in a narrow range during the first couple
weeks of the second quarter of 2016, as investors turned cautious at the start of the first quarter earnings season that was expected to show a decline in corporate profits. Bank stocks
contributed to stock market gains in mid-April with the Dow Jones Industrial Average (“DJIA”) closing above 18000 for the first time since July 20, 2015, as first quarter earnings reports
posted by some of the large banks came in above lowered expectations. The broader stock market traded in a narrow range heading into the last week of April, as investors turned cautious
ahead of the late-April meeting of the Federal Reserve. The broader stock market trended lower in late-April 2016, as investors reacted to weak first quarter GDP growth and the Bank of
Japan’s decision not to launch additional stimulus measures. Fresh worries about a slowing global economy and lower oil prices extended the downturn in stocks during the first week of
May, as U.S. stock indexes fell for a second consecutive week. Volatility prevailed in the broader stock market heading into mid-May. Energy shares led the stock market higher as crude
oil prices hit a new high for 2016, while consumer-focused companies led indexes lower following weak earnings reports posted by some of the large retailers. The DJIA traded down for
three consecutive sessions at the start of the second half of May, as a handful of upbeat economic data releases and comments from Federal Reserve officials raised the possibility of a June
rate increase. Technology and financial stocks led a rebound in the stock market in late-May,
RP ® Financial, LC. VALUATION ANALYSIS
IV.11

as strong housing data, rising oil prices and growing investor confidence that higher interest rates would not undermine stock prices combined to lift major U.S. stock indexes. The positive
trend in the broader stock market continued through the last full trading week of May, with major U.S. stock indexes matching their biggest weekly gains in months. Comments by Federal
Reserve Chairwoman Janet Yellen reiterating that Federal Reserve policymakers were looking at a possible rate increase at its June or July meeting served to trim May stock market gains at
the close of the month. During the first two weeks of June, the broader stock market seesawed in a narrow range. Weak job growth reflected in the May employment report pulled stocks
lower at the start of June, which was followed by a stock market rebound led by a rally in energy stocks as oil approached $50 a barrel. Volatility prevailed in the broader stock market
during the second half of June, with Britain’s late-June vote on whether to exit the European Union (“Brexit”) impacting global stock markets. Stocks traded higher ahead of the Brexit vote
and then plunged sharply lower, as the shock from Britain’s vote to leave the European Union swept across global stock markets. Stocks rebounded to close out the month of June, led by
the sectors that were hit hardest by the Brexit vote.

The rally in the broader stock market continued at the start of July 2016, with the stronger-than-expected job growth reflected in the June employment report propelling the S&P 500
to a record high close. Stocks continued to trend higher going in the second half of July, as a string of economic data releases that showed improvement in home building, retail sales and
job creation helped to propel the DJIA higher for nine consecutive sessions. Following the extended rally, the DJIA closed lower for seven consecutive sessions going into early-August. A
decline in oil prices amid concerns of a glut in the supply of oil and weaker-than-expected second quarter GDP growth were factors that contributed to the downturn in the broader stock
market. A rally in energy and financial shares helped to snap the seven day losing streak in the DJIA ahead of the July employment report. Better-than-expected job growth reflected in the
July employment report fueled a rally in the broader stock market to close out the first week of trading in August. All three major stock indexes closed at record highs in mid-August, led by
gains in commodity-linked shares. The broader stock market eased lower during the second half of August with the DJIA finishing down for the month of August, which snapped a six-
month winning streak for the DJIA. Some lackluster data for the U.S. economy provided for a narrow trading range in the broader stock market in early-September, as investors reassessed
the likelihood of a rate increase in the near term. Volatility prevailed in the broader stock market in mid-September, based on various hawkish and dovish comments from Federal Reserve
officials
RP ® Financial, LC. VALUATION ANALYSIS
IV.12

for a near term rate hike. Stocks rebounded after the Federal Reserve concluded its September meeting leaving interest rates unchanged and then seesawed higher and lower to close out the
third quarter. Overall, all three of the major U.S. stock indexes posted gains for the third quarter.

Stocks traded unevenly at the start of the fourth quarter of 2016, as investors reacted to third quarter earnings reports that had varied results. Consumer shares weighed on the
broader stock market in the second half of October, following a string of disappointing earnings reports coming out of the consumer sector and a downbeat outlook for the rest of 2016. The
DJIA fell for a third month in a row to close out October, with a monthly decline of 0.9%. Stocks extended their losing streak in early-November, as investors reacted to tightening polls for
the presidential election. News of the FBI finding no new evidence to warrant charges against Democratic candidate Hillary Clinton sent stocks sharply higher the day before the
presidential election. However, investors embraced Trump’s election, as stocks surged higher based on expectations for reduced corporate taxes and regulation and greater infrastructure
spending under a Trump administration. Additional news regarding the election and Trump’s intentions upon taking office through mid- and late-November resulted in further strength to
the stock market in general. On November 25, 2016, the DJIA closed at 19152.14, an increase of 7.5% from one year ago and an increase of 9.9% year-to-date, and the NASDAQ
Composite Index closed at 5398.92, an increase of 5.5% from one year ago and an increase of 7.8% year-to-date. The S&P 500 closed at 2213.35 on November 25, 2016, an increase of
6.0% from one year ago and an increase of 8.3% year-to-date.

The market for thrift stocks has also experienced varied trends in recent quarters. Financial shares traded lower at the start of the second quarter of 2016, as investors anticipated a
decline in first quarter profitability for the banking sector. Better-than-expected first quarter earnings reports posted by some of the money center banks contributed to a mid-April rebound
for bank and thrift stocks in general. Thrift stocks advanced ahead of the late-April policy meeting of the Federal Reserve, which was followed by a downturn in thrift shares at the close of
April and into the first week of May. The pullback in financial shares was fueled by growing expectations that the Federal Reserve was not in a hurry to raise interest rates, based on
economic data that showed a slowdown in first quarter GDP growth and a decline in April job growth. Thrift shares seesawed along with the broader stock market heading into mid-May,
initially rallying with a rebound in oil prices followed by a pullback as some favorable economic reports spurred increased expectations that the Federal Reserve could move to increase
RP ® Financial, LC. VALUATION ANALYSIS
IV.13

interest rates at its next meeting in June. Financial shares outpaced the broader stock market going into the second half of May, as minutes from the Federal Reserve’s April meeting
suggested that a June interest rate increase was a possibility. A surge in April new home sales added to gains in the banking sector heading into late-May. Financial shares led the market
lower in early-June and then settled into narrow trading range heading into mid-June, as the weak jobs report for May dimmed expectations that the Federal Reserve would move to lift
interest rates this summer. Going into the second half June, thrift shares paralleled trends in the broader stock market. After trending higher ahead of the Brexit vote, financial shares were
among the hardest hit sectors on Britain’s surprising vote to exit the European Union. Also, similar to the broader stock market, thrift shares rallied at the close of the second quarter.

The positive trend for thrift stocks continued at the start of July 2016, with the strong jobs report for June fueling additional gains for the thrift sector. Some stronger-than-expected
second quarter earnings reports coming out of the banking sector, along with favorable data on the U.S. economy, helped to sustain the positive trend in thrift shares going into the second
half of July. Financial shares traded in a narrow range to closeout July and into early-August, as the Federal Reserve concluded its late-July policy meeting with no change in its target
interest rate as expected. Financial shares posted healthy gains on the heels of the favorable jobs report for July, as the S&P 500’s financial sector moved into positive territory for the first
time in 2016. After trading in a narrow range into the second half of August, some favorable housing data helped thrift shares to rally in late-August. The positive trend in thrift stocks
continued into early-September, as a slowdown in August job growth reduced expectations that the Federal Reserve would soon raise rates. Thrift shares followed the broader stock market
lower in mid-September, as investors reacted to oil prices moving to a one-month low. For the balance of September and into mid-October, thrift shares traded in a tight range as Federal
Reserve minutes released in mid-October offered investors few new insights about a next rate increase. Financial shares led the stock market higher heading into the second half of October,
in light of third quarter earnings reports generally offering fresh evidence of profitability improving for banks. Thrift stocks were largely trendless through the end of October and then
pulled back along with the broader stock market in early-November. Bank and thrift stocks were among the strongest performers in leading the post-election stock market rally, reflecting
investor expectations for reduced regulation of the banking sector. On November 25, 2016, the SNL Index for all publicly-traded thrifts closed at 932.54, an increase of 13.8% from one
year ago and an increase of 15.3% year-to-date.
RP ® Financial, LC. VALUATION ANALYSIS
IV.14

B. The New Issue Market

In addition to thrift stock market conditions in general, the new issue market for converting thrifts is also an important consideration in determining the Bank’s pro forma
market value. The new issue market is separate and distinct from the market for seasoned thrift stocks in that the pricing ratios for converting issues are computed on a pro forma basis,
specifically: (1) the numerator and denominator are both impacted by the conversion offering amount, unlike existing stock issues in which price change affects only the numerator; and
(2) the pro forma pricing ratio incorporates assumptions regarding source and use of proceeds, effective tax rates, stock plan purchases, etc. which impact pro forma financials, whereas
pricing for existing issues are based on reported financials. The distinction between pricing of converting and existing issues is perhaps no clearer than in the case of the price/book (“P/B”)
ratio in that the P/B ratio of a converting thrift will typically result in a discount to book value whereas in the current market for existing thrifts the P/B ratio may reflect a premium to book
value. Therefore, it is appropriate to also consider the market for new issues, both at the time of the conversion and in the aftermarket.

As shown in Table 4.2, two second-step conversions have been completed during the past three months. While the second step conversion are not considered to be totally
relevant for Newton Federal’s pro forma pricing, given the MHC offering structure, we can still examine such information. The average closing pro forma price/tangible book ratio of the
two recent second step conversion offerings equaled 72.5%. On average, the two second step conversion offerings reflected price appreciation of 23.7% after the first week of trading. As of
November 25, 2016, the two recent second step conversion offerings reflected a 20.5% increase in price on average.

Shown in Table 4.3 are the current pricing ratios for these two second step converted offerings completed during the past three months that trade on NASDAQ. The current
average P/TB ratio of these two companies equaled 87.51%, based on closing stock prices as of November 25, 2016.

C. The Acquisition Market

Also considered in the valuation was the potential impact on Newton Federal’s stock price of recently completed and pending acquisitions of other thrift institutions
operating in Georgia. As shown in Exhibit IV-4, there have been eight thrift acquisitions completed from the beginning of 2001 through November 25, 2016, and there are currently no
acquisitions pending
RP ® Financial, LC. VALUATION ANALYSIS
IV.15

Table 4.2
Pricing Characteristics and After-Market Trends
Conversions Completed in the Last Three Months

Institutional Information Pre-Conversion Data Offering Information Insider Purchases Pro Forma Data Post-IPO Pricing Trends
Financial Asset Contribution to % Off Incl. Fdn.+Merger Pricing Financial
Info. Quality Char. Found. Shares Ratios(2)(5) Charac. Closing Price:
Excluding Foundation % of Benefit Plans
Public
Off. Initial First After After
Conversion Equity/ NPAs/ Res. Gross % % of Exp./ Inc. Recog. Stk Mgmt.& Div. Core Core Core IPO Trading % First % First % Thru %
Institution Date Ticker Assets Assets Assets Cov. Proc. Offer Mid. Proc. Form Fdn. ESOP Plans Option Dirs. Yield P/TB P/E P/A ROA TE/A ROE Price Day Chge Week(3) Chge Month(4) Chge 11/25/2016 Chge
($Mil) (%) (%) (%) ($Mil.) (%) (%) (%) (%) (%) (%) (%) (%)(1) (%) (%) (x) (%) (%) (%) (%) ($) ($) (%) ($) (%) ($) (%) ($) (%)
Second Step Conversions
Bancorp 34, Inc. BCTF-
10/12/16 NASDAQ $ 287 10.61% 0.54% 626% $ 18.8 55% 132% 7.5% N.A. N.A. 8.0% 4.0% 10.0% 5.2% 0.00% 76.0% 52.3x 11.4% 0.2% 15.0% 1.4% $ 10.00 $ 12.75 27.5% $ 13.00 30.0% $ 12.33 23.3% $ 12.37 23.7%
Ottawa Bancorp, Inc. OTTW-
10/12/16 NASDAQ $ 217 14.55% 2.16% NA $ 23.8 69% 115% 6.4% N.A. N.A. 8.0% 4.0% 10.0% 1.5% 1.60% 69.1% 30.1x 14.6% 0.5% 21.2% 2.3% $ 10.00 $ 11.57 15.7% $ 11.74 17.4% $ 11.68 16.8% $ 11.73 17.3%
Averages - Second Step Conversions: $ 252 12.58% 1.35% 626% $ 21.3 62% 123% 6.9% N.A. N.A. 8.0% 4.0% 10.0% 3.3% 0.80% 72.5% 41.2x 13.0% 0.4% 18.1% 1.8% $ 10.00 $ 12.16 21.6% $ 12.37 23.7% $ 12.00 20.0% $ 12.05 20.5%
Medians - Second Step Conversions: $ 252 12.58% 1.35% 626% $ 21.3 62% 123% 6.9% N.A. N.A. 8.0% 4.0% 10.0% 3.3% 0.80% 72.5% 41.2x 13.0% 0.4% 18.1% 1.8% $ 10.00 $ 12.16 21.6% $ 12.37 23.7% $ 12.00 20.0% $ 12.05 20.5%

Note: * - Appraisal performed by RP Financial; BOLD = RP Fin. Did the business plan, “NT” - Not Traded; “NA” - Not Applicable, Not Available; C/S-Cash/Stock.

(1) As a percent of MHC offering for MHC transactions. (5) Mutual holding company pro forma data on full conversion basis.
(2) Does not take into account the adoption of SOP 93-6. (6) Simultaneously completed acquisition of another financial institution.
(3) Latest price if offering is less than one week old. (7) Simultaneously converted to a commercial bank charter.
(4) Latest price if offering is more than one week but less than one month old. (8) Former credit union.
11/25/2016
RP ® Financial, LC. VALUATION ANALYSIS
IV.16

Table 4.3
Public Market Pricing Versus Peer Group
Community First Bancshares, Inc.
As of November 25, 2016

Market Per Share Data

Capitalization Core Book Dividends(4) Financial Characteristics(6)
Price/ Market 12 Month Value/ Pricing Ratios(3) Amount/ Payout Total Equity/ Tang. Eq./ NPAs/ Reported Core
Share(1) Value EPS(2) Share P/E P/B P/A P/TB P/Core Share Yield Ratio(5) Assets Assets T. Assets Assets ROAA ROAE ROAA ROAE
($) ($Mil) ($) ($) (x) (%) (%) (%) (x) ($) (%) (%) ($Mil) (%) (%) (%) (%) (%) (%) (%)
All Non-MHC Public Companies (6)
Averages $ 20.55 $530.90 $ 1.05 $15.78 18.80x 123.90% 15.20% 134.09% 19.59x $ 0.31 1.49% 49.23% $3,069 12.71% 12.15% 1.13% 0.71% 5.98% 0.73% 6.11%
Median $ 16.33 $132.28 $ 0.78 $14.42 18.77x 121.48% 14.66% 127.40% 19.15x $ 0.24 1.43% 39.21% $ 937 11.50% 11.12% 0.88% 0.62% 5.34% 0.64% 5.14%
Comparable Group
Averages $ 12.05 $ 41.51 $ 0.26 $14.02 35.27x 86.31% 15.60% 87.51% 35.27x $ 0.08 0.68% 24.24% $ 269 18.34% 18.11% 1.35% 0.36% 1.85% 0.36% 1.85%
Medians $ 12.05 $ 41.51 $ 0.26 $14.02 35.27x 86.31% 15.60% 87.51% 35.27x $ 0.08 0.68% 24.24% $ 269 18.34% 18.11% 1.35% 0.36% 1.85% 0.36% 1.85%
Comparable Group
BCTF Bancorp 34, Inc. NM $ 12.37 $ 42.53 $ 0.19 $13.26 NM 93.26% 14.08% 93.95% NM $ 0.00 0.00% 0.00% $ 302 15.09% 14.99% 0.54% 0.22% 1.44% 0.22% 1.44%
OTTW Ottawa Bancorp, Inc. IL $ 11.73 $ 40.48 $ 0.33 $14.78 35.27x 79.35% 17.13% 81.07% 35.27x $ 0.16 1.36% 48.48% $ 236 21.58% 21.22% 2.16% 0.49% 2.25% 0.49% 2.25%

(1) Core income, on a diluted per-share basis. Core income is net income after taxes and before extraordinary items, less net income attributable to noncontrolling interest, gain on the
sale of securities, amortization of intangibles, goodwill and nonrecurring items. Assumed tax rate is 35%.
(2) P/E = Price to earnings; P/B = Price to book; P/A = Price to assets; P/TB = Price to tangible book value; and P/Core = Price to core earnings. P/E and P/Core =NM if the ratio is
negative or above 35x.
(3) Indicated 12 month dividend, based on last quarterly dividend declared.
(4) Indicated 12 month dividend as a percent of trailing 12 month earnings.
(5) ROAA (return on average assets) and ROAE (return on average equity) are indicated ratios based on trailing 12 month earnings and average equity and assets balances.
(6) Excludes from averages and medians those companies the subject of actual or rumored acquisition activities or unusual operating characteristics.

Source: SNL Financial, LC. and RP Financial, LC. calculations. The information provided in this report has been obtained from sources we believe are reliable, but we cannot guarantee
the accuracy or completeness of such information.

Copyright (c) 2016 by RP ® Financial, LC.

RP ® Financial, LC. VALUATION ANALYSIS
IV.17

of a Georgia savings institution. The recent acquisition activity may imply a certain degree of acquisition speculation for the Company’s stock. To the extent that acquisition speculation
may impact the offering, we have largely taken this into account in selecting companies for the Peer Group which operate in markets that have experienced a comparable level of acquisition
activity as the Bank’s market and, thus, are subject to the same type of acquisition speculation that may influence the Company’s stock. However, since converting thrifts are subject to a
three-year regulatory moratorium from being acquired, acquisition speculation in the Company’s stock would tend to be less, compared to the stocks of the Peer Group companies.
Furthermore, in comparison to the stocks of the fully-converted Peer Group companies, the degree of acquisition speculation in the Bank’s stock is also viewed to be relatively more limited
since there are fewer potential acquirers for the Bank’s stock as a re-mutualization transaction can only be completed by a mutual institution or an institution in the MHC form of ownership.
Additionally, there tends to be less acquisition speculation in the stocks of publicly-traded MHCs in general, given the majority of the shares are held by the MHC rather than public
shareholders which own 100% of the stocks of the fully-converted Peer Group companies. Accordingly, the Peer Group companies are considered to be subject to a greater degree of
acquisition speculation relative to the acquisition speculation that may influence Newton Federal’s trading price.

* * * * * * * * * * *

In determining our valuation adjustment for marketing of the issue, we considered trends in both the overall thrift market, the new issue market including the new issue market for
MHC conversions and the local acquisition market for thrift stocks. Taking these factors and trends into account, RP Financial concluded that no valuation adjustment was appropriate in the
valuation analysis for purposes of marketing of the issue.

8. Management
The Bank’s management team appears to have experience and expertise in all of the key areas of the Bank’s operations. Exhibit IV-5 provides summary resumes of the Newton
Federal’s Board of Directors and senior management. The financial characteristics of the Bank suggest that the Board and senior management have been effective in pursuing an operating
strategy that can be well managed by the Bank’s present organizational structure. The Bank currently does not have any senior management positions that are vacant.
RP ® Financial, LC. VALUATION ANALYSIS
IV.18

Similarly, the returns, equity positions, and other operating measures of the Peer Group companies are indicative of well-managed financial institutions, which have Boards and
management teams that have been effective in implementing competitive operating strategies. Therefore, on balance, we concluded no valuation adjustment relative to the Peer Group was
appropriate for this factor.

9. Effect of Government Regulation and Regulatory Reform

In summary, as a federally-insured savings institution operating in the MHC form of ownership, Newton Federal will be operating in substantially the same regulatory environment
as the Peer Group members — all of whom are adequately capitalized institutions and are operating with no apparent restrictions. Exhibit IV-6 reflects the Bank’s pro forma regulatory
capital ratios. Accordingly, no adjustment has been applied for the effect of government regulation and regulatory reform.

Summary of Adjustments
Overall, based on the factors discussed above, we concluded that the Bank’s pro forma market value should reflect the following valuation adjustments relative to the Peer Group:

Table 4.4
Newton Federal Bank
Valuation Adjustments

Key Valuation Parameters: Valuation Adjustment

Financial Condition No Adjustment
Profitability, Growth and Viability of Earnings Slight Downward
Asset Growth No Adjustment
Primary Market Area No Adjustment
Dividends Slight Downward
Liquidity of the Shares Slight Downward
Marketing of the Issue No Adjustment
Management No Adjustment
Effect of Govt. Regulations and Regulatory Reform No Adjustment

Valuation Approaches
In applying the accepted valuation methodology utilized by the OCC, i.e., the pro forma market value approach, we considered the three key pricing ratios in valuing the Bank’s to-
be-issued stock — price/earnings (“P/E”), price/book (“P/B”), and price/assets (“P/A”) approaches — all performed on a pro forma basis including the effects of the stock proceeds. In
computing the
RP ® Financial, LC. VALUATION ANALYSIS
IV.19

pro forma impact of the conversion and the related pricing ratios, we have incorporated the valuation parameters disclosed in the Bank’s prospectus for the reinvestment rate, effective tax
rate, stock benefit plan assumptions, and offering expenses (summarized in Exhibits IV-9 and IV-10). The assumptions utilized in the pro forma analysis in calculating the Company’s full
conversion value were consistent with the assumptions utilized for the minority stock offering, except that expenses were adjusted for variable expenses based on the amount sold
(summarized in Exhibits IV-7 and IV-8).

In our estimate of value, we assessed the relationship of the pro forma pricing ratios relative to the Peer Group, recent conversion offerings and publicly-traded MHCs on a fully-
converted basis.

RP Financial’s valuation placed an emphasis on the following:

• P/E Approach . The P/E approach is generally the best indicator of long-term value for a stock. Given the similarities between the Company’s and the Peer Group’s
earnings composition and overall financial condition, the P/E approach was carefully considered in this valuation. At the same time, recognizing that (1) the
earnings multiples will be evaluated on a pro forma fully-converted basis for the Company; and (2) the Peer Group on average has had the opportunity to realize the
benefit of reinvesting net conversion proceeds, we also gave weight to the other valuation approaches.
• P/B Approach . P/B ratios have generally served as a useful benchmark in the valuation of thrift stocks, particularly in the context of an initial public offering, as the
earnings approach involves assumptions regarding the use of proceeds. RP Financial considered the P/B approach to be a valuable indicator of pro forma value
taking into account the pricing ratios under the P/E and P/A approaches. We have also modified the P/B approach to exclude the impact of intangible assets (i.e.,
price/tangible book value or “P/TB”), in that the investment community frequently makes this adjustment in its evaluation of this pricing approach.
• P/A Approach . P/A ratios are generally a less reliable indicator of market value, as investors typically assign less weight to assets and attribute greater weight to
book value and earnings. Furthermore, this approach as set forth in the regulatory valuation guidelines does not take into account the amount of stock purchases
funded by deposit withdrawals, thus understating the pro forma P/A ratio. At the same time, the P/A ratio is an indicator of franchise value, and, in the case of
highly capitalized institutions, high P/A ratios may limit the investment community’s willingness to pay market multiples for earnings or book value when ROE is
expected to be low.
RP ® Financial, LC. VALUATION ANALYSIS
IV.20

The Company will adopt “Employers’ Accounting for Employee Stock Ownership Plans” (“ASC 718-40”), which will cause earnings per share computations to be based on shares
issued and outstanding excluding unreleased ESOP shares. For purposes of preparing the pro forma pricing analyses, we have reflected all shares issued in the offering, including all ESOP
shares, to capture the full dilutive impact, particularly since the ESOP shares are economically dilutive, receive dividends and can be voted. However, we did consider the impact of ASC
718-40 in the valuation.

Based on the application of the three valuation approaches, taking into consideration the valuation adjustments discussed above, RP Financial concluded that as of November 25,
2016, the pro forma market value of the Company’s full conversion offering equaled $55,000,000 at the midpoint, equal to 5,500,000 shares at $10.00 per share. The $10.00 per share price
was determined by the Newton Federal Board.

Basis of Valuation – Fully Converted Pricing Ratios

1. Price-to-Earnings (“P/E”) . The application of the P/E valuation method requires calculating the Company’s pro forma market value by applying a valuation P/E multiple (fully-
converted basis) to the pro forma earnings base. In applying this technique, we considered both reported earnings and a recurring earnings base, that is, earnings adjusted to exclude any
one-time non-operating items, plus the estimated after-tax earnings benefit of the reinvestment of the net proceeds. The Bank reported net income of $1.157 million for the fiscal year ended
September 30, 2016. In deriving Newton Federal’s core earnings, the adjustments made to reported earnings were to eliminate expense related to the separation of the former President and
CEO in early 2016 ($251,000). As shown in the table below, on a tax-effected basis, assuming an effective marginal tax rate of 38% for the earnings adjustments, the Company’s core
earnings were determined to equal $1.313 million for the fiscal year ended September 30, 2016.
RP ® Financial, LC. VALUATION ANALYSIS
IV.21

Table 4.5
Newton Federal Bank
Derivation of Core Earnings

Amount
($000)
Net Income $1,157
Addback: Expenses Related to CEO Separation 251
Tax Effect (1) (95)
Core Earnings Estimate $1,313

(1) Tax effected at 38%.

Based on the Company’s reported and estimated core earnings, and incorporating the impact of the pro forma assumptions discussed previously, the Company’s pro forma reported
and core P/E multiples (fully-converted basis) at the $55.0 million midpoint value equaled 63.00 times and 53.47 times, respectively, indicating premiums of 226.8% and 143.7%, relative
to the Peer Group’s average reported and core earnings multiples of 19.28 times and 21.94 times (see Table 4.6). In comparison to the Peer Group’s median reported and core earnings
multiples of 17.92 times and 19.92 times, the Company’s pro forma reported and core P/E multiples (fully-converted basis) at the midpoint value indicated premiums of 251.6% and
168.4%, respectively. The Company’s pro forma P/E ratios (fully-converted basis) based on reported earnings at the minimum and the maximum, as adjusted equaled 51.12 times and 92.79
times, and based on core earnings at the minimum and the maximum, as adjusted equaled 43.69 times and 77.42 times, respectively.

On an MHC reported basis, the Company’s reported and core P/E multiples at the midpoint value of $55.0 million equaled 54.91 times and 47.52 times, respectively (see Table 4.7).
The Company’s reported and core P/E multiples provided for premiums of 184.8% and 116.6% relative to the Peer Group’s average reported and core P/E multiples of 19.28 times and
21.94 times, respectively. In comparison to the Peer Group’s median reported and core earnings multiples which equaled 17.92 times and 19.92 times, respectively, the Company’s pro
forma reported and core P/E multiples (MHC basis) at the midpoint value indicated premiums of 206.4% and 138.6%, respectively. The Company’s pro forma reported P/E ratios (MHC
basis) at the minimum and the super maximum equaled 45.67 times and 76.22 times, respectively. The Company’s pro forma core P/E ratios (MHC basis) at the minimum and the super
maximum equaled 39.64 times and 65.53 times, respectively.
RP ® Financial, LC. VALUATION ANALYSIS
IV.22

Table 4.6
Fully Converted Market Pricing Versus Peer Group
Community First Bancshares, Inc.
As of November 25, 2016

Market Per Share Data

Capitalization Core Book Dividends(4) Financial Characteristics(6)
Price/ Market 12 Month Value/ Pricing Ratios(3) Amount/ Payout Total Equity/ Tang. Eq./ NPAs/ Reported Core
Share(1) Value EPS(2) Share P/E P/B P/A P/TB P/Core Share Yield Ratio(5) Assets Assets T. Assets Assets ROAA ROAE ROAA ROAE
($) ($Mil) ($) ($) (x) (%) (%) (%) (x) ($) (%) (%) ($Mil) (%) (%) (%) (%) (%) (%) (%)
Community First Bancshares, Inc.
Supermaximum $ 10.00 $ 72.74 $ 0.13 $14.76 92.79x 67.75% 24.65% 67.75% 77.42x $ 0.00 0.00% 0.00% $ 295 36.38% 36.38% 1.10% 0.27% 0.73% 0.32% 0.88%
Maximum $ 10.00 $ 63.25 $ 0.16 $15.66 76.06x 63.86% 22.05% 63.86% 64.07x $ 0.00 0.00% 0.00% $ 287 34.54% 34.54% 1.13% 0.29% 0.84% 0.34% 1.00%
Midpoint $ 10.00 $ 55.00 $ 0.19 $16.71 63.00x 59.84% 19.67% 59.84% 53.47x $ 0.00 0.00% 0.00% $ 280 32.86% 32.86% 1.16% 0.31% 0.95% 0.37% 1.12%
Minimum $ 10.00 $ 46.75 $ 0.23 $18.12 51.12x 55.19% 17.16% 55.19% 43.69x $ 0.00 0.00% 0.00% $ 272 31.09% 31.09% 1.19% 0.34% 1.08% 0.39% 1.26%
All Non-MHC Public Companies(6)
Averages $ 20.55 $530.90 $ 1.05 $15.78 18.80x 123.90% 15.20% 134.09% 19.59x $ 0.31 1.49% 49.23% $3,069 12.71% 12.15% 1.13% 0.71% 5.98% 0.73% 6.11%
Median $ 16.33 $132.28 $ 0.78 $14.42 18.77x 121.48% 14.66% 127.40% 19.15x $ 0.24 1.43% 39.21% $ 937 11.50% 11.12% 0.88% 0.62% 5.34% 0.64% 5.14%
Comparable Group
Averages $ 19.16 $ 66.83 $ 0.75 $19.29 19.28x 99.32% 15.84% 100.73% 21.94x $ 0.21 1.02% 42.97% $ 419 15.88% 15.72% 1.72% 0.57% 3.59% 0.55% 3.48%
Medians $ 17.58 $ 65.82 $ 0.48 $17.81 17.92x 98.00% 15.61% 99.99% 19.92x $ 0.20 1.10% 40.03% $ 435 15.73% 15.50% 1.55% 0.48% 2.84% 0.50% 3.08%
State of GA (6)
CHFN Charter Financial Corporation GA $ 14.47 $217.50 $ 0.86 $13.52 18.32x 107.06% 15.07% 127.40% 16.80x $ 0.22 1.52% 25.95% $1,443 14.08% 12.10% 0.76% 0.98% 5.90% 1.07% 6.43%
Comparable Group
ANCB Anchor Bancorp WA $ 25.40 $ 63.63 $ 0.29 $25.46 NM 99.77% 14.60% 99.77% NM NA NA NA $ 436 14.63% 14.63% NA 0.17% 1.14% 0.17% 1.14%
EQFN Equitable Financial Corp. NE $ 9.10 $ 31.64 $ 0.32 $10.43 29.35x 87.24% 13.89% 87.24% 28.58x NA NA NA $ 228 15.92% 15.92% NA 0.46% 3.00% 0.47% 3.08%
IROQ IF Bancorp, Inc. IL $ 19.35 $ 76.44 $ 0.98 $21.12 17.92x 91.60% 13.04% 91.60% 19.77x $ 0.16 0.83% 14.81% $ 589 14.23% 14.23% 0.82% 0.70% 4.93% 0.64% 4.46%
JXSB Jacksonville Bancorp, Inc. IL $ 29.26 $ 52.63 $ 1.57 $26.84 17.21x 109.00% 15.91% 115.53% 18.58x $ 0.40 1.37% 81.18% $ 331 14.60% 13.89% 1.33% 0.99% 6.53% 0.92% 6.05%
MELR Melrose Bancorp, Inc. MA $ 15.91 $ 41.39 $ 0.28 $16.61 NM 95.77% 15.54% 95.77% NM NA NA NA $ 267 16.23% 16.23% 0.00% 0.42% 2.26% 0.29% 1.55%
MSBF MSB Financial Corp. NJ $ 13.70 $ 78.24 $ 0.12 $12.71 NM 107.81% 18.04% 107.81% NM $ 0.00 0.00% NA $ 434 16.74% 16.74% 3.53% 0.18% 0.90% 0.26% 1.34%
PBSK Poage Bankshares, Inc. KY $ 18.95 $ 70.37 $ 0.60 $18.78 NM 100.89% 15.68% 104.44% 31.57x $ 0.32 1.69% 53.85% $ 449 15.54% 15.09% 1.78% 0.43% 2.68% 0.50% 3.08%
PBIP Prudential Bancorp, Inc. PA $ 15.81 $127.20 $ 0.35 $14.17 NM 111.58% 22.74% 111.58% NM $ 0.12 0.76% 33.33% $ 559 20.38% 20.38% 3.39% 0.51% 2.36% 0.49% 2.29%
UCBA United Community Bancorp IN $ 16.20 $ 68.01 $ 0.81 $16.83 18.84x 96.23% 12.88% 100.20% 20.07x $ 0.24 1.48% 27.91% $ 528 13.38% 12.92% 1.02% 0.68% 5.14% 0.63% 4.83%
WBKC Wolverine Bancorp, Inc. MI $ 27.97 $ 58.70 $ 2.14 $29.97 13.07x 93.33% 16.05% 93.33% 13.07x NA NA 46.73% $ 369 17.20% 17.20% 1.92% 1.13% 7.00% 1.13% 7.00%

(1) Core income, on a diluted per-share basis. Core income is net income after taxes and before extraordinary items, less net income attributable to noncontrolling interest, gain on the
sale of securities, amortization of intangibles, goodwill and nonrecurring items. Assumed tax rate is 35%.
(2) P/E = Price to earnings; P/B = Price to book; P/A = Price to assets; P/TB = Price to tangible book value; and P/Core = Price to core earnings. P/E and P/Core =NM if the ratio is
negative or above 35x.
(3) Indicated 12 month dividend, based on last quarterly dividend declared.
(4) Indicated 12 month dividend as a percent of trailing 12 month earnings.
(5) ROAA (return on average assets) and ROAE (return on average equity) are indicated ratios based on trailing 12 month earnings and average equity and assets balances.
(6) Excludes from averages and medians those companies the subject of actual or rumored acquisition activities or unusual operating characteristics.

Source: SNL Financial, LC. and RP Financial, LC. calculations. The information provided in this report has been obtained from sources we believe are reliable, but we cannot guarantee
the accuracy or completeness of such information.

Copyright (c) 2016 by RP ® Financial, LC.

RP ® Financial, LC. VALUATION ANALYSIS
IV.23

Table 4.7
MHC Market Pricing Versus Peer Group
Community First Bancshares, Inc.
As of November 25, 2016

Market Per Share Data

Capitalization Core Book Dividends(4) Financial Characteristics(6)
Price/ Market 12 Month Value/ Pricing Ratios(3) Amount/ Payout Total Equity/ Tang. Eq./ NPAs/ Reported Core
Share(1) Value EPS(2) Share P/E P/B P/A P/TB P/Core Share Yield Ratio(5) Assets Assets T. Assets Assets ROAA ROAE ROAA ROAE
($) ($Mil) ($) ($) (x) (%) (%) (%) (x) ($) (%) (%) ($Mil) (%) (%) (%) (%) (%) (%) (%)
Community First Bancshares, Inc.
Supermaximum $ 10.00 $ 72.74 $ 0.13 $10.01 76.22x 99.95% 27.92% 99.95% 65.53x $ 0.00 0.00% 0.00% $ 261 27.93% 27.93% 1.24% 0.37% 1.31% 0.43% 1.53%
Maximum $ 10.00 $ 63.25 $ 0.15 $10.91 64.56x 91.65% 24.63% 91.65% 55.71x $ 0.00 0.00% 0.00% $ 257 26.88% 26.88% 1.26% 0.38% 1.42% 0.44% 1.65%
Midpoint $ 10.00 $ 55.00 $ 0.18 $11.95 54.91x 83.67% 21.70% 83.67% 47.52x $ 0.00 0.00% 0.00% $ 253 25.93% 25.93% 1.28% 0.40% 1.52% 0.46% 1.76%
Minimum $ 10.00 $ 46.75 $ 0.22 $13.36 45.67x 74.85% 18.68% 74.85% 39.64x $ 0.00 0.00% 0.00% $ 250 24.96% 24.96% 1.30% 0.41% 1.64% 0.47% 1.89%
All Non-MHC Public Companies(6)
Averages $ 20.55 $530.90 $ 1.05 $15.78 18.80x 123.90% 15.20% 134.09% 19.59x $ 0.31 1.49% 49.23% $3,069 12.71% 12.15% 1.13% 0.71% 5.98% 0.73% 6.11%
Median $ 16.33 $132.28 $ 0.78 $14.42 18.77x 121.48% 14.66% 127.40% 19.15x $ 0.24 1.43% 39.21% $ 937 11.50% 11.12% 0.88% 0.62% 5.34% 0.64% 5.14%
Comparable Group
Averages $ 19.16 $ 66.83 $ 0.75 $19.29 19.28x 99.32% 15.84% 100.73% 21.94x $ 0.21 1.02% 42.97% $ 419 15.88% 15.72% 1.72% 0.57% 3.59% 0.55% 3.48%
Medians $ 17.58 $ 65.82 $ 0.48 $17.81 17.92x 98.00% 15.61% 99.99% 19.92x $ 0.20 1.10% 40.03% $ 435 15.73% 15.50% 1.55% 0.48% 2.84% 0.50% 3.08%
State of GA (6)
CHFN Charter Financial Corporation GA $ 14.47 $217.50 $ 0.86 $13.52 18.32x 107.06% 15.07% 127.40% 16.80x $ 0.22 1.52% 25.95% $1,443 14.08% 12.10% 0.76% 0.98% 5.90% 1.07% 6.43%
Comparable Group
ANCB Anchor Bancorp WA $ 25.40 $ 63.63 $ 0.29 $25.46 NM 99.77% 14.60% 99.77% NM NA NA NA $ 436 14.63% 14.63% NA 0.17% 1.14% 0.17% 1.14%
EQFN Equitable Financial Corp. NE $ 9.10 $ 31.64 $ 0.32 $10.43 29.35x 87.24% 13.89% 87.24% 28.58x NA NA NA $ 228 15.92% 15.92% NA 0.46% 3.00% 0.47% 3.08%
IROQ IF Bancorp, Inc. IL $ 19.35 $ 76.44 $ 0.98 $21.12 17.92x 91.60% 13.04% 91.60% 19.77x $ 0.16 0.83% 14.81% $ 589 14.23% 14.23% 0.82% 0.70% 4.93% 0.64% 4.46%
JXSB Jacksonville Bancorp, Inc. IL $ 29.26 $ 52.63 $ 1.57 $26.84 17.21x 109.00% 15.91% 115.53% 18.58x $ 0.40 1.37% 81.18% $ 331 14.60% 13.89% 1.33% 0.99% 6.53% 0.92% 6.05%
MELR Melrose Bancorp, Inc. MA $ 15.91 $ 41.39 $ 0.28 $16.61 NM 95.77% 15.54% 95.77% NM NA NA NA $ 267 16.23% 16.23% 0.00% 0.42% 2.26% 0.29% 1.55%
MSBF MSB Financial Corp. NJ $ 13.70 $ 78.24 $ 0.12 $12.71 NM 107.81% 18.04% 107.81% NM $ 0.00 0.00% NA $ 434 16.74% 16.74% 3.53% 0.18% 0.90% 0.26% 1.34%
PBSK Poage Bankshares, Inc. KY $ 18.95 $ 70.37 $ 0.60 $18.78 NM 100.89% 15.68% 104.44% 31.57x $ 0.32 1.69% 53.85% $ 449 15.54% 15.09% 1.78% 0.43% 2.68% 0.50% 3.08%
PBIP Prudential Bancorp, Inc. PA $ 15.81 $127.20 $ 0.35 $14.17 NM 111.58% 22.74% 111.58% NM $ 0.12 0.76% 33.33% $ 559 20.38% 20.38% 3.39% 0.51% 2.36% 0.49% 2.29%
UCBA United Community Bancorp IN $ 16.20 $ 68.01 $ 0.81 $16.83 18.84x 96.23% 12.88% 100.20% 20.07x $ 0.24 1.48% 27.91% $ 528 13.38% 12.92% 1.02% 0.68% 5.14% 0.63% 4.83%
WBKC Wolverine Bancorp, Inc. MI $ 27.97 $ 58.70 $ 2.14 $29.97 13.07x 93.33% 16.05% 93.33% 13.07x NA NA 46.73% $ 369 17.20% 17.20% 1.92% 1.13% 7.00% 1.13% 7.00%

(1) Core income, on a diluted per-share basis. Core income is net income after taxes and before extraordinary items, less net income attributable to noncontrolling interest, gain on the
sale of securities, amortization of intangibles, goodwill and nonrecurring items. Assumed tax rate is 35%.
(2) P/E = Price to earnings; P/B = Price to book; P/A = Price to assets; P/TB = Price to tangible book value; and P/Core = Price to core earnings. P/E and P/Core =NM if the ratio is
negative or above 35x.
(3) Indicated 12 month dividend, based on last quarterly dividend declared.
(4) Indicated 12 month dividend as a percent of trailing 12 month earnings.
(5) ROAA (return on average assets) and ROAE (return on average equity) are indicated ratios based on trailing 12 month earnings and average equity and assets balances.
(6) Excludes from averages and medians those companies the subject of actual or rumored acquisition activities or unusual operating characteristics.

Source: SNL Financial, LC. and RP Financial, LC. calculations. The information provided in this report has been obtained from sources we believe are reliable, but we cannot guarantee
the accuracy or completeness of such information.

Copyright (c) 2016 by RP ® Financial, LC.

RP ® Financial, LC. VALUATION ANALYSIS
IV.24

2. Price-to-Book (“P/B”) . The application of the P/B valuation method requires calculating the Company’s pro forma market value by applying a valuation P/B ratio, as derived
from the Peer Group’s P/B ratio, to the Company’s pro forma book value (fully-converted basis). Based on the $55.0 million midpoint valuation, the Company’s pro forma P/B and P/TB
ratios (fully-converted basis) both equaled 59.84% (see Table 4.6). In comparison to the average P/B and P/TB ratios for the Peer Group of 99.32% and 100.73%, respectively, the
Company’s ratios reflected a discount of 39.8% on a P/B basis and a discount of 40.6% on a P/TB basis. In comparison to the Peer Group’s median P/B and P/TB ratios of 98.00% and
99.99%, respectively, the Company’s pro forma P/B and P/TB ratios (fully-converted basis) at the midpoint value reflected discounts of 38.9% and 40.2%, respectively. At the top of the
super range or supermaximum, the Company’s P/B and P/TB ratios (fully-converted basis) both equaled 67.75%. In comparison to the Peer Group’s average P/B and P/TB ratios, the
Bank’s P/B and P/TB ratios at the top of the super range reflected discounts of 31.8% and 32.7%, respectively. In comparison to the Peer Group’s median P/B and P/TB ratios, the
Company’s P/B and P/TB ratios at the top of the super range reflected discounts of 30.9% and 32.2%, respectively. RP Financial considered the discounts under the P/B approach to be
reasonable, given the nature of the calculation of the P/B ratio, which mathematically results in a ratio discounted to book value, along with consideration of the Company’s higher pro
forma equity ratio and in consideration of the trading of recent conversions.

On an MHC reported basis, the Company’s P/B and P/TB ratios at the $55.0 million midpoint value both equaled 83.67% (see Table 4.7). In comparison to the average P/B and
P/TB ratios indicated for the Peer Group of 99.32% and 100.73%, respectively, the Company’s ratios were discounted by 15.8% on a P/B basis and 16.9% on a P/TB basis. In comparison to
the Peer Group’s median P/B and P/TB ratios of 98.00% and 99.99%, respectively, the Company’s pro forma P/B and P/TB ratios (MHC basis) at the midpoint value reflected discounts of
14.6% and 16.3%, respectively. At the top of the super range, the Company’s P/B and P/TB ratios (MHC basis) both equaled 99.95%. In comparison to the Peer Group’s average P/B and
P/TB ratios, the Company’s P/B and P/TB ratios at the top of the super range reflected a premium of 0.6% and a discount of 0.8%, respectively. In comparison to the Peer Group’s median
P/B and P/TB ratios, the Company’s P/B and P/TB ratios at the top of the super range reflected a premium of 2.0% and a discount of 0.04%, respectively.
RP ® Financial, LC. VALUATION ANALYSIS
IV.25

3. Price-to-Assets (“P/A”) . The P/A valuation methodology determines market value by applying a valuation P/A ratio (fully-converted basis) to the Company’s pro forma asset
base, conservatively assuming no deposit withdrawals are made to fund stock purchases. In all likelihood there will be deposit withdrawals, which results in understating the pro forma P/A
ratio, which is computed herein. At the $55.0 million midpoint of the valuation range, the Company’s pro forma P/A ratio (fully-converted basis) equaled 19.67% of pro forma assets.
Comparatively, the Peer Group companies exhibited an average P/A ratio of 15.84%, which implies a premium of 24.2% has been applied to the Company’s pro forma P/A ratio. In
comparison to the Peer Group’s median P/A ratio of 15.61%, the Bank’s pro forma P/A ratio (fully-converted basis) at the midpoint value reflects a premium of 26.0%.

On an MHC reported basis, the Company’s pro forma P/A ratio at the $55.0 million midpoint value equaled 21.70% (see Table 4.7). In comparison to the Peer Group’s average P/A
ratio of 15.84%, the Company’s P/A ratio (MHC basis) indicated a premium of 36.99%. In comparison to the Peer Group’s median P/A ratio of 15.61%, the Company’s pro forma P/A ratio
(MHC basis) at the midpoint value reflects a premium of 39.01%.

Comparison to Publicly-Traded MHCs

As indicated in Chapter III, we believe there are a number of characteristics of MHC shares that make them different from the shares of fully-converted companies. These factors
include: (1) lower aftermarket liquidity in the MHC shares since less than 50% of the shares are available for trading; (2) no opportunity for public shareholders to exercise voting control;
(3) the potential pro forma impact of second-step conversions on the pricing of MHC institutions; and (4) the regulatory policies regarding the accounting for net assets and/or waived
dividends held by the MHC in a second-step conversion and, thereby, lessening the attractiveness of paying cash dividends. The above characteristics of MHC shares have provided MHC
stocks with different trading characteristics versus fully-converted companies. To account for the unique trading characteristics of MHC shares, RP Financial has placed the financial data
and pricing ratios of the publicly-traded MHCs and the MHCs listed on the Over-the-Counter Bulletin Board (“OTCBB”) on a fully-converted basis to make them comparable for valuation
purposes. We feel that examining the OTCBB MHCs is also useful as Newton Federal shares more characteristics to those companies than the publicly-traded companies in terms of asset
size, market capitalization, resources, etc.
RP ® Financial, LC. VALUATION ANALYSIS
IV.26

Using the per share and pricing information of the publicly-traded and OTC MHCs on a fully-converted basis accomplishes a number of objectives. First, such figures eliminate
distortions that result when trying to compare institutions that have different public ownership interests outstanding. Secondly, such an analysis provides ratios that are comparable to the
pricing information of fully-converted public companies and are directly applicable to determining the pro forma market value range of the 100% ownership interest in the Company as an
MHC. This technique is validated by the investment community’s evaluation of MHC pricing, which also incorporates the pro forma impact of a second-step conversion based on the
current market price.

