Page 35 - Annual Report 2017

TEXAS GULF BANCSHARES, INC. AND SUBSIDIARY

Notes to Consolidated Financial Statements
December 31, 2016 and 2015

NOTE F PREMISES AND EQUIPMENT

Premises and equipment consist of the following at December 31, 2016 and 2015:

2016 2015

Land $ 2,647,898 $ 2,647,898
Buildings and leasehold improvements 13,166,773 13,083,664
Furniture, fixtures and equipment 5,130,129 5,144,055
Construction in progress 413,724 114,962
21,358,524 20,990,579
Less accumulated depreciation and amortization (9,107,790) (8,390,133)
$ 12,250,734 $ 12,600,446

Depreciation and amortization expense for the years ended December 31, 2016 and 2015
was approximately $1,062,000 and $874,000, respectively.

NOTE G OTHER REAL ESTATE OWNED

There was no other real estate owned during the year ending December 31, 2016. An
analysis of activity in other real estate owned for the year December 31, 2015 follows.

2015
Balance at beginning of the year $ -
Foreclosures 5,504
Gain on sales, net 8,996
Sales (14,500)
Balance at end of the year $ -

NOTE H ACCRUED INTEREST RECEIVABLE

Accrued interest receivable consists of the following at December 31, 2016 and 2015:

2016 2015

Loans $ 1,055,602 $ 888,261
Investments and other 1,257,287 1,359,468
$ 2,312,889 $ 2,247,729

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