0001058867-18-000040.txt : 20180511 0001058867-18-000040.hdr.sgml : 20180511 20180511085501 ACCESSION NUMBER: 0001058867-18-000040 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 83 CONFORMED PERIOD OF REPORT: 20180331 FILED AS OF DATE: 20180511 DATE AS OF CHANGE: 20180511 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GUARANTY BANCSHARES INC /TX/ CENTRAL INDEX KEY: 0001058867 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 751656431 STATE OF INCORPORATION: TX FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-38087 FILM NUMBER: 18825038 BUSINESS ADDRESS: STREET 1: 201 SOUTH JEFFERSON AVENUE CITY: MOUNT PLEASANT STATE: TX ZIP: 75455 BUSINESS PHONE: 9035729881 MAIL ADDRESS: STREET 1: 201 SOUTH JEFFERSON AVENUE CITY: MOUNT PLEASANT STATE: TX ZIP: 75455 10-Q 1 gnty-10qx033118.htm 10-Q Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-Q
 
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2018
OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from              to             .
Commission File Number: 001-38087
 
GUARANTY BANCSHARES, INC.
(Exact name of registrant as specified in its charter)
 
Texas
 
75-1656431
(State or other jurisdiction of
 
(I.R.S. employer
incorporation or organization)
 
identification no.)
 
 
 
201 South Jefferson Avenue
 
 
Mount Pleasant, Texas
 
75455
(Address of principal executive offices)
 
(Zip code)
 
(903) 572 - 9881
(Registrant’s telephone number, including area code)
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
 
Large accelerated filer ☐
 
Accelerated filer ☐
 
 
 
 
 
 
 
Non-accelerated filer ☒
 
Smaller reporting company ☐
 
 
(Do not check if a smaller reporting company)
 
 
 
 
 
 
 
 
 
 
 
Emerging growth company ☒
 
 
 
 
 
 
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒
 





Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of May 11, 2018, there were 11,058,956 outstanding shares of the registrant’s common stock, par value $1.00 per share.




GUARANTY BANCSHARES, INC.
 
 
 
 
 
Page
 
 
 
 
 
 
 
 
 





PART I. FINANCIAL INFORMATION 
Item 1. Financial Statements

 
 
 
See accompanying notes to consolidated financial statements.
4.



GUARANTY BANCSHARES, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except share amounts)
 
 
(Unaudited)
 
(Audited)
 
 
March 31,
2018
 
December 31,
2017
ASSETS
 
 
 
 
Cash and due from banks
 
$
33,021

 
$
40,482

Federal funds sold
 
43,875

 
26,175

Interest-bearing deposits
 
9,715

 
24,771

Total cash and cash equivalents
 
86,611

 
91,428

Securities available for sale
 
235,075

 
232,372

Securities held to maturity
 
170,408

 
174,684

Loans held for sale
 
1,477

 
1,896

Loans, net
 
1,388,913

 
1,347,779

Accrued interest receivable
 
6,719

 
8,174

Premises and equipment, net
 
45,095

 
43,818

Other real estate owned
 
2,076

 
2,244

Cash surrender value of life insurance
 
19,468

 
19,117

Deferred tax asset
 
3,354

 
2,543

Core deposit intangible, net
 
2,578

 
2,724

Goodwill
 
18,742

 
18,742

Other assets
 
17,369

 
17,103

Total assets
 
$
1,997,885

 
$
1,962,624

LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
Liabilities
 
 
 
 
  Deposits
 
 
 
 
    Noninterest-bearing
 
$
421,255

 
$
410,009

    Interest-bearing
 
1,270,327

 
1,266,311

          Total deposits
 
1,691,582

 
1,676,320

   Securities sold under agreements to repurchase
 
12,395

 
12,879

   Accrued interest and other liabilities
 
7,575

 
7,117

   Federal Home Loan Bank advances
 
65,149

 
45,153

   Subordinated debentures
 
13,810

 
13,810

      Total liabilities
 
1,790,511

 
1,755,279

Shareholders' equity
 
 
 
 
Preferred stock, $5.00 par value, 15,000,000 shares authorized, no shares issued
 

 

Common stock, $1.00 par value, 50,000,000 shares authorized, 11,921,298 shares issued, 11,058,956 shares outstanding
 
11,921

 
11,921

Additional paid-in capital
 
155,718

 
155,601

Retained earnings
 
69,334

 
66,037

Treasury stock, 862,342 shares at cost
 
(20,087
)
 
(20,087
)
Accumulated other comprehensive loss
 
(9,512
)
 
(6,127
)
Total shareholders' equity
 
207,374

 
207,345

Total liabilities and shareholders' equity
 
$
1,997,885

 
$
1,962,624



 
 
 
See accompanying notes to consolidated financial statements.
5.