To calculate the fully-converted pricing information for MHCs, the reported financial information for the public MHCs incorporate the following assumptions: (1) all shares owned
by the MHC are assumed to be sold at the current trading price in a second step-conversion; (2) the gross proceeds from such a sale are adjusted to reflect reasonable offering expenses and
standard stock based benefit plan parameters that would be factored into a second-step conversion of an MHC institution; and (3) net proceeds are assumed to be reinvested at market rates
on a tax effected basis. Book value per share and earnings per share figures for the public MHCs were adjusted by the impact of the assumed second step-conversion, resulting in an
estimation of book value per share and earnings per share figures on a fully-converted basis. Table 4.8 on the following pages shows the calculation of per share financial data (fully-
converted basis) for each of the eight publicly-traded MHC institutions and the 18 OTCBB-listed MHCs, which have not announced plans to complete a second-step conversion offering.

Table 4.9 below shows a comparative pricing analysis of the publicly-traded MHCs and the OTCBB MHCs on a fully-converted basis versus the Company’s Peer Group. In
comparison to the Peer Group’s average P/TB ratio, the P/TB ratio of the publicly-traded MHCs reflected a discount of 10.23%. In comparison to the Peer Group’s P/E multiple, the average
P/E multiple of the publicly-traded MHCs reflected a premium of 7.2%, while the OTC MHCs P/E multiple indicated a discount of 5.4%. In comparison to the publicly-traded MHCs, the
Company’s pro forma P/TB ratio (fully-converted basis) of 59.84% at the midpoint of the valuation range reflected a discount of 33.8%, and reflected a discount of 8.3% to the average of
the OTCBB MHCs. At the top of the super range, the Company’s P/TB ratio (fully-converted basis) of 67.75% reflected a discount of 25.1% to the average of the publicly-traded MHCs,
and a premium of 3.8% to the average of the OTCBB MHCs.
RP ® Financial, LC. VALUATION ANALYSIS
IV.27

Table 4.8
MHC Institutions, Implied Pricing Ratios, Full Conversion Basis
Financial Data as of the Most Recent Quarter or Twelve Month Period Available
Prices as of November 25, 2016

Key Financial Data(2)

Per Share Data Pricing Ratios(2) Dividends LTM
Stock Mkt LTM Tang. P/E Price/ Price/ Price/ Ann Div Div. Div Pay Total Tang. Reported
Ticker Company Name City State Exchange Price(1) Value EPS BV/Sh LTM Book TBk Assts Rate Yield Ratio Assets E/A ROAA ROAE
($) ($M) ($) ($) (x) (%) (%) (%) ($) (%) (%) ($000) (%) (%) (%)
Publicly Traded MHCs, Full Conversion Basis—Averages 16.70 835.4 0.60 18.46 20.66 88.45 90.43 20.83 0.25 1.60 53.98 2,884,449 23.09 0.69 3.05
Publicly Traded MHCs, Full Conversion Basis—Medians 18.39 149.1 0.58 19.00 19.98 85.94 87.44 21.19 0.33 1.78 33.94 729,735 23.12 0.77 2.94
OTC MHCs, Full Conversion Basis—Averages 10.72 25.71 0.55 16.96 18.24 62.20 65.27 11.41 0.24 4.90 20.91 261,313 18.14 0.46 2.55
OTC MHCs, Full Conversion Basis—Medians 9.46 18.18 0.50 15.70 19.53 62.10 63.25 10.82 0.12 1.10 22.44 173,822 17.68 0.46 2.81
Publicly Traded MHCs, Full Conversion Basis
1 GCBC Greene County Bancorp, Inc. (MHC) Catskill NY NASDAQ 21.70 184.2 1.21 19.14 17.97 113.39 113.39 18.81 0.38 1.75 31.5 979,133 16.59 1.05 6.31
2 HONE HarborOne Bancorp, Inc. (MHC) Brockton MA NASDAQ 19.62 630.2 0.24 18.86 NM 101.73 104.01 23.88 0.00 0.00 0.0 2,638,719 22.96 0.29 1.24
3 KFFB Kentucky First Federal Bancorp (MHC) Frankfort KY NASDAQ 8.65 73.4 0.19 10.39 NM 71.48 83.25 22.22 0.40 4.62 206.8 330,280 26.69 0.50 1.60
4 LSBK Lake Shore Bancorp, Inc. (MHC) Dunkirk NY NASDAQ 14.18 86.5 0.77 19.95 18.44 71.06 71.06 16.54 0.28 1.97 36.4 522,780 23.27 0.90 3.85
5 MGYR Magyar Bancorp, Inc. (MHC) New Brunswick NJ NASDAQ 10.60 61.7 0.24 13.21 NM 80.23 80.23 10.06 0.00 0.00 0.0 613,552 12.53 0.23 1.83
6 OFED Oconee Federal Financial Corp. (MHC) Seneca SC NASDAQ 22.05 127.8 1.02 27.76 21.53 77.83 79.43 22.69 0.40 1.81 39.1 563,182 28.56 1.05 3.62
7 PVBC Provident Bancorp, Inc. (MHC) Amesbury MA NASDAQ 17.95 170.5 0.73 19.59 24.70 91.64 91.64 20.16 0.00 0.00 0.0 845,917 21.99 0.82 3.71
8 TFSL TFS Financial Corporation (MHC) Cleveland OH NASDAQ 18.82 5,349.0 0.42 18.74 NM 100.24 100.42 32.26 0.50 2.66 118.1 16,582,031 32.12 0.73 2.25
OTC MHCs, Full Conversion Basis
9 ABBB Auburn Bancorp, Inc. (MHC) Auburn ME OTC Pink 9.40 4.7 0.66 17.50 14.16 53.71 53.71 6.47 0.00 0.00 0.0 73,143 12.04 0.46 3.79
10 BVFL BV Financial, Inc. (MHC) Baltimore MD OTC Pink 6.70 20.1 0.00 10.94 NM 60.95 61.23 11.22 0.00 0.00 0.0 179,110 18.32 0.00 0.00
11 CNNB Cincinnati Bancorp (MHC) Cincinnati OH OTC Pink 9.51 16.4 0.39 15.03 24.13 63.25 63.25 9.96 0.00 0.00 0.0 164,152 15.75 0.41 2.62
12 CULL Cullman Bancorp, Inc. (MHC) Cullman AL OTC Pink 22.50 57.7 1.08 28.25 20.85 79.65 79.65 19.12 0.25 1.11 23.2 301,705 24.01 0.92 3.82
13 FSGB First Federal of South Carolina, FSB (MHC) Walterboro SC OTC Pink 4.49 4.5 0.50 7.92 8.91 56.71 56.71 5.97 0.12 2.67 23.8 76,224 10.52 0.67 6.37
14 GOVB Gouverneur Bancorp, Inc. (MHC) Gouverneur NY OTC Pink 14.50 32.2 0.58 20.79 24.85 69.73 69.73 20.43 0.34 2.34 58.3 157,751 29.30 0.82 2.81
15 GVFF Greenville Federal Financial Corporation (MHC) Greenville OH OTC Pink 8.46 17.6 0.36 14.35 23.43 58.93 58.93 10.42 0.28 3.31 77.6 168,535 17.68 0.44 2.51
GFCJ Guaranty Financial Corp. (MHC) Glendale WI OTC Pink - NA NM NA NM NA
16 2.85 5.3 0.20 20.37 0.53 2.00 70.18 999,850 -0.04 -1.41
17 HTWC Hometown Bancorp, Inc. (MHC) Walden NY OTC Pink 2.65 6.2 0.00 4.68 NM 54.75 56.67 4.90 0.00 0.00 0.0 125,934 8.64 0.00 0.00
18 LSFG LifeStore Financial Group (MHC) West Jefferson NC OTC Pink 16.75 17.1 2.07 NA 8.10 57.74 NA 6.23 0.00 0.00 0.0 273,802 NA 0.77 7.13
19 LPBC Lincoln Park Bancorp (MHC) Lincoln Park NJ OTC Pink 11.00 19.8 0.55 15.70 19.91 69.95 70.08 5.78 0.12 1.09 21.7 343,058 8.25 0.29 3.51
20 MSVB Mid-Southern Savings Bank, FSB (MHC) Salem IN OTC Pink 17.95 26.4 1.36 26.94 13.20 66.62 66.62 13.39 0.53 2.92 38.6 197,276 20.09 1.01 5.05
21 MFDB Mutual Federal Bancorp, Inc. (MHC) Chicago IL OTC Pink 5.35 17.6 NA NA NA 65.73 NA 18.95 0.00 0.00 NM 92,940 NA NA NA
22 NECB NorthEast Community Bancorp, Inc. (MHC) White Plains NY OTC Pink 7.30 89.2 0.38 12.42 19.16 58.39 58.75 12.63 0.12 1.64 31.5 706,584 21.49 0.66 3.05
23 SCAY Seneca-Cayuga Bancorp, Inc. (MHC) Seneca Falls NY OTC Pink 12.00 27.7 0.04 16.66 NM 71.43 72.03 9.56 0.00 0.00 0.0 290,082 13.28 0.03 0.22
24 WAKE Wake Forest Bancshares, Inc. (MHC) Wake Forest NC OTC Pink 16.35 18.7 0.94 27.75 17.39 58.92 58.92 16.30 0.24 1.47 25.5 114,948 27.67 0.94 3.39
WAWL Wawel Bank (MHC) Garfield NJ OTC Pink - 6.05 NM 84.16 0.0 16.47
25 5.09 10.9 0.14 84.16 13.86 0.00 0.00 78,764 -0.37 -2.25
26 WMPN William Penn Bancorp, Inc. (MHC) Levittown PA OTC Pink 20.20 70.6 0.81 29.44 24.86 68.62 68.62 19.61 0.28 1.39 34.5 359,774 28.58 0.79 2.76

(1) Current stock price of minority stock.

(2) Ratios are pro forma assumings a second step conversion to full stock form.

Source: SNL Financial, LC. And RP Financial, LC. Calculations. The information provided in this report has been obtained from sources we believe are reliable, but we cannot guarantee
the accuracy or completeness of such information.
RP ® Financial, LC. VALUATION ANALYSIS
IV.28

Table 4.8
Calculation of Implied Per Share Data—Incorporating MHC Second Step Conversion
Publicly Traded MHC Institutions

Per Share Net Net Pro Forma

Net
Current Ownership TTM NI Tang. Share Gross Capital Income Inc./ Tang. Bk. Assets/
MHC Total Bk
Ticker Name City State Exhange Public Shares Shares Reported Value Assets Price Proceeds(1) Increase(2) Increase(3) Share Value/Share Share
1 GCBC Greene County Bancorp, Inc. (MHC) Catskill NY NASDAQ 3,878,350 4,609,264 8,487,614 $ 1.10 $ 9.00 $ 105.23 $ 21.70 $ 100,021,029 $ 86,018,085 $ 930,796 $ 1.21 $ 19.14 $ 115.36
2 HONE HarborOne Bancorp, Inc. (MHC) Brockton MA NASDAQ 14,839,846 17,281,034 32,120,880 $ 0.14 $ 9.79 $ 73.07 $ 19.62 $ 339,053,887 $ 291,586,343 $ 3,155,235 $ 0.24 $ 18.86 $ 82.15
3 KFFB Kentucky First Federal Bancorp (MHC) Frankfort KY NASDAQ 3,755,563 4,727,938 8,483,501 $ 0.15 $ 6.25 $ 34.79 $ 8.65 $ 40,896,664 $ 35,171,131 $ 380,584 $ 0.19 $ 10.39 $ 38.93
4 LSBK Lake Shore Bancorp, Inc. (MHC) Dunkirk NY NASDAQ 2,460,881 3,636,875 6,097,756 $ 0.69 $ 12.68 $ 78.46 $ 14.18 $ 51,569,069 $ 44,349,399 $ 479,902 $ 0.77 $ 19.95 $ 85.73
5 MGYR Magyar Bancorp, Inc. (MHC) New Brunswick NJ NASDAQ 2,620,296 3,200,450 5,820,746 $ 0.19 $ 8.20 $ 100.40 $ 10.60 $ 33,924,770 $ 29,175,302 $ 315,704 $ 0.24 $ 13.21 $ 105.41
6 OFED Oconee Federal Financial Corp. (MHC) Seneca SC NASDAQ 1,629,894 4,164,415 5,794,309 $ 0.88 $ 14.13 $ 83.57 $ 22.05 $ 91,825,351 $ 78,969,802 $ 854,527 $ 1.02 $ 27.76 $ 97.20
7 PVBC Provident Bancorp, Inc. (MHC) Amesbury MA NASDAQ 4,464,399 5,034,323 9,498,722 $ 0.64 $ 11.41 $ 80.87 $ 17.95 $ 90,366,098 $ 77,714,844 $ 840,947 $ 0.73 $ 19.59 $ 89.06
22 TFSL TFS Financial Corporation (MHC) Cleveland OH NASDAQ 57,099,887 227,119,132 284,219,019 $ 0.28 $ 5.81 $ 45.41 $ 18.82 $ 4,274,382,064 $ 3,675,968,575 $ 39,777,399 $ 0.42 $ 18.74 $ 58.34
8 ABBB Auburn Bancorp, Inc. (MHC) Auburn ME OTC Pink 226,478 276,806 503,284 $ 0.62 $ 13.06 $ 140.88 $ 9.40 $ 2,601,976 $ 2,237,700 $ 24,214 $ 0.66 $ 17.50 $ 145.33
9 BVFL BV Financial, Inc. (MHC) Baltimore MD OTC Pink 949,136 2,049,988 2,999,124 ($ 0.04) $ 7.00 $ 55.78 $ 6.70 $ 13,734,920 $ 11,812,031 $ 127,817 ($ 0.00) $ 10.94 $ 59.72
10 CNNB Cincinnati Bancorp (MHC) Cincinnati OH OTC Pink 773,663 945,587 1,719,250 $ 0.35 $ 10.54 $ 90.98 $ 9.51 $ 8,992,532 $ 7,733,578 $ 83,685 $ 0.39 $ 15.03 $ 95.48
11 CULL Cullman Bancorp, Inc. (MHC) Cullman AL OTC Pink 1,160,727 1,403,731 2,564,458 $ 0.96 $ 17.66 $ 107.06 $ 22.50 $ 31,583,948 $ 27,162,195 $ 293,920 $ 1.08 $ 28.25 $ 117.65
12 FSGB First Federal of South Carolina, FSB (MHC) Walterboro SC OTC Pink 162,041 850,714 1,012,755 $ 0.47 $ 4.67 $ 72.02 $ 4.49 $ 3,819,706 $ 3,284,947 $ 35,546 $ 0.50 $ 7.92 $ 75.26
13 GOVB Gouverneur Bancorp, Inc. (MHC) Gouverneur NY OTC Pink 911,527 1,311,222 2,222,749 $ 0.50 $ 13.44 $ 63.61 $ 14.50 $ 19,012,719 $ 16,350,938 $ 176,932 $ 0.58 $ 20.79 $ 70.97
14 GVFF Greenville Federal Financial Corporation (MHC) Greenville OH OTC Pink 812,397 1,264,126 2,076,523 $ 0.31 $ 9.93 $ 76.73 $ 8.46 $ 10,691,725 $ 9,194,883 $ 99,497 $ 0.36 $ 14.35 $ 81.16
15 GFCJ Guaranty Financial Corp. (MHC) Glendale WI OTC Pink 884,470 982,961 1,867,431 ($ 0.21) NA $ 534.12 $ 2.85 $ 2,801,439 $ 2,409,237 $ 26,070 ($ 0.20) NA $ 535.41
16 HTWC Hometown Bancorp, Inc. (MHC) Walden NY OTC Pink 1,017,664 1,309,275 2,326,939 ($ 0.01) $ 3.39 $ 52.84 $ 2.65 $ 3,469,579 $ 2,983,838 $ 32,288 $ 0.00 $ 4.68 $ 54.12
17 LSFG LifeStore Financial Group (MHC) West Jefferson NC OTC Pink 480,870 538,221 1,019,091 $ 1.99 NA $ 261.07 $ 16.75 $ 9,015,202 $ 7,753,074 $ 83,895 $ 2.07 NA $ 268.67
18 LPBC Lincoln Park Bancorp (MHC) Lincoln Park NJ OTC Pink 803,435 999,810 1,803,245 $ 0.50 $ 10.45 $ 185.00 $ 11.00 $ 10,997,910 $ 9,458,203 $ 102,347 $ 0.55 $ 15.70 $ 190.24
19 MSVB Mid-Southern Savings Bank, FSB (MHC) Salem IN OTC Pink 430,322 1,040,750 1,471,072 $ 1.24 $ 16.02 $ 123.18 $ 17.95 $ 18,681,463 $ 16,066,058 $ 173,850 $ 1.36 $ 26.94 $ 134.10
20 MFDB Mutual Federal Bancorp, Inc. (MHC) Chicago IL OTC Pink 745,959 2,545,936 3,291,895 NA NA $ 24.67 $ 5.35 $ 13,620,758 $ 11,713,852 $ 126,755 NA NA $ 28.23
21 NECB NorthEast Community Bancorp, Inc. (MHC) White Plains NY OTC Pink 4,950,052 7,273,750 12,223,802 $ 0.34 $ 8.69 $ 54.07 $ 7.30 $ 53,098,375 $ 45,664,603 $ 494,133 $ 0.38 $ 12.42 $ 57.80
23 SCAY Seneca-Cayuga Bancorp, Inc. (MHC) Seneca Falls NY OTC Pink 1,002,345 1,309,275 2,311,620 ($ 0.03) $ 10.81 $ 119.64 $ 12.00 $ 15,711,300 $ 13,511,718 $ 146,209 $ 0.04 $ 16.66 $ 125.49
24 WAKE Wake Forest Bancshares, Inc. (MHC) Wake Forest NC OTC Pink 511,196 635,000 1,146,196 $ 0.86 $ 19.96 $ 92.50 $ 16.35 $ 10,382,250 $ 8,928,735 $ 96,617 $ 0.94 $ 27.75 $ 100.29
25 WAWL Wawel Bank (MHC) Garfield NJ OTC Pink 840,548 1,304,153 2,144,701 ($ 0.16) $ 3.39 $ 34.06 $ 5.09 $ 6,638,139 $ 5,708,799 $ 61,775 ($ 0.14) $ 6.05 $ 36.72
26 WMPN William Penn Bancorp, Inc. (MHC) Levittown PA OTC Pink 944,305 2,548,713 3,493,018 $ 0.68 $ 16.76 $ 90.32 $ 20.20 $ 51,484,003 $ 44,276,242 $ 479,110 $ 0.81 $ 29.44 $ 103.00

(1) Gross proceeds calculated as stock price multiplied by the number of shares owned by the MHC (i.e. non-public shares).
(2) Net increase in capital reflects gross proceeds less offering expenses, contra-equity account for leveraged ESOP and Restricted Stock Plan. For MHC’s with assets at the MHC level,
the net increase in capital also includes consolidation of MHC assets with the capital of the institution concurrent with hypothetical second step.

Offering Expense Percent: 2.00%

ESOP Percent Purchase: 8.00%
RRP Percent Purchase: 4.00%

(3) Net increase in earnings reflects after-tax reinvestment income (assumes ESOP and RRP do not generate reinvestment income), less after-tax ESOP amortization and RRP vesting.

After-Tax Reinvestment Rate: 3.50%

ESOP Loan Term (Yrs.): 10
Recognition Plan Vesting (Yrs.): 5
Effective Tax Rate: 34.00%

Source: SNL Securities, LC and RP Financial, LC. calculations.

RP ® Financial, LC. VALUATION ANALYSIS
IV.29

Detailed pricing characteristics of the fully-converted MHCs is shown in Table 4.8.

Table 4.9
Newton Federal Bank
Comparative MHC Pricing Data

Publicly-
Traded OTC Peer
MHCs MHCs Group
Pricing Ratios (Averages) (1)
Price/earnings (x) 20.66x 18.24x 19.28x
Price/tangible book (%) 90.43% 65.27% 100.73%
Price/assets (%) 20.83 11.41 15.84%

(1) Based on market prices as of November 25, 2016.

It should be noted that in a comparison of the publicly-traded and OTCBB MHCs to the Company, the publicly-traded and OTCBB MHCs maintain certain inherit characteristics in
support of increasing the attractiveness of their stocks relative to the Company’s stock as an MHC that will just be completing an IPO: (1) the seasoned publicly-traded MHCs are viewed as
potential candidates to complete a second-step offering; (2) some of the publicly-traded MHCs have been grandfathered to waive dividend payments to the MHC pursuant to receiving an
annual majority vote by the depositors to approve the waiver of dividends; and (3) given the limited recent MHC conversion offerings, there is a degree of uncertainty on how well an MHC
offering will be received in the prevailing regulatory environment.

Comparison to Recent Offerings

As indicated at the beginning of this section, RP Financial’s analysis of recent conversion offering pricing characteristics at closing and in the aftermarket has been limited to a
“technical” analysis and, thus, the pricing characteristics of recent conversion offerings cannot be a primary determinate of value. Particular focus was placed on the P/TB approach in this
analysis, since the P/E multiples do not reflect the actual impact of reinvestment and the source of the stock proceeds (i.e., external funds vs. deposit withdrawals).

As discussed previously, the two second step conversion offerings that were completed during the past three months had an average pro forma P/TB ratio at closing of 72.5%. In
comparison to the 72.5% average closing forma P/TB ratio of the two recent second step conversions, the Company’s P/TB ratio (fully-converted basis) of 59.84% at the midpoint value
reflects an implied discount of 17.5%. At the top of the super range, the Company’s P/TB ratio of 67.75% reflects an implied discount of 6.6% relative to the recent second step conversions
average P/TB ratio at closing.
RP ® Financial, LC. VALUATION ANALYSIS
IV.30

Valuation Conclusion
Based on the foregoing, it is our opinion that, as of November 25, 2016, the estimated aggregate pro forma market value of the shares to be issued immediately following the
conversion, both shares issued publicly as well as to the MHC, equaled $55,000,000 at the midpoint, equal to 5,500,000 shares offered at a per share value of $10.00. Pursuant to conversion
guidelines, the 15% offering range indicates a minimum value of $46,750,000 and a maximum value of $63,250,000. Based on the $10.00 per share offering price determined by the Board,
this valuation range equates to total shares outstanding of 4,675,000 at the minimum and 6,325,000 at the maximum. In the event the appraised value is subject to an increase, the aggregate
pro forma market value may be increased up to a super maximum value of $72,737,500 without a resolicitation. Based on the $10.00 per share offering price, the super maximum value
would result in total shares outstanding of 7,273,750.

The Board of Directors has established a public offering range such that the public ownership of the Company will constitute a 46.0% ownership interest. Accordingly, the offering
to the public of the minority stock will equal $21,505,000 at the minimum, $25,300,000 at the midpoint, $29,095,000 at the maximum and $33,459,250 at the super maximum of the
valuation range. Based on the public offering range, the public ownership of shares will represent 46.0% of the shares issued throughout the valuation range. The pro forma valuation
calculations relative to the Peer Group (fully-converted basis) are shown in Table 4.6, and are detailed in Exhibit IV-7 and Exhibit IV-8; the pro forma valuation calculations relative to the
Peer Group based on reported financials are shown in Table 4.7 and are detailed in Exhibits IV-9 and IV-10.
EXHIBITS
RP ® Financial, LC.

LIST OF EXHIBITS

Exhibit
Number Description

I-1 Map of Branch Office Network

I-2 Audited Financial Statements
I-3 Key Operating Ratios
I-4 Investment Securities
I-5 Yields and Costs
I-6 Loan Loss Allowance Activity
I-7 Interest Rate Risk Analysis
I-8 Fixed Rate and Adjustable Rate Loans
I-9 Loan Portfolio Composition
I-10 Contractual Maturity By Loan Type
I-11 Non-Performing Assets
I-12 Deposit Composition
I-13 CDs >$100,000 in balance by Maturity
II-1 Description of Office Facilities
II-2 Historical Interest Rates
II-3 Market Area Demographic/Economic Information
 LIST OF EXHIBITS (continued)

Exhibit
Number Description

III-1 General Characteristics of Publicly-Traded Institutions

III-2 Public Market Pricing of Publicly-Traded Institutions – $600 Million in Assets or Less
III-3 Peer Group Summary Demographic and Deposit Market Share Data
IV-1 Thrifts Stock Prices: As of November 25, 2016
IV-2 Historical Stock Price Indices
IV-3 Historical Thrift Stock Indices
IV-4 Market Area Acquisition Activity
IV-5 Director and Senior Management Summary Resumes
IV-6 Pro Forma Regulatory Capital Ratios
IV-7 Pro Forma Analysis Sheet – Fully Converted Basis
IV-8 Pro Forma Effect of Conversion Proceeds – Fully Converted Basis
IV-9 Pro Forma Analysis Sheet – MHC Basis
IV-10 Pro Forma Effect of Conversion Proceeds – MHC Basis
V-1 Firm Qualifications Statement
 EXHIBIT I-1
Newton Federal Bank
Map of Branch Office Network
 EXHIBIT I-2
Newton Federal Bank
Audited Financial Statements
(Incorporated by Reference)
 EXHIBIT I-3
Newton Federal Bank
Key Operating Ratios

At or For the Years Ended September 30,

2016 2015 2014 2013 2012
Performance Ratios:
Return (loss) on average assets 0.51% 0.72% 3.71% (0.13)% (2.68)%
Return (loss) on average equity 2.60% 3.83% 23.39% (0.88)% (15.70)%
Interest rate spread (1) 4.15% 4.04% 4.04% 3.63% 3.74%
Net interest margin (2) 4.39% 4.32% 4.32% 3.93% 4.06%
Non-interest expense to average assets 4.00% 3.41% 3.14% 2.96% 3.03%
Efficiency ratio (3) 83.17% 75.35% 67.75% 70.20% 71.13%
Average interest-earning assets to average interest-bearing liabilities 138.46% 133.81% 129.08% 124.02% 122.05%
Average equity to average assets 19.41% 18.86% 15.87% 14.68% 17.04%
Capital Ratios:
Average equity to average assets 19.41% 18.86% 15.87% 14.68% 17.04%
Total capital to risk weighted assets 32.13% 36.67% 33.95% 29.34% 28.54%
Tier 1 capital to risk weighted assets 30.86% 35.38% 32.66% 28.04% 27.25%
Common equity tier 1 capital to risk weighted assets 30.86% 35.38% N/A N/A N/A
Tier 1 capital to average assets 19.32% 19.37% 17.25% 15.28% 14.85%
Asset Quality Ratios:
Allowance for loan losses as a percentage of total loans 2.22% 3.34% 3.17% 3.20% 3.00%
Allowance for loan losses as a percentage of non-performing loans 132.87% 229.18% 187.39% 78.44% 43.90%
Net (charge-offs) recoveries to average outstanding loans during the year (0.86)% 0.09% (0.13)% (1.56)% (4.24)%
Non-performing loans as a percentage of total loans 1.67% 1.46% 1.69% 4.08% 6.84%
Non-performing loans as a percentage of total assets 1.39% 1.13% 1.34% 3.41% 5.65%
Total non-performing assets as a percentage of total assets 1.39% 1.37% 1.84% 4.26% 8.25%
Other:
Number of offices 3 3 3 3 3
Number of full-time employees 66 65 60 57 56
Number of part-time employees

(1) Represents the difference between the weighted average yield on average interest-earning assets and the weighted average cost of interest-bearing liabilities.
(2) Represents net interest income as a percentage of average interest-earning assets.
(3) Represents noninterest expense divided by the sum of net interest income and noninterest income

Source: Community First Bancshares, Inc.’s Preliminary Offering Prospectus

 EXHIBIT I-4
Newton Federal Bank
Investment Securities

At September 30,
2016 2015 2014
Amortized Estimated Amortized Estimated Amortized Estimated
Cost Fair Value Cost Fair Value Cost Fair Value
(In thousands)
U.S. Government sponsored enterprises $ 7,499 $ 7,517 $ 7,492 $ 7,533 $ 6,986 $ 6,989
Total $ 7,499 $ 7,517 $ 7,492 $ 7,533 $ 6,986 $ 6,989

Source: Community First Bancshares, Inc.’s Preliminary Offering Prospectus

 EXHIBIT I-5
Newton Federal Bank
Yields and Costs

At September For the Year Ended

30, 2016 September 30, 2016
Average
Average Outstanding Average
Yield/Rate Balance Interest Yield/Rate
(Dollars in thousands)
Interest-earning assets:
Loans 5.57% $ 182,181 $10,937 6.00%
Securities 1.09% 7,496 82 1.09%
Interest-earning deposits 0.74% 34,070 219 0.64%
Federal Home Loan Bank of Atlanta stock 4.64% 204 10 4.90%
Total interest-earning assets 223,951 11,248 5.02%
Non-interest-earning assets 4,980
Total assets $ 228,931
Interest-bearing liabilities:
Passbook savings accounts 0.04% $ 20,766 8 0.04%
Interest-bearing checking accounts 0.45% 27,162 83 0.31%
Money market checking accounts 0.26% 22,919 59 0.26%
Certificates of deposit 1.05% 90,902 1,265 1.39%
Total interest-bearing deposits 161,749 1,415 0.87%
Total interest-bearing liabilities 161,749 1,415 0.87%
Non-interest-bearing liabilities 22,736
Total liabilities 184,485
Total retained earnings $ 44,446
Total liabilities and retained earnings $ 228,931
Net interest income $ 9,833
Net interest rate spread (1) 4.15%
Net interest-earning assets (2) $ 62,202
Net interest margin (3) 4.39%
Average interest-earning assets to interest-bearing liabilities 138.46%

(1) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
(2) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. Net interest margin represents net interest income divided by average total
interest-earning assets.

Source: Community First Bancshares, Inc.’s Preliminary Offering Prospectus

 EXHIBIT I-5 (continued)
Newton Federal Bank
Yields and Costs

For the Years Ended September 30,

2015 2014
Average Average
Outstanding Average Outstanding Average
Balance Interest Yield/Rate Balance Interest Yield/Rate
(Dollars in thousands)
Interest-earning assets:
Loans $ 177,805 $10,815 6.08% $ 186,610 $11,416 6.12%
Securities 7,781 89 1.14% 5,957 69 1.16%
Interest-earning deposits 33,661 132 0.39% 24,965 77 0.31%
Federal Home Loan Bank of Atlanta stock 200 9 4.50% 230 9 3.91%
Total interest-earning assets 219,447 11,045 5.03% 217,762 11,571 5.31%
Non-interest-earning assets 3,947 4,478
Total assets $ 223,394 $ 222,240
Interest-bearing liabilities:
Passbook savings accounts $ 19,933 8 0.04% $ 18,709 7 0.04%
Interest-bearing checking accounts 20,711 36 0.17% 16,738 7 0.04%
Money market checking accounts 22,997 58 0.25% 23,321 64 0.27%
Certificates of deposit 100,356 1,711 1.70% 109,937 2,078 1.89%
Total interest-bearing deposits 163,997 1,813 1.11% 168,705 2,156 1.28%
Total interest-bearing liabilities 163,997 1,813 1.11% 168,708 2,156 1.28%
Non-interest-bearing liabilities 17,258 18,261
Total liabilities 181,255 186,966
Total retained earnings 42,139 35,274
Total liabilities and retained earnings $ 223,394 $ 222,240
Net interest income $ 9,232 $ 9,415
Net interest rate spread (1) 3.93% 4.04%
Net interest-earning assets (2) $ 55,450 $ 49,057
Net interest margin (3) 4.21% 4.32%
Average interest-earning assets to interest-bearing liabilities 133.81% 129.08%

(1) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
(2) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(3) Net interest margin represents net interest income divided by average total interest-earning assets.

Source: Community First Bancshares, Inc.’s Preliminary Offering Prospectus

 EXHIBIT I-6
Newton Federal Bank
Loan Loss Allowance Activity

Years Ended September 30,

2016 2015 2014 2013 2012
(Dollars in thousands)
Allowance at beginning of year $ 5,874 $ 5,708 $ 5,947 $ 5,694 $ 5,032
Provision for loan losses — — — 3,147 9,017
Charge offs:
Real estate loans:
One- to four-family residential (337) (438) (1,214) (4,073) (7,018)
Commercial (1,796) (20) (132) (386) (1,211)
Construction and land — — (125) (230) (519)
Commercial and industrial loans — — (48) (243) —
Consumer loans (12) (18) (1) (38) (12)
Total charge-offs (2,145) (476) (1,520) (4,970) (8,760)
Recoveries:
Real estate loans:
One- to four-family residential 341 356 970 1,816 401
Commercial 233 130 281 12 —
Construction and land — — 23 120 —
Commercial and industrial loans — 154 7 127 —
Consumer loans 6 2 — 1 4
Total recoveries 580 642 1,281 2,076 405
Net (charge-offs) recoveries (1,565) 166 (239) (2,984) (8,355)
Allowance at end of year $ 4,309 $ 5,874 $ 5,708 $ 5,947 $ 5,694
Allowance to non-performing loans 132.87% 229.18% 187.39% 78.44% 43.90%
Allowance to total loans outstanding at the end of the year 2.22% 3.34% 3.17% 3.20% 3.00%
Net (charge-offs) recoveries to average loans outstanding during the year (0.86)% 0.09% (0.13)% (1.56)% (4.24)%

Source: Community First Bancshares, Inc.’s Preliminary Offering Prospectus

 EXHIBIT I-7
Newton Federal Bank
Interest Rate Risk Analysis

NEV as a Percentage of Present

Value of Assets (3)
Change in Interest Estimated Increase (Decrease) in Increase
Rates (basis Estimated NEV NEV (Decrease)
points) (1) NEV (2) Amount Percent Ratio (4) (basis points)
(Dollars in thousands)
+400 $ 39,368 $ (11,902) (23.21)% 18.72% (289)
+200 44,947 (6,323) (12.33)% 20.15% (146)
— 51,270 — —% 21.61% —
-200 51,544 274 0.53% 21.25% (36)
-400 49,173 (2,371) (4.09)% 20.49% (112)

(1) Assumes an immediate uniform change in interest rates at all maturities.

(2) NEV is the discounted present value of expected cash flows from assets, liabilities and off-balance sheet contracts.
(3) Present value of assets represents the discounted present value of incoming cash flows on interest-earning assets.
(4) NEV Ratio represents NEV divided by the present value of assets.

Source: Community First Bancshares, Inc.’s Preliminary Offering Prospectus

 EXHIBIT I-8
Newton Federal Bank
Fixed Rate and Adjustable Rate Loans

Due After September 30, 2017

Fixed Adjustable Total
(In thousands)
Real estate loans:
One- to four-family residential $127,004 $ 1,079 $128,083
Commercial 24,130 2,681 26,811
Construction and land 2,591 542 3,133
Commercial and industrial loans 12,760 15 12,775
Consumer loans 1,522 21 1,543
Total loans $168,007 $ 4,338 $172,345

Source: Community First Bancshares, Inc.’s Preliminary Offering Prospectus

 EXHIBIT I-9
Newton Federal Bank
Loan Portfolio Composition

At September 30,
2016 2015 2014 2013 2012
Amount Percent Amount Percent Amount Percent Amount Percent Amount Percent
(Dollars in thousands)
Real estate loans:
One- to four-family residential (1) $132,899 68.54% $132,480 75.42% $139,977 77.84% $147,396 79.26% $154,959 81.71%
Commercial (2) 29,162 15.04 24,581 13.99 25,860 14.38 24,862 13.37 27,092 14.29
Construction and land 13,343 6.88 2,261 1.28 817 0.45 1,205 0.65 1,980 1.04
Commercial and industrial loans 16,221 8.37 14,333 8.16 11,639 6.47 11,067 5.95 4,160 2.19
Consumer loans 2,262 1.17 2,017 1.15 1,547 0.86 1,423 0.77 1,461 0.77
193,887 100.00% 175,672 100.00% 179,840 100.00% 185,953 100.00% 189,652 100.00%
Less:
Allowance for losses 4,309 5,874 5,708 5,947 5,694
Total loans $189,578 $169,798 $174,132 $180,006 $183,958

(1) Includes home equity loans, which totaled $ at September 30, 2016.
(2) Includes multi-family residential real estate loans, which totaled $806,000 at September 30, 2016.

Source: Community First Bancshares, Inc.’s Preliminary Offering Prospectus

 EXHIBIT I-10
Newton Federal Bank
Contractual Maturity By Loan Type

One- to Four-
Family
Residential Commercial Construction
September 30, 2016 Real Estate Real Estate and Land
(In thousands)
Amounts due in: One year or less $ 4,816 $ 2,351 $ 10,210
More than one to five years 26,742 13,529 2,019
More than five years 101,341 13,282 1,114
Total $ 132,899 $ 29,162 $ 13,343

Commercial
September 30, 2016 and Industrial Consumer Total
(In thousands)
Amounts due in: One year or less $ 3,446 $ 719 $ 21,542
More than one to five years 7,556 1,364 51,210
More than five years 5,219 179 121,135
Total $ 16,221 $ 2,262 $ 193,887

Source: Community First Bancshares, Inc.’s Preliminary Offering Prospectus

 EXHIBIT I-11
Newton Federal Bank
Non-Performing Assets

At September 30,
2016 2015 2014 2013 2012
(Dollars in thousands)
Non-accrual loans:
Real estate loans:
One- to four-family residential $3,013 $2,056 $2,269 $5,295 $ 8,365
Commercial 230 448 777 1,952 3,581
Construction and land — — — — 581
Commercial and industrial loans — 33 — 335 434
Consumer loans — 26 — — 8
Total non-accrual loans 3,243 2,563 3,046 7,582 12,969
Accruing loans past due 90 days or more — — — — —
Real estate owned:
One- to four-family — — 822 1,239 4,226
Commercial — 470 — 64 1,159
Construction and land — 62 307 577 577
Commercial and industrial loans — — — — —
Consumer loans — — — — —
Total real estate owned — 532 1,129 1,880 5,962
Total non-performing assets $3,243 $3,095 $4,175 $9,462 $18,931
Total accruing troubled debt restructured loans $5,815 $4,358 $4,845 $3,730 $ 2,716
Total non-performing loans to total loans 1.71% 1.51% 1.75% 4.21% 7.05%
Total non-performing assets to total assets 1.39% 1.37% 1.84% 4.26% 8.25%

Source: Community First Bancshares, Inc.’s Preliminary Offering Prospectus

 EXHIBIT I-12
Newton Federal Bank
Deposit Composition

At September 30,
2016 2015 2014
Average Average Average
Amount Percent Rate Amount Percent Rate Amount Percent Rate
(Dollars in thousands)
Non-interest bearing checking accounts $ 21,727 11.96% — % $ 15,132 8.56% — % $ 13,276 7.41% — %
Passbook savings accounts 21,180 11.65 0.04% 19,906 11.27 0.04% 19,559 10.91 0.04%
Interest-bearing checking accounts 30,662 16.88 0.31% 22,750 12.88 0.17% 16,991 9.48 0.04%
Money market checking accounts 22,607 12.44 0.26% 22,587 12.78 0.25% 23,689 13.21 0.27%
Certificates of deposit 85,523 47.07 1.39% 96,312 54.51 1.70% 105,749 58.99 1.89%
Total $181,699 100.00% 0.87% $176,687 100.00% 1.11% $179,264 100.00% 1.28%

Source: Community First Bancshares, Inc.’s Preliminary Offering Prospectus

 EXHIBIT I-13
Newton Federal Bank
CDs >$100,000 in Balance by Maturity

At
September 30, 2016
(In thousands)
Maturity Period:
Three months or less $ 5,319
Over three through six months 2,436
Over six through twelve months 6,102
Over twelve months 21,159
Total $ 35,016

Source: Community First Bancshares, Inc.’s Preliminary Offering Prospectus

 EXHIBIT II-1
Newton Federal Bank
Description of Office Facilities

Leased or Year Acquired Net Book Value of

Location Owned or Leased Real Property
(In thousands)
Main Office:
3175 Highway 278 Owned 1974 $ 1,169
Covington, Georgia 30014
Other Properties:
Eastside Branch Owned 2000 1,514
8278 Highway 278
Covington, Georgia 30014
Southside Branch Building 2006 1,110
Bypass Road & Highway 36 Owned/Land
10131 Carlin Avenue Leased
Covington, Georgia 30014
Loan Production Office Leased 2016 N/A
3001 Monroe Highway
Suite 500B
Bogart, Georgia 30622

Source: Community First Bancshares, Inc.’s Preliminary Offering Prospectus

 Exhibit II-2
Newton Federal Bank
Historical Interest Rates(1)

Prime 90 Day One Year 10 Year

Year/Qtr. Ended Rate T-Note T-Note T-Note
2004: Quarter 1 4.00% 0.95% 1.20% 3.86%
Quarter 2 4.00% 1.33% 2.09% 4.62%
Quarter 3 4.75% 1.70% 2.16% 4.12%
Quarter 4 5.25% 2.22% 2.75% 4.24%
2005: Quarter 1 5.75% 2.80% 3.43% 4.51%
Quarter 2 6.00% 3.12% 3.51% 3.98%
Quarter 3 6.75% 3.55% 4.01% 4.34%
Quarter 4 7.25% 4.08% 4.38% 4.39%
2006: Quarter 1 7.75% 4.63% 4.82% 4.86%
Quarter 2 8.25% 5.01% 5.21% 5.15%
Quarter 3 8.25% 4.88% 4.91% 4.64%
Quarter 4 8.25% 5.02% 5.00% 4.71%
2007: Quarter 1 8.25% 5.04% 4.90% 4.65%
Quarter 2 8.25% 4.82% 4.91% 5.03%
Quarter 3 7.75% 3.82% 4.05% 4.59%
Quarter 4 7.25% 3.36% 3.34% 3.91%
2008: Quarter 1 5.25% 1.38% 1.55% 3.45%
Quarter 2 5.00% 1.90% 2.36% 3.99%
Quarter 3 5.00% 0.92% 1.78% 3.85%
Quarter 4 3.25% 0.11% 0.37% 2.25%
2009: Quarter 1 3.25% 0.21% 0.57% 2.71%
Quarter 2 3.25% 0.19% 0.56% 3.53%
Quarter 3 3.25% 0.14% 0.40% 3.31%
Quarter 4 3.25% 0.06% 0.47% 3.85%
2010: Quarter 1 3.25% 0.16% 0.41% 3.84%
Quarter 2 3.25% 0.18% 0.32% 2.97%
Quarter 3 3.25% 0.18% 0.32% 2.97%
Quarter 4 3.25% 0.12% 0.29% 3.30%
2011: Quarter 1 3.25% 0.09% 0.30% 3.47%
Quarter 2 3.25% 0.03% 0.19% 3.18%
Quarter 3 3.25% 0.02% 0.13% 1.92%
Quarter 4 3.25% 0.02% 0.12% 1.89%
2012: Quarter 1 3.25% 0.07% 0.19% 2.23%
Quarter 2 3.25% 0.09% 0.21% 1.67%
Quarter 3 3.25% 0.10% 0.17% 1.65%
Quarter 4 3.25% 0.05% 0.16% 1.78%
2013: Quarter 1 3.25% 0.07% 0.14% 1.87%
Quarter 2 3.25% 0.04% 0.15% 2.52%
Quarter 3 3.25% 0.02% 0.10% 2.64%
Quarter 4 3.25% 0.07% 0.13% 3.04%
2014: Quarter 1 3.25% 0.05% 0.13% 2.73%
Quarter 2 3.25% 0.04% 0.11% 2.53%
Quarter 3 3.25% 0.02% 0.13% 2.52%
Quarter 4 3.25% 0.04% 0.25% 2.17%
2015: Quarter 1 3.25% 0.03% 0.26% 1.94%
Quarter 2 3.25% 0.01% 0.28% 2.35%
Quarter 3 3.25% 0.00% 0.33% 2.06%
Quarter 4 3.50% 0.16% 0.65% 2.27%
2016: Quarter 1 3.50% 0.21% 0.59% 1.78%
Quarter 2 3.50% 0.26% 0.45% 1.49%
Quarter 3 3.50% 0.29% 0.59% 1.60%
As of Nov. 25, 2016 3.50% 0.49% 0.81% 2.36%

(1) End of period data.

Sources: Federal Reserve and The Wall Street Journal.

 EXHIBIT II-3
Newton Federal Bank
Market Area Demographic/Economic Information
Demographic Detail: US

Base Current Projected % Change % Change

2010 2017 2022 2010 - 2017 2017 - 2022
Total Population (actual) 308,745,538 325,139,271 337,393,057 5.31 3.77
0-14 Age Group (%) 19.83 18.83 18.23 0.00 0.46
15-34 Age Group (%) 27.43 27.12 26.50 4.13 1.39
35-54 Age Group (%) 27.88 25.71 24.84 (2.90) 0.29
55-69 Age Group (%) 15.84 18.08 18.95 20.18 8.76
70+ Age Group (%) 9.01 10.26 11.47 19.83 16.06
Median Age (actual) 37.10 38.20 39.20 2.96 2.62
Female Population (actual) 156,964,212 165,084,335 171,230,620 5.17 3.72
Male Population (actual) 151,781,326 160,054,936 166,162,437 5.45 3.82
Population Density (#/ sq miles) 87.50 92.15 95.62 5.31 3.77
Diversity Index (actual) NA NA NA NA NA
Black (%) 12.61 12.81 12.97 7.01 5.04
Asian (%) 4.75 5.56 6.14 23.10 14.68
White (%) 72.41 70.33 68.81 2.29 1.52
Hispanic (%) 16.35 18.05 19.27 16.24 10.80
Pacific Islander (%) 0.17 0.19 0.21 16.35 10.99
American Indian/Alaska Native (%) 0.95 0.98 1.00 8.65 6.29
Multiple races (%) 2.92 3.35 3.67 20.96 13.61
Other (%) 6.19 6.78 7.20 15.35 10.28
Total Households (actual) 116,716,292 123,356,629 128,246,828 5.69 3.96
< $25K Households (%) NA 21.91 20.30 NA (3.70)
$25-49K Households (%) NA 22.90 21.83 NA (0.91)
$50-99K Households (%) NA 29.47 29.04 NA 2.46
$100-$199K Households (%) NA 19.48 21.14 NA 12.83
$200K+ Households (%) NA 6.24 7.69 NA 28.21
Average Household Income ($) NA 80,853 87,464 NA 8.18
Median Household Income ($) NA 57,462 61,642 NA 7.27
Per Capita Income ($) NA 31,459 34,068 NA 8.29
Total Owner Occupied Housing Units (actual) 75,986,074 80,105,481 83,162,784 5.42 3.82
Renter Occupied Housing Units (actual) 40,730,218 43,251,148 45,084,044 6.19 4.24
Vacant Occupied Housing Units (actual) 14,988,438 15,772,131 16,105,948 5.23 2.12

Source: Nielsen

Demographic data is provided by Nielsen based primarily on US Census data. For non-census year data, Nielsen uses samples and projections to estimate the demographic data. S&P
Global Market Intelligence performs calculations on the underlying data provided by Nielsen for some of the data presented on this page.

