Page 33 - Annual Report 2017

TEXAS GULF BANCSHARES, INC. AND SUBSIDIARY

Notes to Consolidated Statements
December 31, 2016 and 2015

NOTE E ALLOWANCE FOR POSSIBLE CREDIT LOSSES (CONTINUED)

The following table presents risk grades and classified loans by loan class at December 31,
2016 and 2015. Pass loans include risk grades 1 through 5. Classified loans include risk
grades 6, 7, 8, and 9. The Company had no loans classified grade 9 at December 31, 2016
and 2015.

Pass Grade 6 Grade 7 Grade 8 Total Loans
2016
Commercial real estate $ 129,736,850 $ 17,936,500 $ 2,499,081 $ - $ 150,172,431
Construction and development 60,737,299 171,946 - - 60,909,245
Farmland 16,467,218 - - - 16,467,218
1-4 family residential 80,587,983 4,911,242 345,274 - 85,844,499
Multi-family residential 8,534,372 - - - 8,534,372
Commercial and industrial 43,287,483 2,849,912 6,713,952 - 52,851,347
Agriculture 3,113,348 - - - 3,113,348
Consumer - automobile 669,960 - - - 669,960
Consumer - other 4,081,506 - 42,239 - 4,123,745
Other loans 5,936,223 - - - 5,936,223
Total $ 353,152,242 $ 25,869,600 $ 9,600,546 $ - $ 388,622,388

Pass Grade 6 Grade 7 Grade 8 Total Loans

2015
Commercial real estate $ 120,643,088 $ 1,891,747 $ 2,792,286 $ - $ 125,327,121
Construction and development 67,862,701 - - - 67,862,701
Farmland 16,199,532 - - - 16,199,532
1-4 family residential 69,465,432 25,781 589,906 - 70,081,119
Multi-family residential 9,982,888 - 5,999 - 9,988,887
Commercial and industrial 36,579,356 2,910,560 7,452,459 - 46,942,375
Agriculture 1,563,784 - - - 1,563,784
Consumer - automobile 544,562 - - - 544,562
Consumer - other 4,253,284 - 20,310 6,072 4,279,666
Other loans 5,679,296 - - - 5,679,296

Total $ 332,773,923 $ 4,828,088 $ 10,860,960 $ 6,072 $ 348,469,043

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