Page 30 - Annual Report 2017

TEXAS GULF BANCSHARES, INC. AND SUBSIDIARY

Notes to Consolidated Financial Statements
December 31, 2016 and 2015

NOTE D LOANS (CONTINUED)

90 Days or
30 - 89 Days more Non
Current & Past Due & Past Due & Accrual
Accruing Accruing Accruing Loans Total Loans
2015
Commercial real estate $ 125,327,121 $ - $ - $ - $ 125,327,121
Construction and development 67,849,166 13,535 - - 67,862,701
Farmland 16,199,532 - - - 16,199,532
1-4 family residential 70,027,990 24,792 - 28,337 70,081,119
Multi-family residential 9,988,887 - - - 9,988,887
Commercial and industrial 46,912,375 30,000 - - 46,942,375
Agriculture 1,563,784 - - - 1,563,784
Consumer - automobile 531,801 6,689 - 6,072 544,562
Consumer - other 4,279,666 - - - 4,279,666
Other loans 5,679,296 - - - 5,679,296

Total $ 348,359,618 $ 75,016 $ - $ 34,409 $ 348,469,043

Accrued and unpaid interest income on nonaccrual loans was reversed when the loans were
placed on nonaccrual for the years ended December 31, 2016 and 2015. Interest income
that would have been earned under the original terms of nonaccrual loans was $5,272 and
$18,048 for the years ended December 31, 2016 and 2015, respectively.

Troubled Debt Restructurings

The following table presents loans modified under troubled debt restructuring, segregated by
loan class, during the year ended December 31, 2015:

Number Pre-modification Post-Modification
of Outstanding Recorded Outstanding Recorded
2015 contracts Investment Investment

Commercial and Industrial 2 $ 6,688,642 $ 6,688,642

There were no loans modified under troubled debt restructuring during the year ended
December 31, 2016. During the year ended December 31, 2015 the Company modified two
loans to a Borrower that has been a long time customer of the Company. The modifications
involved increasing the interest rate and allowing for an interest only payment period.
Additional funds were advanced to obtain additional collateral in support of total outstanding
principal. The Borrower has performed as agreed according to the modified terms. The
Company did not grant principal or rate reductions on any restructured loan. There are no
specific reserves associated with troubled debt restructured during the years ended
December 31, 2016 or 2015. These modifications did not have a material impact on the
Company’s determination of the allowance for possible credit losses at December 31, 2016 or
2015.

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