% Change values are calculated using the underlying actual data.

Demographic Detail: Georgia

Base Current Projected % Change % Change

2010 2017 2022 2010 - 2017 2017 - 2022
Total Population (actual) 9,687,653 10,375,263 10,911,290 7.10 5.17
0-14 Age Group (%) 21.38 20.04 19.03 0.37 (0.15)
15-34 Age Group (%) 28.14 27.72 27.42 5.53 4.03
35-54 Age Group (%) 28.79 26.75 25.60 (0.47) 0.62
55-69 Age Group (%) 14.72 16.88 17.93 22.89 11.70
70+ Age Group (%) 6.98 8.60 10.02 31.95 22.54
Median Age (actual) 35.30 36.70 37.80 3.97 3.00
Female Population (actual) 4,958,482 5,310,064 5,579,569 7.09 5.08
Male Population (actual) 4,729,171 5,065,199 5,331,721 7.11 5.26
Population Density (#/ sq miles) 168.72 180.70 190.03 7.10 5.17
Diversity Index (actual) NA NA NA NA NA
Black (%) 30.46 31.27 31.96 9.96 7.49
Asian (%) 3.25 4.01 4.55 32.22 19.45
White (%) 59.74 57.42 55.67 2.94 1.95
Hispanic (%) 8.81 9.61 10.15 16.80 11.06
Pacific Islander (%) 0.07 0.08 0.09 24.25 16.15
American Indian/Alaska Native (%) 0.33 0.35 0.37 13.75 9.26
Multiple races (%) 2.14 2.54 2.83 27.01 17.12
Other (%) 4.01 4.33 4.54 15.42 10.31
Total Households (actual) 3,585,584 3,854,460 4,062,208 7.50 5.39
< $25K Households (%) NA 24.18 22.50 NA (1.93)
$25-49K Households (%) NA 24.11 22.99 NA 0.47
$50-99K Households (%) NA 29.22 29.08 NA 4.88
$100-$199K Households (%) NA 17.30 18.97 NA 15.61
$200K+ Households (%) NA 5.19 6.46 NA 31.23
Average Household Income ($) NA 74,512 80,638 NA 8.22
Median Household Income ($) NA 52,421 56,517 NA 7.81
Per Capita Income ($) NA 28,400 30,771 NA 8.35
Total Owner Occupied Housing Units (actual) 2,354,402 2,527,797 2,662,768 7.36 5.34
Renter Occupied Housing Units (actual) 1,231,182 1,326,663 1,399,440 7.76 5.49
Vacant Occupied Housing Units (actual) 503,217 528,850 537,404 5.09 1.62

Source: Nielsen

Demographic data is provided by Nielsen based primarily on US Census data. For non-census year data, Nielsen uses samples and projections to estimate the demographic data. S&P
Global Market Intelligence performs calculations on the underlying data provided by Nielsen for some of the data presented on this page.

% Change values are calculated using the underlying actual data.

Demographic Detail: Newton, GA

Base Current Projected % Change % Change

2010 2017 2022 2010 - 2017 2017 - 2022
Total Population (actual) 99,958 107,577 113,991 7.62 5.96
0-14 Age Group (%) 23.89 21.43 19.73 (3.44) (2.44)
15-34 Age Group (%) 26.47 26.90 27.95 9.39 10.09
35-54 Age Group (%) 29.39 27.36 25.30 0.17 (2.02)
55-69 Age Group (%) 13.92 16.00 17.09 23.71 13.21
70+ Age Group (%) 6.34 8.31 9.93 41.21 26.57
Median Age (actual) 34.70 36.30 37.00 4.61 1.93
Female Population (actual) 52,332 56,308 59,599 7.60 5.84
Male Population (actual) 47,626 51,269 54,392 7.65 6.09
Population Density (#/ sq miles) 367.47 395.48 419.06 7.62 5.96
Diversity Index (actual) NA NA NA NA NA
Black (%) 40.90 43.39 45.23 14.18 10.47
Asian (%) 0.91 1.13 1.30 34.22 21.55
White (%) 53.78 50.50 48.08 1.07 0.88
Hispanic (%) 4.64 5.21 5.63 20.84 14.52
Pacific Islander (%) 0.04 0.07 0.10 113.51 45.57
American Indian/Alaska Native (%) 0.23 0.26 0.28 20.26 14.34
Multiple races (%) 2.08 2.34 2.54 21.03 14.64
Other (%) 2.07 2.30 2.47 19.68 13.90
Total Households (actual) 34,390 36,650 38,662 6.57 5.49
< $25K Households (%) NA 24.40 23.39 NA 1.12
$25-49K Households (%) NA 25.96 24.54 NA (0.28)
$50-99K Households (%) NA 31.54 31.91 NA 6.74
$100-$199K Households (%) NA 15.43 16.85 NA 15.17
$200K+ Households (%) NA 2.68 3.32 NA 30.78
Average Household Income ($) NA 64,936 68,497 NA 5.48
Median Household Income ($) NA 49,669 52,667 NA 6.04
Per Capita Income ($) NA 22,448 23,538 NA 4.86
Total Owner Occupied Housing Units (actual) 25,836 27,458 28,930 6.28 5.36
Renter Occupied Housing Units (actual) 8,554 9,192 9,732 7.46 5.87
Vacant Occupied Housing Units (actual) 3,952 4,029 4,072 1.95 1.07

Source: Nielsen
Demographic data is provided by Nielsen based primarily on US Census data. For non-census year data, Nielsen uses samples and projections to estimate the demographic data. S&P
Global Market Intelligence performs calculations on the underlying data provided by Nielsen for some of the data presented on this page.

% Change values are calculated using the underlying actual data.

Demographic Detail: Gwinnett, GA

Base Current Projected % Change % Change

2010 2017 2022 2010 - 2017 2017 - 2022
Total Population (actual) 805,321 923,142 997,990 14.63 8.11
0-14 Age Group (%) 24.25 22.01 20.07 4.04 (1.38)
15-34 Age Group (%) 27.69 27.44 27.80 13.58 9.51
35-54 Age Group (%) 31.73 29.34 27.30 6.01 0.57
55-69 Age Group (%) 12.07 15.34 17.41 45.69 22.65
70+ Age Group (%) 4.26 5.87 7.43 57.95 36.81
Median Age (actual) 33.60 35.40 36.60 5.36 3.39
Female Population (actual) 408,168 471,256 509,481 15.46 8.11
Male Population (actual) 397,153 451,886 488,509 13.78 8.10
Population Density (#/ sq miles) 1,871.44 2,145.24 2,319.17 14.63 8.11
Diversity Index (actual) NA NA NA NA NA
Black (%) 23.61 27.21 29.87 32.08 18.69
Asian (%) 10.59 11.66 12.46 26.22 15.46
White (%) 53.34 47.93 43.92 3.00 (0.93)
Hispanic (%) 20.12 20.76 21.23 18.28 10.58
Pacific Islander (%) 0.06 0.06 0.06 11.32 6.03
American Indian/Alaska Native (%) 0.50 0.49 0.48 11.59 5.88
Multiple races (%) 3.14 3.64 4.00 32.71 19.01
Other (%) 8.75 9.02 9.22 18.12 10.47
Total Households (actual) 268,519 303,641 326,638 13.08 7.57
< $25K Households (%) NA 16.45 15.17 NA (0.83)
$25-49K Households (%) NA 23.64 22.62 NA 2.93
$50-99K Households (%) NA 32.12 31.76 NA 6.37
$100-$199K Households (%) NA 22.28 23.68 NA 14.35
$200K+ Households (%) NA 5.51 6.77 NA 32.21
Average Household Income ($) NA 82,732 88,105 NA 6.49
Median Household Income ($) NA 63,148 66,521 NA 5.34
Per Capita Income ($) NA 27,361 28,974 NA 5.90
Total Owner Occupied Housing Units (actual) 189,167 214,683 231,346 13.49 7.76
Renter Occupied Housing Units (actual) 79,352 88,958 95,292 12.11 7.12
Vacant Occupied Housing Units (actual) 23,028 23,587 24,105 2.43 2.20

Source: Nielsen

Demographic data is provided by Nielsen based primarily on US Census data. For non-census year data, Nielsen uses samples and projections to estimate the demographic data. S&P
Global Market Intelligence performs calculations on the underlying data provided by Nielsen for some of the data presented on this page.

% Change values are calculated using the underlying actual data.

Demographic Detail: Barrow, GA

Base Current Projected % Change % Change

2010 2017 2022 2010 - 2017 2017 - 2022
Total Population (actual) 69,367 77,898 84,247 12.30 8.15
0-14 Age Group (%) 23.98 22.30 20.95 4.47 1.58
15-34 Age Group (%) 28.08 26.83 26.35 7.30 6.24
35-54 Age Group (%) 28.61 27.63 27.12 8.45 6.14
55-69 Age Group (%) 13.30 15.48 16.27 30.71 13.67
70+ Age Group (%) 6.04 7.76 9.31 44.35 29.78
Median Age (actual) 33.70 35.60 36.90 5.64 3.65
Female Population (actual) 35,159 39,440 42,636 12.18 8.10
Male Population (actual) 34,208 38,458 41,611 12.42 8.20
Population Density (#/ sq miles) 432.75 485.97 525.58 12.30 8.15
Diversity Index (actual) NA NA NA NA NA
Black (%) 11.37 11.45 11.51 13.08 8.68
Asian (%) 3.43 3.81 4.09 24.52 16.05
White (%) 78.81 77.30 76.19 10.16 6.59
Hispanic (%) 8.70 10.24 11.37 32.09 20.14
Pacific Islander (%) 0.05 0.08 0.09 63.89 35.59
American Indian/Alaska Native (%) 0.27 0.31 0.34 28.49 18.41
Multiple races (%) 2.32 2.68 2.95 29.98 19.04
Other (%) 3.75 4.37 4.83 30.91 19.53
Total Households (actual) 23,971 26,565 28,577 10.82 7.57
< $25K Households (%) NA 19.50 18.52 NA 2.20
$25-49K Households (%) NA 28.32 27.00 NA 2.58
$50-99K Households (%) NA 36.73 36.80 NA 7.76
$100-$199K Households (%) NA 14.12 16.00 NA 21.83
$200K+ Households (%) NA 1.33 1.68 NA 36.26
Average Household Income ($) NA 62,138 65,336 NA 5.15
Median Household Income ($) NA 52,405 54,971 NA 4.90
Per Capita Income ($) NA 21,267 22,235 NA 4.55
Total Owner Occupied Housing Units (actual) 18,495 20,466 22,006 10.66 7.52
Renter Occupied Housing Units (actual) 5,476 6,099 6,571 11.38 7.74
Vacant Occupied Housing Units (actual) 2,429 2,479 2,520 2.06 1.65

Source: Nielsen

Demographic data is provided by Nielsen based primarily on US Census data. For non-census year data, Nielsen uses samples and projections to estimate the demographic data. S&P
Global Market Intelligence performs calculations on the underlying data provided by Nielsen for some of the data presented on this page.

% Change values are calculated using the underlying actual data.

Demographic Detail: Walton, GA

Base Current Projected % Change % Change

2010 2017 2022 2010 - 2017 2017 - 2022
Total Population (actual) 83,768 89,994 95,120 7.43 5.70
0-14 Age Group (%) 22.27 20.31 18.72 (2.03) (2.53)
15-34 Age Group (%) 24.43 25.51 26.66 12.19 10.48
35-54 Age Group (%) 29.64 26.76 24.55 (3.03) (3.04)
55-69 Age Group (%) 15.93 17.56 18.67 18.42 12.39
70+ Age Group (%) 7.73 9.87 11.40 37.13 22.03
Median Age (actual) 37.20 38.40 39.10 3.23 1.82
Female Population (actual) 43,005 46,202 48,818 7.43 5.66
Male Population (actual) 40,763 43,792 46,302 7.43 5.73
Population Density (#/ sq miles) 257.48 276.62 292.37 7.43 5.70
Diversity Index (actual) NA NA NA NA NA
Black (%) 15.64 17.42 18.73 19.63 13.68
Asian (%) 1.14 1.47 1.71 38.39 23.20
White (%) 80.05 77.23 75.15 3.65 2.84
Hispanic (%) 3.20 4.35 5.19 45.81 26.30
Pacific Islander (%) 0.06 0.09 0.11 62.50 30.77
American Indian/Alaska Native (%) 0.27 0.30 0.33 23.42 15.69
Multiple races (%) 1.49 1.73 1.90 24.22 16.22
Other (%) 1.35 1.76 2.07 40.14 24.16
Total Households (actual) 29,583 31,893 33,756 7.81 5.84
< $25K Households (%) NA 21.12 20.05 NA 0.49
$25-49K Households (%) NA 25.44 24.28 NA 1.01
$50-99K Households (%) NA 33.54 33.45 NA 5.54
$100-$199K Households (%) NA 17.03 18.53 NA 15.21
$200K+ Households (%) NA 2.87 3.69 NA 35.92
Average Household Income ($) NA 68,008 72,132 NA 6.06
Median Household Income ($) NA 54,096 56,950 NA 5.28
Per Capita Income ($) NA 24,268 25,757 NA 6.14
Total Owner Occupied Housing Units (actual) 22,330 23,971 25,324 7.35 5.64
Renter Occupied Housing Units (actual) 7,253 7,922 8,432 9.22 6.44
Vacant Occupied Housing Units (actual) 2,852 2,935 2,978 2.91 1.47

Source: Nielsen

Demographic data is provided by Nielsen based primarily on US Census data. For non-census year data, Nielsen uses samples and projections to estimate the demographic data. S&P
Global Market Intelligence performs calculations on the underlying data provided by Nielsen for some of the data presented on this page.

% Change values are calculated using the underlying actual data.

Demographic Detail: Jackson, GA

Base Current Projected % Change % Change

2010 2017 2022 2010 - 2017 2017 - 2022
Total Population (actual) 60,485 64,854 68,944 7.22 6.31
0-14 Age Group (%) 22.24 20.68 19.43 (0.29) (0.13)
15-34 Age Group (%) 24.91 24.74 25.46 6.46 9.41
35-54 Age Group (%) 29.69 27.69 25.64 (0.02) (1.56)
55-69 Age Group (%) 15.60 17.40 18.24 19.57 11.46
70+ Age Group (%) 7.55 9.49 11.23 34.82 25.76
Median Age (actual) 36.90 38.40 39.20 4.07 2.08
Female Population (actual) 30,483 32,664 34,742 7.15 6.36
Male Population (actual) 30,002 32,190 34,202 7.29 6.25
Population Density (#/ sq miles) 178.12 190.99 203.04 7.22 6.31
Diversity Index (actual) NA NA NA NA NA
Black (%) 6.78 7.25 7.60 14.67 11.39
Asian (%) 1.71 1.95 2.13 22.46 16.13
White (%) 86.79 85.29 84.19 5.37 4.92
Hispanic (%) 6.18 7.16 7.89 24.28 17.10
Pacific Islander (%) 0.02 0.04 0.05 76.92 39.13
American Indian/Alaska Native (%) 0.21 0.29 0.35 50.00 29.03
Multiple races (%) 1.76 2.03 2.24 23.62 16.83
Other (%) 2.73 3.14 3.45 23.65 16.72
Total Households (actual) 21,343 22,544 23,804 5.63 5.59
< $25K Households (%) NA 21.56 19.66 NA (3.72)
$25-49K Households (%) NA 23.00 21.25 NA (2.43)
$50-99K Households (%) NA 32.44 32.32 NA 5.20
$100-$199K Households (%) NA 19.85 22.50 NA 19.64
$200K+ Households (%) NA 3.14 4.27 NA 43.44
Average Household Income ($) NA 70,938 77,511 NA 9.27
Median Household Income ($) NA 57,111 62,006 NA 8.57
Per Capita Income ($) NA 24,987 27,123 NA 8.55
Total Owner Occupied Housing Units (actual) 16,429 17,409 18,409 5.97 5.74
Renter Occupied Housing Units (actual) 4,914 5,135 5,395 4.50 5.06
Vacant Occupied Housing Units (actual) 2,409 2,517 2,543 4.48 1.03

Source: Nielsen

Demographic data is provided by Nielsen based primarily on US Census data. For non-census year data, Nielsen uses samples and projections to estimate the demographic data. S&P
Global Market Intelligence performs calculations on the underlying data provided by Nielsen for some of the data presented on this page.

% Change values are calculated using the underlying actual data.

Demographic Detail: Clarke, GA

Base Current Projected % Change % Change

2010 2017 2022 2010 - 2017 2017 - 2022
Total Population (actual) 116,714 126,464 134,269 8.35 6.17
0-14 Age Group (%) 15.02 15.37 15.90 10.83 9.89
15-34 Age Group (%) 49.61 45.64 41.96 (0.31) (2.40)
35-54 Age Group (%) 18.97 20.37 22.55 16.33 17.55
55-69 Age Group (%) 10.54 11.84 11.75 21.80 5.37
70+ Age Group (%) 5.86 6.78 7.84 25.38 22.67
Median Age (actual) 26.30 28.20 30.10 7.22 6.74
Female Population (actual) 61,326 66,168 70,050 7.90 5.87
Male Population (actual) 55,388 60,296 64,219 8.86 6.51
Population Density (#/ sq miles) 979.25 1,061.06 1,126.54 8.35 6.17
Diversity Index (actual) NA NA NA NA NA
Black (%) 26.55 27.59 28.36 12.60 9.14
Asian (%) 4.17 4.40 4.58 14.40 10.32
White (%) 61.89 60.04 58.67 5.12 3.75
Hispanic (%) 10.45 11.07 11.54 14.87 10.64
Pacific Islander (%) 0.07 0.08 0.08 15.48 11.34
American Indian/Alaska Native (%) 0.21 0.27 0.31 37.25 22.71
Multiple races (%) 2.16 2.40 2.57 20.00 13.83
Other (%) 4.94 5.22 5.43 14.54 10.41
Total Households (actual) 45,414 48,264 51,486 6.28 6.68
< $25K Households (%) NA 40.84 39.48 NA 3.12
$25-49K Households (%) NA 24.08 24.04 NA 6.50
$50-99K Households (%) NA 21.96 22.04 NA 7.10
$100-$199K Households (%) NA 10.08 10.99 NA 16.31
$200K+ Households (%) NA 3.05 3.46 NA 20.91
Average Household Income ($) NA 53,144 55,946 NA 5.27
Median Household Income ($) NA 32,847 34,181 NA 4.06
Per Capita Income ($) NA 22,369 23,519 NA 5.14
Total Owner Occupied Housing Units (actual) 19,166 20,237 21,530 5.59 6.39
Renter Occupied Housing Units (actual) 26,248 28,027 29,956 6.78 6.88
Vacant Occupied Housing Units (actual) 5,654 5,805 5,878 2.67 1.26

Source: Nielsen

Demographic data is provided by Nielsen based primarily on US Census data. For non-census year data, Nielsen uses samples and projections to estimate the demographic data. S&P
Global Market Intelligence performs calculations on the underlying data provided by Nielsen for some of the data presented on this page.

% Change values are calculated using the underlying actual data.

Demographic Detail: Oconee, GA

Base Current Projected % Change % Change

2010 2017 2022 2010 - 2017 2017 - 2022
Total Population (actual) 32,808 37,122 40,135 13.15 8.12
0-14 Age Group (%) 22.95 19.82 16.76 (2.28) (8.55)
15-34 Age Group (%) 21.60 24.03 27.40 25.85 23.31
35-54 Age Group (%) 31.74 27.65 24.04 (1.43) (6.00)
55-69 Age Group (%) 16.83 19.13 20.64 28.55 16.68
70+ Age Group (%) 6.88 9.38 11.15 54.34 28.58
Median Age (actual) 38.60 39.90 40.90 3.37 2.51
Female Population (actual) 16,801 18,982 20,547 12.98 8.24
Male Population (actual) 16,007 18,140 19,588 13.33 7.98
Population Density (#/ sq miles) 178.07 201.48 217.83 13.15 8.12
Diversity Index (actual) NA NA NA NA NA
Black (%) 4.98 5.36 5.63 21.59 13.68
Asian (%) 3.12 4.23 5.06 53.82 29.26
White (%) 88.41 86.26 84.68 10.41 6.13
Hispanic (%) 4.38 4.89 5.27 26.46 16.46
Pacific Islander (%) 0.02 0.02 0.02 20.00 33.33
American Indian/Alaska Native (%) 0.15 0.23 0.29 73.47 35.29
Multiple races (%) 1.38 1.73 1.99 42.26 24.26
Other (%) 1.95 2.17 2.33 25.59 16.27
Total Households (actual) 11,622 13,280 14,417 14.27 8.56
< $25K Households (%) NA 13.52 12.69 NA 1.95
$25-49K Households (%) NA 18.83 18.20 NA 4.92
$50-99K Households (%) NA 30.66 29.87 NA 5.77
$100-$199K Households (%) NA 27.45 28.20 NA 11.55
$200K+ Households (%) NA 9.55 11.04 NA 25.47
Average Household Income ($) NA 101,622 106,842 NA 5.14
Median Household Income ($) NA 76,548 80,089 NA 4.63
Per Capita Income ($) NA 36,468 38,488 NA 5.54
Total Owner Occupied Housing Units (actual) 9,418 10,794 11,733 14.61 8.70
Renter Occupied Housing Units (actual) 2,204 2,486 2,684 12.79 7.96
Vacant Occupied Housing Units (actual) 761 778 804 2.23 3.34

Source: Nielsen

Demographic data is provided by Nielsen based primarily on US Census data. For non-census year data, Nielsen uses samples and projections to estimate the demographic data. S&P
Global Market Intelligence performs calculations on the underlying data provided by Nielsen for some of the data presented on this page.

% Change values are calculated using the underlying actual data.

 EXHIBIT III-1
Newton Federal Bank
General Characteristics of Publicly-Traded Institutions
 Exhibit III-1
Characteristics of Publicly-Traded Thrifts
November 25, 2016

As of
November 25, 2016
Total Fiscal Conv. Stock Market
Ticker Financial Institution Exchange Region City State Assets Offices Mth End Date Price Value
($Mil) ($) ($Mil)
ANCB Anchor Bancorp NASDAQ WE Lacey WA $ 436 10 Jun 1/26/11 $ 25.40 $ 64
ASBB ASB Bancorp, Inc. NASDAQ SE Asheville NC 797 13 Dec 10/12/11 27.80 105
ACFC Atlantic Coast Financial Corporation NASDAQ SE Jacksonville FL 937 12 Dec 2/4/11 7.06 109
BCTF Bancorp 34, Inc. NASDAQ SW Alamogordo NM 328 4 Dec 10/12/16 12.37 43
BKMU Bank Mutual Corporation NASDAQ MW Milwaukee WI 2,653 66 Dec 10/30/03 9.00 411
BFIN BankFinancial Corporation NASDAQ MW Burr Ridge IL 1,540 20 Dec 6/24/05 14.50 279
BYBK Bay Bancorp, Inc. NASDAQ MA Columbia MD 606 15 Dec 1/0/00 6.05 63
BNCL Beneficial Bancorp, Inc. NASDAQ MA Philadelphia PA 5,580 64 Dec 1/13/15 17.25 1,310
BHBK Blue Hills Bancorp, Inc. NASDAQ NE Norwood MA 2,314 12 Dec 7/22/14 18.00 482
BOFI BofI Holding, Inc. NASDAQ WE San Diego CA 7,855 2 Jun 3/14/05 24.67 1,562
BYFC Broadway Financial Corporation NASDAQ WE Los Angeles CA 413 3 Dec 1/9/96 1.59 34
BLMT BSB Bancorp, Inc. NASDAQ NE Belmont MA 2,074 7 Dec 10/5/11 26.70 243
CFFN Capitol Federal Financial, Inc. NASDAQ MW Topeka KS 9,267 47 Sep 12/22/10 15.99 2,198
CARV Carver Bancorp, Inc. NASDAQ MA New York NY 702 9 Mar 10/25/94 4.00 15
CFBK Central Federal Corporation NASDAQ MW Worthington OH 408 4 Dec 12/30/98 1.45 23
CHFN Charter Financial Corporation NASDAQ SE West Point GA 1,443 20 Sep 4/9/13 14.47 217
CSBK Clifton Bancorp Inc. NASDAQ MA Clifton NJ 1,312 12 Mar 4/2/14 16.54 381
CWAY Coastway Bancorp, Inc. NASDAQ NE Warwick RI 633 11 Dec 1/15/14 13.95 62
DCOM Dime Community Bancshares, Inc. NASDAQ MA Brooklyn NY 5,822 25 Dec 6/26/96 19.15 719
ESBK Elmira Savings Bank NASDAQ MA Elmira NY 567 13 Dec 3/1/85 19.90 55
ENFC Entegra Financial Corp. NASDAQ SE Franklin NC 1,218 16 Dec 10/1/14 19.37 125
EQFN Equitable Financial Corp. NASDAQ MW Grand Island NE 228 6 Jun 7/9/15 9.10 32
ESSA ESSA Bancorp, Inc. NASDAQ MA Stroudsburg PA 1,772 27 Sep 4/4/07 14.89 170
FCAP First Capital, Inc. NASDAQ MW Corydon IN 742 17 Dec 1/4/99 32.13 107
FBNK First Connecticut Bancorp, Inc. NASDAQ NE Farmington CT 2,832 27 Dec 6/30/11 22.40 354
FDEF First Defiance Financial Corp. NASDAQ MW Defiance OH 2,450 34 Dec 10/2/95 46.43 417
FNWB First Northwest Bancorp NASDAQ WE Port Angeles WA 1,049 11 Jun 1/30/15 14.89 194
FBC Flagstar Bancorp, Inc. NYSE MW Troy MI 14,273 99 Dec 4/30/97 27.78 1,573
FSBW FS Bancorp, Inc. NASDAQ WE Mountlake Terrace WA 827 12 Dec 7/10/12 32.65 100
FSBC FSB Bancorp, Inc. NASDAQ MA Fairport NY 260 5 Dec 7/14/16 14.50 28
HBK Hamilton Bancorp, Inc. NASDAQ MA Towson MD 517 7 Mar 10/10/12 13.98 48
HIFS Hingham Institution for Savings NASDAQ NE Hingham MA 1,960 13 Dec 12/20/88 168.32 359
HMNF HMN Financial, Inc. NASDAQ MW Rochester MN 686 13 Dec 6/30/94 16.33 73
HFBL Home Federal Bancorp, Inc. of Louisiana NASDAQ SW Shreveport LA 390 7 Jun 12/22/10 24.00 47
IROQ IF Bancorp, Inc. NASDAQ MW Watseka IL 589 6 Jun 7/8/11 19.35 76
ISBC Investors Bancorp, Inc. NASDAQ MA Short Hills NJ 22,536 151 Dec 5/8/14 14.10 4,361
JXSB Jacksonville Bancorp, Inc. NASDAQ MW Jacksonville IL 331 6 Dec 7/15/10 29.26 53
KRNY Kearny Financial Corp. NASDAQ MA Fairfield NJ 4,523 42 Jun 5/19/15 15.30 1,354
MLVF Malvern Bancorp, Inc. NASDAQ MA Paoli PA 821 9 Sep 10/12/12 20.40 134
MELR Melrose Bancorp, Inc. NASDAQ NE Melrose MA 267 1 Dec 10/22/14 15.91 41
EBSB Meridian Bancorp, Inc. NASDAQ NE Peabody MA 4,173 31 Dec 7/29/14 18.10 972
CASH Meta Financial Group, Inc. NASDAQ MW Sioux Falls SD 4,007 10 Sep 9/20/93 94.55 852
MSBF MSB Financial Corp. NASDAQ MA Millington NJ 434 5 Dec 7/17/15 13.70 78
NYCB New York Community Bancorp, Inc. NYSE MA Westbury NY 49,463 263 Dec 11/23/93 16.01 7,798
NFBK Northfield Bancorp, Inc. NASDAQ MA Woodbridge NJ 3,785 38 Dec 1/25/13 18.84 911
NWBI Northwest Bancshares, Inc. NASDAQ MA Warren PA 9,715 177 Dec 12/18/09 18.37 1,861
OCFC OceanFirst Financial Corp. NASDAQ MA Toms River NJ 4,151 51 Dec 7/3/96 23.99 620
ORIT Oritani Financial Corp. NASDAQ MA Township of Washington NJ 3,795 27 Jun 6/24/10 17.65 799
OTTW Ottawa Bancorp, Inc. NASDAQ MW Ottawa IL 276 3 Dec 10/12/16 11.73 41
PBHC Pathfinder Bancorp, Inc. NASDAQ MA Oswego NY 717 18 Dec 10/17/14 12.51 53
PBBI PB Bancorp, Inc. NASDAQ NE Putnam CT 506 8 Jun 1/8/16 9.30 73
 Exhibit III-1
Characteristics of Publicly-Traded Thrifts
November 25, 2016

As of
November 25, 2016
Total Fiscal Conv. Stock Market
Ticker Financial Institution Exchange Region City State Assets Offices Mth End Date Price Value
($Mil) ($) ($Mil)
PBSK Poage Bankshares, Inc. NASDAQ MW Ashland KY 449 10 Dec 9/13/11 18.95 70
PROV Provident Financial Holdings, Inc. NASDAQ WE Riverside CA 1,243 14 Jun 6/28/96 20.00 160
PFS Provident Financial Services, Inc. NYSE MA Iselin NJ 9,390 89 Dec 1/16/03 27.20 1,796
PBIP Prudential Bancorp, Inc. NASDAQ MA Philadelphia PA 559 6 Sep 10/10/13 15.81 127
RNDB Randolph Bancorp, Inc. NASDAQ NE Stoughton MA 490 6 Dec 7/1/16 15.13 89
RVSB Riverview Bancorp, Inc. NASDAQ WE Vancouver WA 984 17 Mar 10/1/97 5.99 135
SVBI Severn Bancorp, Inc. NASDAQ MA Annapolis MD 778 5 Dec 1/0/00 6.65 80
SIFI SI Financial Group, Inc. NASDAQ NE Willimantic CT 1,538 25 Dec 1/13/11 14.20 173
SBCP Sunshine Bancorp, Inc. NASDAQ SE Plant City FL 564 12 Dec 7/15/14 15.91 127
TBNK Territorial Bancorp Inc. NASDAQ WE Honolulu HI 1,849 29 Dec 7/13/09 32.06 313
TSBK Timberland Bancorp, Inc. NASDAQ WE Hoquiam WA 891 22 Sep 1/13/98 19.05 132
TRST TrustCo Bank Corp NY NASDAQ MA Glenville NY 4,813 145 Dec 1/0/00 8.35 799
UCBA United Community Bancorp NASDAQ MW Lawrenceburg IN 528 8 Jun 1/10/13 16.20 68
UCFC United Community Financial Corp. NASDAQ MW Youngstown OH 2,160 31 Dec 7/9/98 8.58 399
UBNK United Financial Bancorp, Inc. NASDAQ NE Glastonbury CT 6,545 54 Dec 3/4/11 16.84 851
WSBF Waterstone Financial, Inc. NASDAQ MW Wauwatosa WI 1,795 13 Dec 1/23/14 18.20 535
WAYN Wayne Savings Bancshares, Inc. NASDAQ MW Wooster OH 446 11 Dec 1/9/03 15.05 42
WCFB WCF Bancorp, Inc. NASDAQ MW Webster City IA 124 2 Dec 7/14/16 8.90 23
WEBK Wellesley Bancorp, Inc. NASDAQ NE Wellesley MA 666 6 Dec 1/26/12 24.45 60
WBB Westbury Bancorp, Inc. NASDAQ MW West Bend WI 703 8 Sep 4/10/13 20.04 82
WNEB Western New England Bancorp, Inc. NASDAQ NE Westfield MA 1,378 14 Dec 1/4/07 8.50 257
WBKC Wolverine Bancorp, Inc. NASDAQ MW Midland MI 369 3 Dec 1/20/11 27.97 59
WSFS WSFS Financial Corporation NASDAQ MA Wilmington DE 6,628 63 Dec 11/26/86 42.25 1,323
WVFC WVS Financial Corp. NASDAQ MA Pittsburgh PA 335 6 Jun 11/29/93 13.01 26
GCBC Greene County Bancorp, Inc. (MHC) NASDAQ MA Catskill NY 893 15 Jun 12/30/98 21.70 184
HONE HarborOne Bancorp, Inc. (MHC) NASDAQ NE Brockton MA 2,347 17 Dec 6/30/16 19.62 630
KFFB Kentucky First Federal Bancorp (MHC) NASDAQ MW Frankfort KY 295 7 Jun 3/3/05 8.65 73
LSBK Lake Shore Bancorp, Inc. (MHC) NASDAQ MA Dunkirk NY 478 11 Dec 4/4/06 14.18 86
MGYR Magyar Bancorp, Inc. (MHC) NASDAQ MA New Brunswick NJ 584 6 Sep 1/24/06 10.60 62
OFED Oconee Federal Financial Corp. (MHC) NASDAQ SE Seneca SC 484 7 Jun 1/14/11 22.05 128
PVBC Provident Bancorp, Inc. (MHC) NASDAQ NE Amesbury MA 768 8 Dec 7/16/15 17.95 171
TFSL TFS Financial Corporation (MHC) NASDAQ MW Cleveland OH 12,906 38 Sep 4/23/07 18.82 5,335

Source: SNL Financial, LC.

 EXHIBIT III-2
Newton Federal Bank
Public Market Pricing of Publicly-Traded Institutions-
$600 Million in Assets or Less
 Exhibit III-2
Public Market Pricing Versus Peer Group
Newton Federal Bank
As of November 25, 2016

Market Per Share Data

Capitalization Core Book Dividends(3) Financial Characteristics(5)
Price/ Market 12 Month Value/ Pricing Ratios(2) Amount/ Payout Total Equity/ Tang. Eq./ NPAs/ Reported Core
Share Value EPS(1) Share P/E P/B P/A P/TB P/Core Share Yield Ratio(4) Assets Assets T. Assets Assets ROAA ROAE ROAA ROAE
($) ($Mil) ($) ($) (x) (%) (%) (%) (x) ($) (%) (%) ($Mil) (%) (%) (%) (%) (%) (%) (%)
All Non-MHC Public Companies(6)
Averages $ 20.55 $530.90 $ 1.05 $ 15.78 18.80x 123.90% 15.20% 134.09% 19.59x $0.31 1.49% 49.23% $ 3,069 12.71% 12.15% 1.13% 0.71% 5.98% 0.73% 6.11%
Median $ 16.33 $132.28 $ 0.78 $ 14.42 18.77x 121.48% 14.66% 127.40% 19.15x $0.24 1.43% 39.21% $ 937 11.50% 11.12% 0.88% 0.62% 5.34% 0.64% 5.14%
Comparable Group
Averages $ 15.35 $ 57.43 $ 0.59 $ 15.43 16.97x 99.68% 13.66% 104.16% 19.50x $0.25 1.21% 55.52% $ 409 14.02% 13.65% 1.30% 0.55% 4.30% 0.55% 4.31%
Medians $ 15.09 $ 50.17 $ 0.35 $ 15.54 16.79x 98.53% 14.18% 99.99% 18.21x $0.18 1.26% 42.93% $ 424 13.81% 13.40% 1.10% 0.46% 3.43% 0.49% 3.92%
Comparable Group
ANCB Anchor Bancorp WA $ 25.40 $ 63.63 $ 0.29 $ 25.46 NM 99.77% 14.60% 99.77% NM NA NA NM $ 436 14.63% 14.63% NA 0.17% 1.14% 0.17% 1.14%
BCTF Bancorp 34, Inc. NM $ 12.37 $ 42.53 $ 0.35 $ 9.01 NM 137.27% 12.96% 138.61% 34.93x $0.59 0.00% NM $ 328 9.44% 9.36% 0.37% 0.41% 3.85% 0.43% 4.04%
BYFC Broadway Financial
Corporation CA $ 1.59 $ 46.23 $ 0.23 $ 1.63 6.91x 97.29% 11.18% 97.29% 7.01x $0.04 0.00% NM $ 413 11.50% 11.50% 2.91% 1.74% 15.02% 1.71% 14.81%
CFBK Central Federal Corporation OH $ 1.45 $ 23.20 $ 0.21 $ 1.73 6.90x 83.61% 5.84% 83.61% 6.90x $0.00 0.00% NM $ 408 9.58% 9.58% 1.03% 1.31% 12.37% 1.31% 12.37%
ESBK Elmira Savings Bank NY $ 19.90 $ 54.54 $ 1.23 $ 16.80 15.79x 118.47% 9.78% 161.90% 16.23x $0.92 4.62% 73.02% $ 567 9.83% 7.83% NA 0.77% 7.81% 0.75% 7.67%
EQFN Equitable Financial Corp. NE $ 9.10 $ 31.64 $ 0.32 $ 10.43 29.35x 87.24% 13.89% 87.24% 28.58x NA NA NM $ 228 15.92% 15.92% NA 0.46% 3.00% 0.47% 3.08%
FSBC FSB Bancorp, Inc. NY $ 14.50 $ 28.15 $ 0.28 $ 16.20 NM 89.51% 10.84% 89.51% NM NA NA NM $ 260 12.11% 12.11% 0.01% 0.22% 2.52% 0.21% 2.42%
HBK Hamilton Bancorp, Inc. MD $ 13.98 $ 47.71 $ 0.15 $ 18.10 NM 77.19% 9.22% 91.08% NM NA NA NM $ 517 11.95% 10.32% 1.16% -0.01% -0.04% 0.11% 0.78%
HFBL Home Federal Bancorp, Inc.
of Louisiana LA $ 24.00 $ 47.19 $ 1.80 $ 22.44 13.33x 106.94% 12.07% 106.94% 13.33x $0.36 1.50% 18.89% $ 390 11.29% 11.29% 0.24% 0.92% 7.63% 0.92% 7.63%
IROQ IF Bancorp, Inc. IL $ 19.35 $ 76.44 $ 0.98 $ 21.12 17.92x 91.60% 13.04% 91.60% 19.77x $0.16 0.83% 14.81% $ 589 14.23% 14.23% 0.82% 0.70% 4.93% 0.64% 4.46%
JXSB Jacksonville Bancorp, Inc. IL $ 29.26 $ 52.63 $ 1.57 $ 26.84 17.21x 109.00% 15.91% 115.53% 18.58x $0.40 1.37% 81.18% $ 331 14.60% 13.89% 1.33% 0.99% 6.53% 0.92% 6.05%
MELR Melrose Bancorp, Inc. MA $ 15.91 $ 41.39 $ 0.28 $ 16.61 NM 95.77% 15.54% 95.77% NM NA NA NM $ 267 16.23% 16.23% 0.00% 0.42% 2.26% 0.29% 1.55%
MSBF MSB Financial Corp. NJ $ 13.70 $ 78.24 $ 0.12 $ 12.71 NM 107.81% 18.04% 107.81% NM $0.00 0.00% NM $ 434 16.74% 16.74% 3.53% 0.18% 0.90% 0.26% 1.34%
OTTW Ottawa Bancorp, Inc. IL $ 11.73 $ 40.55 $ 0.41 $ 9.23 30.40x 127.06% 14.66% 131.32% 28.82x $0.00 0.00% NM $ 276 11.54% 11.21% 2.00% 0.59% 4.15% 0.62% 4.37%
PBBI PB Bancorp, Inc. CT $ 9.30 $ 73.29 $ 0.12 $ 10.85 NM 85.75% 14.47% 93.30% NM $0.12 1.29% 91.67% $ 506 16.87% 15.72% NA 0.18% 1.23% 0.19% 1.27%
PBSK Poage Bankshares, Inc. KY $ 18.95 $ 70.37 $ 0.60 $ 18.78 NM 100.89% 15.68% 104.44% 31.57x $0.32 1.69% 53.85% $ 449 15.54% 15.09% 1.78% 0.43% 2.68% 0.50% 3.08%
PBIP Prudential Bancorp, Inc. PA $ 15.81 $127.20 $ 0.35 $ 14.17 NM 111.58% 22.74% 111.58% NM $0.12 0.76% 33.33% $ 559 20.38% 20.38% 3.39% 0.51% 2.36% 0.49% 2.29%
RNDB Randolph Bancorp, Inc. MA $ 15.13 $ 88.78 NA $ 14.63 NM 103.41% 18.13% 103.54% NM NA NA NM $ 490 17.54% 17.52% 1.41% NA 2.73% NA 3.80%
SBCP Sunshine Bancorp, Inc. FL $ 15.91 $127.20 ($ 0.33) $ 13.82 NM 115.10% 14.84% 133.49% NM NA NA NM $ 564 12.89% 11.32% 0.41% -0.26% -1.85% -0.29% -2.04%
UCBA United Community Bancorp IN $ 16.20 $ 68.01 $ 0.81 $ 16.83 18.84x 96.23% 12.88% 100.20% 20.07x $0.24 1.48% 27.91% $ 528 13.38% 12.92% 1.02% 0.68% 5.14% 0.63% 4.83%
WAYN Wayne Savings Bancshares,
Inc. OH $ 15.05 $ 41.87 $ 0.92 $ 14.88 16.36x 101.12% 9.39% 105.50% 16.36x $0.36 2.39% 39.13% $ 446 9.29% 8.94% NA 0.57% 6.20% 0.57% 6.20%
WCFB WCF Bancorp, Inc. IA $ 8.90 $ 22.81 $ 0.07 $ 11.54 NM 77.12% 18.39% 77.30% NM $0.20 2.25% 158.74% $ 124 23.85% 23.80% NA 0.19% 1.44% 0.13% 0.98%
WBKC Wolverine Bancorp, Inc. MI $ 27.97 $ 58.70 $ 2.14 $ 29.97 13.07x 93.33% 16.05% 93.33% 13.07x NA NA 46.73% $ 369 17.20% 17.20% 1.92% 1.13% 7.00% 1.13% 7.00%
WVFC WVS Financial Corp. PA $ 13.01 $ 26.13 $ 0.73 $ 16.44 17.58x 79.14% 7.80% 79.14% 17.84x $0.16 1.23% 27.03% $ 335 9.85% 9.85% 0.08% 0.42% 4.32% 0.42% 4.26%

(1) Core income, on a diluted per-share basis. Core income is net income after taxes and before extraordinary items, less net income attributable to noncontrolling interest, gain on the
sale of securities, amortization of intangibles, goodwill and nonrecurring items. Assumed tax rate is 35%.
(2) P/E = Price to earnings; P/B = Price to book; P/A = Price to assets; P/TB = Price to tangible book value; and P/Core = Price to core earnings. P/E and P/Core =NM if the ratio is
negative or above 35x.
(3) Indicated 12 month dividend, based on last quarterly dividend declared.
(4) Indicated 12 month dividend as a percent of trailing 12 month earnings.
(5) ROAA (return on average assets) and ROAE (return on average equity) are indicated ratios based on trailing 12 month earnings and average equity and assets balances.
(6) Excludes from averages and medians those companies the subject of actual or rumored acquisition activities or unusual operating characteristics.

Source: SNL Financial, LC. and RP Financial, LC. calculations. The information provided in this report has been obtained from sources we believe are reliable, but we cannot guarantee the
accuracy or completeness of such information.

Copyright (c) 2016 by RP ® Financial, LC.

 Exhibit III-3
Peer Group Market Area Comparative Analysis

Per Capita
Proj. Income Deposit
Population Pop. 2010-2016 2016-2022 2016 % State Market
Institution County 2010 2016 2022 % Change % Change Amount Average Share(1)
Anchor Bancorp - WA Thurston 252,264 271,588 293,737 1.2% 1.3% 29,507 89.5% 1.49%
Equitable Financial Corp. - NE Hall 58,607 62,421 64,882 1.1% 0.6% 24,046 82.5% 5.62%
IF Bancorp, Inc. - IL Iroquois 29,718 28,599 27,804 -0.6% -0.5% 27,730 87.6% 25.29%
Jacksonville Bancorp, Inc. - IL Morgan 35,547 34,692 34,215 -0.4% -0.2% 29,817 94.2% 26.52%
Melrose Bancorp, Inc. - MA Middlesex 1,503,085 1,592,352 1,678,407 1.0% 0.9% 47,267 121.9% 0.39%
MSB Financial Corp. - NJ Morris 492,276 501,318 507,646 0.3% 0.2% 52,009 138.7% 0.83%
Poage Bankshares, Inc. - KY Boyd 49,542 48,562 47,255 -0.3% -0.5% 26,801 105.4% 20.76%
Prudential Bancorp, Inc. - PA Philadelphia 1,526,006 1,569,473 1,608,752 0.5% 0.4% 23,204 75.1% 0.98%
United Community Bancorp - IN Dearborn 50,047 49,234 49,348 -0.3% 0.0% 26,820 103.0% 40.83%
Wolverine Bancorp, Inc. - MI Midland 83,629 83,266 84,018 -0.1% 0.1% 30,041 108.2% 16.04%
Averages: 408,072 424,151 439,606 0.2% 0.3% 31,724 100.6% 13.88%
Medians: 71,118 72,844 74,450 0.1% 0.2% 28,619 98.6% 10.83%
Newton Federal Bank - GA Newton 99,958 105,461 113,991 1.3% 1.6% 22,587 84.2% 20.90%

(1) Total institution deposits in headquarters county as percent of total county deposits as of June 30, 2016.

Sources: SNL Financial, LC.

 EXHIBIT IV-1
Newton Federal Bank
Thrift Stock Prices: As of November 25, 2016
RP ® Financial, LC.

