Page 13 - Annual Report 2017

TEXAS GULF BANCSHARES, INC., AND SUBSIDIARY

Consolidated Statements of Cash Flow
December 31, 2016 and 2015

2016 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Consolidated net income $ 5,999,357 $ 6,272,577
Adjustments to reconcile consolidated net income to
net cash provided by operating activities:
Provision for possible credit losses 600,618 175,243
Depreciation and amortization 1,062,068 874,345
Loss on disposal of fixed assets 840 3,251
Gain on sale of other real estate owned - (8,996)
Gain on sale of other assets - (7,990)
Net realized gain on securities available for sale (10,100) (940)
(Gain) loss on sale of loans (323,209) 86
Stock-based compensation expense 100,392 130,091
Amortization and accretion of premiums and
discounts on investment securities, net 990,523 999,583
Change in operating assets and liabilities:
Accrued interest receivable, prepaid expenses and other assets (204,542) (162,061)
Accrued interest payable and other liabilities 185,084 219,524

Total adjustments 2,401,673 2,222,136
Net cash provided by operating activities 8,401,030 8,494,713
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities, paydowns, and
calls of securities available for sale 59,863,718 47,493,648
Purchases of securities available for sale (49,325,096) (49,277,227)
Purchase of Federal Home Loan Bank Stock (193,000) (259,000)
Purchases of premises and equipment (713,196) (2,778,916)
Proceeds from sale of premises and equipment - 25,007
Net increase in loans (39,909,806) (29,652,974)
Proceeds from sale of other real estate owned, net - 14,500
Net cash used by investing activities (30,277,380) (34,434,962)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock - 100,000
Net increase in noninterest-bearing deposits 6,416,455 14,942,286
Net increase (decrease) in interest-bearing deposits 12,895,769 (4,618,131)
Federal Home Loan Bank advances, net 7,900,000 7,600,000
Distributions paid (1,908,658) (2,064,018)
Net cash provided by financing activities 25,303,565 15,960,137
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 3,427,215 (9,980,112)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 7,618,050 17,598,162

CASH AND CASH EQUIVALENTS AT END OF YEAR $ 11,045,265 $ 7,618,050

See accompanying notes to consolidated financial statements.
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