GUARANTY BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
(Dollars in thousands, except per share data) 
 

 
Three Months Ended March 31,
 
2018
 
2017
Interest income
 
 
 
Loans, including fees
$
16,256

 
$
14,415

Securities
 
 
 
Taxable
1,589

 
1,311

Nontaxable
914

 
922

Federal funds sold and interest-bearing deposits
279

 
488

Total interest income
19,038

 
17,136

 
 
 
 
Interest expense
 
 
 
Deposits
3,274

 
2,404

FHLB advances and federal funds purchased
214

 
79

Subordinated debentures
167

 
207

Other borrowed money
11

 
205

Total interest expense
3,666

 
2,895

 
 
 
 
Net interest income
15,372

 
14,241

Provision for loan losses
600

 
650

Net interest income after provision for loan losses
14,772

 
13,591

 
 
 
 
Noninterest income
 
 
 
Service charges
888

 
877

Net realized gain on sale of loans
556

 
429

Other income
2,221

 
1,976

Total noninterest income
3,665

 
3,282

 
 
 
 
Noninterest expense
 
 
 
Employee compensation and benefits
7,778

 
6,987

Occupancy expenses
1,853

 
1,748

Other expenses
3,503

 
3,310

Total noninterest expense
13,134

 
12,045

 
 
 
 
Income before income taxes
5,303

 
4,828

Income tax provision
944

 
1,312

Net earnings
$
4,359

 
$
3,516

Basic earnings per share
$
0.39

 
$
0.40

Diluted earnings per share
$
0.39

 
$
0.40





 
 
 
See accompanying notes to consolidated financial statements.
6.



GUARANTY BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)
(Dollars in thousands) 
 

 
Three Months Ended March 31,
 
2018
 
2017
Net earnings
$
4,359

 
$
3,516

Other comprehensive income:
 
 
 
Unrealized (losses) gains on securities
 
 
 
Unrealized holding (losses) gains arising during the period
(3,863
)
 
1,229

Amortization of net unrealized gains on held to maturity securities
18

 
18

Tax effect
810

 
(430
)
Unrealized (losses) gains on securities, net of tax
(3,035
)
 
817

Unrealized holding gains arising during the period on interest rate swaps
136

 
35

Total other comprehensive (loss) income
(2,899
)
 
852

Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income
(486)
 
0
Comprehensive income
$
974

 
$
4,368





 
 
 
See accompanying notes to consolidated financial statements.
7.



GUARANTY BANCSHARES, INC.
CONSOLIDATED STATMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited)
(Dollars in thousands, except share amounts) 
 

 
 
Preferred Stock
 
Common Stock
 
Additional Paid-in Capital
 
Retained Earnings
 
Treasury Stock
 
Accumulated Other Comprehensive Loss
 
Less: KSOP-Owned Shares
 
Total Shareholders’ Equity
For the Three Months Ended March 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2016
 
$

 
$
9,616

 
$
101,736

 
$
57,160

 
$
(20,111
)
 
$
(6,487
)
 
$
(31,661
)
 
$
110,253

Net earnings
 

 

 

 
3,516

 

 

 

 
3,516

Other comprehensive income
 

 

 

 

 

 
852

 

 
852

Exercise of stock options
 

 

 

 

 
24

 

 

 
24

Stock based compensation
 

 

 
60

 

 

 

 

 
60

Net change in fair value of KSOP shares
 

 

 

 

 

 

 
(2,639
)
 
(2,639
)
Balance at March 31, 2017
 
$

 
$
9,616

 
$
101,796

 
$
60,676

 
$
(20,087
)
 
$
(5,635
)
 
$
(34,300
)
 
$
112,066

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended March 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2017
 
$

 
$
11,921

 
$
155,601

 
$
66,037

 
$
(20,087
)
 
$
(6,127
)
 
$

 
$
207,345

Net earnings
 

 

 

 
4,359

 

 

 

 
4,359

Other comprehensive loss
 

 

 

 

 

 
(2,899
)
 

 
(2,899
)
Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income
 

 

 

 
486

 

 
(486
)
 

 

Stock based compensation
 

 

 
117

 

 

 

 

 
117

Dividends:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common - $0.14 per share
 

 

 

 
(1,548
)
 

 

 

 
(1,548
)
Balance at March 31, 2018
 
$

 
$
11,921

 
$
155,718

 
$
69,334

 
$
(20,087
)
 
$
(9,512
)
 
$

 
$
207,374





 
 
 
See accompanying notes to consolidated financial statements.
8.



GUARANTY BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(Dollars in thousands) 
 
 
For the Three Months Ended March 31,
 
 
2018
 
2017
Cash flows from operating activities
 
 
 
 
Net earnings
 
$
4,359

 
$
3,516

Adjustments to reconcile net earnings to net cash provided from operating activities:
 
 
 
 
Depreciation
 
780

 
801

Amortization
 
257

 
264

Deferred taxes
 

 
2,402

Premium amortization, net of discount accretion
 
1,065

 
1,113

Gain on sale of loans
 
(556
)
 
(429
)
Provision for loan losses
 
600

 
650

Origination of loans held for sale
 
(16,412
)
 
(13,232
)
Proceeds from loans held for sale
 
17,387

 
14,778

Net (gain) loss on sale of premises, equipment, other real estate owned and other assets
 
(7
)
 