Exhibit IV-1A
Weekly Thrift Market Line - Part One
Prices As of November 25, 2016

Market Capitalization Price Change Data Current Per Share Financials

Price/ Shares Market 52 Week (1) % Change From LTM LTM Core BV/ TBV/ Assets/
Share(1) Outstanding Capitalization High Low Last Wk Last Wk 52 Wks (2) MRY (2) EPS (3) EPS (3) Share Share (4) Share
($) (000) ($Mil) ($) ($) ($) (%) (%) (%) ($) ($) ($) ($) ($)
Companies
ANCB Anchor Bancorp WA 25.40 2,505 63.6 26.39 22.61 26.00 -2.31 -0.39 -1.89 0.29 0.29 25.46 25.46 174.02
ASBB ASB Bancorp, Inc. NC 27.80 3,787 105.3 27.80 24.07 27.45 1.28 9.17 7.10 1.47 1.21 24.12 24.12 210.50
ACFC Atlantic Coast Financial Corporation FL 7.06 15,509 109.5 7.08 5.03 6.79 3.98 17.08 20.48 0.33 0.27 5.55 5.55 60.41
BCTF Bancorp 34, Inc. NM 12.37 3,438 42.5 13.15 7.91 12.29 0.62 44.71 40.69 0.34 0.35 9.01 8.92 95.43
BKMU Bank Mutual Corporation WI 9.00 45,672 411.0 9.00 7.00 8.70 3.45 17.65 15.38 0.37 0.38 6.32 6.32 58.10
BFIN BankFinancial Corporation IL 14.50 19,271 279.4 14.60 11.38 14.25 1.75 11.62 14.81 0.38 0.40 10.57 10.52 79.93
BYBK Bay Bancorp, Inc. MD 6.05 10,370 62.7 6.20 4.57 5.95 1.68 16.35 19.57 0.14 0.18 6.28 5.96 58.47
BNCL Beneficial Bancorp, Inc. PA 17.25 75,914 1,309.5 17.25 12.30 16.65 3.60 24.46 29.50 0.31 0.40 13.41 11.13 73.51
BHBK Blue Hills Bancorp, Inc. MA 18.00 26,782 482.1 18.00 13.22 17.50 2.86 9.49 17.57 0.28 0.27 14.43 14.03 86.39
BOFI BofI Holding, Inc. CA 24.67 63,299 1,561.6 25.13 13.47 23.49 5.02 21.29 17.20 1.91 1.89 11.32 11.32 124.09
BYFC Broadway Financial Corporation CA 1.59 29,077 46.2 2.50 1.27 1.60 -0.63 18.66 5.30 0.23 0.23 1.63 1.63 14.22
BLMT BSB Bancorp, Inc. MA 26.70 9,102 243.0 26.88 20.72 25.75 3.69 19.20 14.15 1.19 NA 17.23 17.23 227.83
CFFN Capitol Federal Financial, Inc. KS 15.99 137,486 2,198.4 16.39 11.39 16.22 -1.42 25.02 27.31 0.63 NA 10.13 10.13 67.40
CARV Carver Bancorp, Inc. NY 4.00 3,696 14.8 5.99 1.92 4.00 0.00 -33.44 6.67 -0.19 -0.42 2.51 2.51 189.86
CFBK Central Federal Corporation OH 1.45 16,003 23.2 1.68 1.10 1.49 -2.68 4.50 9.85 0.21 0.21 1.73 1.73 25.52
CHFN Charter Financial Corporation GA 14.47 15,031 217.5 14.70 12.34 14.03 3.14 8.07 9.54 0.79 0.86 13.52 11.36 96.00
CSBK Clifton Bancorp Inc. NJ 16.54 23,046 381.2 16.73 13.09 16.54 0.00 12.14 15.34 0.19 0.19 13.12 13.12 56.94
CWAY Coastway Bancorp, Inc. RI 13.95 4,467 62.3 14.01 11.29 13.45 3.72 23.89 6.65 0.79 0.79 15.52 15.52 141.70
DCOM Dime Community Bancshares, Inc. NY 19.15 37,544 719.0 19.25 15.61 18.65 2.68 3.51 9.49 2.26 1.05 14.79 13.31 155.07
ESBK Elmira Savings Bank NY 19.90 2,741 54.5 21.50 16.83 19.34 2.90 4.74 0.09 1.26 1.23 16.80 12.29 207.03
ENFC Entegra Financial Corp. NC 19.37 6,442 124.8 19.90 16.11 19.10 1.44 5.35 0.09 0.92 1.04 21.37 20.90 189.14
EQFN Equitable Financial Corp. NE 9.10 3,477 31.6 9.25 8.05 8.88 2.52 12.07 3.29 0.31 0.32 10.43 10.43 65.53
ESSA ESSA Bancorp, Inc. PA 14.89 11,394 169.7 14.90 12.69 14.78 0.74 11.20 8.85 0.73 0.71 15.48 14.05 155.57
FCAP First Capital, Inc. IN 32.13 3,338 107.2 35.00 23.50 32.16 -0.11 25.98 23.08 1.91 2.04 23.55 21.22 222.34
FBNK First Connecticut Bancorp, Inc. CT 22.40 15,809 354.1 22.50 14.42 21.15 5.91 25.56 28.66 0.89 0.87 16.17 16.17 179.13
FDEF First Defiance Financial Corp. OH 46.43 8,981 417.0 46.83 34.80 45.80 1.38 13.11 22.90 3.08 3.10 32.53 25.49 272.80
FNWB First Northwest Bancorp WA 14.89 13,008 193.7 14.92 11.99 14.79 0.68 6.05 5.23 0.29 0.27 14.60 14.60 80.61
FBC Flagstar Bancorp, Inc. MI 27.78 56,606 1,572.5 29.29 17.25 28.22 -1.56 12.65 20.21 2.60 2.74 22.72 22.72 252.14
FSBW FS Bancorp, Inc. WA 32.65 3,058 99.8 32.75 22.05 32.09 1.72 25.56 25.58 3.35 3.58 26.02 24.65 270.62
FSBC FSB Bancorp, Inc. NY 14.50 1,942 28.2 14.89 9.19 14.32 1.26 46.81 40.28 0.30 0.28 16.20 16.20 133.76
HBK Hamilton Bancorp, Inc. MD 13.98 3,414 47.7 15.11 13.19 13.75 1.64 -5.89 -2.00 -0.01 0.15 18.10 15.34 151.50
HIFS Hingham Institution for Savings MA 168.32 2,131 358.6 171.00 115.05 164.76 2.16 27.21 40.50 10.41 10.31 72.35 72.35 920.01
HMNF HMN Financial, Inc. MN 16.33 4,489 73.3 16.45 10.81 15.80 3.33 36.22 41.35 1.22 1.23 16.67 16.39 152.75
HFBL Home Federal Bancorp, Inc. of
Louisiana LA 24.00 1,966 47.2 25.00 21.20 24.00 0.00 4.48 3.23 1.80 1.80 22.44 22.44 198.13
IROQ IF Bancorp, Inc. IL 19.35 3,950 76.4 19.97 17.25 19.14 1.10 10.26 4.59 1.08 0.98 21.12 21.12 149.02
ISBC Investors Bancorp, Inc. NJ 14.10 309,294 4,361.0 14.12 10.67 13.79 2.25 10.07 13.34 0.58 0.58 10.03 9.75 72.86
JXSB Jacksonville Bancorp, Inc. IL 29.26 1,799 52.6 33.08 23.20 29.89 -2.11 19.23 11.34 1.70 1.57 26.84 25.33 183.88
KRNY Kearny Financial Corp. NJ 15.30 88,521 1,354.4 15.60 11.31 15.15 0.99 23.09 20.76 0.19 0.19 12.57 11.34 51.10
MLVF Malvern Bancorp, Inc. PA 20.40 6,560 133.8 20.47 15.00 19.25 5.97 26.16 16.17 1.86 1.80 14.42 14.42 125.19
MELR Melrose Bancorp, Inc. MA 15.91 2,602 41.4 17.00 14.60 16.35 -2.72 7.83 4.09 0.41 0.28 16.61 16.61 102.50
EBSB Meridian Bancorp, Inc. MA 18.10 53,714 972.2 18.95 12.28 17.85 1.40 22.80 28.37 0.56 0.56 11.12 10.86 77.69
CASH Meta Financial Group, Inc. SD 94.55 9,006 851.5 95.10 36.22 90.90 4.02 112.90 105.86 3.92 4.65 39.30 NA 444.88
MSBF MSB Financial Corp. NJ 13.70 5,711 78.2 14.00 11.85 13.95 -1.79 15.51 9.60 0.12 0.12 12.71 12.71 75.93
NYCB New York Community Bancorp, Inc. NY 16.01 487,057 7,797.8 17.05 13.74 15.87 0.88 -0.93 -1.90 -0.08 1.20 12.50 7.50 101.55
NFBK Northfield Bancorp, Inc. NJ 18.84 48,333 910.6 18.84 14.31 18.42 2.28 18.42 18.34 0.52 0.58 12.84 12.00 78.30
NWBI Northwest Bancshares, Inc. PA 18.37 101,303 1,860.9 18.38 11.78 18.04 1.83 32.16 37.19 0.41 0.78 11.48 8.11 95.90
OCFC OceanFirst Financial Corp. NJ 23.99 25,851 620.2 24.00 15.98 23.32 2.87 22.09 19.77 1.07 1.41 16.14 13.42 160.58
ORIT Oritani Financial Corp. NJ 17.65 45,244 798.5 18.00 14.95 17.65 0.00 2.92 6.97 1.12 0.87 11.94 11.94 83.87
OTTW Ottawa Bancorp, Inc. IL 11.73 3,456 40.5 11.75 8.39 11.73 0.02 38.48 39.17 0.39 0.41 9.23 8.93 79.88
PBHC Pathfinder Bancorp, Inc. NY 12.51 4,230 52.9 13.32 10.76 12.50 0.08 1.05 -3.06 0.73 0.65 13.91 12.79 169.54
PBBI PB Bancorp, Inc. CT 9.30 7,880 73.3 9.75 8.17 9.50 -2.11 13.57 9.10 0.12 0.12 10.85 9.97 64.27
PBSK Poage Bankshares, Inc. KY 18.95 3,714 70.4 20.90 15.50 19.05 -0.52 14.23 10.82 0.52 0.60 18.78 18.14 120.88
PROV Provident Financial Holdings, Inc. CA 20.00 7,990 159.8 20.66 16.73 20.00 0.00 9.89 5.88 0.80 0.81 16.70 16.70 155.52
PFS Provident Financial Services, Inc. NJ 27.20 66,043 1,796.4 27.26 17.71 26.91 1.08 30.77 34.99 1.37 1.40 18.84 12.44 142.18
PBIP Prudential Bancorp, Inc. PA 15.81 8,046 127.2 16.20 13.80 15.47 2.20 7.99 4.01 0.36 0.35 14.17 14.17 69.54
RNDB Randolph Bancorp, Inc. MA 15.13 5,869 88.8 15.13 12.06 14.91 1.46 NA NA NA NA 14.63 14.61 83.42
RVSB Riverview Bancorp, Inc. WA 5.99 22,508 134.8 6.00 4.15 5.79 3.45 29.93 27.72 0.29 0.30 4.93 3.79 43.72
SVBI Severn Bancorp, Inc. MD 6.65 12,104 80.5 7.20 4.99 6.65 0.00 17.70 15.65 1.14 1.14 6.90 6.87 64.25
SIFI SI Financial Group, Inc. CT 14.20 12,210 173.4 14.47 12.30 14.15 0.35 9.06 4.03 0.53 NA 13.08 11.64 125.97
SBCP Sunshine Bancorp, Inc. FL 15.91 7,995 127.2 15.95 13.55 15.53 2.45 13.24 4.67 -0.35 -0.33 13.82 11.92 70.54
TBNK Territorial Bancorp Inc. HI 32.06 9,764 313.0 32.50 24.87 31.59 1.49 10.90 15.57 1.69 1.66 23.39 23.39 189.33
TSBK Timberland Bancorp, Inc. WA 19.05 6,944 132.3 19.06 11.60 18.94 0.58 49.38 53.51 1.43 1.42 13.95 13.13 128.37
TRST TrustCo Bank Corp NY NY 8.35 95,705 799.1 8.45 5.17 8.15 2.45 26.52 35.99 0.44 0.43 4.56 4.55 50.29
UCBA United Community Bancorp IN 16.20 4,198 68.0 17.00 12.95 15.82 2.38 8.14 8.07 0.86 0.81 16.83 16.17 125.78
UCFC United Community Financial Corp. OH 8.58 46,550 399.4 8.58 5.28 8.15 5.28 46.67 45.42 0.38 0.37 5.51 5.48 46.41
UBNK United Financial Bancorp, Inc. CT 16.84 50,512 850.6 17.06 10.28 16.43 2.50 21.50 30.75 0.90 1.02 13.00 10.60 129.57
WSBF Waterstone Financial, Inc. WI 18.20 29,386 534.8 18.55 13.30 18.00 1.11 32.75 29.08 0.81 0.81 13.94 13.92 61.08
WAYN Wayne Savings Bancshares, Inc. OH 15.05 2,782 41.9 15.05 11.90 14.55 3.44 18.97 13.93 0.92 0.92 14.88 14.27 160.25
WCFB WCF Bancorp, Inc. IA 8.90 2,563 22.8 10.97 8.15 8.80 1.14 0.31 -1.74 0.10 0.07 11.54 11.51 48.40
WEBK Wellesley Bancorp, Inc. MA 24.45 2,459 60.1 24.80 18.05 24.40 0.20 29.45 28.68 1.33 1.32 22.52 22.52 271.01
WBB Westbury Bancorp, Inc. WI 20.04 4,098 82.1 20.26 17.51 19.81 1.16 12.69 11.33 0.93 0.83 19.43 19.43 171.45
RP ® Financial, LC.

Exhibit IV-1A
Weekly Thrift Market Line - Part One
Prices As of November 25, 2016

Market Capitalization Price Change Data Current Per Share Financials

Price/ Shares Market 52 Week (1) % Change From LTM LTM Core BV/ TBV/ Assets/
Share(1) Outstanding Capitalization High Low Last Wk Last Wk 52 Wks (2) MRY (2) EPS (3) EPS (3) Share Share (4) Share
($) (000) ($Mil) ($) ($) ($) (%) (%) (%) ($) ($) ($) ($) ($)
Companies
WNEB Western New England Bancorp, Inc. MA 8.50 30,250 257.1 8.85 7.30 8.30 2.41 5.33 1.19 0.25 0.30 7.92 7.92 45.55
WBKC Wolverine Bancorp, Inc. MI 27.97 2,099 58.7 27.99 25.26 26.53 5.42 8.41 4.99 2.14 2.14 29.97 29.97 175.88
WSFS WSFS Financial Corporation DE 42.25 31,324 1,323.5 42.30 26.40 41.05 2.92 24.34 30.56 1.97 2.50 22.08 16.59 211.58
WVFC WVS Financial Corp. PA 13.01 2,008 26.1 13.07 10.73 12.61 3.17 6.55 5.77 0.74 0.73 16.44 16.44 166.85
MHCs
GCBC Greene County Bancorp, Inc. (MHC) NY 21.70 8,493 184.3 25.20 14.38 21.90 -0.91 49.66 35.84 1.10 1.10 9.00 9.00 105.16
HONE HarborOne Bancorp, Inc. (MHC) MA 19.62 32,121 630.2 19.70 12.53 18.75 4.64 NA NA NA NA 10.21 9.79 73.07
KFFB Kentucky First Federal Bancorp (MHC) KY 8.65 8,440 73.0 10.21 8.00 8.59 0.69 -11.01 -7.39 0.16 0.16 7.96 6.25 34.97
LSBK Lake Shore Bancorp, Inc. (MHC) NY 14.18 6,098 86.5 15.10 12.97 14.20 -0.14 6.36 5.82 0.71 0.51 12.68 12.68 78.46
MGYR Magyar Bancorp, Inc. (MHC) NJ 10.60 5,821 61.7 11.00 9.51 10.37 2.26 8.28 5.89 0.19 NA 8.20 8.20 100.40
OFED Oconee Federal Financial Corp. (MHC) SC 22.05 5,803 128.0 24.25 18.13 22.93 -3.82 19.58 18.23 0.87 0.86 14.70 14.13 83.44
PVBC Provident Bancorp, Inc. (MHC) MA 17.95 9,499 170.5 17.95 12.51 17.60 1.99 44.06 38.18 NA NA 11.41 11.41 80.87
TFSL TFS Financial Corporation (MHC) OH 18.82 283,469 5,334.9 19.42 15.58 18.75 0.37 0.11 -0.05 0.28 NA 5.84 5.81 45.53
Under Acquisition
AF Astoria Financial Corporation NY 16.30 101,329 1,651.7 16.65 13.92 16.15 0.93 2.13 2.84 0.64 0.67 15.57 13.74 146.20
EVER EverBank Financial Corp FL 19.33 125,445 2,424.8 19.47 12.32 19.34 -0.05 12.19 20.96 0.96 NA 13.92 13.53 228.81
GTWN Georgetown Bancorp, Inc. MA 25.90 1,841 47.7 26.00 18.25 25.65 0.97 41.38 36.89 0.43 0.46 17.62 17.62 171.09

(1) Average of High/Low or Bid/Ask price per share.

(2) Or since offering price if converted of first listed in the past 52 weeks. Percent change figures are actual year-to-date and are not annualized.
(3) EPS (earnings per share) is based on actual trailing 12 month data and is not shown on a pro forma basis.
(4) Excludes intangibles (such as goodwill, value of core deposits, etc.).
(5) ROA (return on assets) and ROE (return on equity) are indicated ratios based on trailing 12 month common earnings and average common equity and total assets balances.
(6) Annualized based on last regular quarterly cash dividend announcement.
(7) Indicated dividend as a percent of trailing 12 month earnings.
(8) Excluded from averages due to actual or rumored acquisition activities or unusual operating characteristics.
(9) For MHC institutions, market value reflects share price multiplied by public (non-MHC) shares.

Source: SNL Financial, LC. and RP ® Financial, LC. calculations. The information provided in this table has been obtained from sources we believe are reliable, but we cannot guarantee
the accuracy or completeness of such information.

Copyright (c) 2016 by RP ® Financial, LC.

RP ® Financial, LC.

Exhibit IV-1B
Weekly Thrift Market Line - Part Two
Prices As of November 25, 2016

Key Financial Ratios Asset Quality Ratios Pricing Ratios Dividend Data (6)
Equity/ Tang Equity/ Reported Earnings Core Earnings NPAs/ Rsvs/ Price/ Price/ Price/ Price/ Price/ Div/ Dividend Payout
Assets(1) Assets(1) ROA(5) ROE(5) ROA(5) ROE(5) Assets NPLs Earnings Book Assets Tang Book Core Earnings Share Yield Ratio (7)
(%) (%) (%) (%) (%) (%) (%) (%) (x) (%) (%) (%) (x) ($) (%) (%)
Companies
ANCB Anchor Bancorp WA 14.63 14.63 0.17 1.14 0.17 1.14 NA 39.88 NM 99.77 14.60 99.77 87.59 NA NA NM
ASBB ASB Bancorp, Inc. NC 11.46 11.46 0.70 5.91 0.57 4.87 1.31 114.00 18.91 115.27 13.21 115.27 22.94 NA NA NM
ACFC Atlantic Coast
Financial
Corporation FL 9.19 9.19 0.59 6.10 0.48 4.97 4.29 21.76 21.39 127.13 11.69 127.13 26.33 0.00 0.00 NM
BCTF Bancorp 34, Inc. NM 9.44 9.36 0.41 3.85 0.43 4.04 0.37 179.30 36.18 137.27 12.96 138.61 34.93 0.59 0.00 NM
BKMU Bank Mutual
Corporation WI 10.89 10.89 0.65 5.85 0.66 5.95 0.54 164.11 24.32 142.29 15.49 142.29 23.91 0.22 2.44 58.11
BFIN BankFinancial
Corporation IL 13.22 13.17 0.49 3.50 0.51 3.65 0.55 203.32 38.16 137.20 18.14 137.82 36.61 0.24 1.66 55.26
BYBK Bay Bancorp, Inc. MD 10.76 10.27 0.33 2.49 0.41 3.15 2.19 21.03 43.21 96.34 10.34 101.43 34.43 0.00 0.00 NM
BNCL Beneficial Bancorp,
Inc. PA 18.34 15.70 0.44 2.13 0.56 2.73 0.30 286.82 55.65 128.62 23.58 155.03 42.97 0.24 1.39 38.71
BHBK Blue Hills Bancorp,
Inc. MA 16.84 16.45 0.33 1.78 0.32 1.73 0.35 221.90 64.29 124.70 21.00 128.27 66.10 0.12 0.67 39.29
BOFI BofI Holding, Inc. CA 9.19 9.19 1.70 18.81 1.68 18.63 0.56 89.01 12.92 217.86 19.89 217.86 13.04 NA NA NM
BYFC Broadway Financial
Corporation CA 11.50 11.50 1.74 15.02 1.71 14.81 2.91 38.17 6.91 97.29 11.18 97.29 7.01 0.04 0.00 NM
BLMT BSB Bancorp, Inc. MA 7.56 7.56 0.57 7.15 NA NA 0.41 152.33 22.44 154.97 11.72 154.97 NA NA NA NM
CFFN Capitol Federal
Financial, Inc. KS 15.03 15.03 0.74 5.95 NA NA 0.60 16.33 25.38 157.82 23.72 157.82 NA 0.34 2.13 139.68
CARV Carver Bancorp,
Inc. NY 7.75 7.75 -0.06 -0.80 -0.18 -2.36 2.45 29.90 NM 159.06 2.25 159.06 NM 0.00 0.00 NM
CFBK Central Federal
Corporation OH 9.58 9.58 1.31 12.37 1.31 12.37 1.03 164.20 6.90 83.61 5.84 83.61 6.90 0.00 0.00 NM
CHFN Charter Financial
Corporation GA 14.08 12.10 0.98 5.90 1.07 6.43 0.76 124.65 18.32 107.06 15.07 127.40 16.80 0.22 1.52 25.95
CSBK Clifton Bancorp Inc. NJ 23.08 23.08 0.36 1.40 0.36 1.38 NA NA NM 126.07 29.10 126.07 88.04 0.24 1.45 126.32
CWAY Coastway Bancorp,
Inc. RI 10.95 10.95 0.59 4.83 0.59 4.83 2.20 18.19 17.66 89.89 9.84 89.89 17.66 NA NA NM
DCOM Dime Community
Bancshares, Inc. NY 9.54 8.67 1.57 15.89 0.73 7.42 0.24 158.94 8.47 129.48 12.35 143.89 18.16 0.56 2.92 24.78
ESBK Elmira Savings
Bank NY 9.83 7.83 0.77 7.81 0.75 7.67 NA NA 15.79 118.47 9.78 161.90 16.23 0.92 4.62 73.02
ENFC Entegra Financial
Corp. NC 11.34 11.12 0.54 4.45 0.62 5.05 1.78 53.29 21.06 90.65 10.28 92.71 18.59 NA NA NM
EQFN Equitable Financial
Corp. NE 15.92 15.92 0.46 3.00 0.47 3.08 NA NA 29.35 87.24 13.89 87.24 28.58 NA NA NM
ESSA ESSA Bancorp, Inc. PA 9.95 9.11 0.45 4.40 0.44 4.31 NA NA 20.40 96.20 9.57 105.99 20.84 0.36 2.42 61.64
FCAP First Capital, Inc. IN 10.61 9.66 0.89 8.39 0.95 8.90 1.25 65.73 16.82 136.41 14.45 151.37 15.74 0.84 2.61 32.98
FBNK First Connecticut
Bancorp, Inc. CT 9.03 9.03 0.49 5.34 0.48 5.22 1.01 73.97 25.17 138.51 12.50 138.51 25.75 0.36 1.61 34.83
FDEF First Defiance
Financial Corp. OH 11.92 9.59 1.19 9.93 1.20 10.00 1.14 94.92 15.07 142.73 17.02 182.17 14.97 0.88 1.90 28.57
FNWB First Northwest
Bancorp WA 18.05 18.05 0.34 1.79 0.32 1.67 0.83 89.70 51.34 102.01 18.42 102.01 55.34 NA NA NM
FBC Flagstar Bancorp,
Inc. MI 9.01 9.01 1.30 11.55 1.17 10.40 0.92 123.28 10.68 122.26 11.02 122.26 10.12 0.00 0.00 NM
FSBW FS Bancorp, Inc. WA 9.61 9.16 1.32 13.33 1.41 14.26 0.08 NM 9.74 125.47 12.06 132.41 9.12 0.40 1.23 11.04
FSBC FSB Bancorp, Inc. NY 12.11 12.11 0.22 2.52 0.21 2.42 0.01 NM 49.09 89.51 10.84 89.51 51.14 NA NA NM
HBK Hamilton Bancorp,
Inc. MD 11.95 10.32 -0.01 -0.04 0.11 0.78 1.16 34.98 NM 77.19 9.22 91.08 93.73 NA NA NM
HIFS Hingham Institution
for Savings MA 7.86 7.86 1.21 15.48 1.20 15.32 0.28 193.31 16.17 232.66 18.30 232.66 16.33 1.28 0.76 20.75
HMNF HMN Financial, Inc. MN 10.91 10.75 0.89 8.02 0.90 8.10 1.04 162.38 13.38 97.93 10.69 99.63 13.25 0.00 0.00 NM
HFBL Home Federal
Bancorp, Inc. of
Louisiana LA 11.29 11.29 0.92 7.63 0.92 7.63 0.24 331.61 13.33 106.94 12.07 106.94 13.33 0.36 1.50 18.89
IROQ IF Bancorp, Inc. IL 14.23 14.23 0.70 4.93 0.64 4.46 0.82 118.60 17.92 91.60 13.04 91.60 19.77 0.16 0.83 14.81
ISBC Investors Bancorp,
Inc. NJ 13.82 13.49 0.83 5.44 0.83 5.44 0.49 210.34 24.31 140.56 19.43 144.63 24.32 0.32 2.27 44.83
JXSB Jacksonville
Bancorp, Inc. IL 14.60 13.89 0.99 6.53 0.92 6.05 1.33 71.34 17.21 109.00 15.91 115.53 18.58 0.40 1.37 81.18
KRNY Kearny Financial
Corp. NJ 24.75 22.89 0.39 1.51 0.39 1.52 NA NA NM 121.73 30.13 134.86 80.05 0.08 0.52 42.11
MLVF Malvern Bancorp,
Inc. PA 11.52 11.52 1.59 14.05 1.54 13.62 0.45 148.63 10.97 141.49 16.30 141.49 11.32 0.11 0.00 NM
MELR Melrose Bancorp,
Inc. MA 16.23 16.23 0.42 2.26 0.29 1.55 0.00 NM 38.79 95.77 15.54 95.77 56.78 NA NA NM
EBSB Meridian Bancorp,
Inc. MA 14.31 14.03 0.80 5.05 0.79 5.02 0.69 134.22 32.32 162.84 23.30 166.66 32.56 0.12 0.66 21.43
CASH Meta Financial
Group, Inc. SD 8.36 NA 1.10 10.79 1.31 12.79 NA NA 24.12 240.59 20.11 303.37 20.34 0.52 0.55 9.95
MSBF MSB Financial
Corp. NJ 16.74 16.74 0.18 0.90 0.26 1.34 3.53 26.42 NM 107.81 18.04 107.81 114.17 0.00 0.00 NM
NYCB New York
Community
Bancorp, Inc. NY 12.31 7.77 -0.05 -0.39 1.16 9.56 0.12 380.89 NM 128.03 15.77 213.42 13.39 0.68 4.25 NM
NFBK Northfield Bancorp,
Inc. NJ 16.40 15.50 0.66 3.93 0.74 4.41 0.83 77.25 36.23 146.76 24.06 156.95 32.39 0.32 1.70 59.62
NWBI Northwest
Bancshares, Inc. PA 11.97 8.76 0.46 3.57 0.88 6.79 1.24 54.76 44.80 159.98 19.15 226.54 23.53 0.60 3.27 146.34
OCFC OceanFirst Financial
Corp. NJ 10.05 8.50 0.69 6.95 0.91 9.22 1.25 36.40 22.42 148.63 14.94 178.73 17.07 0.60 2.50 50.47
ORIT Oritani Financial
Corp. NJ 14.22 14.22 1.37 9.19 1.07 7.19 0.30 273.73 15.76 147.79 21.02 147.79 20.20 0.70 3.97 107.14
OTTW Ottawa Bancorp,
Inc. IL 11.54 11.21 0.59 4.15 0.62 4.37 2.00 42.36 30.40 127.06 14.66 131.32 28.82 0.00 0.00 NM
PBHC Pathfinder Bancorp,
Inc. NY 8.27 7.66 0.48 4.88 0.43 4.41 0.89 106.87 17.14 89.92 7.38 97.80 19.15 0.20 1.60 27.40
PBBI PB Bancorp, Inc. CT 16.87 15.72 0.18 1.23 0.19 1.27 NA NA NM 85.75 14.47 93.30 75.10 0.12 1.29 91.67
PBSK Poage Bankshares,
Inc. KY 15.54 15.09 0.43 2.68 0.50 3.08 1.78 33.13 36.44 100.89 15.68 104.44 31.57 0.32 1.69 53.85
PROV Provident Financial
Holdings, Inc. CA 10.72 10.72 0.56 4.88 0.57 4.93 1.09 87.14 25.00 119.77 12.84 119.77 24.75 0.52 2.60 62.50
PFS Provident Financial
Services, Inc. NJ 13.25 9.16 0.96 7.12 0.98 7.28 0.76 99.95 19.85 144.34 19.13 218.63 19.41 0.72 2.65 51.82
PBIP Prudential Bancorp,
Inc. PA 20.38 20.38 0.51 2.36 0.49 2.29 3.39 17.79 43.92 111.58 22.74 111.58 45.20 0.12 0.76 33.33
RNDB Randolph Bancorp,
Inc. MA 17.54 17.52 NA 2.73 NA 3.80 1.41 47.29 NA 103.41 18.13 103.54 NA NA NA NA
RVSB Riverview Bancorp,
Inc. WA 11.28 8.91 0.71 5.94 0.72 6.11 1.48 71.92 20.66 121.48 13.70 157.85 20.24 0.08 1.34 26.72
SVBI Severn Bancorp,
Inc. MD 11.16 11.12 2.00 17.36 2.00 17.36 4.11 29.33 5.83 96.37 10.39 96.75 5.83 0.00 0.00 NM
SIFI SI Financial Group,
Inc. CT 10.39 9.35 0.42 3.98 NA NA 1.13 72.00 26.79 108.54 11.28 122.00 NA 0.16 1.13 30.19
SBCP Sunshine Bancorp,
Inc. FL 12.89 11.32 -0.26 -1.85 -0.29 -2.04 0.41 126.26 NM 115.10 14.84 133.49 NM NA NA NM
TBNK Territorial Bancorp
Inc. HI 12.36 12.36 0.85 7.00 0.84 6.86 0.38 39.11 18.97 137.05 16.93 137.05 19.35 0.72 2.25 48.52
TSBK Timberland
Bancorp, Inc. WA 10.86 10.29 1.19 11.00 1.19 10.93 1.72 93.56 13.32 136.61 14.84 145.07 13.40 0.36 1.89 23.78
TRST TrustCo Bank Corp
NY NY 9.05 9.04 0.88 9.92 0.87 9.82 0.88 117.51 19.02 183.28 16.59 183.51 19.22 0.26 3.14 59.79
UCBA United Community
Bancorp IN 13.38 12.92 0.68 5.14 0.63 4.83 1.02 84.53 18.84 96.23 12.88 100.20 20.07 0.24 1.48 27.91
UCFC United Community
Financial Corp. OH 11.87 11.81 0.89 7.33 0.87 7.11 1.96 44.97 22.58 155.74 18.49 156.69 23.30 0.12 1.40 28.95
UBNK United Financial
Bancorp, Inc. CT 10.03 8.32 0.72 7.12 0.82 8.08 0.84 78.87 18.71 129.49 12.98 158.94 16.48 0.48 2.85 53.33
WSBF Waterstone
Financial, Inc. WI 22.82 22.79 1.26 5.59 1.26 5.59 NA 90.49 22.47 130.59 29.79 130.78 22.47 0.32 1.76 32.10
WAYN Wayne Savings
Bancshares, Inc. OH 9.29 8.94 0.57 6.20 0.57 6.20 NA NA 16.36 101.12 9.39 105.50 16.36 0.36 2.39 39.13
WCFB WCF Bancorp, Inc. IA 23.85 23.80 0.19 1.44 0.13 0.98 NA 105.80 NM 77.12 18.39 77.30 128.14 0.20 2.25 158.74
WEBK Wellesley Bancorp,
Inc. MA 8.31 8.31 0.50 5.81 0.50 5.79 NA NA 18.38 108.56 9.02 108.56 18.45 0.16 0.65 11.28
WBB Westbury Bancorp,
Inc. WI 11.33 11.33 0.51 4.46 0.46 3.99 NA NA 21.55 103.14 11.69 103.14 24.06 NA NA NM
RP ® Financial, LC.

Exhibit IV-1B
Weekly Thrift Market Line - Part Two
Prices As of November 25, 2016

Key Financial Ratios Asset Quality Ratios Pricing Ratios Dividend Data (6)
Equity/ Tang Equity/ Reported Earnings Core Earnings NPAs/ Rsvs/ Price/ Price/ Price/ Price/ Price/ Div/ Dividend Payout
Assets(1) Assets(1) ROA(5) ROE(5) ROA(5) ROE(5) Assets NPLs Earnings Book Assets Tang Book Core Earnings Share Yield Ratio (7)
(%) (%) (%) (%) (%) (%) (%) (%) (x) (%) (%) (%) (x) ($) (%) (%)
Companies
WNEB Western New
England Bancorp,
Inc. MA 10.54 10.54 0.33 3.11 0.39 3.71 0.59 122.46 34.00 107.29 11.31 107.29 28.51 0.12 1.41 48.00
WBKC Wolverine Bancorp,
Inc. MI 17.20 17.20 1.13 7.00 1.13 7.00 1.92 132.93 13.07 93.33 16.05 93.33 13.07 NA NA 46.73
WSFS WSFS Financial
Corporation DE 10.44 8.05 1.04 9.85 1.33 12.50 0.61 104.48 21.45 191.31 19.98 254.70 16.93 0.28 0.66 12.69
WVFC WVS Financial
Corp. PA 9.85 9.85 0.42 4.32 0.42 4.26 0.08 149.21 17.58 79.14 7.80 79.14 17.84 0.16 1.23 27.03
MHCs
GCBC Greene County
Bancorp, Inc.
(MHC) NY 8.56 8.56 1.12 12.84 1.12 12.84 0.61 193.63 19.73 241.03 20.62 241.03 19.73 0.38 1.75 34.09
HONE HarborOne Bancorp,
Inc. (MHC) MA 13.97 13.47 0.20 1.99 0.34 3.29 2.17 32.29 NA 192.19 26.85 200.51 NA NA NA NA
KFFB Kentucky First
Federal Bancorp
(MHC) KY 22.87 18.88 0.43 1.86 0.43 1.86 NA NA 54.06 108.74 24.87 138.51 54.06 0.40 4.62 250.00
LSBK Lake Shore Bancorp,
Inc. (MHC) NY 16.16 16.16 0.88 5.56 0.64 4.03 1.38 36.15 19.97 111.82 18.07 111.82 27.54 0.28 1.97 39.44
MGYR Magyar Bancorp,
Inc. (MHC) NJ 8.17 8.17 0.19 2.32 NA NA NA NA 55.79 129.28 10.56 129.28 NA NA NA NM
OFED Oconee Federal
Financial Corp.
(MHC) SC 17.59 17.03 1.05 6.21 1.04 6.16 1.15 19.69 25.34 149.99 26.39 156.05 25.56 0.40 1.81 45.98
PVBC Provident Bancorp,
Inc. (MHC) MA 14.10 14.10 0.82 5.71 0.78 5.42 0.65 168.33 NA 157.37 22.19 157.37 NA NA NA NA
TFSL TFS Financial
Corporation (MHC) OH 12.87 12.80 0.65 4.73 NA NA 1.58 31.39 67.21 322.14 41.45 324.04 NA 0.50 2.66 116.07
Under Acquisition
AF Astoria Financial
Corporation NY 11.53 10.41 0.49 4.41 0.51 4.56 1.69 37.20 25.47 104.68 11.25 118.59 24.50 0.16 0.98 25.00
EVER EverBank Financial
Corp FL 6.60 6.45 0.49 7.07 NA NA 0.74 45.16 20.14 138.91 8.49 142.84 NA 0.24 1.24 25.00
GTWN Georgetown
Bancorp, Inc. MA 10.30 10.30 0.25 2.39 0.27 2.55 NA NA 60.23 146.98 15.14 146.98 56.51 0.20 0.77 45.93

(1) Average of High/Low or Bid/Ask price per share.

(2) Or since offering price if converted of first listed in the past 52 weeks. Percent change figures are actual year-to-date and are not annualized.
(3) EPS (earnings per share) is based on actual trailing 12 month data and is not shown on a pro forma basis.
(4) Exludes intangibles (such as goodwill, value of core deposits, etc.).
(5) ROA (return on assets) and ROE (return on equity) are indicated ratios based on trailing 12 month common earnings and average common equity and total assets balances.
(6) Annualized based on last regular quarterly cash dividend announcement.
(7) Indicated dividend as a percent of trailing 12 month earnings.
(8) Excluded from averages due to actual or rumored acquisition activities or unusual operating characteristics.
(9) For MHC institutions, market value reflects share price multiplied by public (non-MHC) shares.

Source: SNL Financial, LC. and RP ® Financial, LC. calculations. The information provided in this table has been obtained from sources we believe are reliable, but we cannot guarantee
the accuracy or completeness of such information.

Copyright (c) 2016 by RP ® Financial, LC.

 EXHIBIT IV-2
Newton Federal Bank
Historical Stock Price Indices
 Exhibit IV-2
Newton Federal Bank
Historical Stock Price Indices(1)

SNL SNL
NASDAQ Thrift Bank
Year/Qtr. Ended DJIA S&P 500 Composite Index Index
2004: Quarter 1 10357.7 1126.2 1994.2 1585.3 562.20
Quarter 2 10435.5 1140.8 2047.8 1437.8 546.62
Quarter 3 10080.3 1114.6 1896.8 1495.1 556.00
Quarter 4 10783.0 1211.9 2175.4 1605.6 595.10
2005: Quarter 1 10503.8 1180.6 1999.2 1516.6 551.00
Quarter 2 10275.0 1191.3 2057.0 1577.1 563.27
Quarter 3 10568.7 1228.8 2151.7 1527.2 546.30
Quarter 4 10717.5 1248.3 2205.3 1616.4 582.80
2006: Quarter 1 11109.3 1294.8 2339.8 1661.1 595.50
Quarter 2 11150.2 1270.2 2172.1 1717.9 601.14
Quarter 3 11679.1 1335.9 2258.4 1727.1 634.00
Quarter 4 12463.2 1418.3 2415.3 1829.3 658.60
2007: Quarter 1 12354.4 1420.9 2421.6 1703.6 634.40
Quarter 2 13408.6 1503.4 2603.2 1645.9 622.63
Quarter 3 13895.6 1526.8 2701.5 1523.3 595.80
Quarter 4 13264.8 1468.4 2652.3 1058.0 492.85
2008: Quarter 1 12262.9 1322.7 2279.1 1001.5 442.5
Quarter 2 11350.0 1280.0 2293.0 822.6 332.2
Quarter 3 10850.7 1166.4 2082.3 760.1 414.8
Quarter 4 8776.4 903.3 1577.0 653.9 268.3
2009: Quarter 1 7608.9 797.9 1528.6 542.8 170.1
Quarter 2 8447.0 919.3 1835.0 538.8 227.6
Quarter 3 9712.3 1057.1 2122.4 561.4 282.9
Quarter 4 10428.1 1115.1 2269.2 587.0 260.8
2010: Quarter 1 10856.6 1169.4 2398.0 626.3 301.1
Quarter 2 9744.0 1030.7 2109.2 564.5 257.2
Quarter 3 9744.0 1030.7 2109.2 564.5 257.2
Quarter 4 11577.5 1257.6 2652.9 592.2 290.1
2011: Quarter 1 12319.7 1325.8 2781.1 578.1 293.1
Quarter 2 12414.3 1320.6 2773.5 540.8 266.8
Quarter 3 10913.4 1131.4 2415.4 443.2 198.9
Quarter 4 12217.6 1257.6 2605.2 481.4 221.3
2012: Quarter 1 13212.0 1408.5 3091.6 529.3 284.9
Quarter 2 12880.1 1362.2 2935.1 511.6 257.3
Quarter 3 13437.1 1440.7 3116.2 557.6 276.8
Quarter 4 13104.1 1426.2 3019.5 565.8 292.7
2013: Quarter 1 14578.5 1569.2 3267.5 602.3 318.9
Quarter 2 14909.6 1606.3 3404.3 625.3 346.7
Quarter 3 15129.7 1681.6 3771.5 650.8 354.4
Quarter 4 16576.7 1848.4 4176.6 706.5 394.4
2014: Quarter 1 16457.7 1872.3 4199.0 718.9 410.8
Quarter 2 16826.6 1960.2 4408.2 723.9 405.2
Quarter 3 17042.9 1972.3 4493.4 697.7 411.0
Quarter 4 17823.1 2058.9 4736.1 738.7 432.8
2015: Quarter 1 17776.1 2067.9 4900.9 749.3 418.8
Quarter 2 17619.5 2063.1 4986.9 795.7 448.4
Quarter 3 16284.7 1920.0 4620.2 811.7 409.4
Quarter 4 17425.0 2043.9 5007.4 809.1 431.5
2016: Quarter 1 17685.1 2059.7 4869.9 788.1 381.4
Quarter 2 17930.0 2098.9 4842.7 780.9 385.6
Quarter 3 18308.2 2168.3 5312.0 827.2 413.7
As of Nov. 25, 2016 19152.1 2213.4 5398.9 932.5 502.6

(1) End of period data.

Sources: SNL Financial and The Wall Street Journal.

 EXHIBIT IV-3
Newton Federal Bank
Historical Thrift Stock Indices
Industry: Savings Bank/Thrift/Mutual
Geography: United States and Canada

Change (%) Price /

Earnings
Close Last Update 1 Day 1 Week MTD QTD YTD 1 Year 3 Years (x)
SNL Custom** Indexes
SNL Banking Indexes
SNL U.S. Bank and Thrift 482.31 11/25/2016 0.36 1.58 16.72 21.23 16.46 12.37 29.43 16.0
SNL U.S. Thrift 932.54 11/25/2016 0.46 1.40 11.94 12.74 15.26 13.83 35.13 30.7
SNL TARP Participants 89.24 11/25/2016 (2.29) (1.29) 20.72 19.32 70.67 52.08 17.35 16.1
S&P 500 Bank 267.61 11/25/2016 0.47 1.56 16.84 22.34 14.25 11.55 30.98 NA
NASDAQ Bank 3,628.06 11/25/2016 0.07 2.17 19.25 20.93 27.16 19.85 42.65 NA
SNL Asset Size Indexes
SNL U.S. Thrift < $250M 1,077.65 11/25/2016 0.24 1.94 4.63 (3.14) (0.40) 4.76 22.85 29.4
SNL U.S. Thrift $250M-$500M 5,541.09 11/25/2016 (0.06) (0.33) 2.26 3.67 9.53 11.53 42.15 28.5
SNL U.S. Thrift < $500M 1,883.02 11/25/2016 (0.04) (0.23) 2.33 3.14 8.97 11.12 41.41 28.5
SNL U.S. Thrift $500M-$1B 2,621.16 11/25/2016 0.70 1.70 8.51 10.48 16.15 18.74 59.21 20.5
SNL U.S. Thrift $1B-$5B 3,432.34 11/25/2016 0.40 2.23 14.39 16.98 25.70 23.83 56.87 26.6
SNL U.S. Thrift $5B-$10B 1,029.92 11/25/2016 0.76 1.91 18.10 16.99 28.41 25.37 25.75 27.4
SNL U.S. Thrift > $10B 170.71 11/25/2016 0.34 0.75 8.68 9.30 4.90 3.54 21.78 37.3
SNL Market Cap Indexes
SNL Micro Cap U.S. Thrift 950.58 11/25/2016 0.27 1.20 5.20 6.88 8.60 9.37 42.01 22.5
SNL Micro Cap U.S. Bank & Thrift 635.60 11/25/2016 0.35 1.81 6.54 7.06 12.31 13.17 39.73 17.1
SNL Small Cap U.S. Thrift 754.61 11/25/2016 0.48 2.28 15.47 18.00 28.15 24.32 51.54 24.6
SNL Small Cap U.S. Bank & Thrift 632.37 11/25/2016 0.23 2.09 17.02 17.23 27.13 21.21 46.24 20.6
SNL Mid Cap U.S. Thrift 362.32 11/25/2016 0.63 1.31 12.58 12.63 20.43 17.23 35.50 25.4
SNL Mid Cap U.S. Bank & Thrift 412.15 11/25/2016 0.06 2.15 19.48 20.37 27.49 17.63 37.82 21.2
SNL Large Cap U.S. Thrift 163.59 11/25/2016 0.21 0.67 8.36 8.96 (3.21) (2.58) 9.91 67.2
SNL Large Cap U.S. Bank & Thrift 310.54 11/25/2016 0.41 1.44 16.29 21.69 14.16 10.86 26.99 14.9
SNL Geographic Indexes
SNL Mid-Atlantic U.S. Thrift 3,542.63 11/25/2016 0.49 1.59 14.05 15.32 12.82 11.48 26.30 27.6
SNL Midwest U.S. Thrift 3,307.93 11/25/2016 0.28 0.43 8.00 9.29 15.15 14.31 58.33 40.5
SNL New England U.S. Thrift 2,885.04 11/25/2016 0.79 2.63 13.72 18.16 28.24 24.56 47.05 29.9
SNL Southeast U.S. Thrift 394.13 11/25/2016 0.25 0.33 1.78 1.45 18.14 12.11 23.68 20.3
SNL Southwest U.S. Thrift 735.84 11/25/2016 0.00 0.29 (0.13) 6.90 7.31 7.96 45.47 24.2
SNL Western U.S. Thrift 129.20 11/25/2016 0.66 3.29 21.98 9.87 18.30 20.65 41.00 17.4
SNL Stock Exchange Indexes
SNL U.S. Thrift NYSE 147.94 11/25/2016 0.38 0.50 9.27 10.36 7.34 5.70 10.26 19.3
SNL U.S. Thrift NASDAQ 2,746.25 11/25/2016 0.49 1.79 13.13 13.78 18.93 17.61 46.53 33.3
SNL U.S. Thrift Pink 275.08 11/25/2016 0.15 0.17 (0.70) 2.66 7.20 4.27 43.18 17.2
SNL Other Indexes
SNL U.S. Thrift MHCs 6,372.51 11/25/2016 0.12 0.70 6.73 7.72 4.63 4.94 61.28 63.8
Broad Market Indexes
DJIA 19,152.14 11/25/2016 0.36 1.51 5.57 4.61 9.91 7.52 19.16 NA
S&P 500 2,213.35 11/25/2016 0.39 1.44 4.10 2.08 8.29 5.96 22.79 NA
S&P Mid-Cap 1,640.81 11/25/2016 0.32 2.17 8.70 5.70 17.32 12.06 25.66 NA
S&P Small-Cap 825.28 11/25/2016 0.44 2.77 14.21 9.03 22.86 16.69 27.47 NA
S&P 500 Financials 371.95 11/25/2016 0.25 1.22 13.49 15.94 15.61 12.94 28.57 NA
SNL U.S. Financial Institutions 813.50 11/25/2016 0.23 1.54 14.02 15.67 14.74 11.16 25.99 17.2
MSCI US IMI Financials 1,389.33 11/25/2016 0.25 1.33 13.59 15.51 17.27 14.14 29.23 NA
NASDAQ 5,398.92 11/25/2016 0.34 1.45 4.04 1.64 7.82 5.53 35.16 NA
NASDAQ Finl 3,860.87 11/25/2016 0.15 1.65 12.95 11.26 19.11 13.81 27.68 NA
NYSE 10,878.09 11/25/2016 0.39 1.57 3.78 1.46 7.24 4.09 6.90 NA
Russell 1000 1,229.11 11/25/2016 0.39 1.50 4.41 2.23 8.59 6.02 22.57 NA
Russell 2000 1,347.20 11/25/2016 0.38 2.40 13.08 7.63 18.60 12.45 19.78 NA
Russell 3000 1,318.56 11/25/2016 0.39 1.57 5.05 2.64 9.32 6.50 22.31 NA
S&P TSX Composite 15,075.44 11/25/2016 0.00 1.42 1.95 2.37 15.88 12.47 11.90 NA
MSCI AC World (USD) 414.96 11/25/2016 0.44 1.38 0.96 (0.83) 3.91 1.47 3.57 NA
MSCI World (USD) 1,720.84 11/25/2016 0.44 1.38 1.77 (0.28) 3.49 1.36 5.98 NA
Bermuda Royal Gazette/BSX 1,766.32 11/25/2016 0.00 (0.45) 9.22 12.88 35.45 32.81 50.99 NA

Intraday data is available for certain exchanges. In all cases, the data is at least 15 minutes delayed.

