Page 24 - Annual Report 2017

TEXAS GULF BANCSHARES, INC. AND SUBSIDIARY

Notes to Consolidated Financial Statements
December 31, 2016 and 2015

NOTE C SECURITIES AVAILABLE FOR SALE (CONTINUED)

The amortized cost and estimated fair value of debt securities at December 31, 2016, by
contractual maturities, are shown below. Expected maturities will differ from contractual
maturities because borrowers may have the right to call or prepay obligations with or without
call or prepayment penalties. Mortgage-backed securities generally will receive both principal
and interest payments on a monthly basis.

Estimated
Amortized Fair
Amounts Maturing In: Cost Value
1 year or less $ 18,706,587 $ 18,785,131
1 year through 5 years 87,876,436 87,855,462
After 5 years through 10 years 51,551,567 50,158,394
After 10 years 1,565,036 1,547,668
$ 159,699,626 $ 158,346,655

Available for sale securities with carrying amounts of approximately $48,286,000 and
$41,207,000 at December 31, 2016 and 2015, respectively, were pledged to secure public
deposits and for other purposes required or permitted by law. The Company had gross
realized gains on sales of securities of $10,100 and $940 at December 31, 2016 and 2015,
respectively.

The Company had 209 and 86 securities in an unrealized loss position at December 31, 2016
and 2015, respectively. Of these securities, 5 and 29 securities were in an unrealized loss
position for greater than twelve months at December 31, 2016 and 2015, respectively.

Information pertaining to debt securities with gross unrealized losses at December 31, 2016
and 2015 aggregated by investment category is as follows:

Less Than Twelve Months Twelve Months Or Longer
Gross Estimated Gross Estimated
Unrealized Fair Unrealized Fair
2016 Losses Value Losses Value
U.S. Government Agency:
Debt Securities $ 300,537 $ 19,137,364 $ - $ -
Mortgage-Backed Securities 173,840 9,374,717 - -
Collateralized Mortgage
Obligations 44,507 3,615,062 30,196 976,351
State and Political Subdivisions 1,731,586 67,320,205 17,754 1,171,085

$ 2,250,470 $ 99,447,348 $ 47,950 $ 2,147,436
2015
U.S. Government Agency:
Debt Securities $ 136,348 $ 12,684,296 $ 119,275 $ 8,357,793
Mortgage-backed Securities 30,491 4,680,072 - -
Collateralized Mortgage
Obligations 28,848 2,698,840 102,820 2,498,414
State and Political Subdivisions 95,253 15,980,358 86,260 8,126,674
$ 290,940 $ 36,043,566 $ 308,355 $ 18,982,881

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