27

Stock based compensation
 
117

 
60

Net change in accrued interest receivable and other assets
 
685

 
2,265

Net change in accrued interest payable and other liabilities
 
593

 
21

Net cash provided by operating activities
 
8,868

 
12,236

 
 
 
 
 
Cash flows from investing activities
 
 
 
 
Securities available for sale:
 
 
 
 
Purchases
 
(13,156
)
 
(61,965
)
Proceeds from maturities and principal repayments
 
6,098

 
5,203

Securities held to maturity:
 
 
 
 
Proceeds from maturities and principal repayments
 
3,721

 
2,892

Net purchases of premises and equipment
 
(2,059
)
 
(814
)
Net proceeds from sale of premises, equipment, other real estate owned and other assets
 
407

 
191

Net increase in loans
 
(41,922
)
 
(8,375
)
Net cash used in investing activities
 
(46,911
)
 
(62,868
)
 
 
 
 
 
Cash flows from financing activities
 
 
 
 
Net change in deposits
 
15,262

 
94,380

Net change in securities sold under agreements to repurchase
 
(484
)
 
1,804

Proceeds from FHLB advances
 
20,000

 

Repayment of FHLB advances
 
(4
)
 
(30,005
)
Proceeds from other debt
 

 
1,000

Repayment of other debt
 

 
(357
)

 
 
 
See accompanying notes to consolidated financial statements.
9.



GUARANTY BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(Dollars in thousands) 
 
 
For the Three Months Ended March 31,
 
 
2018
 
2017
Exercise of stock options
 

 
24

Cash dividends
 
(1,548
)
 

Net cash provided by financing activities
 
33,226

 
66,846

Net change in cash and cash equivalents
 
(4,817
)
 
16,214

Cash and cash equivalents at beginning of period
 
91,428

 
127,543

Cash and cash equivalents at end of period
 
$
86,611

 
$
143,757

 
 
 
 
 
Supplemental disclosures of cash flow information
 
 
 
 
Interest paid
 
$
3,539

 
$
2,774

 
 
 
 
 
Supplemental schedule of noncash investing and financing activities
 
 
 
 
Cash dividends accrued
 
$
1,548

 
$

Transfer loans to other real estate owned and repossessed assets
 
188

 
161

Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income
 
486

 

Net change in fair value of KSOP shares
 

 
2,639


 
 
 
See accompanying notes to consolidated financial statements.
10.

GUARANTY BANCSHARES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands, except per share data)
 
 
 


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations: Guaranty Bancshares, Inc. (“Guaranty”) is a bank holding company headquartered in Mount Pleasant, Texas that provides, through its wholly-owned subsidiary, Guaranty Bank & Trust, N.A. (the “Bank”), a broad array of financial products and services to individuals and corporate customers, primarily in its markets of East Texas, Bryan/College Station and the Dallas/Fort Worth metroplex. The terms “the Company,” “we,” “us” and “our” mean Guaranty and its subsidiaries, when appropriate. The Company’s main sources of income are derived from granting loans throughout its markets and investing in securities issued by the U.S. Treasury, U.S. government agencies and state and political subdivisions. The Company’s primary lending products are real estate, commercial and consumer loans. Although the Company has a diversified loan portfolio, a substantial portion of its debtors’ abilities to honor contracts is dependent on the economy of the State of Texas and primarily the economies of East Texas, Bryan/College Station and the Dallas/Fort Worth metroplex. The Company primarily funds its lending activities with deposit operations. The Company’s primary deposit products are checking accounts, money market accounts and certificates of deposit.

Basis of Presentation: The consolidated financial statements in this Quarterly Report on Form 10-Q (this “Report”) include the accounts of Guaranty, the Bank, and their respective other direct and indirect subsidiaries and any other entities in which Guaranty has a controlling interest. The Bank has six wholly-owned non-bank subsidiaries, Guaranty Company, Inc., G B COM, INC., 2800 South Texas Avenue LLC, Pin Oak Realty Holdings, Inc., Pin Oak Energy Holdings, LLC and White Oak Aviation, LLC. All significant intercompany balances and transactions have been eliminated in consolidation.  The accounting and financial reporting policies followed by the Company conform, in all material respects, to accounting principles generally accepted in the United States of America (“GAAP”) and to general practices within the financial services industry.
The consolidated financial statements in this Report have not been audited by an independent registered public accounting firm, but in the opinion of management, reflect all adjustments necessary for a fair presentation of the Company’s financial position and results of operations. All such adjustments were of a normal and recurring nature. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q adopted by the Securities and Exchange Commission (“SEC”). Accordingly, the financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Company’s consolidated financial statements, and notes thereto, for the year ended December 31, 2017, included in Guaranty’s Annual Report on Form 10-K for the year ended December 31, 2017. Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period.
All dollar amounts referenced and discussed in the notes to the consolidated financial statements in this Report are presented in thousands, unless noted otherwise.
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates and assumptions may also affect disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.