**- Non-publicly traded institutions and institutions outside of your current subscription are not included in custom indexes. Custom indexes including foreign institutions do not take
into account currency translations. Data is as of the previous close.

All SNL indexes are market-value weighted; i.e., an institution’s effect on an index is proportional to that institution’s market capitalization.

Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may
not be further redistributed or used as a basis for other indices or any securities or financial products.

Mid-Atlantic: DE, DC, MD, NJ, NY, PA, PR Midwest: IA, IN, IL, KS, KY, MI, MN, MO, ND, NE, OH, SD, WI

New England: CT, ME, MA, NH, RI, VT Southeast: AL, AR, FL, GA, MS, NC, SC, TN, VA, WV

Southwest: CO, LA, NM, OK, TX, UT West: AZ, AK, CA, HI, ID, MT, NV, OR, WA, WY
 EXHIBIT IV-4
Newton Federal Bank
Market Area Acquisition Activity
 Exhibit IV-4
Georgia Thrift Acquisitions 2000 - Present

Target Financials at Announcement Deal Terms and Pricing at Announcement

Total LTM LTM NPAs/ Rsrvs/ Deal Value/ Prem/
Announce Complete Assets E/A TE/A ROAA ROAE Assets NPLs Value Share P/B P/TB P/E P/A Cdeps
Date Date Buyer Short Name Target Name ($000) (%) (%) (%) (%) (%) (%) ($M) ($) (%) (%) (x) (%) (%)
12/10/2014 07/01/2015 Renasant Corp. MS Heritage
Financial
Group, Inc. GA 1,755,534 9.11 8.44 0.60 6.60 0.88 85.65 254.4 27.576 158.33 172.10 24.62 15.08 10.90
02/27/2014 12/01/2014 Oconee Federal SC Stephens Federal
Financial Corp. Bank GA 158,267 4.19 4.19 -0.39 -9.32 12.40 43.88 NA NA NA NA NA NA NA
08/28/2005 03/14/2006 RLJ Companies MD Worldwide
LLC Financial
Investors Inc. GA 9,806 35.58 34.82 -5.97 -14.41 1.35 135.61 NA NA NA NA NA NA NA
03/31/2005 07/01/2005 Omni Financial GA Georgia
Services Community
Bancshares,
Inc. GA 45,088 2.67 2.54 -8.06 -160.78 9.15 74.02 2.0 NA 168.05 176.86 NM 4.49 2.01
03/16/2004 06/01/2004 United Community GA Fairbanco
Banks Inc. Holding
Company, Inc. GA 191,660 9.42 9.42 0.82 9.01 1.60 229.11 23.6 30.379 130.94 130.94 14.70 12.33 5.75
03/26/2002 07/22/2002 Royal Bank of 0 Eagle Bancshares,
Canada Inc. GA 1,148,807 7.29 7.29 NA NA 1.40 65.12 154.2 26.000 176.15 176.15 NM 13.42 12.58
10/23/2001 03/29/2002 Colony Bankcorp GA Quitman
Inc. Bancorp, Inc. GA 65,258 9.90 9.90 NA NA 0.47 169.29 7.2 13.460 105.73 105.73 28.04 11.09 1.62
01/18/2001 05/23/2001 Community First GA First Deposit
Banking Co. Bancshares,
Inc. GA 138,779 17.54 17.54 NA NA 0.16 505.43 30.6 19.375 119.60 119.60 18.45 22.02 9.47
Average: 439,150 11.96 11.77 -2.60 -33.78 3.43 163.51 143.13 146.90 21.45 13.07 7.06
Median: 148,523 9.26 8.93 -0.39 -9.32 1.37 110.63 144.64 151.52 21.54 12.88 7.61

Source: SNL Financial, LC.

 EXHIBIT IV-5
Newton Federal Bank
Director and Senior Management Summary Resumes

Troy B. Brooks is the Chief Financial Officer of Piedmont Newton Hospital, Inc., located in Covington, Georgia, where he has worked since 1986. Previously, Mr. Brooks was
Chief Financial Officer at Healthcare Management Corporation in Columbus, Georgia; Chief Financial Officer at Upson Regional Medical Center in Thomaston, Georgia, and Assistant
Controller at Humana Shoals Hospital in Sheffield, Alabama. He is a long-time member of the Georgia Chapter of the Healthcare Financial Management Association. Mr. Brooks has
served as President of the Covington-Newton County Chamber of Commerce and served on the Executive Committee of that board for eight years. He has served as the Chairman of the
Board of the Covington Family YMCA and also served as President of the Rockdale Swim League.

William D. Fortson, Jr. has over 47 years’ experience in the automobile industry, and has been the owner of Ginn Motor Company, located in Covington, Georgia, since 1987. Mr.
Fortson has also served as member/manager of Ginn Chrysler, Jeep, Dodge, LLC since 2009. Mr. Fortson has strong marketing, sales, and customer service assessment skills, as well as
significant experience in employee development, training, and business management.

Marshall L. Ginn has been a licensed real estate broker since 1996, and is an Associate Broker with RE/MAX Agents Realty, located in Covington, Georgia. Mr. Ginn assists in the
purchase and sale of residential, commercial and industrial properties as well as raw land. Prior to joining RE/MAX, Mr. Ginn was co-founder of Medical Services South and founder of
ELCO Medical, privately held corporations specializing in the marketing and sale of orthopedic implants and products. He has served as President of the East Metro Board of Realtors and
Chairman of the Newton County Chamber of Commerce. Mr. Ginn brings the board of directors a unique perspective of the community in areas of economic development, residential
housing and commercial opportunities.

Bob W. Richardson was a licensed pharmacist for 40 years until his retirement in 2010. Mr. Richardson was the owner and manager of People’s Drug Store, located in Athens,
Georgia, beginning in 1979. Mr. Richardson is also the co-owner of Taziki’s Mediterranean Cafe, located in Athens, Georgia, which opened in 2014. Mr. Richardson’s experience as a
small business owner gives him extensive insight into the customers who live in our market areas and economic developments affecting the communities in which we operate, as well as the
challenges facing small businesses in our market area.

Johnny S. Smith has served as the President and Chief Executive Officer of Newton Federal Bank since February 2016, having joined Newton Federal Bank in 1992 as
Comptroller. Mr. Smith served as an elected board member of the Newton County School System and is the Chairman of the Board of the Rotary Club of Covington’s foundation. Mr.
Smith’s positions as President and Chief Executive Officer foster clear accountability, effective decision-making, a clear and direct channel of communication from senior management to
the full board of directors, and alignment on corporate strategy.
 EXHIBIT IV-5 (continued)
Newton Federal Bank
Director and Senior Management Summary Resumes

Gregory J. Proffitt , age 48, was appointed our Executive Vice President and Chief Operations Officer in February 2016. Mr. Proffitt has been employed with Newton Federal Bank
since 2005, serving as Senior Vice President and Chief Operations Officer beginning in November 2013 and as Controller and Compliance Officer. Prior to being employed with Newton
Federal Bank, Mr. Proffitt has served in various roles with other companies including SunTrust Bank, The Federal Reserve Bank of Atlanta, John H. Harland Company, The Original Honey
Baked Ham Company, Allied Automotive Group, and Blue Cross Blue Shield of Georgia.

Kenneth D. Lumpkin , age 51, is our Executive Vice President and Chief Lending and Marketing Officer, and has served in those positions since February 2016. Mr. Lumpkin
previously served as our Vice President and Director of Sales and marketing, and joined Newton Federal Bank as a consultant in June 2014. From December 2012 to June 2014, Mr.
Lumpkin was a licensed real estate agent for Progressive Realty LLC, located in Winder, Georgia. Mr. Lumpkin was not employed from June 2011 to December 2012, but previously
worked at The Peoples Bank of Winder, Winder, Georgia, from 1998 to 2011, most recently as Executive Vice President and head of production. Prior to joining The Peoples Bank of
Winder, Mr. Lumpkin served as Vice President and Commercial Lender at Regions Bank. He began his banking career in 1988 with Bank of America (formerly known as Bank South and
Nations Bank).

Tessa M. Nolan , age 31, was named our Senior Vice President and Chief Financial Officer in March 2014, and served as our controller beginning in March 2014. Ms. Nolan joined
Newton Federal Bank in August 2005.

Tara T. Williams , age 36, is our Senior Vice President and Chief Credit Officer. Ms. Williams joined Newton Federal Bank in 2014 as a Senior Credit Analyst in 2014, and was
named Chief Credit Officer in 2015. Ms. Williams was previously a Business Credit Underwriter at First Citizens Bank, Columbia, South Carolina, where she began working in 2007.

Source: Community First Bancshares, Inc.’s Preliminary Offering Prospectus

 Exhibit IV-6

Pro Forma at September 30, 2016

Actual, As of Maximum Maximum As
Sept. 30, 2016 Minimum 21,505,000 Midpoint 25,300,000 29,095,000 Adjusted 33,459,250
Percent Percent Percent Percent Percent
Amount of Assets Amount of Assets Amount of Assets Amount of Assets Amount of Assets
(Dollars in Thousands)
Capital and Retained Earnings Under GAAP
BANK LEVEL $45,081 19.36% $52,446 21.59% $53,842 21.99% $55,236 22.39% $56,841 22.84%

Tier 1 Capital (Leverage) $44,801 19.32% $52,166 21.56% $53,562 21.97% $54,956 22.36% $56,561 22.82%
Requirement 11,593 5.00% 12,099 5.00% 12,193 5.00% 12,287 5.00% 12,395 5.00%
Excess $33,208 14.32% $40,067 16.56% $41,369 16.97% $42,669 17.36% $44,166 17.82%

Tier I Risk Based $44,801 30.86% $52,166 35.44% $53,562 36.30% $54,956 37.15% $56,561 38.12%
Requirement 11,614 8.00% 11,776 8.00% 11,806 8.00% 11,836 8.00% 11,870 8.00%
Excess $33,187 22.86% $40,390 27.44% $41,756 28.30% $43,120 29.15% $44,691 30.12%
Total Risk-Based $46,647 32.13% $54,012 36.69% $55,408 37.55% $56,802 38.39% $58,407 39.36%
Risk-Based Requirement 14,517 10.00% 14,720 10.00% 14,757 10.00% 14,795 10.00% 14,838 10.00%
Excess $32,130 22.13% $39,292 26.69% $40,651 27.55% $42,007 28.39% $43,569 29.36%

Common Eq. Tier 1 RB Capital $44,801 30.86% $52,166 35.44% $53,562 36.30% $54,956 37.15% $56,561 38.12%
Requirement 9,436 6.50% 9,568 6.50% 9,592 6.50% 9,617 6.50% 9,645 6.50%
Excess $35,365 24.36% $42,598 28.94% $43,970 29.80% $45,339 30.65% $46,916 31.62%

Reconciliation of capital infused into Newton Federal Bank

Net Offering Proceeds $20,228 $23,989 $27,749 $32,073
Proceeds to Newton FB (50%) $10,114 $11,995 $13,875 $16,037
Proceeds to MHC $ 0 $ 0 $ 0 $ 0
Less: ESOP (1,833) (2,156) (2,479) (2,851)
Less: MRP (916) (1,078) (1,240) (1,426)
Less: Cash Contribution to Foundation 0 0 0 0
Pro Forma Increase $ 7,365 $ 8,761 $10,156 $11,760
 EXHIBIT IV-7
Newton Federal Bank
Pro Forma Analysis Sheet- Fully Converted Basis
 EXHIBIT IV-7
PRO FORMA ANALYSIS SHEET-FULLY CONVERTED BASIS
COMMUNITY FIRST BANCSHARES, INC.
Prices as of November 25, 2016

Subject at Peer Group Georgia Companies All Public Thrifts

Valuation Pricing Multiples Symbol Midpoint Mean Median Mean Median Mean Median
Price-earnings multiple = P/E 63.00 x 19.28x 17.92x 18.32x 18.32x 18.80x 18.77x
Price-core earnings multiple = P/CE 53.47 x 21.94x 19.92x 16.80x 16.80x 19.59x 19.15x
Price-book ratio = P/B 59.84% 99.32% 98.00% 107.06% 107.06% 123.90% 121.48%
Price-tangible book ratio = P/TB 59.84% 100.73% 99.99% 127.40% 127.40% 134.09% 127.40%
Price-assets ratio = P/A 19.67% 15.84% 15.61% 15.07% 15.07% 15.20% 14.66%

Valuation Parameters % of % of Offering

Offering + Foundation
Pre-Conversion Earnings (Y) $ 1,157,000 (12 Mths 9/16) ESOP Stock as % of Offering (E) 8.0000% 8.0000%
Pre-Conversion Core Earnings $ 1,312,620 (12 Mths 9/16) Cost of ESOP Borrowings (S) 0.00%
Pre-Conversion Book Value (B) $ 45,081,000 (9/16) ESOP Amortization (T) 25.00 years
Intangibles $ 0 (9/16) RRP Stock as % of Offering (M) 4.0000% 4.0000%
Pre-Conv. Tang. Book Value (B) $ 45,081,000 (9/16) Stock Programs Vesting (N) 5.00 years
Pre-Conversion Assets (A) $232,832,000 (9/16) Fixed Expenses $ 1,105,000
Reinv. Rate: (5 Yr Treas)@9/2016 1.140% Subscr/Dir Comm Exp (Mdpnt) $ 481,000 1.00%
Tax rate (TAX) 38.00% Total Expenses (Midpoint) $ 1,586,000
A-T Reinvestment Rate(R) 0.707% Syndicate Expenses (Mdpnt) $ 0 0.00%
Est. Conversion Expenses (1)(X) 2.88% Syndicate Amount $ 0
Insider Purchases ($) $ 2,500,000 Percent Sold (PCT) 100.00%
Price/Share $ 10.00 MHC Assets $ 100,000
Foundation Cash Contrib. (FC) $ 0 Options as % of Offering (O1) 10.0000% 10.00%
Found. Stk Contrib (% of Total Shrs (FS) 0.0000% Estimated Option Value (O2) 23.40%
Foundation Tax Benefit (Z) $ 0 Option Vesting Period (O3) 5.00 years
Foundation Amount (Mdpt.) $ 0 % of Options taxable (O4) 25.00%

Calculation of Pro Forma Value After Conversion

1. V= P/E * (Y) V= $55,000,000
1 - P/E * PCT * ((1-X-E-M-FC-FS)*R - (1-TAX)*E/T - (1-TAX)*M/N)-(1-(TAX*O4))*(O1*O2)/O3)
1. V= P/E * (Y) V= $55,000,000
1 - P/Core E * PCT * ((1-X-E-M-FC-FS)*R - (1-TAX)*E/T - (1-TAX)*M/N)-(1-(TAX*O4))*(O1*O2)/O3)
2. V= P/B * (B+Z) V= $55,000,000
1 - P/B * PCT * (1-X-E-M-FC-FS)
2. V= P/TB * (TB+Z) V= $55,000,000
1 - P/TB * PCT * (1-X-E-M-FC-FS)
3. V= P/A * (A+Z+PA) V= $55,000,000
1 - P/A * PCT * (1-X-E-M-FC-FS)

Price Market Value Market Value

Shares Issued Shares Sold Foundation Total Shares Per of Stock Sold of Stock Issued
Valuation Conclusion to MHC to Public Shares Issued Share in Offering in Reorganization
Supermaximum 0 7,273,750 0 7,273,750 $10.00 $72,737,500 $ 72,737,500
Maximum 0 6,325,000 0 6,325,000 10.00 63,250,000 $ 63,250,000
Midpoint 0 5,500,000 0 5,500,000 10.00 55,000,000 $ 55,000,000
Minimum 0 4,675,000 0 4,675,000 10.00 46,750,000 $ 46,750,000

Shares Issued Shares Sold Foundation Total Shares

Valuation Conclusion to MHC to Public Shares Issued
Supermaximum 0.000% 100.000% 0.000% 100.000%
Maximum 0.000% 100.000% 0.000% 100.000%
Midpoint 0.000% 100.000% 0.000% 100.000%
Minimum 0.000% 100.000% 0.000% 100.000%

(1) Estimated offering expenses at midpoint of the offering.

 EXHIBIT IV-8
Newton Federal Bank
Pro Forma Effect of Conversion Proceeds – Fully Converted Basis
 Exhibit IV-8
PRO FORMA EFFECT OF CONVERSION PROCEEDS
COMMUNITY FIRST BANCSHARES, INC.
At the Minimum of the Range

1. Market Value of Shares Sold In Offering: $ 46,750,000

Market Value of Shares Issued to Foundation: 0
Total Market Value of Company: $ 46,750,000
2. Offering Proceeds of Shares Sold In Offering $ 46,750,000
Less: Estimated Offering Expenses 1,510,100
Net Conversion Proceeds $ 45,239,900
3. Estimated Additional Equity and Income from Offering Proceeds
Net Conversion Proceeds $ 45,239,900
Less: Cash Contribution to Foundation 0
Less: Non-Cash ESOP Stock Purchases (1) (3,740,000)
Less: Non-Cash MRP Stock Purchases (2) (1,870,000)
Net Conversion Proceeds Reinvested $ 39,629,900
Estimated After-Tax Reinvestment Rate 0.71%
Earnings from Reinvestment of Proceeds $ 280,104
Less: Estimated cost of ESOP borrowings(1) 0
Less: Amortization of ESOP borrowings(1) (92,752)
Less: Stock Programs Vesting (2) (231,880)
Less: Option Plan Vesting (3) (198,005)
Net Earnings Increase ($ 242,533)

Before Net Earnings After

Conversion Increase Conversion
4. Pro Forma Earnings
12 Months ended September 30, 2016 (reported) $ 1,157,000 ($ 242,533) $ 914,467
12 Months ended September 30, 2016 (core) $ 1,312,620 ($ 242,533) $ 1,070,087

Before Net Equity Tax Benefit After

Conversion Proceeds of Foundation Conversion
5. Pro Forma Net Worth
September 30, 2016 $ 45,081,000 $39,629,900 $ 0 $ 84,710,900
September 30, 2016 (Tangible) $ 45,081,000 $39,629,900 $ 0 $ 84,710,900

Before Net Cash Tax Benefit After

Conversion Proceeds of Foundation Conversion
6. Pro Forma Assets
September 30, 2016 $232,832,000 $39,629,900 $ 0 $272,461,900

(1) ESOP stock (3.92% of total shares issued in conversion) amortized over 25 years, amortization expense is tax effected at 38%.
(2) Restricted stock program (1.96% of total shares issued in conversion) amortized over 5 years, amortization expense is tax effected at 38%.
(3) Option valuation based on Black-Scholes model, 5 year vesting, and assuming 25% taxable.
 Exhibit IV-8
PRO FORMA EFFECT OF CONVERSION PROCEEDS
COMMUNITY FIRST BANCSHARES, INC.
At the Midpoint of the Range

1. Market Value of Shares Sold In Offering: $ 55,000,000

Market Value of Shares Issued to Foundation: 0
Total Market Value of Company: $ 55,000,000
2. Offering Proceeds of Shares Sold In Offering $ 55,000,000
Less: Estimated Offering Expenses 1,586,000
Net Conversion Proceeds $ 53,414,000
3. Estimated Additional Equity and Income from Offering Proceeds
Net Conversion Proceeds $ 53,414,000
Less: Cash Contribution to Foundation 0
Less: Non-Cash ESOP Stock Purchases (1) (4,400,000)
Less: Non-Cash MRP Stock Purchases (2) (2,200,000)
Net Conversion Proceeds Reinvested $ 46,814,000
Estimated After-Tax Reinvestment Rate 0.71%
Earnings from Reinvestment of Proceeds $ 330,881
Less: Estimated cost of ESOP borrowings(1) 0
Less: Amortization of ESOP borrowings(1) (109,120)
Less: Stock Programs Vesting (2) (272,800)
Less: Option Plan Vesting (3) (232,947)
Net Earnings Increase ($ 283,986)

Before Net Earnings

Conversion Increase After Conversion
4. Pro Forma Earnings
12 Months ended September 30, 2016 (reported) $ 1,157,000 ($ 283,986) $ 873,014
12 Months ended September 30, 2016 (core) $ 1,312,620 ($ 283,986) $ 1,028,634

Before Net Capital Tax Benefit

Conversion Proceeds of Foundation After Conversion
5. Pro Forma Net Worth
September 30, 2016 $ 45,081,000 $46,814,000 $ 0 $ 91,895,000
September 30, 2016 (Tangible) $ 45,081,000 $46,814,000 $ 0 $ 91,895,000

Before Net Cash Tax Benefit

Conversion Proceeds of Foundation After Conversion
6. Pro Forma Assets
September 30, 2016 $232,832,000 $46,814,000 $ 0 $ 279,646,000

(1) ESOP stock (3.92% of total shares issued in conversion) amortized over 25 years, amortization expense is tax effected at 38%.
(2) Restricted stock program (1.96% of total shares issued in conversion) amortized over 5 years, amortization expense is tax effected at 38%.
(3) Option valuation based on Black-Scholes model, 5 year vesting, and assuming 25% taxable.
 Exhibit IV-8
PRO FORMA EFFECT OF CONVERSION PROCEEDS
COMMUNITY FIRST BANCSHARES, INC.
At the Maximum of the Range

1. Market Value of Shares Sold In Offering: $ 63,250,000

Market Value of Shares Issued to Foundation: 0
Total Market Value of Company: $ 63,250,000
2. Offering Proceeds of Shares Sold In Offering $ 63,250,000
Less: Estimated Offering Expenses 1,661,900
Net Conversion Proceeds $ 61,588,100
3. Estimated Additional Equity and Income from Offering Proceeds
Net Conversion Proceeds $ 61,588,100
Less: Cash Contribution to Foundation 0
Less: Non-Cash ESOP Stock Purchases (1) (5,060,000)
Less: Non-Cash MRP Stock Purchases (2) (2,530,000)
Net Conversion Proceeds Reinvested $ 53,998,100
Estimated After-Tax Reinvestment Rate 0.71%
Earnings from Reinvestment of Proceeds $ 381,659
Less: Estimated cost of ESOP borrowings(1) 0
Less: Amortization of ESOP borrowings(1) (125,488)
Less: Stock Programs Vesting (2) (313,720)
Less: Option Plan Vesting (3) (267,889)
Net Earnings Increase ($ 325,438)

Before Net Earnings

Conversion Increase After Conversion
4. Pro Forma Earnings
12 Months ended September 30, 2016 (reported) $ 1,157,000 ($ 325,438) $ 831,562
12 Months ended September 30, 2016 (core) $ 1,312,620 ($ 325,438) $ 987,182

Before Net Capital Tax Benefit

Conversion Proceeds of Foundation After Conversion
5. Pro Forma Net Worth
September 30, 2016 $ 45,081,000 $53,998,100 $ 0 $ 99,079,100
September 30, 2016 (Tangible) $ 45,081,000 $53,998,100 $ 0 $ 99,079,100

Before Net Cash Tax Benefit

Conversion Proceeds of Foundation After Conversion
6. Pro Forma Assets
September 30, 2016 $232,832,000 $53,998,100 $ 0 $ 286,830,100

(1) ESOP stock (3.92% of total shares issued in conversion) amortized over 25 years, amortization expense is tax effected at 38%.
(2) Restricted stock program (1.96% of total shares issued in conversion) amortized over 5 years, amortization expense is tax effected at 38%.
(3) Option valuation based on Black-Scholes model, 5 year vesting, and assuming 25% taxable.
 Exhibit IV-8
PRO FORMA EFFECT OF CONVERSION PROCEEDS
COMMUNITY FIRST BANCSHARES, INC.
At the Supermaximum Value

1. Market Value of Shares Sold In Offering: $ 72,737,500

Market Value of Shares Issued to Foundation: 0
Total Market Value of Company: $ 72,737,500
2. Offering Proceeds of Shares Sold In Offering $ 72,737,500
Less: Estimated Offering Expenses 1,749,185
Net Conversion Proceeds $ 70,988,315
3. Estimated Additional Equity and Income from Offering Proceeds
Net Conversion Proceeds $ 70,988,315
Less: Cash Contribution to Foundation 0
Less: Non-Cash ESOP Stock Purchases (1) (5,819,000)
Less: Non-Cash MRP Stock Purchases (2) (2,909,500)
Net Conversion Proceeds Reinvested $ 62,259,815
Estimated After-Tax Reinvestment Rate 0.71%
Earnings from Reinvestment of Proceeds $ 440,052
Less: Estimated cost of ESOP borrowings(1) 0
Less: Amortization of ESOP borrowings(1) (144,311)
Less: Stock Programs Vesting (2) (360,778)
Less: Option Plan Vesting (3) (308,072)
Net Earnings Increase ($ 373,109)

Before Net Earnings After

Conversion Increase Conversion
4. Pro Forma Earnings
12 Months ended September 30, 2016 (reported) $ 1,157,000 ($ 373,109) $ 783,891
12 Months ended September 30, 2016 (core) $ 1,312,620 ($ 373,109) $ 939,511

Before Net Capital Tax Benefit After

Conversion Proceeds of Foundation Conversion
5. Pro Forma Net Worth
September 30, 2016 $ 45,081,000 $62,259,815 $ 0 $ 107,340,815
September 30, 2016 (Tangible) $ 45,081,000 $62,259,815 $ 0 $ 107,340,815

Before Net Cash Tax Benefit After

Conversion Proceeds of Foundation Conversion
6. Pro Forma Assets
September 30, 2016 $232,832,000 $62,259,815 $ 0 $ 295,091,815

(1) ESOP stock (3.92% of total shares issued in conversion) amortized over 25 years, amortization expense is tax effected at 38%.
(2) Restricted stock program (1.96% of total shares issued in conversion) amortized over 5 years, amortization expense is tax effected at 38%.
(3) Option valuation based on Black-Scholes model, 5 year vesting, and assuming 25% taxable.
 EXHIBIT IV-9
Newton Federal Bank
Pro Forma Analysis Sheet- MHC Basis
 EXHIBIT IV-9
PRO FORMA ANALYSIS SHEET - MHC BASIS
COMMUNITY FIRST BANCSHARES, INC.
Prices as of November 25, 2016

Subject at Peer Group Georgia Companies All Public Thrifts

Final Valuation Pricing Multiples Symbol Midpoint Mean Median Mean Median Mean Median
Price-earnings multiple = P/E 54.91x 19.28x 17.92x 18.32x 18.32x 18.80x 18.77x
Price-core earnings multiple = P/CE 47.52x 21.94x 19.92x 16.80x 16.80x 19.59x 19.15x
Price-book ratio = P/B 83.67% 99.32% 98.00% 107.06% 107.06% 123.90% 121.48%
Price-tangible book ratio = P/TB 83.67% 100.73% 99.99% 127.40% 127.40% 134.09% 127.40%
Price-assets ratio = P/A 21.70% 15.84% 15.61% 15.07% 15.07% 15.20% 14.66%

Valuation Parameters (2) As a % of Offering

+ Foundation
Pre-Conversion Earnings (Y) $ 1,157,000 (12 Mths 9/16) ESOP Stock Purchases (E) 8.52% 8.52%
Pre-Conversion Core Earnings $ 1,312,620 (12 Mths 9/16) Cost of ESOP Borrowings (S) 0.00%
Pre-Conversion Book Value (B) $ 45,081,000 ESOP Amortization (T) 25.00 years
Pre-Conv. Tang. Book Value (B) $ 45,081,000 Stock Programs Amount (M) 4.261% 4.26%
Pre-Conversion Assets (A) $232,832,000 Stock Programs Vesting (N) 5.00 years
Reinvestment Rate: 1.14% Fixed Expenses $ 1,105,000
Tax rate (TAX) 38.00% Variable Expenses 1.00%
A-T Reinvestment Rate(R) 0.71% Percent Sold (PCT) 46.0000%
Est. Conversion Expenses (1)(X) 5.18% MHC Assets $ 0
Insider Purchases $ 2,500,000 Options as % of Offering (O1) 10.65% 10.65%
Price/Share $ 10.00 Estimated Option Value (O2) 23.40%
Foundation Cash Contrib. (FC) $ 0 Option Vesting Period (O3) 5.00 years
Foundation Stock Contrib. (FS) 0.00% % of Options taxable (O4) 25.00%
Foundation Tax Benefit (Z) $ 0

Calculation of Pro Forma Value After Conversion

1. V= P/E * (Y) V= $55,000,000
1 - P/E * PCT * ((1-X-E-M-C-D)*R - (1-TAX)*E/T - (1-TAX)*M/N)
1. V= P/E * (Y) V= $55,000,000
1 - P/Core E * PCT * ((1-X-E-M-FC-FS)*R - (1-TAX)*E/T - (1-TAX)*M/N)-(1-(TAX*O4))*(O1*O2)/O3)
2. V= P/B * B V= $55,000,000
1 - P/B * PCT * (1-X-E-M-FC-FS)
2. V= P/TB * TB V= $55,000,000
1 - P/B * PCT * (1-X-E-M-FC-FS)
3. V= P/A * (A+Z) V= $55,000,000
1 - P/A * PCT * (1-X-E-M-FC-FS)

Mark. Val of
Stock Sold in
Shares Issued Shares Sold Foundation Total Shares Price Per Offering+Issued Full Value of
Valuation Conclusion to MHC to Public Shares Issued Share to Foundation Total Shares
Supermaximum 3,927,825 3,345,925 0 7,273,750 $ 10.00 $ 33,459,250 $72,737,507
Maximum 3,415,500 2,909,500 0 6,325,000 10.00 29,095,000 $63,249,997
Midpoint 2,970,000 2,530,000 0 5,500,000 10.00 25,300,000 $55,000,000
Minimum 2,524,500 2,150,500 0 4,675,000 10.00 21,505,000 $46,750,003

Shares Issued Shares Sold Foundation Total Shares

Valuation Conclusion to MHC to Public Shares Issued
Supermaximum 54.000% 46.000% 0.000% 100.000%
Maximum 54.000% 46.000% 0.000% 100.000%
Midpoint 54.000% 46.000% 0.000% 100.000%
Minimum 54.000% 46.000% 0.000% 100.000%

(1) Estimated offering expenses at midpoint of the offering.

(2) Reflects reduction in earnings, equity and assets due to $100,000 contributed to the MHC.
 EXHIBIT IV-10
Newton Federal Bank
Pro Forma Effect of Conversion Proceeds – MHC Basis
 Exhibit IV-10
PRO FORMA EFFECT OF CONVERSION PROCEEDS
COMMUNITY FIRST BANCSHARES, INC.
At the Minimum of the Range

1. Market Value of Shares Sold In Offering: $ 21,505,000

Market Value of Shares Issued to Foundation: 0
Market Value of Shares Issued to MHC: 25,245,000
Total Market Value of Company: $ 46,750,000
2. Offering Proceeds of Shares Sold In Offering $ 21,505,000
Less: Estimated Offering Expenses 1,276,717
Net Conversion Proceeds $ 20,228,283
3. Estimated Additional Equity and Income from Offering Proceeds
Net Conversion Proceeds $ 20,228,283
Less: Cash Contribution to Foundation 0
Less: Cash for Capitalization of the MHC (100,000)
Less: Non-Cash ESOP/MRP Purchases (1) (2,748,900)
Net Proceeds Reinvested $ 17,379,383
Estimated net incremental rate of return 0.71%
Earnings Increase $ 122,837
Less: Estimated cost of ESOP borrowings 0
Less: Amortization of ESOP borrowings(2) (45,448)
Less: Stock Programs Vesting (3) (113,621)
Less: Option Plan Vesting (4) (97,022)
Net Earnings Increase ($ 133,255)
Before Net Earnings After
Conversion Increase Conversion
4. Pro Forma Earnings
12 Months ended September 30, 2016 (reported) $ 1,157,000 ($ 133,255) $ 1,023,745
12 Months ended September 30, 2016 (core) $ 1,312,620 ($ 133,255) $ 1,179,365
Before Net Cash Tax Benefit After
Conversion Proceeds of Foundation Conversion
5. Pro Forma Net Worth
September 30, 2016 $45,081,000 $17,379,383 $ 0 $ 62,460,383
September 30, 2016 (Tangible) $45,081,000 $17,379,383 $ 0 $ 62,460,383
Before Net Cash Tax Benefit After
Conversion Proceeds of Foundation Conversion
6. Pro Forma Assets
September 30, 2016 $232,832,000 $17,379,383 $ 0 $ 250,211,383

(1) Includes ESOP purchases equal to 3.92% of total shares issued in the conversion, and stock program purchases equal to 1.96% of total shares issued in the conversion.
(2) ESOP stock amortized over 25 years, and amortization expense is tax effected at 38%.
(3) Stock programs amortized over 5 years, and amortization expense is tax effected at 38%.
(4) Option valuation based on Black-Scholes model, 10 year vesting, and assuming 25% taxable.
 Exhibit IV-10
PRO FORMA EFFECT OF CONVERSION PROCEEDS
COMMUNITY FIRST BANCSHARES, INC.
At the Midpoint of the Range

1. Market Value of Shares Sold In Offering: $ 25,300,000

Market Value of Shares Issued to Foundation: 0
Market Value of Shares Issued to MHC: 29,700,000
Total Market Value of Company: $ 55,000,000
2. Offering Proceeds of Shares Sold In Offering $ 25,300,000
Less: Estimated Offering Expenses 1,311,440
Net Conversion Proceeds $ 23,988,560
3. Estimated Additional Equity and Income from Offering Proceeds
Net Conversion Proceeds $ 23,988,560
Less: Cash Contribution to Foundation 0
Less: Cash for Capitalization of the MHC (100,000)
Less: Non-Cash ESOP/MRP Purchases (1) (3,234,000)
Net Proceeds Reinvested $ 20,654,560
Estimated net incremental rate of return 0.71%
Earnings Increase $ 145,986
Less: Estimated cost of ESOP borrowings 0
Less: Amortization of ESOP borrowings(2) (53,469)
Less: Stock Programs Vesting (3) (133,672)
Less: Option Plan Vesting (4) (114,144)
Net Earnings Increase ($ 155,298)

Before Net Earnings After

Conversion Increase Conversion
4. Pro Forma Earnings
12 Months ended September 30, 2016 (reported) $ 1,157,000 ($ 155,298) $ 1,001,702
12 Months ended September 30, 2016 (core) $ 1,312,620 ($ 155,298) $ 1,157,322

Before Net Cash Tax Benefit After

Conversion Proceeds of Foundation Conversion
5. Pro Forma Net Worth
September 30, 2016 $ 45,081,000 $20,654,560 $ 0 $ 65,735,560
September 30, 2016 (Tangible) $ 45,081,000 $20,654,560 $ 0 $ 65,735,560

Before Net Cash Tax Benefit After

Conversion Proceeds of Foundation Conversion
6. Pro Forma Assets
September 30, 2016 $232,832,000 $20,654,560 $ 0 $ 253,486,560

(1) Includes ESOP purchases equal to 3.92% of total shares issued in the conversion, and stock program purchases equal to 1.96% of total shares issued in the conversion.
(2) ESOP stock amortized over 25 years, and amortization expense is tax effected at 38%.
(3) Stock programs amortized over 5 years, and amortization expense is tax effected at 38%.
(4) Option valuation based on Black-Scholes model, 10 year vesting, and assuming 25% taxable.
 Exhibit IV-10
PRO FORMA EFFECT OF CONVERSION PROCEEDS
COMMUNITY FIRST BANCSHARES, INC.
At the Maximum of the Range

1. Market Value of Shares Sold In Offering: $ 29,095,000

Market Value of Shares Issued to Foundation: 0
Market Value of Shares Issued to MHC: 34,155,000
Total Market Value of Company: $ 63,250,000
2. Offering Proceeds of Shares Sold In Offering $ 29,095,000
Less: Estimated Offering Expenses 1,346,163
Net Conversion Proceeds $ 27,748,837
3. Estimated Additional Equity and Income from Offering Proceeds
Net Conversion Proceeds $ 27,748,837
Less: Cash Contribution to Foundation 0
Less: Cash for Capitalization of the MHC (100,000)
Less: Non-Cash ESOP/MRP Purchases (1) (3,719,100)
Net Proceeds Reinvested $ 23,929,737
Estimated net incremental rate of return 0.71%
Earnings Increase $ 169,135
Less: Estimated cost of ESOP borrowings 0
Less: Amortization of ESOP borrowings(2) (61,489)
Less: Stock Programs Vesting (3) (153,723)
Less: Option Plan Vesting (4) (131,266)
Net Earnings Increase ($ 177,342)

Before Net Earnings After

Conversion Increase Conversion
4. Pro Forma Earnings
12 Months ended September 30, 2016 (reported) $ 1,157,000 ($ 177,342) $ 979,658
12 Months ended September 30, 2016 (core) $ 1,312,620 ($ 177,342) $ 1,135,278

Before Net Cash Tax Benefit After

Conversion Proceeds of Foundation Conversion
5. Pro Forma Net Worth
September 30, 2016 $ 45,081,000 $23,929,737 $ 0 $ 69,010,737
September 30, 2016 (Tangible) $ 45,081,000 $23,929,737 $ 0 $ 69,010,737

Before Net Cash Tax Benefit After

Conversion Proceeds of Foundation Conversion
6. Pro Forma Assets
September 30, 2016 $232,832,000 $23,929,737 $ 0 $ 256,761,737

(1) Includes ESOP purchases equal to 3.92% of total shares issued in the conversion, and stock program purchases equal to 1.96% of total shares issued in the conversion.
(2) ESOP stock amortized over 25 years, and amortization expense is tax effected at 38%.
(3) Stock programs amortized over 5 years, and amortization expense is tax effected at 38%.
(4) Option valuation based on Black-Scholes model, 10 year vesting, and assuming 25% taxable.
 Exhibit IV-10
PRO FORMA EFFECT OF CONVERSION PROCEEDS
COMMUNITY FIRST BANCSHARES, INC.
At the Supermaximum Value

1. Market Value of Shares Sold In Offering: $ 33,459,255

Market Value of Shares Issued to Foundation: 0
Market Value of Shares Issued to MHC: 39,278,255
Total Market Value of Company: $ 72,737,510
2. Offering Proceeds of Shares Sold In Offering $ 33,459,255
Less: Estimated Offering Expenses 1,386,095
Net Conversion Proceeds $ 32,073,160
3. Estimated Additional Equity and Income from Offering Proceeds
Net Conversion Proceeds $ 32,073,160
Less: Cash Contribution to Foundation 0
Less: Cash for Capitalization of the MHC (100,000)
Less: Non-Cash ESOP/MRP Purchases (1) (4,276,966)
Net Proceeds Reinvested $ 27,696,194
Estimated net incremental rate of return 0.71%
Earnings Increase $ 195,757
Less: Estimated cost of ESOP borrowings 0
Less: Amortization of ESOP borrowings(2) (70,712)
Less: Stock Programs Vesting (3) (176,781)
Less: Option Plan Vesting (4) (150,956)
Net Earnings Increase ($ 202,693)

Before Net Earnings After

Conversion Increase Conversion
4. Pro Forma Earnings
12 Months ended September 30, 2016 (reported) $ 1,157,000 ($ 202,693) $ 954,307
12 Months ended September 30, 2016 (core) $ 1,312,620 ($ 202,693) $ 1,109,927

Before Net Cash Tax Benefit After

Conversion Proceeds of Foundation Conversion
5. Pro Forma Net Worth
September 30, 2016 $ 45,081,000 $27,696,194 $ 0 $ 72,777,194
September 30, 2016 (Tangible) $ 45,081,000 $27,696,194 $ 0 $ 72,777,194

Before Net Cash Tax Benefit After

Conversion Proceeds of Foundation Conversion
6. Pro Forma Assets
September 30, 2016 $232,832,000 $27,696,194 $ 0 $ 260,528,194

(1) Includes ESOP purchases equal to 3.92% of total shares issued in the conversion, and stock program purchases equal to 1.96% of total shares issued in the conversion.
(2) ESOP stock amortized over 25 years, and amortization expense is tax effected at 38%.
(3) Stock programs amortized over 5 years, and amortization expense is tax effected at 38%.
(4) Option valuation based on Black-Scholes model, 10 year vesting, and assuming 25% taxable.
 EXHIBIT V-1
RP ® Financial, LC.
Firm Qualifications Statement
 FIRM QUALIFICATION STATEMENT

RP ® Financial (“RP ® ) provides financial and management consulting, merger advisory and valuation services to the financial services industry nationwide. We offer a broad array of
services, high quality and prompt service, hands-on involvement by principals and senior staff, careful structuring of strategic initiatives and sophisticated valuation and other analyses
consistent with industry practices and regulatory requirements. Our staff maintains extensive background in financial and management consulting, valuation and investment banking. Our
clients include commercial banks, thrifts, credit unions, mortgage companies, insurance companies and other financial services companies.

STRATEGIC PLANNING SERVICES

RP ® ’s strategic planning services are designed to provide effective feasible plans with quantifiable results. We analyze strategic options to enhance shareholder value, achieve regulatory
approval or realize other objectives. Such services involve conducting situation analyses; establishing mission/vision statements, developing strategic goals and objectives; and identifying
strategies to enhance franchise and/or market value, capital management, earnings enhancement, operational matters and organizational issues. Strategic recommendations typically focus
on: capital formation and management, asset/liability targets, profitability, return on equity and stock pricing. Our proprietary financial simulation models provide the basis for evaluating
the impact of various strategies and assessing their feasibility and compatibility with regulations.

MERGER ADVISORY SERVICES

RP ® ’s merger advisory services include targeting potential buyers and sellers, assessing acquisition merit, conducting due diligence, negotiating and structuring merger transactions,
preparing merger business plans and financial simulations, rendering fairness opinions, preparing mark-to-market analyses, valuing intangible assets and supporting the implementation of
post-acquisition strategies. Our merger advisory services involve transactions of financially healthy companies and failed bank deals. RP ® is also expert in de novo charters and shelf
charters. Through financial simulations, comprehensive data bases, valuation proficiency and regulatory familiarity, RP ® ’s merger advisory services center on enhancing shareholder
returns.

VALUATION SERVICES

RP ® ’s extensive valuation practice includes bank and thrift mergers, thrift mutual-to-stock conversions, goodwill impairment, insurance company demutualizations, ESOPs, subsidiary
companies, merger accounting and other purposes. We are highly experienced in performing appraisals which conform to regulatory guidelines and appraisal standards. RP ® is the nation’s
leading valuation firm for thrift mutual-to-stock conversions, with appraised values ranging up to $4 billion.

OTHER CONSULTING SERVICES

RP ® offers other consulting services including evaluating the impact of regulatory changes (TARP, etc.), branching and diversification strategies, feasibility studies and special
research. We assist banks/thrifts in preparing CRA plans and evaluating wealth management activities on a de novo or merger basis. Our other consulting services are facilitated by
proprietary valuation and financial simulation models.

KEY PERSONNEL (Years of Relevant Experience & Contact Information)

Ronald S. Riggins, Managing Director (36) (703) 647-6543 rriggins@rpfinancial.com

William E. Pommerening, Managing Director (32) (703) 647-6546 wpommerening@rpfinancial.com
Marcus Faust, Managing Director (28) (703) 647-6553 mfaust@rpfinancial.com
Gregory E. Dunn, Director (32) (703) 647-6548 gdunn@rpfinancial.com
James P. Hennessey, Director (29) (703) 647-6544 jhennessey@rpfinancial.com
James J. Oren, Director (28) (703) 647-6549 joren@rpfinancial.com
Carla Pollard, Senior Vice President (26) (703) 647-6556 cpollard@rpfinancial.com

Washington Headquarters
Three Ballston Plaza Telephone: (703) 528-1700
1100 North Glebe Road, Suite 600 Fax No.: (703) 528-1788
Arlington, VA 22201 Toll-Free No.: (866) 723-0594
www.rpfinancial.com E-Mail: mail@rpfinancial.com
 Exhibit 99.7

PRO FORMA VALUATION UPDATE

REPORT
MUTUAL HOLDING COMPANY STOCK
OFFERING

Community First Bancshares, Inc. | Covington, Georgia

PROPOSED HOLDING COMPANY FOR:
Newton Federal Bank | Covington, Georgia

Dated as of February 3, 2017

1100 North Glebe Road Suite 600

Arlington, Virginia 22201
703.528.1700
rpfinancial.com
 February 3, 2017

Boards of Directors
Community First Bancshares, MHC
Community First Bancshares, Inc.
Newton Federal Bank
3175 Highway 278
Covington, Georgia 30014

Members of the Board of Directors:

We have completed and hereby provide an updated appraisal of the estimated pro forma market value of the common stock which is to be issued in connection with the stock
issuance transaction described below.

This Appraisal is furnished pursuant to the requirements stipulated in the Code of Federal Regulations and has been prepared in accordance with the “Guidelines for Appraisal
Reports for the Valuation of Savings and Loan Associations Converting from Mutual to Stock Form of Organization” of the Office of Thrift Supervision (“OTS”) and accepted by the
Federal Reserve Board (“FRB”), the Office of the Comptroller of the Currency (“OCC”) and the Federal Deposit Insurance Corporation (“FDIC”), and applicable regulatory interpretations
thereof. Our original appraisal report, as amended, dated November 25, 2016 (the “Original Appraisal”), is incorporated herein by reference. As in the preparation of our Original Appraisal,
we believe the data and information used herein is reliable; however, we cannot guarantee the accuracy and completeness of such information.

On October 31, 2016, the Board of Directors of the Newton Federal Bank (“Newton Federal” or the “Bank”) adopted a Plan of Reorganization. Pursuant to the Plan, the Bank will
reorganize in to a three-tier mutual holding company structure, including Community First Bancshares, MHC (the “MHC”) and Community First Bancshares, Inc. (the “Company”). The
MHC will be a top-tier mutual holding company and the Company will be the mid-tier stock holding company, which will own 100% of the outstanding common stock of Newton Federal.
The Company will issue a majority of its common stock to the MHC and sell a minority of its common stock to the public. Concurrent with the completion of the public stock offering,
Newton Federal will receive at least 50.0% of the net stock proceeds and the balance will be retained by the Company. The MHC will own a controlling interest in the Company of at least
51%, and the Company will be the sole subsidiary of the MHC. For purposes of this document, the existing consolidated entity will hereinafter be referred to as Community First or the
Company.

The Company will offer its common stock in a subscription offering to Eligible Account Holders, Tax-Qualified Employee Plans, Supplemental Eligible Account Holders and Other
Members and the MHC as such terms are defined in the Company’s Plan for purposes of

Washington Headquarters
Three Ballston Plaza Telephone: (703) 528-1700
1100 North Glebe Road, Suite 600 Fax No.: (703) 528-1788
Arlington, VA 22201 Toll-Free No.: (866) 723-0594
www.rpfinancial.com E-Mail: mail@rpfinancial.com
Board of Directors
February 3, 2017
Page 2

applicable federal regulatory guidelines governing stock offerings by mutual institutions. To the extent that shares remain available for purchase after satisfaction of all subscriptions
received in the subscription offering, the shares may be offered for sale to members of the general public in a community offering and a syndicated offering

A portion of the net proceeds received from the sale of the common stock will be used to purchase all of the then to be issued and outstanding capital stock of Newton Federal and
the balance of the net proceeds will be retained by the Company.

At this time, no other activities are contemplated for the Company other than the ownership of the Bank, a loan to the newly-formed employee stock ownership plan (“ESOP”) and
reinvestment of the proceeds that are retained by the Company. In the future, the Company may acquire or organize other operating subsidiaries, diversify into other banking-related
activities, pay dividends or repurchase its stock, although there are no specific plans to undertake such activities at the present time.

This updated appraisal reflects the following noteworthy items: (1) a review of recent developments in Newton Federal’s financial condition, including financial data through
December 31, 2016; (2) an updated comparison of Newton Federal’s financial condition and operating results versus the Peer Group companies identified in the Original Appraisal; and
(3) a review of stock market conditions since the date of the Original Appraisal.

The estimated pro forma market value is defined as the price at which the Company’s common stock, immediately upon completion of the minority stock offering, would change
hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts.

Our valuation is not intended, and must not be construed, as a recommendation of any kind as to the advisability of purchasing shares of the common stock. Moreover, because such
valuation is necessarily based upon estimates and projections of a number of matters, all of which are subject to change from time to time, no assurance can be given that persons who
purchase shares of common stock in the stock offering will thereafter be able to buy or sell such shares at prices related to the foregoing valuation of the pro forma market value thereof. RP
Financial is not a seller of securities within the meaning of any federal and state securities laws and any report prepared by RP Financial shall not be used as an offer or solicitation with
respect to the purchase or sale of any securities. RP Financial maintains a policy which prohibits the company, its principals or employees from purchasing stock of its client institutions.

Discussion of Relevant Considerations

1. Financial Results
Table 1 presents summary balance sheet and income statement details for the twelve months ended September 30, 2016 and updated financial information through
December 31, 2016. Community First’s assets increased by $5.1 million or 2.22% from September 30, 2016 to December 31, 2016, which was related to increases in cash and cash
equivalents, investment
Board of Directors
February 3, 2017
Page 3

Table 1
Newton Federal Bank
Recent Financial Data

Sept. 30, 2016 Dec. 31, 2016

Amount Assets Amount Assets
($000) (%) ($000) (%)
Balance Sheet Data
Total assets $232,832 100.00% $237,999 100.00%
Cash, cash equivalents 25,693 11.03 26,128 10.98
Investment securities 7,704 3.31 8,936 3.75
Loans receivable, net 190,050 81.63 192,590 80.92
Fixed Assets 4,325 1.86 5,093 2.14
Deferred Tax Asset 3,536 1.52 3,367 1.41
Deposits 181,699 78.04 187,763 78.89
Total equity 45,081 19.36 45,461 19.10

12 Months Ended 12 Months Ended

Sept. 30, 2016 Dec. 31, 2016
Amount Avg. Assets Amount Avg. Assets
($000) (%) ($000) (%)
Summary Income Statement
Interest income $ 11,248 4.96% $ 11,396 4.97%
Interest expense (1,415) (0.62) (1,234) (0.54)
Net interest income $ 9,833 4.34 $ 10,162 4.44
Provisions for loan losses 0 0.00 0 0.00
Net interest income after prov. $ 9,833 4.34 10,162 4.44
Non-interest operating income 1,208 0.53 1,256 0.55
Non-Operating Inc./(Exp.), net (423) (0.19) (398) (0.17)
Non-interest operating expense (8,764) (3.86) (8,977) (3.92)
Income before income tax expense $ 1,854 0.82 2,043 0.89
Income taxes (697) (0.31) (780) (0.34)
Net income $ 1,157 0.51% $ 1,263 0.55%

Sources: Community First’s prospectus, audited and unaudited financial statements, and RP Financial calculations.
Board of Directors
February 3, 2017
Page 4

securities and loans receivable. Overall, cash and investments (inclusive of FHLB stock) increased from $25.7 million or 11.03% of assets at September 30, 2016 to $26.1 million or
10.98% of assets at December 31, 2016. From September 30, 2016 to December 31, 2016, loans receivable increased from $190.1 million or81.63% of assets to $192.6 million or 80.9% of
assets, as the lending activities in the loan production office continued to provide additional loans for portfolio. Investment securities also expanded in terms of dollar amount as a percent of
assets, as the Company purchased additional securities with available cash.

Updated credit quality measures showed the balance of non-performing assets increased slightly in dollar terms, but remained relatively stable at 3.87% of assets at
December 31, 2016. The increase in non-performing assets was largely due to an increase in non-accruing loans and other real estate owned, which were offset in part by decreases in
performing troubled debt restructured loans. As of December 31, 2016, non-performing assets consisted of $4.9 million of non-accruing loans, $4.0 million of performing troubled debt
restructurings and $284,000 of repossessed assets.

The Bank’s interest-bearing funding composition showed an increase in deposits during the last quarter of 2016. Deposits increased by $6.1 million, from $181.7 million or
78.04% of assets at September 30, 2016 to $187.8 million or 78.89% of assets at December 31, 2016. Deposit growth during the quarter was primarily driven by a $4.8 million increase in
passbook accounts. There continued to be no outstanding borrowings as of December 31, 2016.

Community First’s equity increased from $45.1 million or 19.36% of assets at September 30, 2016 to $45.5 million or 19.10% of assets at December 31, 2016. Essentially all
of the increase in equity was due to additions to retained earnings, although the Bank established a small available for sale investment portfolio during the quarter.

Community First’s operating results for the 12 months ended September 30, 2016 and December 31, 2016 are also set forth in Table 1. The Bank’s reported earnings
increased from $1.16 million or 0.51% of average assets for the 12 months ended September 30, 2016 to $1.26 million or 0.55% of average assets for the 12 months ended December 31,
2016. The increase in net income was due primarily to a reduction in interest expense and, to a lesser extent, an increase in non-interest income, which was partially offset by an increase in
operating expenses.

Community First’s net interest income increased from $9.83 million or 4.34% of average assets for the 12 months ended September 30, 2016 to $10.16 million or 4.44% of
average assets for the 12 months ended December 31, 2016. Most of the increase was due to a decrease in interest expense, while a slight increase in interest income also contributed to the
increase in the Bank’s net interest income. The increase in interest income was realized through a higher average loan balance for the period ended, which was offset in part by a lower
average yield on loans. The decline in interest expense was due to the continued reduction in higher rate certificates of deposit, which were allowed to run off at maturity to improve deposit
mix and reduce costs of funds. Overall, the Bank’s interest rate spread increased from 4.10% during the last quarter of 2015 to 4.72% during the last quarter of 2016.
Board of Directors
February 3, 2017
Page 5

Operating expenses increased from $8.76 million or 3.86% of average assets for the 12 months ended September 30, 2016 to $8.98 million or 3.92% of average assets during
the 12 months ended December 31, 2016. Most of the increase in operating expenses was related to increased data processing costs, personnel costs, director compensation and other real
estate owned expenses. Overall, Community First’s updated ratios for net interest income and operating expenses provided for a lower expense coverage ratio (net interest income divided
by operating expenses), as Community First’s expense coverage ratios increased from 1.12x for the 12 months ended September 30, 2016 to 1.13x for the 12 months ended December 31,
2016.

Non-interest operating income was also higher during the most recent 12 month period, which was primarily related to increases in miscellaneous non-interest income. Other
sources of non-interest operating income increased from $1.21 million or 0.53% of average for the 12 months ended September 30, 2016 to $1.26 million or 0.55% of average assets for the
12 months ended December 31, 2016. Overall, when factoring non-interest operating income into core earnings, the Bank’s updated efficiency ratio of 78.36% (operating expenses, as a
percent of net interest income and non-interest operating income) was slightly more favorable compared to its efficiency ratio of 79.26% recorded for the 12 months ended September 30,
2016.

The Bank’s updated earnings showed a slight decrease in non-operating losses, which amounted to $398,000 or 0.17% of average assets for the 12 months ended
December 31, 2016 compared to $423,000 or 0.19 of average assets for the 12 months ended September 30, 2016. The losses included expenses related to other real estate owned, which are
considered recurring for valuation purposes, while the expense related to the termination of a former CEO is considered a one-time expense.

There were no loan loss provisions were established in the most recent 12 period, as the Bank’s reserve calculations indicated adequate reserve levels. As of December 31,
2016, the Bank maintained an allowance for loan losses of $4.4 million equal to 2.24% of total loans and 95.18% of non-performing loans. The Bank recorded net recoveries of $74,000
during the quarter ended December 31, 2016.

2. Peer Group Financial Comparisons

Tables 2 and 3 present the financial characteristics and operating results for Community First, the Peer Group and all publicly-traded thrifts. The Bank’s and the Peer Group’s
ratios are based on financial results through December 31, 2016 and September 30, 2016, respectively.

In general, the comparative balance sheet ratios for the Bank and the Peer Group did not vary significantly from the ratios exhibited in the Original Appraisal. Consistent with
the Original Appraisal, the Bank’s updated interest-earning asset composition reflected a lower concentration of cash and investments and a higher concentration of loans. Overall, the
Bank’s and the Peer Group’s updated interest-earning assets-to-assets ratios equaled 95.65% and 95.07%, respectively.

Community First’s updated funding composition continued to show a higher concentration of deposits and a lower concentration of borrowings relative to the comparable
Peer
Board of Directors
February 3, 2017
Page 6

Table 2
Balance Sheet Composition and Growth Rates
Comparable Institution Analysis
As of September 30, 2016 or the Most Recent Date Available

Balance Sheet as a Percent of Assets Balance Sheet Annual Growth Rates Regulatory Capital
Cash & MBS & Net Borrowed Sub. Total Goodwill Tangible MBS, Cash & Borrows. Total Tangible Tier 1 Tier 1 Risk-Based
Equivalents Invest BOLI Loans (1) Deposits Funds Debt Equity & Intang Equity Assets Investments Loans Deposits &Subdebt Equity Equity Leverage Risk-Based Capital
Newton Federal Bank
December 31, 2016 10.98% 3.75% 0.00% 80.92% 78.89% 0.00% 0.00% 19.10% 0.00% 19.10% 4.59% -30.60% 15.61% 5.02% 0.00% 2.95% 2.95% 19.48% 30.84% 32.12%
All Thrifts
Averages 7.18% 14.77% 1.59% 72.36% 75.70% 10.29% 0.44% 12.50% 0.46% 12.26% 12.67% 9.53% 14.59% 13.78% 9.00% 10.70% 8.51% 12.08% 18.54% 19.67%
Medians 5.28% 12.31% 1.63% 74.94% 76.84% 9.04% 0.00% 11.42% 0.00% 11.12% 8.34% 3.59% 10.46% 9.16% 0.00% 3.98% 3.31% 10.91% 15.60% 16.85%
State of GA
Charter Financial
CHFN Corporation GA 7.37% 14.55% 3.41% 69.09% 80.52% 3.46% 0.46% 14.08% 2.25% 11.83% 40.50% 44.93% 39.21% 57.25% -8.73% -0.87% -14.83% 11.51% 14.34% 15.26%
Comparable Group
Averages 5.80% 16.22% 2.05% 73.05% 76.78% 6.29% 0.06% 15.88% 0.19% 15.70% 10.11% -1.03% 13.84% 10.83% 147.65% -0.35% -0.27% 14.28% 20.76% 21.91%
Medians 5.06% 12.96% 2.09% 75.87% 78.67% 4.04% 0.00% 15.73% 0.00% 15.46% 7.82% -13.63% 10.77% 7.90% 0.00% -0.11% -0.04% 13.71% 19.80% 20.82%
Comparable Group
ANCB Anchor Bancorp WA 2.83% 7.23% 4.51% 80.82% 69.78% 14.11% 0.00% 14.63% 0.00% 14.63% 14.45% -21.43% 23.59% 1.04% 515.00% 0.77% 0.77% 14.20% 15.30% 16.20%
EQFN Equitable Financial Corp. NE 3.92% 0.70% 0.00% 90.74% 83.23% 0.00% 0.00% 15.92% 0.00% 15.92% 7.67% -30.32% 11.21% 8.53% 0.00% 3.29% 3.29% 11.83% 13.00% 14.25%
IROQ IF Bancorp, Inc. IL 2.01% 20.17% 1.46% 74.73% 71.96% 12.74% 0.00% 14.23% 0.00% 14.23% 5.50% -13.63% 12.99% 3.82% 19.46% 3.27% 3.27% 13.80% 18.80% 20.10%
JXSB Jacksonville Bancorp, Inc. IL 9.47% 28.31% 2.19% 56.14% 81.25% 2.04% 0.00% 14.60% 0.82% 13.77% 7.97% 31.18% -2.45% 15.16% -65.61% 3.35% 3.56% 13.16% 18.96% 20.21%
MELR Melrose Bancorp, Inc. MA 7.91% 12.31% 2.00% 77.06% 81.69% 1.87% 0.00% 16.23% 0.00% 16.23% 19.29% -17.97% 36.29% 23.06% NA -5.74% -5.74% 13.61% 21.04% 22.14%
MSBF MSB Financial Corp. NJ 7.30% 10.63% 3.15% 75.92% 77.18% 5.23% 0.00% 16.74% 0.00% 16.74% 16.94% -20.85% 30.52% 29.67% -30.60% -4.95% -4.95% 13.52% 17.68% 18.93%
PBSK Poage Bankshares, Inc. KY 4.79% 13.61% 1.58% 75.81% 80.15% 2.85% 0.63% 15.54% 0.53% 15.01% 5.54% -3.87% 9.51% 7.28% 3.00% -1.53% -1.08% 13.85% 20.64% 21.43%
PBIP Prudential Bancorp, Inc. PA 2.55% 31.93% 2.33% 61.66% 69.56% 9.05% 0.00% 20.38% 0.00% 20.38% 14.84% NA 10.34% 6.61% 895.28% -2.56% -2.56% 20.41% 38.57% 39.70%
United Community
UCBA Bancorp IN 5.34% 36.45% 3.29% 52.04% 83.70% 2.27% 0.00% 13.38% 0.53% 12.85% 1.57% -0.57% 3.96% 2.50% -7.69% -0.98% -0.85% 11.42% 21.11% 22.36%
WBKC Wolverine Bancorp, Inc. MI 11.88% 0.87% 0.00% 85.56% 69.25% 12.73% 0.00% 17.20% 0.00% 17.20% 7.33% 68.18% 2.44% 10.63% 0.00% 1.54% 1.54% 17.02% 22.50% 23.78%

(1) Includes loans held for sale.

Source: SNL Financial, LC. and RP ® Financial, LC. calculations. The information provided in this table has been obtained from sources we believe are reliable, but we cannot guarantee
the accuracy or completeness of such information.
Copyright (c) 2016 by RP ® Financial, LC.
Board of Directors
February 3, 2017
Page 7

Table 3
Income as Percent of Average Assets and Yields, Costs, Spreads
Comparable Institution Analysis
For the 12 Months Ended September 30, 2016 or the Most Recent 12 Months Available

Net Interest Income Non-Interest Income Non-Op. Items Yields, Costs, and Spreads
Loss NII Gain Other Total MEMO: MEMO:
Net Provis. After on Sale of Non-Int Non-Int Net Gains/ Extrao. Provision Yield Cost Yld-Cost Assets/ Effective
Income Income Expense NII on IEA Provis. Loans Income Expense Losses (1) Items for Taxes On IEA Of IBL Spread FTE Emp. Tax Rate
Newton Federal Bank (%)
December 31, 2016 0.55% 4.97% -0.54% 4.44% 0.00% 4.44% 0.00% 0.55% -3.98% -0.11% 0.00% 0.34% 5.24% 0.52% 4.72% $ 3,552 38.18%
All Public Thrifts
Averages 0.62% 3.66% 0.60% 3.07% 0.07% 0.30% 0.33% 0.46% 2.91% -0.01% 0.00% 0.22% 3.89% 0.77% 3.10% $ 6,075 24.55%
Medians 0.59% 3.59% 0.57% 3.03% 0.06% 0.00% 0.05% 0.38% 2.84% 0.00% 0.00% 0.24% 3.81% 0.73% 3.05% $ 5,273 32.93%
State of GA
CHFN Charter Financial Corporation GA 0.98% 3.96% 0.47% 3.49% -0.02% 0.00% 0.18% 1.24% 3.33% -0.10% 0.00% 0.51% 4.40% 0.67% 3.73% $ 4,474 33.98%
Comparable Group
Averages 0.57% 3.70% 0.58% 3.11% 0.08% 0.36% 0.09% 0.60% 2.86% 0.04% 0.00% 0.26% 3.97% 0.79% 3.18% $ 5,824 30.15%
Medians 0.48% 3.67% 0.57% 3.14% 0.11% 0.00% 0.08% 0.67% 2.66% 0.01% 0.00% 0.24% 3.83% 0.77% 3.12% $ 5,394 33.93%
Comparable Group
ANCB Anchor Bancorp WA 0.17% 4.37% 0.70% 3.68% 0.10% 3.58% 0.05% 0.99% 4.41% 0.00% 0.00% 0.04% 5.01% 1.00% 4.01% $ 3,824 17.75%
EQFN Equitable Financial Corp. NE 0.46% 3.73% 0.47% 3.26% 0.16% 0.00% 0.34% 0.76% 3.47% -0.02% 0.00% 0.26% 3.95% 0.68% 3.27% $ 3,209 35.69%
IROQ IF Bancorp, Inc. IL 0.70% 3.61% 0.60% 3.02% 0.17% 0.00% 0.05% 0.57% 2.46% 0.10% 0.00% 0.41% 3.71% 0.75% 2.96% $ 6,197 36.60%
JXSB Jacksonville Bancorp, Inc. IL 0.99% 3.76% 0.33% 3.42% 0.04% 0.00% 0.07% 1.20% 3.43% 0.11% 0.00% 0.35% 4.02% 0.45% 3.57% $ 3,518 25.99%
MELR Melrose Bancorp, Inc. MA 0.42% 2.91% 0.64% 2.27% 0.12% 0.00% 0.00% 0.10% 1.81% 0.20% 0.00% 0.22% 3.18% 0.85% 2.33% $ 9,525 34.82%
MSBF MSB Financial Corp. NJ 0.18% 3.47% 0.55% 2.92% 0.15% 0.00% 0.00% 0.26% 2.62% -0.13% 0.00% 0.09% 3.68% 0.79% 2.89% $ 6,883 33.04%
PBSK Poage Bankshares, Inc. KY 0.43% 4.45% 0.53% 3.92% 0.19% 0.00% 0.13% 0.40% 3.57% -0.02% 0.00% 0.24% 4.75% 0.70% 4.05% $ 4,081 35.44%
PBIP Prudential Bancorp, Inc. PA 0.51% 3.27% 0.62% 2.64% 0.04% 0.00% 0.09% 0.80% 2.05% 0.02% 0.00% 0.24% 3.49% 0.83% 2.66% $ 9,024 31.64%
UCBA United Community Bancorp IN 0.68% 3.02% 0.43% 2.59% 0.03% 0.00% 0.09% 0.76% 2.70% 0.09% 0.00% 0.13% 3.25% 0.56% 2.69% $ 4,592 15.62%
WBKC Wolverine Bancorp, Inc. MI 1.13% 4.38% 0.98% 3.40% -0.16% 0.00% 0.13% 0.15% 2.11% 0.00% 0.00% 0.60% 4.65% 1.28% 3.37% $ 7,383 34.87%

(1) Net gains/losses includes gain/loss on sale of securities and nonrecurring income and expense.
(2) For the twelve months ended March 31, 2015 or the most recent date available.
Source: SNL Financial, LC. and RP ® Financial, LC. calculations. The information provided in this table has been obtained from sources we believe are reliable, but we cannot guarantee
the accuracy or completeness of such information.
Copyright (c) 2016 by RP ® Financial, LC.
Board of Directors
February 3, 2017
Page 8

Group ratios. Updated interest-bearing liabilities-to-assets ratios equaled 78.89% and 83.13% for the Bank and the Peer Group, respectively. Community First’s updated tangible
equity-to-assets ratio equaled 19.10%, which remained above the comparable Peer Group ratio of 15.70%. Overall, Community First’s updated interest-earning
assets-to-interest-bearing liabilities (“IEA/IBL”) ratio equaled 124.58%, which remained above the comparable Peer Group ratio of 114.36%. As discussed in the Original Appraisal, the
additional capital realized from the stock proceeds should serve to increase Community First’s IEA/IBL ratio to a ratio that further exceeds the Peer Group’s ratio, as the level of interest-
bearing liabilities funding assets will be lower due to the increase in capital realized from the offering and the net proceeds realized from the offering will be primarily deployed into
interest-earning assets.

Updated growth rates for Community First are based on annualized growth rates for the 12 months ended December 31, 2016, while the Peer Group’s updated growth rates
are based on annual growth for the 12 months ended September 30, 2016. Community First recorded a 4.59% increase in assets, versus asset growth of 10.11% recorded by the Peer Group.
Asset growth for Community First was driven by a 15.61% increase in loans, with such loan growth offset by a 30.60% decrease in cash and investments. Asset growth for the Peer Group
was sustained by a 13.84% increase in loans, which was in part funded by a 1.03% reduction in cash and investments.

On the funding side of the balance sheet, Community First’s asset growth was funded by deposit growth of 5.02%. Comparatively, asset growth for the Peer Group was
funded by a 10.83% increase in deposits and a large average increase in borrowings, although such increase was related to two of the Peer Group members. Updated tangible net worth
growth rates showed an increase of 2.95% for the Bank and a 0.35% decrease for the Peer Group. As noted in the Original Appraisal, the Bank’s post-conversion capital growth rate will
initially be constrained by maintenance of a higher pro forma capital position. Dividend payments and stock repurchases, pursuant to regulatory limitations and guidelines, could also
potentially slow the Bank’s capital growth rate in the longer term following the stock offering.

Table 3 displays comparative operating results for Community First and the Peer Group, based on the Bank’s earnings for the 12 months ended December 31, 2016 and the
Peer Group’s earnings for the 12 months ended September 30, 2016. Community First and the Peer Group reported net income to average assets ratios of 0.55% and 0.57%, respectively. A
higher ratio for net interest income and a lower provision for loan losses represented earnings advantages for the Bank, which were more than offset by earnings advantages maintained by
the Peer Group with respect to higher ratios for non-interest income and gains on sale of loans, as well as a lower ratio for operating expenses.

In terms of core earnings strength, updated expense coverage ratios posted by Community First and the Peer Group equaled 1.12x and 1.05x, respectively. The Bank’s higher
expense coverage continued to be largely due to its significantly higher net interest income ratio which is a function of the significance of the Bank’s elevated equity ratio which provides
for more interest earning assets than costing liabilities.

Taking non-interest operating income into account in assessing Community First’s core earnings relative to the Peer Group’s core earnings, the Bank’s updated efficiency
ratio of 79.76% remained higher or less favorable than the Peer Group’s efficiency ratio of 77.09%.
Board of Directors
February 3, 2017
Page 9

Net non-operating gains continued to be a larger contributor to the Peer Group’s earnings, as the Bank and the Peer Group reported net non-operating gains equal to a loss of
0.11% and a gain of 0.04% of average assets, respectively. As set forth in the Original Appraisal, typically such gains and losses are discounted in valuation analyses as they tend to have a
relatively high degree of volatility, and, thus, are not considered part of core operations. Extraordinary items remained a non-factor in the Bank’s and the Peer Group’s updated earnings.

Loan loss provisions remained a slightly more significant factor in the Peer Group’s earnings, with loan loss provisions established by the Bank and the Peer Group equaling
0.00% and 0.02% of average assets, respectively.

The Bank’s effective tax rate of 38.18% remained above the Peer Group’s effective tax rate of 30.15%. As set forth in the prospectus, the Bank’s effective marginal tax rate
is equal to 38%.

The Bank’s updated credit quality measures continued to imply a higher degree of credit risk exposure relative to the Peer Group’s implied credit risk exposure. As shown in
Table 4, the Bank’s ratios for non-performing/assets and non-performing loans/loans equaled 3.87% and 4.63%, respectively, versus comparable measures of 1.81% and 2.29% for the Peer
Group. As noted in the Original Appraisal, the measures for non-performing assets and non-performing loans include accruing loans that are classified as troubled debt restructurings, with
such loans accounting for 43.8% of the Bank’s non-performing assets at December 31, 2016. The Bank’s and the Peer Group’s loss reserves as a percent of non-performing loans equaled
49.14% and 66.93%, respectively. Loss reserves maintained as percent of loans receivable were higher for the Bank (2.24%), versus 1.31% for the Peer Group. Net loan charge-offs
remained a greater factor for the Bank than the Peer Group, as net loan charge-offs as a percent of loans equaled 0.77% for the Bank and 0.05% for the Peer Group.

3. Stock Market Conditions

Since the date of the Original Appraisal, as amended, the performance of the broader stock market has generally been positive. The post-election stock market rally resumed
during the second half of November 2016, as U.S. stocks notched new record highs. Overall, the DJIA finished up 5.4% for the month of November. Led by gains in financial shares, stocks
continued to surge higher during the first half of December. Stocks retreated after the Federal Reserve raised its target rate by a quarter of a percentage point at the conclusion of its mid-
December policy meeting. After trading in a narrow range heading into late-December, stocks slumped in the final trading days of 2016. However, overall, the major U.S. stock indexes
posted solid gains for 2016, with the DJIA and NASDAQ increasing 13.4% and 7.5%, respectively, in 2016. Bank and healthcare stocks led the stock market higher at the start of 2017, as
the DJIA approached the 20000 milestone in the first week of trading during 2017. Stocks traded in a narrow range heading into the fourth quarter earnings season and then edged lower in
mid-January, as investors weighed both the timing and ultimate impact of expected policy changes from the new presidential administration. During late January, the DJIA approached the
20000 mark several times, and finally closed above that level on January 25, 2017. The stock market continued to react positively and negatively to indications from Washington on
potential actions in the areas of tax cuts, trade and tariffs, and regulatory relief, including the announcement that
Board of Directors
February 3, 2017
Page 10

Table 4
Credit Risk Measures and Related Information
Comparable Institution Analysis
As of September 30, 2016 or the Most Recent Date Available

NPAs & Adj NPAs & Rsrves/

REO/ 90+Del/ 90+Del/ NPLs/ Rsrves/ Rsrves/ NPAs & Net Loan NLCs/
Assets Assets (1) Assets (2) Loans (3) Loans HFI NPLs (3) 90+Del (1) Chargeoffs (4) Loans
(%) (%) (%) (%) (%) (%) (%) ($000) (%)
Newton Federal Bank
December 31, 2016 0.12% 3.87% 2.17% 4.63% 2.24% 49.14% 47.63% $ 1,486 0.77%
All Public Thrifts
Averages 0.15% 1.33% 0.86% 1.57% 1.09% 120.47% 102.06% $ 997 0.07%
Medians 0.06% 1.13% 0.64% 1.20% 0.99% 85.51% 68.00% $ 121 0.04%
State of GA
CHFN Charter Financial Corporation GA 0.19% 0.76% 0.45% 0.83% 1.03% 124.65% 94.06% -$ 1,132 -0.13%
Comparable Group
Averages 0.07% 1.81% 1.06% 2.29% 1.31% 66.93% 63.94% $ 140 0.05%
Medians 0.05% 1.85% 0.81% 2.10% 1.22% 71.34% 67.78% $ 90 0.04%
Comparable Group
ANCB Anchor Bancorp WA 0.06% 2.26% 0.63% 2.69% 1.08% 39.88% 38.78% $ 258 0.08%
EQFN Equitable Financial Corp. NE 0.20% 1.93% 0.98% 0.98% 1.47% 77.76% 69.57% -$ 17 -0.01%
IROQ IF Bancorp, Inc. IL 0.04% 0.82% 0.47% 1.03% 1.22% 118.60% 112.83% $ 187 0.04%
JXSB Jacksonville Bancorp, Inc. IL 0.07% 1.33% 0.57% 2.22% 1.58% 71.34% 67.78% $ 52 0.03%
MELR Melrose Bancorp, Inc. MA 0.00% 0.00% 0.00% 0.00% 0.42% NA NA $ 0 0.00%
MSBF MSB Financial Corp. NJ 0.00% 3.60% 1.45% 4.59% 1.21% 26.42% 25.94% $ 127 0.05%
PBSK Poage Bankshares, Inc. KY 0.22% 1.78% 1.07% 2.04% 0.68% 33.13% 29.03% $ 537 0.16%
PBIP Prudential Bancorp, Inc. PA 0.10% 3.39% 2.94% 5.28% 0.94% 17.79% 17.24% -$ 114 -0.03%
UCBA United Community Bancorp IN 0.01% 1.03% 0.60% 1.90% 1.62% 84.53% 82.99% $ 818 0.30%
WBKC Wolverine Bancorp, Inc. MI 0.02% 1.92% 1.87% 2.16% 2.87% 132.93% 131.27% -$ 448 -0.14%

(1) NPAs are defined as nonaccrual loans, performing TDRs, and OREO.
(2) Adjusted NPAs are defined as nonaccrual loans and OREO (performing TDRs are excluded).
(3) NPLs are defined as nonaccrual loans and performing TDRs.
(4) Net loan chargeoffs are shown on a last twelve month basis.
Source:SNL Financial, LC and RP ® Financial, LC. calculations. The information provided in this table has been obrained from sources we believe are reliable, but we cannot guarantee the
accuracy or completeness of such information.
Copyright(c) 2016 by RP ® Financial, LC.
Board of Directors
February 3, 2017
Page 11

The Dodd Frank legislation would be reviewed for changes. On February 3, 2017, the DJIA closed at 20071.46 or 4.80% higher since the date of the Original Appraisal and the NASDAQ
closed at 5666.77 or 4.96% higher since the date of the Original Appraisal.

Thrift stocks also recorded increases in market pricing since the date of the Original Appraisal. The post-election surge in bank and thrift stocks reflected investor
expectations that a Republican-led government would move to roll back banking sector regulations. Financial shares retreated along with the broader stock market following the
mid-December rate hike by the Federal Reserve. While thrift shares traded in a tight range in the closing weeks of 2016, the SNL Index for all publicly-traded thrifts finished 2016 with a
gain of 19.49% in which the substantial portion of the gains occurred following the presidential election. Financial shares led the stock market higher at the start of 2017, which was
followed by a pullback as investors dumped shares of financial companies and bought government bonds. Despite generally favorable fourth quarter earnings reports posted by the money
center banks, the downturn in financial shares continued heading into the second half of January. The pro-business posture of the Administration and Congress provided support for bank
stocks, including a sharp increase on February 3, 2017 when it was announced that the Dodd-Frank legislation would be reviewed for changes. When examining thrift stock values, as on
February 3, 2017 the SNL Index for all publicly-traded thrifts closed at 937.65, an increase of 0.55% since November 25, 2016. Exhibit 1 presents thrift industry stock prices.

Since the date of the Original Appraisal, the updated pricing measures for the Peer Group generally reflected increases that were above the increase recorded in the SNL
Index for all publicly-traded thrifts. Comparatively, the updated pricing measures for all publicly-traded thrifts generally showed lower increases relative to the Peer Group and the SNL
Index for all publicly-traded thrifts. Since the date of the Original Appraisal, the stock prices of all ten Peer Group companies were higher as of February 3, 2017. A comparative pricing
analysis of the Peer Group and all publicly-traded thrifts is shown in the following table, based on closing stock market prices as of November 25, 2016 and February 3, 2017.

Table 5
Average Pricing Characteristics

At Nov. 25, At Feb 3, %

2016 2017 Change
Peer Group
Price/Earnings (x) 19.28x 20.78x 7.78%
Price/Core Earnings (x)(1) 22.95 25.11 9.41
Price/Book (%) 99.32% 107.88% 8.62
Price/Tangible Book (%) 100.73 109.44 8.63
Price/Assets (%) 15.84 16.93 6.88
Avg. Mkt. Capitalization ($Mil) $ 66.83 $ 73.68 10.79
All Publicly-Traded Thrifts
Price/Earnings (x) 18.80x 20.25x 7.71%
Price/Core Earnings (x) 19.59 20.54 4.85
Price/Book (%) 123.90% 131.10% 5.81
Price/Tangible Book (%) 134.09 144.83 8.01
Price/Assets (%) 15.20 16.01 5.33
Avg. Mkt. Capitalization ($Mil) $ 530.90 $575.32 8.37

(1) Only includes those companies with meaningful earnings multiples for both time periods.
Board of Directors
February 3, 2017
Page 12

As set forth in the Original Appraisal, the “new issue” market is separate and distinct from the market for seasoned issues like the Peer Group companies in that the pricing
ratios for converting issues are computed on a pro forma basis, specifically: (1) the numerator and denominator are both impacted by the conversion offering amount, unlike existing stock
issues in which price change affects only the numerator; and (2) the pro forma pricing ratio incorporates assumptions regarding source and use of proceeds, effective tax rates, stock plan
purchases, etc. which impact pro forma financials, whereas pricing for existing issues are based on reported financials. The distinction between the pricing of converting and existing issues
is perhaps most evident in the case of the price/book (“P/B”) ratio in that the P/B ratio of a converting thrift will typically result in a discount to book value, whereas in the current market
for existing thrifts the P/B ratio may reflect a premium to book value. Therefore, it is appropriate to also consider the market for new issues, both at the time of the conversion and in the
aftermarket.

As shown in Table 6, two standard conversion offerings have been completed during the past three months. The average closing pro forma price/tangible book ratio of the
two recent standard conversion offerings equaled 63.7%. As of February 3, 2017, the two recent standard conversion offerings reflected an average stock price of 37.2% from their IPO
prices.

Shown in Table 7 are the current pricing ratios for the only fully-converted offering completed during the past three months that trades on NASDAQ. The current P/TB ratio
of HV Bancorp equaled 98.39%, based on closing stock prices as of February 3, 2017.

Summary of Adjustments
In the Original Appraisal, we made the following adjustments to Community First’s pro forma value based upon our comparative analysis to the Peer Group:

PreviousValuation
Key Valuation Parameters: Adjustment
Financial Condition No Adjustment
Profitability, Growth and Viability of Earnings Slight Downward
Asset Growth No Adjustment
Primary Market Area No Adjustment
Dividends Slight Downward
Liquidity of the Shares Slight Downward
Marketing of the Issue No Adjustment
Management No Adjustment
Effect of Govt. Regulations and Regulatory Reform No Adjustment

The factors concerning the valuation parameters of primary market area, dividends, liquidity of the shares, management and effect of government regulations and regulatory reform
did not change since the Original Appraisal. Accordingly, those parameters were not discussed further in this update.
Board of Directors
February 3, 2017
Page 13

Table 6
Pricing Characteristics and After-Market Trends
Conversions Completed in Trailing 12 Months
Institutional Pre-Conversion Insider Pro Forma Post-IPO
Information Data Purchases Data Pricing Trends
Financial Asset Offering Contribution to % Off Incl. Pricing Financial
Info. Quality Information Char. Found. Fdn.+Merger Shares Ratios(2)(5) Charac. Closing Price:
Excluding % of Benefit
Foundation Public Plans Initial First After After
Equity/ NPAs/ Res. Gross % % of Exp./ Off. Recog. Stk Mgmt.& Div. Core Core Core IPO Trading % First % First % Thru %
Conversion Assets Assets Assets Cov. Proc. Offer Mid. Proc. Form Inc. Fdn. ESOP Plans Option Dirs. Yield P/TB P/E P/A ROA TE/A ROE Price Day Chge Week(3) Chge Month(4) Chge 2/3/2017 Chge
Institution Date Ticker ($Mil) (%) (%) (%) ($Mil.) (%) (%) (%) (%) (%) (%) (%) (%)(1) (%) (%) (x) (%) (%) (%) (%) ($) ($) (%) ($) (%) ($) (%) ($) (%)
Standard Conversions
HV Bancorp Inc. -PA* HVBC-
1/12/17 NASDAQ $ 177 7.46% 0.76% 54% $ 21.8 100% 132% 6.0% N.A. N.A. 8.0% 4.0% 10.0% 8.5% 0.00% 70.2% 24.9x 11.2% 0.5% 16.0% 2.8% $10.00 $13.67 36.7% $14.07 40.7% $14.05 40.5% $ 14.04 40.4%
Community Savings Bancorp Inc.
- OH 1/11/17 CCSB-OTC Pink $ 54 12.43% 0.65% 78% $ 4.4 100% 96% 27.2% N.A. N.A. 8.0% 4.0% 10.0% 41.9% 0.00% 57.3% 96.0x 8.1% 0.1% 14.1% 0.6% $10.00 $14.00 40.0% $14.00 40.0% $13.40 34.0% $ 13.40 34.0%
Averages -
Standard
Conversions: $ 115 9.95% 0.71% 66% $ 13.1 100% 114% 16.6% N.A. N.A. 8.0% 4.0% 10.0% 25.2% 0.00% 63.7% 60.5x 9.6% 0.3% 15.0% 1.7% $10.00 $13.84 38.4% $14.04 40.4% $13.73 37.3% $ 13.72 37.2%
Medians -
Standard
Conversions: $ 115 9.95% 0.71% 66% $ 13.1 100% 114% 16.6% N.A. N.A. 8.0% 4.0% 10.0% 25.2% 0.00% 63.7% 60.5x 9.6% 0.3% 15.0% 1.7% $10.00 $13.84 38.4% $14.04 40.4% $13.73 37.3% $ 13.72 37.2%

Note: * - Appraisal performed by RP Financial; BOLD = RP Fin. Did the business plan, “NT” - Not Traded; “NA” - Not Applicable, Not Available; C/S-Cash/Stock.

(1) As a percent of MHC offering for MHC transactions. (5) Mutual holding company pro forma data on full conversion basis.
(2) Does not take into account the adoption of SOP 93-6. (6) Simultaneously completed acquisition of another financial institution.
(3) Latest price if offering is less than one week old. (7) Simultaneously converted to a commercial bank charter.
(4) Latest price if offering is more than one week but less than one month old. (8) Former credit union. 2/3/2017
Board of Directors
February 3, 2017
Page 14

Table 7
Public Market Pricing Versus Peer Group
Community First Bancshares, Inc.
As of February 3, 2017

Market Per Share Data

Capitalization Core Book Dividends(3) Financial Characteristics(5)
Price/ Market 12 Month Value/ Pricing Ratios(2) Amount/ Payout Total Equity/ Tang. Eq./ NPAs/ Reported Core
Share Value EPS(1) Share P/E P/B P/A P/TB P/Core Share Yield Ratio(4) Assets Assets T. Assets Assets ROAA ROAE ROAA ROAE
($) ($Mil) ($) ($) (x) (%) (%) (%) (x) ($) (%) (%) ($Mil) (%) (%) (%) (%) (%) (%) (%)
All Non-MHC Public Companies(6)
Averages $ 22.48 $575.32 $ 1.07 $ 16.18 20.25x 131.10% 16.01% 144.83% 20.54x $ 0.36 1.57% 47.76% $ 3,317 12.77% 12.11% 1.06% 0.70% 5.90% 0.72% 6.03%
Median $ 17.77 $147.83 $ 0.79 $ 14.60 19.95x 124.89% 15.67% 134.42% 20.23x $ 0.24 1.39% 40.74% $ 984 11.52% 11.12% 0.88% 0.62% 5.14% 0.65% 5.22%
Comparable Group
Averages $ 14.05 $ 30.66 $ 0.40 $ 14.25 34.27x 98.60% 15.73% 98.39% 35.13x $ 0.00 0.00% NM $ 195 15.95% 15.95% 0.76% 0.46% 2.88% 0.45% 2.81%
Medians $ 14.05 $ 30.66 $ 0.40 $ 14.25 34.27x 98.60% 15.73% 98.39% 35.13x $ 0.00 0.00% NM $ 195 15.95% 15.95% 0.76% 0.46% 2.88% 0.45% 2.81%
State of GA
CHFN Charter Financial Corporation GA $ 17.30 $260.04 $ 0.86 $ 13.52 21.10x 126.54% 17.79% 150.12% 16.98x $ 0.24 1.39% 26.22% $ 1,438 14.12% 12.14% 0.77% 0.98% 5.90% 1.07% 6.43%
Comparable Group
HVBC HV Bancorp, Inc. PA $ 14.05 $ 30.66 $ 0.40 $ 14.25 34.27x 98.60% 15.73% 98.39% 35.13x $ 0.00 0.00% NM $ 195 15.95% 15.95% 0.76% 0.46% 2.88% 0.45% 2.81%

(1) Core income, on a diluted per-share basis. Core income is net income after taxes and before extraordinary items, less net income attributable to noncontrolling interest, gain on the
sale of securities, amortization of intangibles, goodwill and nonrecurring items. Assumed tax rate is 35%.
(2) P/E = Price to earnings; P/B = Price to book; P/A = Price to assets; P/TB = Price to tangible book value; and P/Core = Price to core earnings. P/E and P/Core =NM if the ratio is
negative or above 35x.
(3) Indicated 12 month dividend, based on last quarterly dividend declared.
(4) Indicated 12 month dividend as a percent of trailing 12 month earnings.
(5) ROAA (return on average assets) and ROAE (return on average equity) are indicated ratios based on trailing 12 month earnings and average equity and assets balances.
(6) Excludes from averages and medians those companies the subject of actual or rumored acquisition activities or unusual operating characteristics.

Source: SNL Financial, LC. and RP Financial, LC. calculations. The information provided in this report has been obtained from sources we believe are reliable, but we cannot guarantee the
accuracy or completeness of such information.

Copyright (c) 2017 by RP ® Financial, LC.

Board of Directors
February 3, 2017
Page 15

In terms of financial condition, on a pro forma basis the Bank’s updated financial condition indicated a similar asset and liability structure, with some growth in most balance sheet
categories. The Bank continued to have a favorable equity/assets ratio compared to the Peer Group. Comparative asset quality ratios remained relatively stable on an updated basis. The
Bank reported a slightly higher level of net income on an updated trailing 12 month basis, which resulted in a higher pro forma return on equity. Based on this overall similar comparability,
we did not change the valuation adjustment for financial condition. Similarly, the Bank’s trailing 12 month net income improved somewhat, with the Bank’s ROA remaining below the Peer
Group ratio. The Bank continued to maintain a favorable yield/cost spread. We determined it appropriate that a slight downward adjustment remain appropriate for profitability, growth and
viability of earnings. No adjustment remained appropriate for the Bank’s asset growth, as the Bank and the Peer Group showed historical asset growth that was primarily sustained by loan
growth, with the Bank’s lower historical asset growth offset by the greater pro forma leverage capacity.

Consistent with the broader stock market, the general market for thrift stocks was up since the date of the Original Appraisal. The DJIA increased 4.80% since the date of the
Original Appraisal. Likewise, the updated pricing measures for the Peer Group were higher since the date of the Original Appraisal, with the Peer Group’s updated pricing measures
generally reflecting increases that were above the increase recorded in the thrift industry as a whole. Two standard conversion offerings have been completed during the past three months
and, as of February 3, 2017, showed an average price increase of 37.2% from their respective IPO prices. We also noted the volatility in the stock market in general and financial institution
stocks specifically, given the various actions or indications of actions to be taken by the federal government. While the increase in the pricing of the Peer Group and banking industry in
general would indicate upward valuations, we have moderated such increase given the volatility and uncertain future course of the federal government.

Overall, taking into account the foregoing factors, we believe that an increase in the Bank’s estimated pro market value as set forth in the Original Appraisal is appropriate.

Valuation Approaches: Fully-Converted and MHC Reported Basis

In applying the accepted valuation methodology promulgated by the OCC, FDIC and FRB, i.e., the pro forma market value approach, we considered the three key pricing ratios in
valuing Community First Bancshares’ to-be-issued stock — price/earnings (“P/E”), price/book (“P/B”), and price/assets (“P/A”) approaches — all performed on a pro forma basis including
the effects of the stock proceeds. In computing the pro forma impact of the conversion and the related pricing ratios, we have incorporated the valuation parameters disclosed in Community
First Bancshares’ prospectus for reinvestment rate, effective tax rate, stock benefit plan assumptions and offering expenses (summarized in Exhibits 2 and 3). The assumptions utilized in
the pro forma analysis in calculating the Bank’s full conversion value were consistent with the assumptions utilized for the minority stock offering, with variable expenses different based
on the projected stock sales by the investment banker. (summarized in Exhibits 4 and 5).

In computing the pro forma impact of the offering and the related pricing ratios, the valuation parameters utilized in the Original Appraisal were updated with Community First’s
financial data as of December 31, 2016.

Consistent with the Original Appraisal, this updated appraisal continues to be based primarily on fundamental analysis techniques applied to the Peer Group, including the P/E
approach, the P/B approach and the P/A approach. Also consistent with the Original Appraisal, this updated appraisal incorporates a “technical” analysis of recently completed offerings and
publicly-traded MHCs on a fully-converted basis.
Board of Directors
February 3, 2017
Page 16

The Bank has adopted “Employers’ Accounting for Employee Stock Ownership Plans” (“ASC 718-40”), which causes earnings per share computations to be based on shares issued
and outstanding excluding unreleased ESOP shares. For purposes of preparing the pro forma pricing analyses, we have reflected all shares issued in the offering, including all ESOP shares,
to capture the full dilutive impact, particularly since the ESOP shares are economically dilutive, receive dividends and can be voted. However, we did consider the impact of ASC 718-40 in
the valuation.

Based on the foregoing, we have concluded that an increase in Community First’s value is appropriate. Therefore, as of February 3, 2017, RP Financial concluded that the pro forma
market value of Community First’s full conversion offering equaled $57,000,000 at the midpoint, equal to 5,700,000 shares at $10.00 per share. The updated midpoint value represents an
increase of 3.6% from the pro forma market value as set forth in the Original Appraisal, as amended.
1. P/E Approach . The application of the P/E valuation method requires calculating the Bank’s pro forma market value by applying a valuation P/E multiple to the pro forma
earnings base. In applying this technique, we considered both reported earnings and a recurring earnings base, that is, earnings adjusted to exclude any one-time non-operating items, plus
the estimated after-tax earnings benefit of the reinvestment of the net proceeds. The Bank’s reported earnings equaled $1.263 million for the 12 months ended December 31, 2016. In
deriving Community First’s core earnings, the only adjustment made to reported earnings, similar to that done in the Original Appraisal, was to eliminate the expense related to the
termination of the prior President and CEO, equal to $251,000. As shown below, assuming an effective marginal tax rate of 38% for the earnings adjustment, the Bank’s core earnings were
estimated to equal $4.825 million for the twelve months ended December 31, 2016.