KSOP Repurchase Right: In accordance with applicable provisions of the Internal Revenue Code, the terms of Guaranty’s employee stock ownership plan with 401(k) provisions (“KSOP”), provided that, for so long as Guaranty was a privately-held company without a public market for its common stock, KSOP participants would have the right, for a specified period of time, to require Guaranty to repurchase shares of its common stock that are distributed to them by the KSOP. This repurchase obligation terminated upon the consummation of Guaranty’s initial public offering and listing of its common stock on the NASDAQ Global Select Market in May 2017. However, because Guaranty was privately-held without a public market for its common stock as of and for the quarter ended March 31, 2017, the shares of common stock held by the KSOP are reflected in the Company’s consolidated statement of changes in shareholders' equity for the quarter ended March 31, 2017 as a line item called “KSOP-owned shares”. As a result, the KSOP-owned shares are deducted from the consolidated statement of changes in shareholders' equity for the quarter ended March 31, 2017 includes an adjustment for the inclusion of such KSOP-owned shares in total shareholders' equity as

 
 
 
(Continued)
11.

GUARANTY BANCSHARES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands, except per share data)
 
 
 

"terminated KSOP put option." For all periods following Guaranty’s initial public offering and continued listing of the Company’s common stock on the NASDAQ Global Select Market, the KSOP-owned shares are included in, and not be deducted from, shareholders’ equity.
Recent Accounting Pronouncements:
In February 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) 2018-02, Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. ASU 2018-02 was issued to address the income tax accounting treatment of the stranded tax effects within other comprehensive income due to the prohibition of backward tracing due to an income tax rate change that was initially recorded in other comprehensive income. This issue came about from the enactment of the Tax Cuts and Jobs Act on December 22, 2017 that changed the Company’s income tax rate from 35% to 21%. The ASU changed current accounting whereby an entity may elect to reclassify the stranded tax effect from accumulated other comprehensive income to retained earnings. The ASU is effective for periods beginning after December 15, 2018 although early adoption is permitted. The Company adopted ASU 2018-02 in the first quarter of 2018 and reclassied its stranded tax effect of $486 within accumulated other comprehensive income to retained earnings at March 31, 2018.
In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. This ASU is intended to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. In addition, the amendments in this ASU provide a detailed framework to assist entities in evaluating whether a set of assets and activities constitutes a business, as well as clarify the definition of the term output so the term is consistent with how outputs are described in Topic 606. ASU 2017-01 is effective for public companies for annual periods beginning after December 15, 2017, including interim periods within those periods. The Company does not expect this pronouncement to have a significant impact on its consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This ASU simplifies the accounting for goodwill impairment for all entities by requiring impairment changes to be based on the first step in today’s two-step impairment test, thus eliminating step two from the goodwill impairment test. In addition, the amendment eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform step two of the goodwill impairment test. For pubic companies, ASU 2017-04 is effective for fiscal years beginning after December 15, 2019 with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is in the process of evaluating the impact of this pronouncement, which is not expected to have a significant impact on its consolidated financial statements.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The adoption of this ASU was not significant and does not expect the adoption of this guidance to be material to its consolidated financial statements.
In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments provide guidance on the following nine specific cash flow issues: 1) debt prepayment or debt extinguishment costs; 2) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; 3) contingent consideration payments made after a business combination; 4) proceeds from the settlement of insurance claims; 5) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned; 6) life insurance policies; 7) distributions received from equity method investees; 8) beneficial interests in securitization transactions; and 9) separately identifiable cash flows and application of the predominance principle. The adoption of this ASU was not significant and does not expect the adoption of this guidance to be material to its consolidated financial statements.

 
 
 
(Continued)
12.

GUARANTY BANCSHARES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands, except per share data)
 
 
 

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which sets forth a "current expected credit loss" ("CECL") model requiring the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. For public companies, the amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company has assembled a transition team to assess the adoption of this ASU, and has developed a project plan regarding implementation.
In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The FASB issued this ASU to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet by lessees for those leases classified as operating leases under current U.S. GAAP and disclosing key information about leasing arrangements. The amendments in this ASU are effective for public companies for annual periods, and interim periods within those annual periods, beginning after December 15, 2018. Early adoption of this ASU is permitted for all entities. The Company is currently evaluating the impact of adopting the new guidance on its consolidated financial statements.
In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities, which is intended to improve the recognition and measurement of financial instruments by requiring: equity investments (other than equity method or consolidation) to be measured at fair value with changes in fair value recognized in net income; public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; eliminating the requirement to disclose the fair value of financial instruments measured at amortized cost for organizations that are not public business entities; eliminating the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; and requiring a reporting organization to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk (also referred to as “own credit”) when the organization has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. The adoption of ASU 2016-01 on January 1, 2018 did not have a material impact on the Company’s condensed consolidated financial statements. In accordance with (iv) above, the Company measured the fair value of its loan portfolio prospectively as of March 31, 2018 using an exit price notion. See Note 13 – Fair Value for further information regarding the valuation of these loans.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (ASU 606), followed by various amendments to the standard, including clarification of principal versus agent considerations, narrow scope improvements and other technical corrections, all of which are codified in ASU 606. The amendments in these updates amend existing guidance related to revenue from contracts with customers. The amendments supersede and replace nearly all existing revenue recognition guidance, including industry-specific guidance, establish a new control-based revenue recognition model, change the basis for deciding when revenue is recognized over a time or point in time, provide new and more detailed guidance on specific topics and expand and improve disclosures about revenue. In addition, these amendments specify the accounting for some costs to obtain or fulfill a contract with a customer. The Company has applied ASU 2014-09, which was effective on January 1, 2018, using the modified retrospective approach to all existing contracts with customers covered under the scope of the standard. The adoption of this ASU was not significant to the Company and had no material effect on how the Company recognizes revenue nor did it result in a cumulative effect adjustment or any presentation changes to the consolidated financial statements.
The majority of the Company's revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as loans, letters of credit, loan processing fees and investment securities, as well as revenue related to mortgage banking activities, and BOLI, as these activities are subject to other accounting guidance. Descriptions of revenue-generating activities that are within the scope of ASC 606, and are presented in the accompanying Consolidated Statements of Income as components of noninterest income, are as follows:

 
 
 
(Continued)
13.

GUARANTY BANCSHARES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands, except per share data)
 
 
 

Deposit services. Service charges on deposit accounts include fees for banking services provided, overdrafts and non-sufficient funds. Revenue is generally recognized in accordance with published deposit account agreements for retail accounts or contractual agreements for commercial accounts.
Merchant and debit card fees. Merchant and debit card fees includes interchange income that is generated by our customers’ usage and volume of activity. Interchange rates are not controlled by the Company, which effectively acts as processor that collects and remits payments associated with customer debit card transactions. Merchant service revenue is derived from third party vendors that process credit card transactions on behalf of our merchant customers. Merchant services revenue is primarily comprised of residual fee income based on the referred merchant’s processing volumes and/or margin.
Fiduciary income. Trust income includes fees and commissions from investment management, administrative and advisory services primarily for individuals, and to a lesser extent, partnerships and corporations. Revenue is recognized on an accrual basis at the time the services are performed and when we have a right to invoice and are based on either the market value of the assets managed or the services provided.
Other noninterest income. Other noninterest income includes among other things, mortgage loan origination fees, wire transfer fees, stop payment fees, loan administration fees and mortgage warehouse lending fees. The majority of these fees in other noninterest income are not subject to the requirements of ASC 606. Fees that are within the scope of ASC 606 are generally received at the time the performance obligations are met.
NOTE 2 - ACQUISITIONS

On August 6, 2016, the Company purchased certain assets and assumed certain liabilities associated with a former branch location of a non-related bank in Denton, Texas (Denton), which resulted in the addition of approximately $4,659 in assets and the assumption of approximately $4,658 in liabilities.   The Company acquired the bank premises at 4101 Wind River Lane in Denton and recorded it at fair market value of $2,075.  Other assets acquired, at fair value, included cash of $2,399, core deposit intangible of $42, goodwill of $141 and loans of $2.   Liabilities assumed included non-interest bearing deposits of $581, interest bearing deposits of $4,047 and other liabilities of $30.   As a result of the transaction, the Company paid $66 to the seller, representing the difference in the value of the acquired assets less the value of the liabilities assumed by the Company in the transaction.      

Goodwill of $141 arising from the Denton acquisition consisted largely of synergies and the cost savings resulting from the combining of the operations of the companies and is expected to be deductible for income taxes purposes.
NOTE 3 - MARKETABLE SECURITIES

The following tables summarize the amortized cost and fair value of securities available for sale and securities held to maturity as of March 31, 2018 and December 31, 2017 and the corresponding amounts of gross unrealized gains and losses:

 
 
 
(Continued)
14.

GUARANTY BANCSHARES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands, except per share data)
 
 
 

March 31, 2018
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
Available for sale:
 
 
 
 
 
 
 
Corporate bonds
$
18,803

 
$

 
$
558

 
$
18,245

Municipal securities
7,722

 

 
257

 
7,465

Mortgage-backed securities
97,654

 

 
3,490

 
94,164

Collateralized mortgage obligations
118,236

 
3

 
3,038

 
115,201

Total available for sale
$
242,415

 
$
3

 
$
7,343

 
$
235,075

 
 
 
 
 
 
 
 
Held to maturity:
 
 
 
 
 
 
 
Municipal securities
$
143,772

 
$
1,107

 
$
1,557

 
$
143,322

Mortgage-backed securities
20,919

 
143

 
478

 
20,584

Collateralized mortgage obligations
5,717

 
84

 
26

 
5,775

Total held to maturity
$
170,408

 
$
1,334

 
$
2,061

 
$
169,681


December 31, 2017
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
Available for sale:
 
 
 
 
 
 
 
U.S. government agencies
 
 
 
 
 
 
 
Corporate bonds
$
18,823

 
$
64

 
$
50

 
$
18,837

Municipal securities
7,746

 

 
200

 
7,546

Mortgage-backed securities
92,471

 

 
1,793

 
90,678

Collateralized mortgage obligations
116,809

 
5

 
1,503

 
115,311

Total available for sale
$
235,849

 
$
69

 
$
3,546

 
$
232,372

 
 
 
 
 
 
 
 
Held to maturity:
 
 
 
 
 
 
 
U.S. government agencies
 
 
 
 
 
 
 
Municipal securities
$
146,496

 
$
2,244

 
$
218

 
$
148,522

Mortgage-backed securities
22,026

 
199

 
230

 
21,995

Collateralized mortgage obligations
6,162

 
111

 

 
6,273

Total held to maturity
$
174,684

 
$
2,554

 
$
448

 
$
176,790

Management evaluates securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. The Company did not record any OTTI losses on any of its securities during the three months ended March 31, 2018 or for the year ended December 31, 2017.