Amount
($000)
Net income $1,263
Addback: Expenses related to CEO separation (1) 251
Tax Effect (95)
Core earnings estimate $1,419

(1) Adjustment was tax effected at 38%

Based on Community First’s reported and estimated core earnings, and incorporating the impact of the pro forma assumptions discussed previously, the Bank’s reported and
core P/E multiples (fully-converted basis) at the $57.0 million midpoint value equaled 58.83 times and 50.69 times, respectively. The Bank’s updated reported and core P/E multiples
provided for premiums of 183.11% and 101.87% relative to the Peer Group’s average reported and core P/E multiples of 20.78 times and 25.11 times, respectively (versus premiums of
226.8% and 143.7% relative to the Peer Group’s average reported and core P/E multiples as
Board of Directors
February 3, 2017
Page 17

indicated in the Original Appraisal-as adjusted. The Bank’s updated reported and core P/E multiples (fully-converted basis) indicated premiums of 222.50% and 96.24% relative to the Peer
Group’s median reported and core P/E multiples, which equaled 18.24 times and 25.83 times, respectively (versus premiums of 251.6% and 168.4% relative to the Peer Group’s median
reported and core P/E multiples as indicated in the Original Appraisal). The Bank’s pro forma reported P/E ratios (fully-converted basis) at the minimum and the super maximum equaled
47.88 times and 85.99 times, respectively. The Bank’s pro forma core P/E ratios (fully-converted basis) at the minimum and the super maximum equaled 41.50 times and 73.03 times,
respectively. The Bank’s implied fully-converted conversion pricing ratios relative to the Peer Group’s pricing ratios are indicated in Table 8, and the pro forma calculations are detailed in
Exhibits 2 and 3.

On an MHC reported basis, the Bank’s reported and core P/E multiples at the $57.0 million midpoint value equaled 51.71 times and 45.31 times, respectively. The Bank’s
updated reported and core P/E multiples provided for premiums of 148.85% and 80.45% relative to the Peer Group’s average reported and core P/E multiples of 20.78 times and 25.11
times, respectively (versus premiums of 184.8% and 116.6% relative to the Peer Group’s average reported and core P/E multiples as indicated in the Original Appraisal). The Bank’s
updated reported and core P/E multiples (MHC basis) indicated premiums of 183.50% and 75.42% relative to the Peer Group’s median reported and core P/E multiples, which equaled
18.24 times and 25.83 times, respectively (versus premiums of 206.4% and 138.6% relative to the Peer Group’s median reported and core P/E multiples as indicated in the Original
Appraisal). The Bank’s pro forma reported P/E ratios (MHC basis) at the minimum and the super maximum equaled 43.06 times and 71.57 times, respectively. The Bank’s pro forma core
P/E ratios (MHC basis) at the minimum and the super maximum equaled 37.83 times and 62.36 times, respectively. The Bank’s implied MHC conversion pricing ratios relative to the Peer
Group’s pricing ratios are indicated in Table 9 and the pro forma calculations are detailed in Exhibits 4 and 5.
2. P/B Approach . P/B ratios have generally served as a useful benchmark in the valuation of thrift stocks, with the greater determinant of long term value being earnings. In
applying the P/B approach, we considered both reported book value and tangible book value. Based on the $57.0 million midpoint value, the Bank’s P/B and P/TB ratios (fully-converted
basis) both equaled 60.64%. In comparison to the average P/B and P/TB ratios indicated for the Peer Group of 107.88% and 109.44%, respectively, Community First’s updated ratios
reflected a discount of 43.8% on a P/B basis and a discount of 44.6% on a P/TB basis (versus discounts of 39.8% and 40.6% from the Peer Group’s average P/B and P/TB ratios as indicated
in the Original Appraisal). In comparison to the median P/B and P/TB ratios indicated for the Peer Group of 105.48% and 108.46%, respectively, Community First’s updated ratios (fully-
converted basis) reflected discounts of 42.5% and 44.1% at the $57.0 million midpoint value (versus discounts of 38.9% and 40.2% from the Peer Group’s median P/B and P/TB ratios as
indicated in the Original Appraisal). At the top of the super range, the Bank’s P/B and P/TB ratios (fully-converted basis) both equaled 68.49%. In comparison to the Peer Group’s average
P/B and P/TB ratios, the Bank’s P/B and P/TB ratios at the top of the super range reflected discounts of 36.5% and 37.4%, respectively. In comparison to the Peer Group’s median P/B and
P/TB ratios, the Bank’s P/B and P/TB ratios at the top of the super range reflected discounts of 35.1% and 36.9%, respectively. RP Financial considered the discounts under the P/B
approach to be reasonable, given the nature of the calculation of the P/B ratio which mathematically results in a ratio discounted to book value. The discounts reflected under the P/B
approach were also supported by the significant premiums reflected in the Bank’s P/E multiples.
Board of Directors
February 3, 2017
Page 18

Table 8
Fully Converted Market Pricing Versus Peer Group
Community First Bancshares, Inc.
As of February 3, 2017

Market Per Share Data

Capitalization Core Book Dividends(3) Financial Characteristics(5)
Price/ Market 12 Month Value/ Pricing Ratios(2) Amount/ Payout Total Tang. Eq./ NPAs/ Reported Core
Share Value EPS(1) Share P/E P/B P/A P/TB P/Core Share Yield Ratio(4) Assets T. Assets Assets ROAA ROAE ROAA ROAE
($) ($Mil) ($) ($) (x) (%) (%) (%) (x) ($) (%) (%) ($Mil) (%) (%) (%) (%) (%) (%)
Sugar Creek Financial Corp.
Supermaximum $ 10.00 $ 75.38 $ 0.14 $ 14.60 85.99 68.49% 24.91% 68.49% 73.03 $ 0.00 0.00% 0.00% $ 303 36.36% 3.04% 0.29% 0.80% 0.34% 0.94%
Maximum $ 10.00 $ 65.55 $ 0.17 $ 15.48 70.79 64.60% 22.30% 64.60% 60.6 $ 0.00 0.00% 0.00% $ 294 34.51% 3.13% 0.31% 0.91% 0.37% 1.07%
Midpoint $ 10.00 $ 57.00 $ 0.20 $ 16.49 58.83 60.64% 19.89% 60.64% 50.69 $ 0.00 0.00% 0.00% $ 287 32.81% 3.21% 0.34% 1.03% 0.39% 1.20%
Minimum $ 10.00 $ 48.45 $ 0.24 $ 17.87 47.88 55.96% 17.36% 55.96% 41.5 $ 0.00 0.00% 0.00% $ 279 31.02% 3.30% 0.36% 1.17% 0.42% 1.35%
All Non-MHC Public Companies(6)
Averages $ 22.48 $575.32 $ 1.07 $ 16.18 20.25x 131.10% 16.01% 144.83% 20.54x $ 0.36 1.57% 47.76% $ 3,317 12.11% 1.06% 0.70% 5.90% 0.72% 6.03%
Median $ 17.77 $147.83 $ 0.79 $ 14.60 19.95x 124.89% 15.67% 134.42% 20.23x $ 0.24 1.39% 40.74% $ 984 11.12% 0.88% 0.62% 5.14% 0.65% 5.22%
Comparable Group
Averages $ 20.71 $ 73.68 $ 0.75 $ 19.29 20.78x 107.88% 16.93% 109.44% 25.11x $ 0.39 1.46% 37.58% $ 419 15.72% 1.72% 0.57% 3.59% 0.55% 3.48%
Medians $ 18.68 $ 70.23 $ 0.48 $ 17.81 18.24x 105.48% 16.67% 108.46% 25.83x $ 0.24 1.20% 30.00% $ 435 15.50% 1.55% 0.48% 2.84% 0.50% 3.08%
State of GA
CHFN Charter Financial Corporation GA $ 17.30 $260.04 $ 0.86 $ 13.52 21.10x 126.54% 17.79% 150.12% 16.98x $ 0.24 1.39% 26.22% $ 1,438 12.14% 0.77% 0.98% 5.90% 1.07% 6.43%
Comparable Group
ANCB Anchor Bancorp WA $ 26.80 $ 67.13 $ 0.29 $ 25.46 NM 104.75% 15.22% 104.75% NM NA NA NM $ 436 14.63% NA 0.17% 1.14% 0.17% 1.14%
EQFN Equitable Financial Corp. NE $ 10.10 $ 35.12 $ 0.32 $ 10.43 32.58x 96.82% 15.41% 96.82% 31.72x NA NA NM $ 228 15.92% NA 0.46% 3.00% 0.47% 3.08%
IROQ IF Bancorp, Inc. IL $ 19.80 $ 78.22 $ 0.98 $ 21.12 16.50x 94.83% 13.48% 94.83% NM $ 0.16 0.81% 13.33% $ 589 14.23% 0.82% 0.70% 4.93% 0.64% 4.46%
JXSB Jacksonville Bancorp, Inc. IL $ 31.00 $ 55.75 $ 1.57 $ 26.84 18.24x 120.67% 17.46% 128.24% 19.94x $ 0.40 1.29% 23.53% $ 331 13.89% 1.33% 0.99% 6.53% 0.92% 6.05%
MELR Melrose Bancorp, Inc. MA $ 17.24 $ 44.86 $ 0.28 $ 16.61 NM 103.81% 16.84% 103.81% NM NA NA NM $ 267 16.23% 0.00% 0.42% 2.26% 0.29% 1.55%
MSBF MSB Financial Corp. NJ $ 14.50 $ 82.85 $ 0.12 $ 12.71 NM 113.21% 17.95% 113.21% NM $ 0.00 0.00% NM $ 434 16.74% 3.53% 0.18% 0.90% 0.26% 1.34%
PBSK Poage Bankshares, Inc. KY $ 19.95 $ 74.08 $ 0.60 $ 18.78 NM 106.22% 16.50% 109.95% 33.24x $ 0.24 1.20% 53.85% $ 449 15.09% 1.78% 0.43% 2.68% 0.50% 3.08%
PBIP Prudential Bancorp, Inc. PA $ 17.56 $158.33 $ 0.35 $ 14.17 NM 124.89% 23.94% 124.89% NM $ 0.12 0.68% 30.00% $ 559 20.38% 3.39% 0.51% 2.36% 0.49% 2.29%
UCBA United Community Bancorp IN $ 16.85 $ 70.68 $ 0.81 $ 16.83 21.06x 102.67% 13.45% 106.98% NM $ 0.24 1.42% 30.00% $ 528 12.92% 1.02% 0.68% 5.14% 0.64% 4.84%
WBKC Wolverine Bancorp, Inc. MI $ 33.25 $ 69.79 $ 2.14 $ 29.97 15.54x 110.95% 19.08% 110.95% 15.54x $ 1.60 4.81% 74.77% $ 369 17.20% 1.92% 1.13% 7.00% 1.13% 7.00%

(1) Core income, on a diluted per-share basis. Core income is net income after taxes and before extraordinary items, less net income attributable to noncontrolling interest, gain on the
sale of securities, amortization of intangibles, goodwill and nonrecurring items. Assumed tax rate is 35%.
(2) P/E = Price to earnings; P/B = Price to book; P/A = Price to assets; P/TB = Price to tangible book value; and P/Core = Price to core earnings. P/E and P/Core =NM if the ratio is
negative or above 35x.
(3) Indicated 12 month dividend, based on last quarterly dividend declared.
(4) Indicated 12 month dividend as a percent of trailing 12 month earnings.
(5) ROAA (return on average assets) and ROAE (return on average equity) are indicated ratios based on trailing 12 month earnings and average equity and assets balances.
(6) Excludes from averages and medians those companies the subject of actual or rumored acquisition activities or unusual operating characteristics.

Source: SNL Financial, LC. and RP Financial, LC. calculations. The information provided in this report has been obtained from sources we believe are reliable, but we cannot guarantee the
accuracy or completeness of such information.

Copyright (c) 2017 by RP ® Financial, LC.

Board of Directors
February 3, 2017
Page 19

Table 9
MHC Market Pricing Versus Peer Group
Community First Bancshares, Inc.
As of February 3, 2017

Market Per Share Data

Capitalization Core Book Dividends(3) Financial Characteristics(5)
Price/ Market 12 Month Value/ Pricing Ratios(2) Amount/ Payout Total Tang. Eq./ NPAs/ Reported Core
Share Value EPS(1) Share P/E P/B P/A P/TB P/Core Share Yield Ratio(4) Assets T. Assets Assets ROAA ROAE ROAA ROAE
($) ($Mil) ($) ($) (x) (%) (%) (%) (x) ($) (%) (%) ($Mil) (%) (%) (%) (%) (%) (%)
Sugar Creek Financial Corp.
Supermaximum $ 10.00 $ 34.68 $ 0.14 $ 9.84 71.57x 101.58% 28.26% 101.58% 62.36x $ 0.00 0.00% 0.00% $ 267 27.82% 3.45% 0.39% 1.42% 0.45% 1.63%
Maximum $ 10.00 $ 30.15 $ 0.16 $ 10.73 60.72x 93.24% 24.94% 93.24% 53.07x $ 0.00 0.00% 0.00% $ 263 26.75% 3.50% 0.41% 1.54% 0.47% 1.76%
Midpoint $ 10.00 $ 26.22 $ 0.19 $ 11.74 51.71x 85.19% 21.97% 85.19% 45.31x $ 0.00 0.00% 0.00% $ 259 25.79% 3.55% 0.42% 1.65% 0.48% 1.88%
Minimum $ 10.00 $ 22.29 $ 0.23 $ 13.11 43.06x 76.28% 18.92% 76.28% 37.83x $ 0.00 0.00% 0.00% $ 256 24.81% 3.59% 0.44% 1.77% 0.50% 2.02%
All Non-MHC Public Companies(6)
Averages $ 22.48 $575.32 $ 1.07 $ 16.18 20.25x 131.10% 16.01% 144.83% 20.54x $ 0.36 1.57% 47.76% $ 3,317 12.11% 1.06% 0.70% 5.90% 0.72% 6.03%
Median $ 17.77 $147.83 $ 0.79 $ 14.60 19.95x 124.89% 15.67% 134.42% 20.23x $ 0.24 1.39% 40.74% $ 984 11.12% 0.88% 0.62% 5.14% 0.65% 5.22%
Comparable Group
Averages $ 20.71 $ 73.68 $ 0.75 $ 19.29 20.78x 107.88% 16.93% 109.44% 25.11x $ 0.39 1.46% 37.58% $ 419 15.72% 1.72% 0.57% 3.59% 0.55% 3.48%
Medians $ 18.68 $ 70.23 $ 0.48 $ 17.81 18.24x 105.48% 16.67% 108.46% 25.83x $ 0.24 1.20% 30.00% $ 435 15.50% 1.55% 0.48% 2.84% 0.50% 3.08%
State of GA
CHFN Charter Financial Corporation GA $ 17.30 $260.04 $ 0.86 $ 13.52 21.10x 126.54% 17.79% 150.12% 16.98x $ 0.24 1.39% 26.22% $ 1,438 12.14% 0.77% 0.98% 5.90% 1.07% 6.43%
Comparable Group
ANCB Anchor Bancorp WA $ 26.80 $ 67.13 $ 0.29 $ 25.46 NM 104.75% 15.22% 104.75% NM NA NA NM $ 436 14.63% NA 0.17% 1.14% 0.17% 1.14%
EQFN Equitable Financial Corp. NE $ 10.10 $ 35.12 $ 0.32 $ 10.43 32.58x 96.82% 15.41% 96.82% 31.72x NA NA NM $ 228 15.92% NA 0.46% 3.00% 0.47% 3.08%
IROQ IF Bancorp, Inc. IL $ 19.80 $ 78.22 $ 0.98 $ 21.12 16.50x 94.83% 13.48% 94.83% NM $ 0.16 0.81% 13.33% $ 589 14.23% 0.82% 0.70% 4.93% 0.64% 4.46%
JXSB Jacksonville Bancorp, Inc. IL $ 31.00 $ 55.75 $ 1.57 $ 26.84 18.24x 120.67% 17.46% 128.24% 19.94x $ 0.40 1.29% 23.53% $ 331 13.89% 1.33% 0.99% 6.53% 0.92% 6.05%
MELR Melrose Bancorp, Inc. MA $ 17.24 $ 44.86 $ 0.28 $ 16.61 NM 103.81% 16.84% 103.81% NM NA NA NM $ 267 16.23% 0.00% 0.42% 2.26% 0.29% 1.55%
MSBF MSB Financial Corp. NJ $ 14.50 $ 82.85 $ 0.12 $ 12.71 NM 113.21% 17.95% 113.21% NM $ 0.00 0.00% NM $ 434 16.74% 3.53% 0.18% 0.90% 0.26% 1.34%
PBSK Poage Bankshares, Inc. KY $ 19.95 $ 74.08 $ 0.60 $ 18.78 NM 106.22% 16.50% 109.95% 33.24x $ 0.24 1.20% 53.85% $ 449 15.09% 1.78% 0.43% 2.68% 0.50% 3.08%
PBIP Prudential Bancorp, Inc. PA $ 17.56 $158.33 $ 0.35 $ 14.17 NM 124.89% 23.94% 124.89% NM $ 0.12 0.68% 30.00% $ 559 20.38% 3.39% 0.51% 2.36% 0.49% 2.29%
UCBA United Community Bancorp IN $ 16.85 $ 70.68 $ 0.81 $ 16.83 21.06x 102.67% 13.45% 106.98% NM $ 0.24 1.42% 30.00% $ 528 12.92% 1.02% 0.68% 5.14% 0.64% 4.84%
WBKC Wolverine Bancorp, Inc. MI $ 33.25 $ 69.79 $ 2.14 $ 29.97 15.54x 110.95% 19.08% 110.95% 15.54x $ 1.60 4.81% 74.77% $ 369 17.20% 1.92% 1.13% 7.00% 1.13% 7.00%

(1) Core income, on a diluted per-share basis. Core income is net income after taxes and before extraordinary items, less net income attributable to noncontrolling interest, gain on the
sale of securities, amortization of intangibles, goodwill and nonrecurring items. Assumed tax rate is 35%.
(2) P/E = Price to earnings; P/B = Price to book; P/A = Price to assets; P/TB = Price to tangible book value; and P/Core = Price to core earnings. P/E and P/Core =NM if the ratio is
negative or above 35x.
(3) Indicated 12 month dividend, based on last quarterly dividend declared.
(4) Indicated 12 month dividend as a percent of trailing 12 month earnings.
(5) ROAA (return on average assets) and ROAE (return on average equity) are indicated ratios based on trailing 12 month earnings and average equity and assets balances.
(6) Excludes from averages and medians those companies the subject of actual or rumored acquisition activities or unusual operating characteristics.

Source: SNL Financial, LC. and RP Financial, LC. calculations. The information provided in this report has been obtained from sources we believe are reliable, but we cannot guarantee the
accuracy or completeness of such information.

Copyright (c) 2017 by RP ® Financial, LC.

Board of Directors
February 3, 2017
Page 20

On an MHC reported basis, the Bank’s P/B and P/TB ratios at the $57.0 million midpoint value both equaled 85.19%. In comparison to the average P/B and P/TB ratios
indicated for the Peer Group of 107.88% and 109.44%, respectively, Community First’s updated ratios reflected discounts of 21.0% on a P/B basis and 22.2% on a P/TB basis (versus
discounts of 15.8% and 16.9% from the Peer Group’s average P/B and P/TB ratios as indicated in the Original Appraisal). In comparison to the median P/B and P/TB ratios indicated for the
Peer Group of 105.48% and 108.46%, respectively, Community First’s updated ratios (MHC basis) reflected discounts of 19.2% and 21.5% at the $57.0 million midpoint value (versus
discounts of 14.6% and 16.3% from the Peer Group’s median P/B and P/TB ratios as indicated in the Original Appraisal). At the top of the super range, the Bank’s P/B and P/TB ratios
(MHC basis) both equaled 101.58%. In comparison to the Peer Group’s average P/B and P/TB ratios, the Bank’s P/B and P/TB ratios at the top of the super range reflected discounts of
5.8% and 7.2%, respectively. In comparison to the Peer Group’s median P/B and P/TB ratios, the Bank’s P/B and P/TB ratios at the top of the super range reflected discounts of 3.7% and
6.3%, respectively.

3. P/A Approach . P/A ratios are generally not as a reliable indicator of market value, as investors do not place significant weight on total assets as a determinant of market value.
Investors place significantly greater weight on book value and earnings – which have received greater weight in our valuation analysis. At the $57.0 million midpoint value Community
First’s pro forma P/A ratio (fully-converted basis) equaled 19.89%. In comparison to the Peer Group’s average P/A ratio of 16.93%, Community First’s P/A ratio indicated a premium of
17.5% (versus a premium of 24.2% at the midpoint valuation in the Original Appraisal). In comparison to the Peer Group’s median P/A ratio of 16.67%, Community First’s P/A ratio (fully-
converted basis) at the $57.0 million midpoint value indicated a premium of 19.3% (versus a premium of 26.0% at the midpoint valuation in the Original Appraisal).

On an MHC reported basis, Community First’s pro forma P/A ratio at the $57.0 million midpoint value equaled 21.97%. In comparison to the Peer Group’s average P/A ratio
of 16.93%, Community First’s P/A ratio indicated a premium of 29.8% (versus a premium of 37.0% at the midpoint valuation in the Original Appraisal). In comparison to the Peer Group’s
median P/A ratio of 16.67%, Community First’s P/A ratio (MHC basis) at the $57.0 million midpoint value indicated a premium of 31.8% (versus a premium of 39.0% at the midpoint
valuation in the Original Appraisal).

Comparison to Recent Offerings

In addition to the fundamental analysis applied to the Peer Group, RP Financial utilized a technical analysis of recent conversion offerings. As indicated in the Original
Appraisal, the pricing characteristics of recent conversion offerings are not the primary determinate of value. Consistent with the Original Appraisal, particular focus was placed on the
P/TB approach in this analysis since the P/E multiples do not reflect the actual impact of reinvestment and the source of the conversion funds (i.e., external funds versus deposit
withdrawals).
Board of Directors
February 3, 2017
Page 21

As discussed previously, two standard conversion offerings were completed during the past three months. In comparison to the 63.70% average closing forma P/TB ratio of
the recent standard conversions, the Bank’s P/TB ratio of 60.64% at the midpoint value reflects an implied discount of 4.8%. At the top of the super range, the Bank’s P/TB ratio of 68.49%
reflects an implied premium of 7.5% relative to the recent standard conversions average P/TB ratio at closing. The current P/TB ratio of the one recent standard conversion that is publicly-
traded equaled 98.39%, based on closing stock prices as of February 3, 2017. In comparison to the current P/TB ratio of the recent publicly-traded standard conversion, the Bank’s P/TB
ratio at the midpoint value reflects an implied discount of 38.4% and at the top of the super range reflects an implied discount of 30.4%.

Valuation Conclusion
We have concluded that the Bank’s estimated pro forma market value should be increased since the date of the Original Appraisal. Accordingly, it is our opinion that, as of
February 3, 2017, the estimated aggregate pro forma market value of the shares to be issued immediately following the conversion, both shares issued publicly as well as to the MHC,
equaled $57,000,000 at the midpoint, equal to 5,700,000 shares offered at a per share value of $10.00. Pursuant to conversion guidelines, the 15% offering range indicates a minimum value
of $48,450,000 and a maximum value of $65,550,000. Based on the $10.00 per share offering price determined by the Board, this valuation range equates to total shares outstanding of
4,845,000 at the minimum and 6,555,000 at the maximum. In the event the appraised value is subject to an increase, the aggregate pro forma market value may be increased up to a super
maximum value of $75,382,500 without a resolicitation. Based on the $10.00 per share offering price, the super maximum value would result in total shares outstanding of 7,538,250. The
Board of Directors has established a public offering range such that the public ownership of the Bank will constitute a 46.0% ownership interest. Accordingly, the offering to the public of
the minority stock will equal $22,287,000 at the minimum, $26,220,000 at the midpoint, $30,153,000 at the maximum and $34,675,950 at the super maximum of the valuation range. Based
on the public offering range, the public ownership of shares will represent 46.0% of the shares issued throughout the valuation range. The pro forma valuation calculations relative to the
Peer Group (fully-converted basis) are shown in Table 8 and are detailed in Exhibit 2 and Exhibit 3; the pro forma valuation calculations relative to the Peer Group based on reported
financials are shown in Table 9 and are detailed in Exhibits 4 and 5.

Respectfully submitted,
RP ® FINANCIAL, LC.

James J. Oren
Director
EXHIBITS
 LIST OF EXHIBITS

Exhibit
Number Description

1 Stock Prices: As of February 3, 2017

2 Pro Forma Analysis Sheet – Fully Converted Basis
3 Pro Forma Effect of Conversion Proceeds – Fully Converted Basis
4 Pro Forma Analysis Sheet – Minority Stock Offering
5 Pro Forma Effect of Conversion Proceeds – Minority Stock Offering
6 Firm Qualifications Statement
 EXHIBIT 1

Stock Prices
As of February 3, 2017
RP ® Financial, LC.

Exhibit 1A
Weekly Thrift Market Line - Part One
Prices As of February 3, 2017

Market Capitalization Price Change Data Current Per Share Financials

Price/ Shares Market 52 Week (1) % Change From LTM LTM Core BV/ TBV/ Assets/
Share(1) Outstanding Capitalization High Low Last Wk Last Wk 52 Wks (2) MRY (2) EPS (3) EPS (3) Share Share (4) Share
($) (000) ($Mil) ($) ($) ($) (%) (%) (%) ($) ($) ($) ($) ($)
Companies
ANCB Anchor Bancorp WA 26.80 2,505 67.1 27.50 22.61 26.50 1.13 12.13 -1.47 0.29 0.29 25.46 25.46 174.06
ASBB ASB Bancorp, Inc. NC 31.25 3,788 118.4 31.80 24.07 31.80 -1.71 25.30 5.04 1.47 1.21 24.12 24.12 210.46
AF Astoria Financial Corporation NY 18.78 101,210 1,900.7 19.26 14.11 19.05 -1.42 25.28 0.70 0.64 0.67 15.57 13.74 146.37
BCTF Bancorp 34, Inc. NM 12.85 3,438 44.2 13.45 7.91 12.70 1.18 44.15 2.07 0.34 0.35 9.01 8.92 95.43
BKMU Bank Mutual Corporation WI 9.75 45,692 445.5 9.75 7.08 9.65 1.04 32.29 3.17 0.37 0.38 6.32 6.32 58.07
BYBK Bay Bancorp, Inc. MD 7.75 10,456 81.0 7.75 4.70 7.05 9.93 57.52 17.42 0.14 0.18 6.28 5.96 57.99
BNCL Beneficial Bancorp, Inc. PA 16.90 75,914 1,282.9 19.00 12.30 17.95 -5.85 33.91 -8.15 0.31 0.40 13.41 11.13 73.51
BHBK Blue Hills Bancorp, Inc. MA 19.50 26,760 521.8 19.55 13.22 19.30 1.04 37.61 4.00 0.28 0.27 14.43 14.03 86.46
BOFI BofI Holding, Inc. CA 29.15 63,362 1,847.0 30.60 13.47 28.42 2.57 83.10 2.10 1.91 1.89 11.32 11.32 123.97
BYFC Broadway Financial Corporation CA 1.55 27,301 42.3 2.50 1.37 1.60 -3.24 3.21 -5.31 0.23 0.23 1.63 1.63 15.14
BLMT BSB Bancorp, Inc. MA 27.95 9,108 254.6 30.05 20.72 28.20 -0.89 25.28 -3.45 1.19 NA 17.23 17.23 227.69
CFFN Capitol Federal Financial, Inc. KS 15.42 137,916 2,126.7 17.04 11.87 15.80 -2.41 28.93 -6.32 0.63 0.63 10.13 10.13 67.20
CARV Carver Bancorp, Inc. NY 3.41 3,696 12.6 5.99 2.99 3.40 0.29 -7.84 5.75 -0.19 -0.42 2.51 2.51 189.86
CHFN Charter Financial Corporation GA 17.30 15,031 260.0 17.50 12.36 17.16 0.82 29.69 3.78 0.79 0.86 13.52 11.36 95.70
CSBK Clifton Bancorp Inc. NJ 16.11 23,046 371.3 17.49 13.38 16.01 0.62 13.77 -4.79 0.19 0.19 13.12 13.12 56.94
CWAY Coastway Bancorp, Inc. RI 16.80 4,467 75.0 16.85 12.10 16.65 0.90 35.36 7.35 0.79 0.79 15.52 15.52 141.70
DCOM Dime Community Bancshares, Inc. NY 21.10 37,456 790.3 22.48 16.10 21.95 -3.87 27.03 4.98 2.26 1.05 14.79 13.31 155.43
ESBK Elmira Savings Bank NY 21.00 2,747 57.7 22.25 16.83 20.54 2.23 14.13 2.69 1.26 1.23 16.80 12.29 206.60
ENFC Entegra Financial Corp. NC 22.20 6,468 143.6 22.25 16.11 22.00 0.91 26.46 7.77 0.92 1.04 21.37 20.90 188.38
EQFN Equitable Financial Corp. NE 10.10 3,477 35.1 10.15 8.15 10.10 0.00 15.30 2.02 0.31 0.32 10.43 10.43 65.53
ESSA ESSA Bancorp, Inc. PA 15.51 11,464 177.8 16.84 12.69 16.00 -3.06 15.14 -1.34 0.73 0.71 15.48 14.05 154.62
FCAP First Capital, Inc. IN 32.00 3,338 106.8 35.00 24.50 31.75 0.80 30.61 -1.30 1.91 2.04 23.55 21.22 222.34
FBNK First Connecticut Bancorp, Inc. CT 22.85 15,898 363.3 25.00 15.49 22.70 0.66 41.75 0.88 0.89 0.87 16.17 16.17 178.14
FDEF First Defiance Financial Corp. OH 48.90 8,984 439.3 52.31 34.80 49.68 -1.57 29.02 -3.63 3.08 3.10 32.53 25.49 272.70
FNWB First Northwest Bancorp WA 15.09 12,154 183.4 16.75 11.99 15.14 -0.33 19.10 -3.27 0.29 0.27 14.60 14.60 86.27
FBC Flagstar Bancorp, Inc. MI 26.46 56,825 1,503.6 29.29 17.40 26.23 0.88 43.96 -1.78 2.60 2.74 22.72 22.72 251.18
FSBW FS Bancorp, Inc. WA 37.12 3,060 113.6 39.48 23.35 35.23 5.36 53.07 3.25 3.35 3.58 26.02 24.65 270.46
FSBC FSB Bancorp, Inc. NY 14.24 1,939 27.6 14.90 9.19 14.14 0.71 34.77 0.28 0.30 0.28 16.20 16.20 133.95
HBK Hamilton Bancorp, Inc. MD 15.20 3,414 51.9 15.35 13.19 14.65 3.75 7.95 6.67 -0.01 0.15 18.10 15.34 151.50
HIFS Hingham Institution for Savings MA 190.30 2,133 405.9 203.01 115.80 190.86 -0.29 58.56 -3.29 10.41 10.31 72.35 72.35 919.15
HMNF HMN Financial, Inc. MN 18.01 4,489 80.8 18.70 10.85 18.11 -0.55 56.43 2.89 1.22 1.23 16.67 16.39 152.75
HFBL Home Federal Bancorp, Inc. of Louisiana LA 27.90 1,955 54.5 29.85 21.20 27.66 0.86 26.82 3.87 1.80 1.80 22.44 22.44 199.25
IROQ IF Bancorp, Inc. IL 19.80 3,950 78.2 19.80 17.25 19.15 3.39 9.88 7.03 1.08 0.98 21.12 21.12 149.02
ISBC Investors Bancorp, Inc. NJ 14.46 309,449 4,474.6 14.93 10.67 14.46 0.00 25.63 3.66 0.60 0.60 10.03 9.75 72.83
JXSB Jacksonville Bancorp, Inc. IL 31.00 1,798 55.7 31.00 23.20 30.95 0.16 20.39 3.33 1.70 1.57 26.84 25.33 183.90
KRNY Kearny Financial Corp. NJ 15.25 89,176 1,359.9 16.10 11.36 14.75 3.39 27.62 -1.93 0.19 0.19 12.57 11.34 50.72
MLVF Malvern Bancorp, Inc. PA 20.30 6,560 133.2 21.50 15.00 21.30 -4.69 19.76 -4.02 1.86 1.80 14.42 14.42 125.19
MELR Melrose Bancorp, Inc. MA 17.24 2,602 44.9 18.10 14.60 17.05 1.12 14.94 -3.95 0.41 0.28 16.61 16.61 102.50
EBSB Meridian Bancorp, Inc. MA 18.80 53,596 1,007.6 20.55 13.14 19.10 -1.57 36.03 -0.53 0.56 0.56 11.12 10.86 77.86
CASH Meta Financial Group, Inc. SD 97.15 9,305 904.0 106.90 37.06 103.65 -6.27 140.23 -5.59 3.92 4.65 39.30 31.57 430.56
MSBF MSB Financial Corp. NJ 14.50 5,714 82.9 14.95 12.25 14.40 0.69 16.47 -1.36 0.12 0.12 12.71 12.71 75.89
NYCB New York Community Bancorp, Inc. NY 14.97 487,057 7,291.2 17.68 13.74 15.19 -1.45 -2.48 -5.91 -0.08 1.20 12.50 7.50 101.55
NFBK Northfield Bancorp, Inc. NJ 18.13 48,527 879.8 20.59 14.31 18.25 -0.66 19.99 -9.21 0.52 0.58 12.84 12.00 77.99
NWBI Northwest Bancshares, Inc. PA 17.04 101,699 1,733.0 19.10 11.78 17.23 -1.10 40.71 -5.49 0.41 0.78 11.48 8.11 95.52
OCFC OceanFirst Financial Corp. NJ 29.37 32,137 943.9 30.70 15.98 29.74 -1.24 72.46 -2.20 1.07 1.41 16.14 13.42 129.17
ORIT Oritani Financial Corp. NJ 17.20 45,860 788.8 19.00 15.18 17.40 -1.15 8.45 -8.27 1.12 0.87 11.94 11.94 82.74
OTTW Ottawa Bancorp, Inc. IL 12.71 3,456 43.9 12.98 8.39 12.63 0.63 44.99 -0.16 0.39 0.41 9.23 8.93 79.88
PBHC Pathfinder Bancorp, Inc. NY 14.27 4,237 60.5 14.55 10.76 13.68 4.31 16.87 5.78 0.73 0.65 13.91 12.79 169.26
PBBI PB Bancorp, Inc. CT 10.15 7,880 80.0 10.40 8.20 10.15 0.00 16.92 2.56 0.12 0.12 10.85 9.97 64.27
PBSK Poage Bankshares, Inc. KY 19.95 3,714 74.1 20.90 15.50 19.75 1.01 16.18 6.12 0.52 0.60 18.78 18.14 120.88
PROV Provident Financial Holdings, Inc. CA 18.60 7,915 147.2 20.66 16.73 19.13 -2.77 9.09 -8.01 0.80 0.81 16.70 16.70 156.98
PFS Provident Financial Services, Inc. NJ 26.55 66,082 1,754.5 28.92 17.71 26.73 -0.67 41.00 -6.18 1.37 1.40 18.84 12.44 142.10
PBIP Prudential Bancorp, Inc. PA 17.56 9,017 158.3 17.70 13.80 17.49 0.40 11.70 2.57 0.36 0.35 14.17 14.17 62.05
RNDB Randolph Bancorp, Inc. MA 14.96 5,869 87.8 16.50 12.06 14.97 -0.07 NA -7.20 NA NA 14.63 14.61 83.42
RVSB Riverview Bancorp, Inc. WA 7.74 22,511 174.2 8.16 4.15 7.69 0.65 72.00 10.57 0.29 0.30 4.93 3.79 43.71
SVBI Severn Bancorp, Inc. MD 7.35 12,131 89.2 8.08 4.99 7.06 4.18 38.68 -6.96 1.14 1.14 6.90 6.87 64.11
SIFI SI Financial Group, Inc. CT 14.85 12,211 181.3 16.23 12.30 14.75 0.68 6.83 -3.57 0.53 NA 13.08 11.64 125.96
SBCP Sunshine Bancorp, Inc. FL 18.14 7,986 144.9 18.25 13.84 18.14 -0.02 26.76 5.83 -0.35 -0.33 13.82 11.92 70.62
TBNK Territorial Bancorp Inc. HI 32.26 9,779 315.5 34.00 24.87 33.23 -2.92 23.89 -1.77 1.69 1.66 23.39 23.39 189.04
TSBK Timberland Bancorp, Inc. WA 21.25 6,957 147.8 21.25 12.14 20.99 1.24 70.00 2.86 1.43 1.42 13.95 13.13 128.14
TRST TrustCo Bank Corp NY NY 8.35 95,780 799.8 9.00 5.32 8.60 -2.91 52.65 -4.57 0.44 0.43 4.56 4.55 50.25
UCBA United Community Bancorp IN 16.85 4,194 70.7 17.10 12.95 16.50 2.15 23.44 0.90 0.86 0.81 16.83 16.17 125.90
UCFC United Community Financial Corp. OH 8.73 49,615 433.1 9.50 5.47 8.65 0.92 51.56 -2.35 0.38 0.37 5.51 5.48 43.54
UBNK United Financial Bancorp, Inc. CT 17.77 50,803 902.8 18.66 10.79 18.43 -3.58 57.96 -2.15 0.90 1.02 13.00 10.60 128.83
WSBF Waterstone Financial, Inc. WI 18.30 29,386 537.8 19.30 13.30 18.50 -1.08 35.96 -0.54 0.81 0.81 13.94 13.92 61.08
WAYN Wayne Savings Bancshares, Inc. OH 18.35 2,782 51.0 18.48 11.90 17.86 2.74 42.91 11.21 0.92 0.92 14.88 14.27 160.25
WCFB WCF Bancorp, Inc. IA 10.30 2,563 26.4 10.97 8.15 9.76 5.53 16.09 3.00 0.10 0.07 11.54 11.51 48.40
WEBK Wellesley Bancorp, Inc. MA 27.57 2,485 68.5 27.75 18.22 26.75 3.05 49.68 -0.66 1.33 1.32 22.52 22.52 268.13
WBB Westbury Bancorp, Inc. WI 22.10 4,073 90.0 23.00 18.10 21.80 1.38 17.40 6.76 0.93 0.83 19.43 19.43 172.51
WNEB Western New England Bancorp, Inc. MA 9.55 30,380 290.1 9.95 7.35 9.75 -2.05 19.38 2.14 0.25 0.30 7.92 7.92 45.35
WBKC Wolverine Bancorp, Inc. MI 33.25 2,099 69.8 33.25 25.26 32.65 1.84 29.13 5.22 2.14 2.14 29.97 29.97 175.88
RP ® Financial, LC.
Exhibit 1A
Weekly Thrift Market Line - Part One
Prices As of February 3, 2017
Market Capitalization Price Change Data Current Per Share Financials
Price/ Shares Market 52 Week (1) % Change From LTM LTM Core BV/ TBV/ Assets/
Share(1) Outstanding Capitalization High Low Last Wk Last Wk 52 Wks (2) MRY (2) EPS (3) EPS (3) Share Share (4) Share
($) (000) ($Mil) ($) ($) ($) (%) (%) (%) ($) ($) ($) ($) ($)
Companies
WSFS WSFS Financial Corporation DE 44.80 31,390 1,406.3 47.65 26.40 45.15 -0.78 57.08 -3.34 1.97 2.22 22.08 16.59 211.14
WVFC WVS Financial Corp. PA 14.50 2,009 29.1 15.40 10.73 14.51 -0.03 26.09 -1.53 0.74 0.73 16.44 16.44 166.80
MHCs
GCBC Greene County Bancorp, Inc. (MHC) NY 22.95 8,503 195.1 25.20 15.38 20.90 9.81 48.02 0.22 1.10 1.10 9.00 9.00 105.04
HONE HarborOne Bancorp, Inc. (MHC) MA 18.73 32,121 601.6 20.19 12.53 19.22 -2.55 NA -3.15 NA NA 10.21 9.79 73.07
KFFB Kentucky First Federal Bancorp (MHC) KY 9.55 8,439 80.6 9.80 8.00 9.55 0.00 3.80 6.28 0.16 0.16 7.96 6.25 34.97
LSBK Lake Shore Bancorp, Inc. (MHC) NY 15.85 6,098 96.6 16.59 12.97 15.84 0.04 16.54 -2.57 0.71 0.51 12.68 12.68 78.46
MGYR Magyar Bancorp, Inc. (MHC) NJ 12.90 5,821 75.1 13.24 9.51 13.24 -2.57 32.31 7.50 0.19 0.18 8.20 8.20 100.40
OFED Oconee Federal Financial Corp. (MHC) SC 23.84 5,803 138.4 24.25 18.21 22.84 4.38 18.08 1.45 0.87 0.86 14.70 14.13 83.44
PVBC Provident Bancorp, Inc. (MHC) MA 19.70 9,652 190.2 19.75 12.85 18.75 5.07 51.42 10.06 NA NA 11.41 11.41 79.59
TFSL TFS Financial Corporation (MHC) OH 17.19 283,512 4,873.6 19.89 15.58 18.35 -6.32 3.55 -9.72 0.28 NA 5.84 5.81 45.52
Under Acquisition
EVER EverBank Financial Corp FL 19.44 127,037 2,469.6 19.49 12.32 19.47 -0.15 39.45 -0.05 0.96 NA 13.92 13.53 225.94
GTWN Georgetown Bancorp, Inc. MA 25.65 1,841 47.2 26.00 19.15 25.70 -0.19 32.22 -0.77 0.43 0.46 17.62 17.62 171.09

(1) Average of High/Low or Bid/Ask price per share.

(2) Or since offering price if converted of first listed in the past 52 weeks. Percent change figures are actual year-to-date and are not annualized.
(3) EPS (earnings per share) is based on actual trailing 12 month data and is not shown on a pro forma basis.
(4) Excludes intangibles (such as goodwill, value of core deposits, etc.).
(5) ROA (return on assets) and ROE (return on equity) are indicated ratios based on trailing 12 month common earnings and average common equity and total assets balances.
(6) Annualized based on last regular quarterly cash dividend announcement.
(7) Indicated dividend as a percent of trailing 12 month earnings.
(8) Excluded from averages due to actual or rumored acquisition activities or unusual operating characteristics.
(9) For MHC institutions, market value reflects share price multiplied by public (non-MHC) shares.

Source: SNL Financial, LC. and RP ® Financial, LC. calculations. The information provided in this table has been obtained from sources we believe are reliable, but we cannot guarantee the accuracy or completeness of such
information.

Copyright (c) 2017 by RP ® Financial, LC.

RP ® Financial, LC.

Exhibit 1B
Weekly Thrift Market Line - Part Two
Prices As of February 3, 2017

Key Financial Ratios Asset Quality Ratios Pricing Ratios Dividend Data (6)
Equity/ Tang Equity/ Reported Earnings Core Earnings NPAs/ Rsvs/ Price/ Price/ Price/ Price/ Price/ Div/ Dividend Payout
Assets(1) Assets(1) ROA(5) ROE(5) ROA(5) ROE(5) Assets NPLs Earnings Book Assets Tang Book Core Earnings Share Yield Ratio (7)
(%) (%) (%) (%) (%) (%) (%) (%) (x) (%) (%) (%) (x) ($) (%) (%)
Companies
ANCB Anchor Bancorp WA 14.63 14.63 0.17 1.14 0.17 1.14 NA 39.88 46.21 104.75 15.22 104.75 46.21 NA NA NM
ASBB ASB Bancorp, Inc. NC 11.46 11.46 0.70 5.91 0.57 4.87 1.33 114.00 NM 129.89 14.87 129.89 21.75 NA NA NM
AF Astoria Financial Corporation NY 11.53 10.41 0.49 4.41 0.51 4.56 1.69 37.20 30.29 119.97 13.17 135.85 29.49 0.16 0.85 25.81
BCTF Bancorp 34, Inc. NM 9.44 9.36 0.41 3.85 0.43 4.04 0.37 179.30 37.58 142.59 13.47 143.99 36.29 0.59 0.00 NM
BKMU Bank Mutual Corporation WI 10.89 10.89 0.65 5.85 0.66 5.95 0.54 164.11 26.35 155.42 16.82 155.42 26.35 0.22 2.26 44.59
BYBK Bay Bancorp, Inc. MD 10.76 10.27 0.33 2.50 0.41 3.14 2.19 21.03 48.44 123.62 13.07 129.62 40.38 0.00 0.00 NM
BNCL Beneficial Bancorp, Inc. PA 18.34 15.70 0.44 2.13 0.56 2.73 0.30 286.82 49.71 126.01 NA 151.88 40.30 0.24 1.42 52.94
BHBK Blue Hills Bancorp, Inc. MA 16.84 16.45 0.33 1.78 0.32 1.73 0.35 221.90 55.71 134.87 21.13 138.65 58.17 0.20 1.03 45.71
BOFI BofI Holding, Inc. CA 9.19 9.19 1.70 18.81 1.68 18.63 0.56 89.01 14.80 246.71 22.63 246.71 14.89 NA NA NM
BYFC Broadway Financial Corporation CA 11.50 11.50 1.74 15.02 1.71 14.81 2.91 38.17 6.73 94.73 10.89 94.73 6.83 0.04 0.00 NM
BLMT BSB Bancorp, Inc. MA 7.56 7.56 0.57 7.15 NA NA 0.41 152.33 23.49 162.23 12.27 162.23 NA NA NA NM
CFFN Capitol Federal Financial, Inc. KS 15.03 15.03 0.74 5.95 0.74 5.91 0.60 16.33 24.87 155.44 23.27 155.44 NA 0.34 2.20 141.94
CARV Carver Bancorp, Inc. NY 7.75 7.75 -0.06 -0.80 -0.18 -2.36 2.45 29.93 NM 135.60 1.92 135.60 NM 0.00 0.00 NM
CHFN Charter Financial Corporation GA 14.12 12.14 0.98 5.90 1.07 6.43 0.77 124.65 21.10 126.54 17.79 150.12 16.98 0.24 1.39 26.22
CSBK Clifton Bancorp Inc. NJ 23.08 23.08 0.36 1.40 0.36 1.38 0.38 129.90 NM 122.49 27.08 122.49 81.43 0.24 1.49 120.00
CWAY Coastway Bancorp, Inc. RI 10.95 10.95 0.59 4.83 0.59 4.83 2.20 18.19 21.27 108.26 11.86 108.26 21.27 NA NA NM
DCOM Dime Community Bancshares, Inc. NY 9.54 8.67 1.57 15.89 0.73 7.42 0.24 158.94 10.71 139.66 13.16 154.89 21.85 0.56 2.65 28.43
ESBK Elmira Savings Bank NY 9.83 7.83 0.77 7.81 0.75 7.67 NA NA 16.80 125.47 10.23 171.51 17.28 0.92 4.38 73.60
ENFC Entegra Financial Corp. NC 11.34 11.12 0.54 4.45 0.62 5.05 1.78 53.29 22.65 107.90 11.11 110.43 20.33 NA NA NM
EQFN Equitable Financial Corp. NE 15.92 15.92 0.46 3.00 0.47 3.08 NA NA 32.58 96.82 15.41 96.82 31.72 NA NA NM
ESSA ESSA Bancorp, Inc. PA 9.95 9.11 0.45 4.40 0.44 4.31 1.26 45.86 21.54 103.71 10.00 114.48 22.49 0.36 2.32 50.00
FCAP First Capital, Inc. IN 10.61 9.66 0.89 8.39 0.95 8.90 1.25 65.73 15.61 135.88 NA 150.79 15.68 0.84 2.63 40.98
FBNK First Connecticut Bancorp, Inc. CT 9.03 9.03 0.49 5.34 0.48 5.22 1.01 73.97 22.85 139.62 12.80 139.62 22.93 0.36 1.58 31.00
FDEF First Defiance Financial Corp. OH 11.92 9.59 1.19 9.93 1.20 10.00 1.14 94.92 15.33 149.91 17.74 191.08 15.03 1.00 2.04 28.53
FNWB First Northwest Bancorp WA 18.05 18.05 0.34 1.79 0.32 1.67 0.83 89.70 44.38 103.68 17.57 103.68 46.68 NA NA NM
FBC Flagstar Bancorp, Inc. MI 9.01 9.01 1.30 11.55 1.17 10.40 0.92 123.28 9.95 112.54 10.70 112.54 NA 0.00 0.00 NM
FSBW FS Bancorp, Inc. WA 9.61 9.16 1.32 13.33 1.41 14.26 0.08 NM 10.58 140.15 13.72 147.48 10.10 0.40 1.08 11.40
FSBC FSB Bancorp, Inc. NY 12.11 12.11 0.22 2.52 0.21 2.42 0.01 NM 29.06 86.67 10.09 86.67 NA NA NA NM
HBK Hamilton Bancorp, Inc. MD 11.95 10.32 -0.01 -0.04 0.11 0.78 1.16 34.98 NM 85.52 10.38 101.18 NA NA NA NM
HIFS Hingham Institution for Savings MA 7.86 7.86 1.21 15.48 1.20 15.32 0.28 193.31 17.47 252.05 20.15 252.05 17.64 1.28 0.67 14.33
HMNF HMN Financial, Inc. MN 10.91 10.75 0.89 8.02 0.90 8.10 1.04 162.38 13.44 106.46 11.85 108.25 NA 0.00 0.00 NM
HFBL Home Federal Bancorp, Inc. of Louisiana LA 11.29 11.29 0.92 7.63 0.92 7.63 0.24 331.61 15.08 123.58 13.29 123.58 NA 0.36 1.29 18.92
IROQ IF Bancorp, Inc. IL 14.23 14.23 0.70 4.93 0.64 4.46 0.82 118.60 16.50 94.83 13.48 94.83 NA 0.16 0.81 13.33
ISBC Investors Bancorp, Inc. NJ 13.82 13.49 0.86 5.64 0.86 5.64 0.49 210.34 22.59 143.27 19.31 148.32 22.77 0.32 2.21 43.75
JXSB Jacksonville Bancorp, Inc. IL 14.60 13.89 0.99 6.53 0.92 6.05 1.33 71.34 18.24 120.67 17.46 128.24 19.94 0.40 1.29 23.53
KRNY Kearny Financial Corp. NJ 24.75 22.89 0.39 1.51 0.39 1.52 0.57 102.49 NM 122.01 29.66 134.42 72.38 0.08 0.52 38.10
MLVF Malvern Bancorp, Inc. PA 11.52 11.52 1.59 14.05 1.54 13.61 0.45 148.63 11.03 139.10 15.15 139.10 11.31 0.11 0.00 NM
MELR Melrose Bancorp, Inc. MA 16.23 16.23 0.42 2.26 0.29 1.55 0.00 NM 42.05 103.81 16.84 103.81 61.55 NA NA NM
EBSB Meridian Bancorp, Inc. MA 14.31 14.03 0.80 5.05 0.79 5.02 0.69 134.22 28.92 165.92 22.71 169.74 30.68 0.12 0.64 18.46
CASH Meta Financial Group, Inc. SD 8.36 6.83 1.10 10.80 1.30 12.80 0.02 945.47 27.29 243.15 21.46 453.32 22.26 0.52 0.54 14.61
MSBF MSB Financial Corp. NJ 16.74 16.74 0.18 0.90 0.26 1.34 3.53 26.42 NM 113.21 17.95 113.21 72.50 0.00 0.00 NM
NYCB New York Community Bancorp, Inc. NY 12.31 7.77 -0.05 -0.39 1.16 9.57 0.12 380.89 14.82 119.06 14.90 197.72 14.63 0.68 4.54 67.33
NFBK Northfield Bancorp, Inc. NJ 16.40 15.50 0.66 3.93 0.74 4.41 0.83 77.25 31.81 141.63 22.85 151.40 28.84 0.32 1.77 56.14
NWBI Northwest Bancshares, Inc. PA 11.97 8.76 0.46 3.57 0.88 6.79 1.24 54.76 34.78 148.03 18.01 208.59 19.78 0.64 3.76 124.49
OCFC OceanFirst Financial Corp. NJ 10.05 8.50 0.69 6.95 0.91 9.22 1.25 36.40 29.97 165.00 18.27 226.86 20.14 0.60 2.04 57.14
ORIT Oritani Financial Corp. NJ 14.22 14.22 1.37 9.19 1.07 7.19 0.30 273.73 17.03 146.49 19.66 146.49 18.17 0.70 4.07 118.81
OTTW Ottawa Bancorp, Inc. IL 11.54 11.21 0.59 4.15 0.62 4.37 2.00 42.36 32.94 137.65 15.88 142.26 31.22 0.00 0.00 NM
PBHC Pathfinder Bancorp, Inc. NY 8.27 7.66 0.48 4.88 0.43 4.41 0.89 106.87 18.29 104.37 NA 113.65 20.87 0.20 1.40 25.64
PBBI PB Bancorp, Inc. CT 16.87 15.72 0.18 1.23 0.19 1.27 NA NA NM 93.59 15.79 101.83 81.96 0.12 1.18 95.83
PBSK Poage Bankshares, Inc. KY 15.54 15.09 0.43 2.68 0.50 3.08 1.78 33.13 38.37 106.22 16.50 109.95 33.24 0.24 1.20 53.85
PROV Provident Financial Holdings, Inc. CA 10.72 10.72 0.56 4.88 0.57 4.93 1.09 87.14 21.38 111.06 12.35 111.06 NA 0.52 2.80 58.62
PFS Provident Financial Services, Inc. NJ 13.25 9.16 0.96 7.12 0.98 7.28 0.76 99.95 19.24 140.16 18.47 213.41 19.30 0.76 2.86 52.90
PBIP Prudential Bancorp, Inc. PA 20.38 20.38 0.51 2.36 0.49 2.29 3.39 17.79 43.90 124.89 23.94 124.89 NA 0.12 0.68 30.00
RNDB Randolph Bancorp, Inc. MA 17.54 17.52 NA 2.73 NA 3.81 1.41 47.29 NA 102.26 17.93 102.40 NA NA NA NA
RVSB Riverview Bancorp, Inc. WA 11.28 8.91 0.71 5.94 0.72 6.11 1.48 71.92 25.80 159.26 17.68 207.85 25.27 0.08 1.03 26.67
SVBI Severn Bancorp, Inc. MD 11.16 11.12 2.00 17.36 2.00 17.36 4.11 29.33 6.18 105.30 11.37 105.72 6.18 0.00 0.00 NM
SIFI SI Financial Group, Inc. CT 10.39 9.35 0.42 3.98 NA NA 1.13 72.00 15.63 110.08 11.69 123.16 NA 0.20 1.35 17.89
SBCP Sunshine Bancorp, Inc. FL 12.89 11.32 -0.26 -1.85 -0.29 -2.04 0.41 126.26 NM 129.23 15.55 161.33 56.65 NA NA NM
TBNK Territorial Bancorp Inc. HI 12.36 12.36 0.85 7.00 0.84 6.86 0.38 39.11 18.33 137.29 16.80 137.29 18.60 0.80 2.48 53.41
TSBK Timberland Bancorp, Inc. WA 10.86 10.29 1.19 11.00 1.19 10.94 1.72 93.56 14.07 148.37 16.00 157.29 14.15 0.44 2.07 24.50
TRST TrustCo Bank Corp NY NY 9.05 9.04 0.88 9.92 0.87 9.75 0.88 117.51 18.76 184.84 16.43 185.07 19.10 0.26 3.14 58.99
UCBA United Community Bancorp IN 13.38 12.92 0.68 5.14 0.64 4.84 1.02 84.53 21.06 102.67 13.45 106.98 NA 0.24 1.42 30.00
UCFC United Community Financial Corp. OH 11.87 11.81 0.89 7.33 0.86 7.09 1.96 45.00 21.88 162.97 18.56 164.00 21.72 0.12 1.37 28.82
UBNK United Financial Bancorp, Inc. CT 10.03 8.32 0.72 7.12 0.82 8.08 0.84 78.87 17.95 137.65 13.68 168.84 16.52 0.48 2.70 48.48
WSBF Waterstone Financial, Inc. WI 22.82 22.79 1.26 5.59 1.26 5.59 0.96 90.49 22.59 131.30 29.96 131.50 22.59 0.48 2.62 40.74
WAYN Wayne Savings Bancshares, Inc. OH 9.29 8.94 0.57 6.20 0.57 6.20 0.96 68.18 19.95 123.29 11.45 128.63 19.95 0.36 1.96 39.13
WCFB WCF Bancorp, Inc. IA 23.85 23.80 0.19 1.44 0.13 0.98 NA 105.80 NM 89.25 21.28 89.46 148.29 0.20 1.94 147.33
WEBK Wellesley Bancorp, Inc. MA 8.31 8.31 0.50 5.81 0.50 5.79 NA NA 22.23 124.06 9.85 124.06 NA 0.16 0.58 12.10
WBB Westbury Bancorp, Inc. WI 11.33 11.33 0.51 4.49 0.46 4.02 0.52 146.36 26.00 114.93 12.28 114.93 29.34 NA NA NM
WNEB Western New England Bancorp, Inc. MA 10.54 10.54 0.33 3.11 0.39 3.71 0.59 122.46 39.79 121.70 13.98 131.75 28.59 0.12 1.26 50.00
WBKC Wolverine Bancorp, Inc. MI 17.20 17.20 1.13 7.00 1.13 7.00 1.92 132.93 15.54 110.95 19.08 110.95 15.54 1.60 4.81 74.77
RP ® Financial, LC.

Exhibit 1B
Weekly Thrift Market Line - Part Two
Prices As of February 3, 2017
Key Financial Ratios Asset Quality Ratios Pricing Ratios Dividend Data (6)
Equity/ Tang Equity/ Reported Earnings Core Earnings NPAs/ Rsvs/ Price/ Price/ Price/ Price/ Price/ Div/ Dividend Payout
Assets(1) Assets(1) ROA(5) ROE(5) ROA(5) ROE(5) Assets NPLs Earnings Book Assets Tang Book Core Earnings Share Yield Ratio (7)
(%) (%) (%) (%) (%) (%) (%) (%) (x) (%) (%) (%) (x) ($) (%) (%)
Companies
WSFS WSFS Financial Corporation DE 10.44 8.05 1.04 9.85 1.18 11.12 0.64 100.10 21.75 204.60 20.79 270.07 20.47 0.28 0.63 12.62
WVFC WVS Financial Corp. PA 9.85 9.85 0.42 4.32 0.42 4.26 0.08 149.21 18.35 87.40 8.56 87.40 NA 0.24 1.66 27.85
MHCs
GCBC Greene County Bancorp, Inc. (MHC) NY 8.56 8.56 1.12 12.84 1.12 12.84 0.61 193.63 19.62 248.96 20.94 248.96 NA 0.38 1.66 32.26
HONE HarborOne Bancorp, Inc. (MHC) MA 13.97 13.47 0.20 1.99 0.34 3.29 2.17 32.29 NA 182.65 24.57 190.51 NA NA NA NA
KFFB Kentucky First Federal Bancorp (MHC) KY 22.87 18.88 0.43 1.86 0.43 1.86 NA NA 59.69 120.05 27.45 152.92 59.69 0.40 4.19 250.00
LSBK Lake Shore Bancorp, Inc. (MHC) NY 16.16 16.16 0.88 5.56 0.64 4.03 1.38 36.15 27.33 124.99 NA 124.99 40.96 0.28 1.77 48.28
MGYR Magyar Bancorp, Inc. (MHC) NJ 8.17 8.17 0.19 2.28 0.18 2.19 3.69 32.31 67.89 156.73 12.78 156.73 NA NA NA NM
OFED Oconee Federal Financial Corp. (MHC) SC 17.59 17.03 1.05 6.21 1.04 6.16 1.15 19.69 27.40 162.17 28.53 168.72 27.63 0.40 1.68 45.98
PVBC Provident Bancorp, Inc. (MHC) MA 14.10 14.10 0.82 5.71 0.78 5.42 0.65 168.33 28.55 174.22 23.90 174.22 30.72 NA NA NM
TFSL TFS Financial Corporation (MHC) OH 12.87 12.80 0.65 4.73 NA NA 1.58 31.39 59.28 292.65 36.95 294.37 NA 0.50 2.91 155.17
Under Acquisition
EVER EverBank Financial Corp FL 6.60 6.45 0.49 7.07 NA NA 0.74 45.16 18.34 132.32 8.92 135.81 NA 0.24 1.23 22.64
GTWN Georgetown Bancorp, Inc. MA 10.30 10.30 0.25 2.39 0.27 2.55 NA NA NM 146.96 14.83 146.96 NA 0.20 0.78 181.82

(1) Average of High/Low or Bid/Ask price per share.

(2) Or since offering price if converted of first listed in the past 52 weeks. Percent change figures are actual year-to-date and are not annualized.
(3) EPS (earnings per share) is based on actual trailing 12 month data and is not shown on a pro forma basis.
(4) Exludes intangibles (such as goodwill, value of core deposits, etc.).
(5) ROA (return on assets) and ROE (return on equity) are indicated ratios based on trailing 12 month common earnings and average common equity and total assets balances.
(6) Annualized based on last regular quarterly cash dividend announcement.
(7) Indicated dividend as a percent of trailing 12 month earnings.
(8) Excluded from averages due to actual or rumored acquisition activities or unusual operating characteristics.
(9) For MHC institutions, market value reflects share price multiplied by public (non-MHC) shares.

Source: SNL Financial, LC. and RP ® Financial, LC. calculations. The information provided in this table has been obtained from sources we believe are reliable, but we cannot guarantee the accuracy or completeness of such
information.

Copyright (c) 2017 by RP ® Financial, LC.

 EXHIBIT 2

Pro Forma Analysis Sheet

Fully Converted Basis
 EXHIBIT 2
PRO FORMA ANALYSIS SHEET-FULLY CONVERTED BASIS
COMMUNITY FIRST BANCSHARES, INC.
Prices as of February 3, 2017

Subject at Peer Group Georgia Companies All Public Thrifts

Valuation Pricing Multiples Symbol Midpoint Mean Median Mean Median Mean Median
Price-earnings multiple = P/E 58.83x 20.78x 18.24x 21.10x 21.10x 20.25x 19.95x
Price-core earnings multiple = P/CE 50.69x 25.11x 25.83x 16.98x 16.98x 20.54x 20.23x
Price-book ratio = P/B 60.64% 107.88% 105.48% 126.54% 126.54% 131.10% 124.89%
Price-tangible book ratio = P/TB 60.64% 109.44% 108.46% 150.12% 150.12% 144.83% 134.42%
Price-assets ratio = P/A 19.89% 16.93% 16.67% 17.79% 17.79% 16.01% 15.67%

% of % of Offering
Valuation Parameters Offering + Foundation
Pre-Conversion Earnings (Y) $ 1,263,000 (12 Mths 12/16) ESOP Stock as % of Offering (E) 8.0000% 8.0000%
Pre-Conversion Core Earnings $ 1,418,620 (12 Mths 12/16) Cost of ESOP Borrowings (S) 0.00%
Pre-Conversion Book Value (B) $ 45,461,000 (12/16) ESOP Amortization (T) 25.00 years
Intangibles $ 0 (12/16) RRP Stock as % of Offering (M) 4.0000% 4.0000%
Pre-Conv. Tang. Book Value (B) $ 45,461,000 (12/16) Stock Programs Vesting (N) 5.00 years
Pre-Conversion Assets (A) $237,999,000 (12/16) Fixed Expenses $1,105,000
Reinv. Rate: (5 Yr Treas)@12/2016 1.140% Subscr/Dir Comm Exp (Mdpnt) $ 499,400 1.00%
Tax rate (TAX) 38.00% Total Expenses (Midpoint) $1,604,400
A-T Reinvestment Rate(R) 0.707% Syndicate Expenses (Mdpnt) $ 0 0.00%
Est. Conversion Expenses (1)(X) 2.81% Syndicate Amount $ 0
Insider Purchases ($) $ 2,500,000 Percent Sold (PCT) 100.00%
Price/Share $ 10.00 MHC Assets $ 100,000
Foundation Cash Contrib. (FC) $ 0 Options as % of Offering (O1) 10.0000% 10.00%
Found. Stk Contrib (% of Total Shrs (FS) 0.0000% Estimated Option Value (O2) 23.40%
Foundation Tax Benefit (Z) $ 0 Option Vesting Period (O3) 5.00 years
Foundation Amount (Mdpt.) $ 0 % of Options taxable (O4) 25.00%

Calculation of Pro Forma Value After Conversion

1. V= P/E * (Y) V= $57,000,000
1 - P/E * PCT * ((1-X-E-M-FC-FS)*R - (1-TAX)*E/T - (1-TAX)*M/N)-(1-(TAX*O4))*(O1*O2)/O3)
1. V= P/E * (Y) V= $57,000,000
1 - P/Core E * PCT * ((1-X-E-M-FC-FS)*R - (1-TAX)*E/T - (1-TAX)*M/N)-(1-(TAX*O4))*(O1*O2)/O3)
2. V= P/B * (B+Z) V= $57,000,000
1 - P/B * PCT * (1-X-E-M-FC-FS)
2. V= P/TB * (TB+Z) V= $57,000,000
1 - P/TB * PCT * (1-X-E-M-FC-FS)
3. V= P/A * (A+Z+PA) V= $57,000,000
1 - P/A * PCT * (1-X-E-M-FC-FS)

Market Market Value

Shares Value of of Stock
Shares Issued Sold to Foundation Total Shares Price Per Stock Sold Issued in
Valuation Conclusion to MHC Public Shares Issued Share in Offering Reorganization
Supermaximum 0 7,538,250 0 7,538,250 $ 10.00 $75,382,500 $ 75,382,500
Maximum 0 6,555,000 0 6,555,000 10.00 65,550,000 $ 65,550,000
Midpoint 0 5,700,000 0 5,700,000 10.00 57,000,000 $ 57,000,000
Minimum 0 4,845,000 0 4,845,000 10.00 48,450,000 $ 48,450,000

Shares Issued Shares Sold Foundation Total Shares

Valuation Conclusion to MHC to Public Shares Issued
Supermaximum 0.000% 100.000% 0.000% 100.000%
Maximum 0.000% 100.000% 0.000% 100.000%
Midpoint 0.000% 100.000% 0.000% 100.000%
Minimum 0.000% 100.000% 0.000% 100.000%

(1) Estimated offering expenses at midpoint of the offering.

 EXHIBIT 3

Pro Forma Effect of Conversion Proceeds

Fully Converted Basis
 Exhibit 3
PRO FORMA EFFECT OF CONVERSION PROCEEDS
COMMUNITY FIRST BANCSHARES, INC.
At the Minimum of the Range

1. Market Value of Shares Sold In Offering: $ 48,450,000

Market Value of Shares Issued to Foundation: 0
Total Market Value of Company: $ 48,450,000
2. Offering Proceeds of Shares Sold In Offering $ 48,450,000
Less: Estimated Offering Expenses 1,525,740
Net Conversion Proceeds $ 46,924,260
3. Estimated Additional Equity and Income from Offering Proceeds
Net Conversion Proceeds $ 46,924,260
Less: Cash Contribution to Foundation 0
Less: Non-Cash ESOP Stock Purchases (1) (3,876,000)
Less: Non-Cash MRP Stock Purchases (2) (1,938,000)
Net Conversion Proceeds Reinvested $ 41,110,260
Estimated After-Tax Reinvestment Rate 0.71%
Earnings from Reinvestment of Proceeds $ 290,567
Less: Estimated cost of ESOP borrowings(1) 0
Less: Amortization of ESOP borrowings(1) (96,125)
Less: Stock Programs Vesting (2) (240,312)
Less: Option Plan Vesting (3) (205,205)
Net Earnings Increase ($ 251,075)

Before Net Earnings After

Conversion Increase Conversion
4. Pro Forma Earnings
12 Months ended December 31, 2016 (reported) $ 1,263,000 ($ 251,075) $ 1,011,925
12 Months ended December 31, 2016 (core) $ 1,418,620 ($ 251,075) $ 1,167,545

Before Net Equity Tax Benefit After

Conversion Proceeds of Foundation Conversion
5. Pro Forma Net Worth
December 31, 2016 $ 45,461,000 $41,110,260 $ 0 $ 86,571,260
December 31, 2016 (Tangible) $ 45,461,000 $41,110,260 $ 0 $ 86,571,260

Before Net Cash Tax Benefit After

Conversion Proceeds of Foundation Conversion
6. Pro Forma Assets
December 31, 2016 $237,999,000 $41,110,260 $ 0 $ 279,109,260

(1) ESOP stock (3.92% of total shares issued in conversion) amortized over 25 years, amortization expense is tax effected at 38%.
(2) Restricted stock program (1.96% of total shares issued in conversion) amortized over 5 years, amortization expense is tax effected at 38%.
(3) Option valuation based on Black-Scholes model, 5 year vesting, and assuming 25% taxable.
 Exhibit 3
PRO FORMA EFFECT OF CONVERSION PROCEEDS
COMMUNITY FIRST BANCSHARES, INC.
At the Midpoint of the Range

1. Market Value of Shares Sold In Offering: $ 57,000,000

Market Value of Shares Issued to Foundation: 0
Total Market Value of Company: $ 57,000,000
2. Offering Proceeds of Shares Sold In Offering $ 57,000,000
Less: Estimated Offering Expenses 1,604,400
Net Conversion Proceeds $ 55,395,600
3. Estimated Additional Equity and Income from Offering Proceeds
Net Conversion Proceeds $ 55,395,600
Less: Cash Contribution to Foundation 0
Less: Non-Cash ESOP Stock Purchases (1) (4,560,000)
Less: Non-Cash MRP Stock Purchases (2) (2,280,000)
Net Conversion Proceeds Reinvested $ 48,555,600
Estimated After-Tax Reinvestment Rate 0.71%
Earnings from Reinvestment of Proceeds $ 343,191
Less: Estimated cost of ESOP borrowings(1) 0
Less: Amortization of ESOP borrowings(1) (113,088)
Less: Stock Programs Vesting (2) (282,720)
Less: Option Plan Vesting (3) (241,418)
Net Earnings Increase ($ 294,035)

Net
Before Earnings After
Conversion Increase Conversion
4. Pro Forma Earnings
12 Months ended December 31, 2016 (reported) $ 1,263,000 ($ 294,035) $ 968,965
12 Months ended December 31, 2016 (core) $ 1,418,620 ($ 294,035) $ 1,124,585

Before Net Capital Tax Benefit After

Conversion Proceeds of Foundation Conversion
5. Pro Forma Net Worth
December 31, 2016 $ 45,461,000 $48,555,600 $ 0 $ 94,016,600
December 31, 2016 (Tangible) $ 45,461,000 $48,555,600 $ 0 $ 94,016,600

Before Net Cash Tax Benefit After

Conversion Proceeds of Foundation Conversion
6. Pro Forma Assets
December 31, 2016 $237,999,000 $48,555,600 $ 0 $ 286,554,600

(1) ESOP stock (3.92% of total shares issued in conversion) amortized over 25 years, amortization expense is tax effected at 38%.
(2) Restricted stock program (1.96% of total shares issued in conversion) amortized over 5 years, amortization expense is tax effected at 38%.
(3) Option valuation based on Black-Scholes model, 5 year vesting, and assuming 25% taxable.
Exchange Ratio
 Exhibit 3
PRO FORMA EFFECT OF CONVERSION PROCEEDS
COMMUNITY FIRST BANCSHARES, INC.
At the Maximum of the Range

1. Market Value of Shares Sold In Offering: $ 65,550,000

Market Value of Shares Issued to Foundation: 0
Total Market Value of Company: $ 65,550,000
2. Offering Proceeds of Shares Sold In Offering $ 65,550,000
Less: Estimated Offering Expenses 1,683,060
Net Conversion Proceeds $ 63,866,940
3. Estimated Additional Equity and Income from Offering Proceeds
Net Conversion Proceeds $ 63,866,940
Less: Cash Contribution to Foundation 0
Less: Non-Cash ESOP Stock Purchases (1) (5,244,000)
Less: Non-Cash MRP Stock Purchases (2) (2,622,000)
Net Conversion Proceeds Reinvested $ 56,000,940
Estimated After-Tax Reinvestment Rate 0.71%
Earnings from Reinvestment of Proceeds $ 395,815
Less: Estimated cost of ESOP borrowings(1) 0
Less: Amortization of ESOP borrowings(1) (130,051)
Less: Stock Programs Vesting (2) (325,128)
Less: Option Plan Vesting (3) (277,630)
Net Earnings Increase ($ 336,995)

Net
Before Earnings After
Conversion Increase Conversion
4. Pro Forma Earnings
12 Months ended December 31, 2016 (reported) $ 1,263,000 ($ 336,995) $ 926,005
12 Months ended December 31, 2016 (core) $ 1,418,620 ($ 336,995) $ 1,081,625

Before Net Capital Tax Benefit After

Conversion Proceeds of Foundation Conversion
5. Pro Forma Net Worth
December 31, 2016 $ 45,461,000 $56,000,940 $ 0 $ 101,461,940
December 31, 2016 (Tangible) $ 45,461,000 $56,000,940 $ 0 $ 101,461,940

Before Net Cash Tax Benefit After

Conversion Proceeds of Foundation Conversion
6. Pro Forma Assets
December 31, 2016 $237,999,000 $56,000,940 $ 0 $ 293,999,940

(1) ESOP stock (3.92% of total shares issued in conversion) amortized over 25 years, amortization expense is tax effected at 38%.
(2) Restricted stock program (1.96% of total shares issued in conversion) amortized over 5 years, amortization expense is tax effected at 38%.
(3) Option valuation based on Black-Scholes model, 5 year vesting, and assuming 25% taxable.
Exchange Ratio
 Exhibit 3
PRO FORMA EFFECT OF CONVERSION PROCEEDS
COMMUNITY FIRST BANCSHARES, INC.
At the Supermaximum Value

1. Market Value of Shares Sold In Offering: $ 75,382,500

Market Value of Shares Issued to Foundation: 0
Total Market Value of Company: $ 75,382,500
2. Offering Proceeds of Shares Sold In Offering $ 75,382,500
Less: Estimated Offering Expenses 1,773,519
Net Conversion Proceeds $ 73,608,981
3. Estimated Additional Equity and Income from Offering Proceeds
Net Conversion Proceeds $ 73,608,981
Less: Cash Contribution to Foundation 0
Less: Non-Cash ESOP Stock Purchases (1) (6,030,600)
Less: Non-Cash MRP Stock Purchases (2) (3,015,300)
Net Conversion Proceeds Reinvested $ 64,563,081
Estimated After-Tax Reinvestment Rate 0.71%
Earnings from Reinvestment of Proceeds $ 456,332
Less: Estimated cost of ESOP borrowings(1) 0
Less: Amortization of ESOP borrowings(1) (149,559)
Less: Stock Programs Vesting (2) (373,897)
Less: Option Plan Vesting (3) (319,275)
Net Earnings Increase ($ 386,399)

Net
Before Earnings After
Conversion Increase Conversion
4. Pro Forma Earnings
12 Months ended December 31, 2016 (reported) $ 1,263,000 ($ 386,399) $ 876,601
12 Months ended December 31, 2016 (core) $ 1,418,620 ($ 386,399) $ 1,032,221

Before Net Capital Tax Benefit After

Conversion Proceeds of Foundation Conversion
5. Pro Forma Net Worth
December 31, 2016 $ 45,461,000 $64,563,081 $ 0 $ 110,024,081
December 31, 2016 (Tangible) $ 45,461,000 $64,563,081 $ 0 $ 110,024,081

Before Net Cash Tax Benefit After

Conversion Proceeds of Foundation Conversion
6. Pro Forma Assets
December 31, 2016 $237,999,000 $64,563,081 $ 0 $ 302,562,081

(1) ESOP stock (3.92% of total shares issued in conversion) amortized over 25 years, amortization expense is tax effected at 38%.
(2) Restricted stock program (1.96% of total shares issued in conversion) amortized over 5 years, amortization expense is tax effected at 38%.
(3) Option valuation based on Black-Scholes model, 5 year vesting, and assuming 25% taxable.
 EXHIBIT 4

Pro Forma Analysis Sheet

Minority Stock Offering
 EXHIBIT 4
PRO FORMA ANALYSIS SHEET-MHC BASIS
COMMUNITY FIRST BANCSHARES, INC.
Prices as of February 3, 2017

Subject at Peer Group Georgia Companies All Public Thrifts

Final Valuation Pricing Multiples Symbol Midpoint Mean Median Mean Median Mean Median
Price-earnings multiple = P/E 51.71x 20.78x 18.24x 21.10x 21.10x 20.25x 19.95x
Price-core earnings multiple = P/CE 45.31x 25.11x 25.83x 16.98x 16.98x 20.54x 20.23x
Price-book ratio = P/B 85.19% 107.88% 105.48% 126.54% 126.54% 131.10% 124.89%
Price-tangible book ratio = P/TB 85.19% 109.44% 108.46% 150.12% 150.12% 144.83% 134.42%
Price-assets ratio = P/A 21.97% 16.93% 16.67% 17.79% 17.79% 16.01% 15.67%

As a % of Offering
Valuation Parameters (2) + Foundation
Pre-Conversion Earnings (Y) $ 1,263,000 (12Mths 12/16) ESOP Stock Purchases (E) 8.52% 8.52%
Pre-Conversion Core Earnings $ 1,418,620 (12Mths 12/16) Cost of ESOP Borrowings (S) 0.00%
Pre-Conversion Book Value (B) $ 45,461,000 ESOP Amortization (T) 25.00 years
Pre-Conv. Tang. Book Value (B) $ 45,461,000 Stock Programs Amount (M) 4.261% 4.26%
Pre-Conversion Assets (A) $237,999,000 Stock Programs Vesting (N) 5.00 years
Reinvestment Rate: 1.14% Fixed Expenses $1,105,000
Tax rate (TAX) 38.00% Variable Expenses 1.00%
A-T Reinvestment Rate(R) 0.71% Percent Sold (PCT) 46.0000%
Est. Conversion Expenses (1)(X) 5.03% MHC Assets $ 0
Insider Purchases $ 2,500,000 Options as % of Offering (O1) 10.65% 10.65%
Price/Share $ 10.00 Estimated Option Value (O2) 23.40%
Foundation Cash Contrib. (FC) $ 0 Option Vesting Period (O3) 5.00 years
Foundation Stock Contrib. (FS) 0.00% % of Options taxable (O4) 25.00%
Foundation Tax Benefit (Z) $ 0

Calculation of Pro Forma Value After Conversion

1. V= P/E * (Y) V= $57,000,000
1 - P/E * PCT * ((1-X-E-M-C-D)*R - (1-TAX)*E/T - (1-TAX)*M/N)
1. V= P/E * (Y) V= $57,000,000
1 - P/Core E * PCT * ((1-X-E-M-FC-FS)*R - (1-TAX)*E/T - (1-TAX)*M/N)-(1-(TAX*O4))*(O1*O2)/O3)
2. V= P/B * B V= $57,000,000
1 - P/B * PCT * (1-X-E-M-FC-FS)
2. V= P/TB * TB V= $57,000,000
1 - P/B * PCT * (1-X-E-M-FC-FS)
3. V= P/A * (A+Z) V= $57,000,000
1 - P/A * PCT * (1-X-E-M-FC-FS)

Mark. Val of
Stock Sold in
Shares Issued Shares Sold Foundation Total Shares Price Per Offering+Issued Full Value of
Valuation Conclusion to MHC to Public Shares Issued Share to Foundation Total Shares
Supermaximum 4,070,655 3,467,595 0 7,538,250 $ 10.00 $ 34,675,950 $75,382,500
Maximum 3,539,700 3,015,300 0 6,555,000 10.00 30,153,000 $65,550,000
Midpoint 3,078,000 2,622,000 0 5,700,000 10.00 26,220,000 $57,000,000
Minimum 2,616,300 2,228,700 0 4,845,000 10.00 22,287,000 $48,450,000

Shares Issued Shares Sold Foundation Total Shares

Valuation Conclusion to MHC to Public Shares Issued
Supermaximum 54.000% 46.000% 0.000% 100.000%
Maximum 54.000% 46.000% 0.000% 100.000%
Midpoint 54.000% 46.000% 0.000% 100.000%
Minimum 54.000% 46.000% 0.000% 100.000%

(1) Estimated offering expenses at midpoint of the offering.

(2) Reflects reduction in earnings, equity and assets due to $100,000 contributed to the MHC.
 EXHIBIT 5

Pro Forma Effect of Conversion Proceeds

Minority Stock Offering
 Exhibit 5
PRO FORMA EFFECT OF CONVERSION PROCEEDS
COMMUNITY FIRST BANCSHARES, INC.
At the Minimum of the Range

1. Market Value of Shares Sold In Offering: $ 22,287,000

Market Value of Shares Issued to Foundation: 0
Market Value of Shares Issued to MHC: 26,163,000
Total Market Value of Company: $ 48,450,000
2. Offering Proceeds of Shares Sold In Offering $ 22,287,000
Less: Estimated Offering Expenses 1,283,871
Net Conversion Proceeds $ 21,003,129
3. Estimated Additional Equity and Income from Offering Proceeds
Net Conversion Proceeds $ 21,003,129
Less: Cash Contribution to Foundation 0
Less: Cash for Capitalization of the MHC (100,000)
Less: Non-Cash ESOP/MRP Purchases (1) (2,848,860)
Net Proceeds Reinvested $ 18,054,269
Estimated net incremental rate of return 0.71%
Earnings Increase $ 127,608
Less: Estimated cost of ESOP borrowings 0
Less: Amortization of ESOP borrowings(2) (47,101)
Less: Stock Programs Vesting (3) (117,753)
Less: Option Plan Vesting (4) (100,551)
Net Earnings Increase ($ 137,797)

Before Net Earnings After

Conversion Increase Conversion
4. Pro Forma Earnings
12 Months ended December 31, 2016 (reported) $ 1,263,000 ($ 137,797) $ 1,125,203
12 Months ended December 31, 2016 (core) $ 1,418,620 ($ 137,797) $ 1,280,823

Before Net Cash Tax Benefit After

Conversion Proceeds of Foundation Conversion
5. Pro Forma Net Worth
December 31, 2016 $ 45,461,000 $18,054,269 $ 0 $ 63,515,269
December 31, 2016 (Tangible) $ 45,461,000 $18,054,269 $ 0 $ 63,515,269

Before Net Cash Tax Benefit After

Conversion Proceeds of Foundation Conversion
6. Pro Forma Assets
December 31, 2016 $237,999,000 $18,054,269 $ 0 $256,053,269

(1) Includes ESOP purchases equal to 3.92% of total shares issued in the conversion, and stock program purchases equal to 1.96% of total shares issued in the conversion.
(2) ESOP stock amortized over 25 years, and amortization expense is tax effected at 38%.
(3) Stock programs amortized over 5 years, and amortization expense is tax effected at 38%.
(4) Option valuation based on Black-Scholes model, 10 year vesting, and assuming 25% taxable.
 Exhibit 5
PRO FORMA EFFECT OF CONVERSION PROCEEDS
COMMUNITY FIRST BANCSHARES, INC.
At the Midpoint of the Range

1. Market Value of Shares Sold In Offering: $ 26,220,000

Market Value of Shares Issued to Foundation: 0
Market Value of Shares Issued to MHC: 30,780,000
Total Market Value of Company: $ 57,000,000
2. Offering Proceeds of Shares Sold In Offering $ 26,220,000
Less: Estimated Offering Expenses 1,319,856
Net Conversion Proceeds $ 24,900,144
3. Estimated Additional Equity and Income from Offering Proceeds
Net Conversion Proceeds $ 24,900,144
Less: Cash Contribution to Foundation 0
Less: Cash for Capitalization of the MHC (100,000)
Less: Non-Cash ESOP/MRP Purchases (1) (3,351,600)
Net Proceeds Reinvested $ 21,448,544
Estimated net incremental rate of return 0.71%
Earnings Increase $ 151,598
Less: Estimated cost of ESOP borrowings 0
Less: Amortization of ESOP borrowings(2) (55,413)
Less: Stock Programs Vesting (3) (138,533)
Less: Option Plan Vesting (4) (118,295)
Net Earnings Increase ($ 160,642)

Net
Before Earnings After
Conversion Increase Conversion
4. Pro Forma Earnings
12 Months ended December 31, 2016 (reported) $ 1,263,000 ($ 160,642) $ 1,102,358
12 Months ended December 31, 2016 (core) $ 1,418,620 ($ 160,642) $ 1,257,978

Before Net Cash Tax Benefit After

Conversion Proceeds of Foundation Conversion
5. Pro Forma Net Worth
December 31, 2016 $ 45,461,000 $21,448,544 $ 0 $ 66,909,544
December 31, 2016 (Tangible) $ 45,461,000 $21,448,544 $ 0 $ 66,909,544

Before Net Cash Tax Benefit After

Conversion Proceeds of Foundation Conversion
6. Pro Forma Assets
December 31, 2016 $237,999,000 $21,448,544 $ 0 $259,447,544

(1) Includes ESOP purchases equal to 3.92% of total shares issued in the conversion, and stock program purchases equal to 1.96% of total shares issued in the conversion.
(2) ESOP stock amortized over 25 years, and amortization expense is tax effected at 38%.
(3) Stock programs amortized over 5 years, and amortization expense is tax effected at 38%.
(4) Option valuation based on Black-Scholes model, 10 year vesting, and assuming 25% taxable.
 Exhibit 5
PRO FORMA EFFECT OF CONVERSION PROCEEDS
COMMUNITY FIRST BANCSHARES, INC.
At the Maximum of the Range

1. Market Value of Shares Sold In Offering: $ 30,153,000

Market Value of Shares Issued to Foundation: 0
Market Value of Shares Issued to MHC: 35,397,000
Total Market Value of Company: $ 65,550,000
2. Offering Proceeds of Shares Sold In Offering $ 30,153,000
Less: Estimated Offering Expenses 1,355,841
Net Conversion Proceeds $ 28,797,159
3. Estimated Additional Equity and Income from Offering Proceeds
Net Conversion Proceeds $ 28,797,159
Less: Cash Contribution to Foundation 0
Less: Cash for Capitalization of the MHC (100,000)
Less: Non-Cash ESOP/MRP Purchases (1) (3,854,340)
Net Proceeds Reinvested $ 24,842,819
Estimated net incremental rate of return 0.71%
Earnings Increase $ 175,589
Less: Estimated cost of ESOP borrowings 0
Less: Amortization of ESOP borrowings(2) (63,725)
Less: Stock Programs Vesting (3) (159,313)
Less: Option Plan Vesting (4) (136,039)
Net Earnings Increase ($ 183,488)

Before Net Earnings After

Conversion Increase Conversion
4. Pro Forma Earnings
12 Months ended December 31, 2016 (reported) $ 1,263,000 ($ 183,488) $ 1,079,512
12 Months ended December 31, 2016 (core) $ 1,418,620 ($ 183,488) $ 1,235,132

Before Net Cash Tax Benefit After

Conversion Proceeds of Foundation Conversion
5. Pro Forma Net Worth
December 31, 2016 $ 45,461,000 $24,842,819 $ 0 $ 70,303,819
December 31, 2016 (Tangible) $ 45,461,000 $24,842,819 $ 0 $ 70,303,819

Before Net Cash Tax Benefit After

Conversion Proceeds of Foundation Conversion
6. Pro Forma Assets
December 31, 2016 $237,999,000 $24,842,819 $ 0 $262,841,819

(1) Includes ESOP purchases equal to 3.92% of total shares issued in the conversion, and stock program purchases equal to 1.96% of total shares issued in the conversion.
(2) ESOP stock amortized over 25 years, and amortization expense is tax effected at 38%.
(3) Stock programs amortized over 5 years, and amortization expense is tax effected at 38%.
(4) Option valuation based on Black-Scholes model, 10 year vesting, and assuming 25% taxable.
 Exhibit 5
PRO FORMA EFFECT OF CONVERSION PROCEEDS
COMMUNITY FIRST BANCSHARES, INC.
At the Supermaximum Value

1. Market Value of Shares Sold In Offering: $ 34,675,955

Market Value of Shares Issued to Foundation: 0
Market Value of Shares Issued to MHC: 40,706,555
Total Market Value of Company: $ 75,382,510
2. Offering Proceeds of Shares Sold In Offering $ 34,675,955
Less: Estimated Offering Expenses 1,397,226
Net Conversion Proceeds $ 33,278,729
3. Estimated Additional Equity and Income from Offering Proceeds
Net Conversion Proceeds $ 33,278,729
Less: Cash Contribution to Foundation 0
Less: Cash for Capitalization of the MHC (100,000)
Less: Non-Cash ESOP/MRP Purchases (1) (4,432,492)
Net Proceeds Reinvested $ 28,746,238
Estimated net incremental rate of return 0.71%
Earnings Increase $ 203,178
Less: Estimated cost of ESOP borrowings 0
Less: Amortization of ESOP borrowings(2) (73,284)
Less: Stock Programs Vesting (3) (183,210)
Less: Option Plan Vesting (4) (156,445)
Net Earnings Increase ($ 209,760)

Before Net Earnings After

Conversion Increase Conversion
4. Pro Forma Earnings
12 Months ended December 31, 2016 (reported) $ 1,263,000 ($ 209,760) $ 1,053,240
12 Months ended December 31, 2016 (core) $ 1,418,620 ($ 209,760) $ 1,208,860

Before Net Cash Tax Benefit After

Conversion Proceeds of Foundation Conversion
5. Pro Forma Net Worth
December 31, 2016 $ 45,461,000 $28,746,238 $ 0 $ 74,207,238
December 31, 2016 (Tangible) $ 45,461,000 $28,746,238 $ 0 $ 74,207,238

Before Net Cash Tax Benefit After

Conversion Proceeds of Foundation Conversion
6. Pro Forma Assets
December 31, 2016 $237,999,000 $28,746,238 $ 0 $266,745,238

(1) Includes ESOP purchases equal to 3.92% of total shares issued in the conversion, and stock program purchases equal to 1.96% of total shares issued in the conversion.
(2) ESOP stock amortized over 25 years, and amortization expense is tax effected at 38%.
(3) Stock programs amortized over 5 years, and amortization expense is tax effected at 38%.
(4) Option valuation based on Black-Scholes model, 10 year vesting, and assuming 25% taxable.
 EXHIBIT 6

Firm Qualifications Statement

 FIRM QUALIFICATION STATEMENT

RP ® Financial (“RP ® ) provides financial and management consulting, merger advisory and valuation services to the financial services industry nationwide. We offer a broad array of
services, high quality and prompt service, hands-on involvement by principals and senior staff, careful structuring of strategic initiatives and sophisticated valuation and other analyses
consistent with industry practices and regulatory requirements. Our staff maintains extensive background in financial and management consulting, valuation and investment banking. Our
clients include commercial banks, thrifts, credit unions, mortgage companies, insurance companies and other financial services companies.

STRATEGIC PLANNING SERVICES

RP ® ’s strategic planning services are designed to provide effective feasible plans with quantifiable results. We analyze strategic options to enhance shareholder value, achieve regulatory
approval or realize other objectives. Such services involve conducting situation analyses; establishing mission/vision statements, developing strategic goals and objectives; and identifying
strategies to enhance franchise and/or market value, capital management, earnings enhancement, operational matters and organizational issues. Strategic recommendations typically focus
on: capital formation and management, asset/liability targets, profitability, return on equity and stock pricing. Our proprietary financial simulation models provide the basis for evaluating
the impact of various strategies and assessing their feasibility and compatibility with regulations.

MERGER ADVISORY SERVICES

RP ® ’s merger advisory services include targeting potential buyers and sellers, assessing acquisition merit, conducting due diligence, negotiating and structuring merger transactions,
preparing merger business plans and financial simulations, rendering fairness opinions, preparing mark-to-market analyses, valuing intangible assets and supporting the implementation of
post-acquisition strategies. Our merger advisory services involve transactions of financially healthy companies and failed bank deals. RP ® is also expert in de novo charters and shelf
charters. Through financial simulations, comprehensive data bases, valuation proficiency and regulatory familiarity, RP ® ’s merger advisory services center on enhancing shareholder
returns.

VALUATION SERVICES

RP ® ’s extensive valuation practice includes bank and thrift mergers, thrift mutual-to-stock conversions, goodwill impairment, insurance company demutualizations, ESOPs, subsidiary
companies, merger accounting and other purposes. We are highly experienced in performing appraisals which conform to regulatory guidelines and appraisal standards. RP ® is the nation’s
leading valuation firm for thrift mutual-to-stock conversions, with appraised values ranging up to $4 billion.

OTHER CONSULTING SERVICES

RP ® offers other consulting services including evaluating the impact of regulatory changes (TARP, etc.), branching and diversification strategies, feasibility studies and special research.
We assist banks/thrifts in preparing CRA plans and evaluating wealth management activities on a de novo or merger basis. Our other consulting services are facilitated by proprietary
valuation and financial simulation models.

KEY PERSONNEL (Years of Relevant Experience & Contact Information)

Ronald S. Riggins, Managing Director (37) (703) 647-6543 rriggins@rpfinancial.com

William E. Pommerening, Managing Director (33) (703) 647-6546 wpommerening@rpfinancial.com
Marcus Faust, Managing Director (29) (703) 647-6553 mfaust@rpfinancial.com
James J. Oren, Director (29) (703) 647-6549 joren@rpfinancial.com
James P. Hennessey, Director (30) (703) 647-6544 jhennessey@rpfinancial.com
Gregory E. Dunn, Director (33) (703) 647-6548 gdunn@rpfinancial.com
Carla Pollard, Senior Vice President (27) (703) 647-6556 cpollard@rpfinancial.com

Washington Headquarters
Three Ballston Plaza Telephone: (703) 528-1700
1100 North Glebe Road, Suite 600 Fax No.: (703) 528-1788
Arlington, VA 22201 Toll-Free No.: (866) 723-0594
www.rpfinancial.com E-Mail: mail@rpfinancial.com