 
 
 
(Continued)
15.

GUARANTY BANCSHARES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands, except per share data)
 
 
 

Information pertaining to securities with gross unrealized losses as of March 31, 2018 and December 31, 2017 aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position is detailed in the following tables:
 
Less Than 12 Months
 
12 Months or Longer
 
Total
March 31, 2018
Gross
Unrealized
Losses
 
Estimated
Fair
Value
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
Available for sale:
 
 
 
 
 
 
 
 
 
 
 
Corporate bonds
$
(558
)
 
$
18,245

 
$

 
$

 
$
(558
)
 
$
18,245

Municipal securities

 

 
(257
)
 
7,465

 
(257
)
 
7,465

Mortgage-backed securities
(1,238
)
 
38,789

 
(2,252
)
 
55,375

 
(3,490
)
 
94,164

Collateralized mortgage obligations
(2,471
)
 
94,471

 
(567
)
 
20,291

 
(3,038
)
 
114,762

Total available for sale
$
(4,267
)
 
$
151,505

 
$
(3,076
)
 
$
83,131

 
$
(7,343
)
 
$
234,636

 
 
 
 
 
 
 
 
 
 
 
 
Held to maturity:
 
 
 
 
 
 
 
 
 
 
 
Municipal securities
$
(1,030
)
 
$
71,006

 
$
(527
)
 
$
19,541

 
$
(1,557
)
 
$
90,547

Mortgage-backed securities
(166
)
 
8,021

 
(312
)
 
9,063

 
(478
)
 
17,084

Collateralized mortgage obligations
(26
)
 
2,915

 

 

 
(26
)
 
2,915

Total held to maturity
$
(1,222
)
 
$
81,942

 
$
(839
)
 
$
28,604

 
$
(2,061
)
 
$
110,546

 
Less Than 12 Months
 
12 Months or Longer
 
Total
December 31, 2017
Gross
Unrealized
Losses
 
Estimated
Fair
Value
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
Available for sale:
 
 
 
 
 
 
 
 
 
 
 
Corporate bonds
$
(50
)
 
$
8,019

 
$

 
$

 
$
(50
)
 
$
8,019

Municipal securities

 

 
(200
)
 
7,546

 
(200
)
 
7,546

Mortgage-backed securities
(658
)
 
42,881

 
(1,135
)
 
47,797

 
(1,793
)
 
90,678

Collateralized mortgage obligations
(1,091
)
 
93,584

 
(412
)
 
21,258

 
(1,503
)
 
114,842

Total available for sale
$
(1,799
)
 
$
144,484

 
$
(1,747
)
 
$
76,601

 
$
(3,546
)
 
$
221,085

 
 
 
 
 
 
 
 
 
 
 
 
Held to maturity:
 
 
 
 
 
 
 
 
 
 
 
Municipal securities
$
(37
)
 
$
9,230

 
$
(181
)
 
$
19,961

 
$
(218
)
 
$
29,191

Mortgage-backed securities
(57
)
 
6,499

 
(173
)
 
9,747

 
(230
)
 
16,246

Collateralized mortgage obligations

 

 

 

 

 

Total held to maturity
$
(94
)
 
$
15,729

 
$
(354
)
 
$
29,708

 
$
(448
)
 
$
45,437


The number of investment positions in an unrealized loss position totaled 174 at March 31, 2018. The securities in a loss position were composed of tax-exempt municipal bonds, corporate bonds, collateralized mortgage obligations and mortgage backed securities. Management believes the unrealized loss on the remaining securities is a function of the movement of interest rates since the time of purchase. Based on evaluation of available evidence, including recent changes in interest rates, credit rating information and information obtained from regulatory filings, management

 
 
 
(Continued)
16.

GUARANTY BANCSHARES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands, except per share data)
 
 
 

believes the declines in fair value for these securities are temporary. Should the impairment of any of these securities become other-than-temporary, the cost basis of the investment would be reduced and the resulting loss recognized in net income in the period the OTTI is identified. The Company does not have the intent to sell these securities and it is likely that it will not be required to sell the securities before their anticipated recovery. The Company does not consider these securities to be OTTI at March 31, 2018.
Mortgage-backed securities and collateralized mortgage obligations are backed by pools of mortgages that are insured or guaranteed by the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association or the Government National Mortgage Association.

As of March 31, 2018, there were no holdings of securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of shareholders’ equity.

Securities with fair values of approximately $270,716 and $245,600 at March 31, 2018 and December 31, 2017, respectively, were pledged to secure public fund deposits and for other purposes as required or permitted by law.

There were no securities sold during the three months ended March 31, 2018 or 2017.

The contractual maturities at March 31, 2018 of available for sale and held to maturity securities at carrying value and estimated fair value are shown below. The Company invests in mortgage-backed securities and collateralized mortgage obligations that have expected maturities that differ from their contractual maturities. These differences arise because borrowers and/or issuers may have the right to call or prepay their obligation with or without call or prepayment penalties.
 
Available for Sale
 
Held to Maturity
 
Amortized
Cost
 
Estimated
Fair
Value
 
Amortized
Cost
 
Estimated
Fair
Value
Due within one year
$

 
$

 
$
401

 
$
403

Due after one year through five years
6,145

 
5,994

 
12,093

 
12,173

Due after five years through ten years
12,658

 
12,251

 
42,238

 
42,994

Due after ten years
7,722

 
7,465

 
89,040

 
87,752

Mortgage-backed securities
97,654

 
94,164

 
20,919

 
20,584

Collateralized mortgage obligations
118,236

 
115,201

 
5,717

 
5,775

Total Securities
$
242,415

 
$
235,075

 
$
170,408

 
$
169,681


 
 
 
(Continued)
17.

GUARANTY BANCSHARES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands, except per share data)
 
 
 

NOTE 4 - LOANS AND ALLOWANCE FOR LOAN LOSSES

The following table summarizes the Company’s loan portfolio by type of loan as of:
 
March 31, 2018
 
December 31, 2017
Commercial and industrial
$
206,308

 
$
197,508

Real estate:
 
 
 
Construction and development
193,909

 
196,774

Commercial real estate
450,076

 
418,137

Farmland
63,971

 
59,023

1-4 family residential
377,278

 
374,371

Multi-family residential
37,992

 
36,574

Consumer
48,982

 
51,267

Agricultural
22,545

 
25,596

Overdrafts
273

 
294

Total loans
1,401,334

 
1,359,544

Net of:
 
 
 
Deferred loan fees
954

 
1,094

Allowance for loan losses
(13,375
)
 
(12,859
)
Total net loans
$
1,388,913

 
$
1,347,779

The following tables present the activity in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method for the three months ended March 31, 2018, for the year ended December 31, 2017 and for the three months ended March 31, 2017:
For the Three Months Ended March 31, 2018
Commercial
and
industrial
 
Construction
and
development
 
Commercial
real
estate
 
Farmland
 
1-4 family
residential
 
Multi-family
residential
 
Consumer
 
Agricultural
 
Overdrafts
 
Total
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
1,581

 
$
1,724

 
$
4,585

 
$
523

 
$
3,022

 
$
629

 
$
602

 
$
187

 
$
6

 
$
12,859

Provision for loan losses
164

 
(24
)
 
439

 
83

 
(147
)
 
18

 

 
46

 
21

 
600

Loans charged-off
(10
)
 

 
(33
)
 

 
(13
)
 

 
(28
)
 

 
(32
)
 
(116
)
Recoveries
2

 

 

 

 
5

 

 
11

 

 
14

 
32

Ending balance
$
1,737

 
$
1,700

 
$
4,991

 
$
606

 
$
2,867

 
$
647

 
$
585

 
$
233

 
$
9

 
$
13,375

Allowance ending balance:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
12

 
$

 
$
69

 
$
80

 
$
3

 
$

 
$

 
$
11

 
$

 
$
175

Collectively evaluated for impairment
1,725

 
1,700

 
4,922

 
526

 
2,864

 
647

 
585

 
222

 
9

 
13,200

Ending balance
$
1,737

 
$
1,700

 
$
4,991

 
$
606

 
$
2,867

 
$
647

 
$
585

 
$
233

 
$
9

 
$
13,375

Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
816

 
$

 
$
4,918

 
$
230

 
$
800

 
$
212

 
$

 
$
653

 
$

 
$
7,629

Collectively evaluated for impairment
205,492

 
193,909

 
445,158

 
63,741

 
376,478

 
37,780

 
48,982

 
21,892

 
273

 
1,393,705

Ending balance
$
206,308

 
$
193,909

 
$
450,076

 
$
63,971

 
$
377,278

 
$
37,992

 
$
48,982

 
$
22,545

 
$
273

 
$
1,401,334


 
 
 
(Continued)
18.

GUARANTY BANCSHARES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands, except per share data)
 
 
 

For the year ended December 31, 2017
Commercial
and
industrial
 
Construction
and
development
 
Commercial
real
estate
 
Farmland
 
1-4 family
residential
 
Multi-family
residential
 
Consumer
 
Agricultural
 
Overdrafts
 
Total
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
1,592

 
$
1,161

 
$
3,264

 
$
482

 
$
3,960

 
$
281

 
$
585

 
$
153

 
$
6

 
$
11,484

Provision for loan losses
272

 
563

 
1,405

 
41

 
(418
)
 
348

 
253

 
276

 
110

 
2,850

Loans charged-off
(1,080
)
 

 
(84
)
 

 
(543
)
 

 
(344
)
 
(242
)
 
(165
)
 
(2,458
)
Recoveries
797

 

 

 

 
23

 

 
108

 

 
55

 
983

Ending balance
$
1,581

 
$
1,724

 
$
4,585

 
$
523

 
$
3,022

 
$
629

 
$
602

 
$
187

 
$
6

 
$
12,859

Allowance ending balance:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
17

 
$

 
$
27

 
$
85

 
$
5

 
$

 
$

 
$

 
$

 
$
134

Collectively evaluated for impairment
1,564

 
1,724

 
4,558

 
438

 
3,017

 
629

 
602

 
187

 
6

 
12,725

Ending balance
$
1,581

 
$
1,724

 
$
4,585

 
$
523

 
$
3,022

 
$
629

 
$
602

 
$
187

 
$
6

 
$
12,859

Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
463

 
$

 
$
4,258

 
$
163

 
$
842

 
$
217

 
$

 
$
397

 
$

 
$
6,340

Collectively evaluated for impairment
197,045

 
196,774

 
413,879

 
58,860

 
373,529

 
36,357

 
51,267

 
25,199

 
294

 
1,353,204

Ending balance
$
197,508

 
$
196,774

 
$
418,137

 
$
59,023

 
$
374,371

 
$
36,574

 
$
51,267

 
$
25,596

 
$
294

 
$
1,359,544


For the Three Months Ended March 31, 2017
Commercial
and
industrial
 
Construction
and
development
 
Commercial
real
estate
 
Farmland
 
1-4 family
residential
 
Multi-family
residential
 
Consumer
 
Agricultural
 
Overdrafts
 
Total
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
1,592

 
$
1,161

 
$
3,264

 
$
482

 
$
3,960

 
$
281

 
$
585

 
$
153

 
$
6

 
$
11,484

Provision for loan losses
177

 
188

 
123

 
(10
)
 
(72
)
 
(53
)
 
280

 
2

 
15

 
650

Loans charged-off
(6
)
 

 

 

 
(118
)
 

 
(89
)
 

 
(35
)
 
(248
)
Recoveries

 

 

 

 

 

 
22

 

 
20

 
42

Ending balance
$
1,763

 
$
1,349

 
$
3,387

 
$
472

 
$
3,770

 
$
228

 
$
798

 
$
155

 
$
6

 
$
11,928

Allowance ending balance:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
129

 
$

 
$
31

 
$
41

 
$
40

 
$

 
$

 
$

 
$

 
$
241

Collectively evaluated for impairment
1,634

 
1,349

 
3,356

 
431

 
3,730

 
228

 
798

 
155

 
6

 
11,687

Ending balance
$
1,763

 
$
1,349

 
$
3,387

 
$
472

 
$
3,770

 
$
228

 
$
798

 
$
155

 
$
6

 
$
11,928

Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
919

 
$

 
$
6,411

 
$
170

 
$
1,769

 
$
247

 
$
34

 
$
612

 
$

 
$
10,162

Collectively evaluated for impairment
204,432

 
153,227

 
366,841

 
61,963

 
357,796

 
23,696

 
52,721

 
20,861

 
390

 
1,241,927

Ending balance
$
205,351

 
$
153,227

 
$
373,252

 
$
62,133

 
$
359,565

 
$
23,943

 
$
52,755

 
$
21,473

 
$
390

 
$
1,252,089



 
 
 
(Continued)
19.

GUARANTY BANCSHARES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands, except per share data)
 
 
 

Credit Quality
The Company closely monitors economic conditions and loan performance trends to manage and evaluate the exposure to credit risk. Key factors tracked by the Company and utilized in evaluating the credit quality of the loan portfolio include trends in delinquency ratios, the level of nonperforming assets, borrower’s repayment capacity, and collateral coverage.

Assets are graded “pass” when the relationship exhibits acceptable credit risk and indicates repayment ability, tolerable collateral coverage and reasonable performance history. Lending relationships exhibiting potentially significant credit risk and marginal repayment ability and/or asset protection are graded “special mention.” Assets classified as “substandard” are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness that jeopardizes the liquidation of the debt. Substandard graded loans are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Assets graded “doubtful” are substandard graded loans that have added characteristics that make collection or liquidation in full improbable. The Company typically measures impairment based on the present value of expected future cash flows, discounted at the loan's effective interest rate, or based on the loan's observable market price or the fair value of the collateral if the loan is collateral-dependent.

The following tables summarize the credit exposure in the Company’s consumer and commercial loan portfolios as of:
March 31, 2018
Commercial
and
industrial
 
Construction
and
development
 
Commercial
real
estate
 
Farmland
 
1-4 family
residential
 
Multi-family
residential
 
Consumer and Overdrafts
 
Agricultural
 
Total
Grade:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pass
$
205,523

 
$
193,656

 
$
444,089

 
$
63,586

 
$
375,926

 
$
17,520

 
$
49,044

 
$
21,628

 
$
1,370,972

Special mention
405

 
253

 
890

 
54

 
791

 
20,260

 
137

 
266

 
23,056

Substandard
380

 

 
5,097

 
331

 
561