domestic bank holding company - dallasfed.org/media/documents/banking/… · 31/12/2017 ·...

DOMESTIC BANK HOLDING COMPANY

ANNUAL REPORT F.R.Y. - 6

DECEMBER 31, 2017 AND 2016

GROESBECK BANCSHARES, INC. P. O. Box 499

Groesbeck, Texas 76642

GROESBECK BANCSHARES, INC.

FEDERAL RESERVE FORM Y-6

DECEMBER 31, 2017

I N D E X

Report Page

Item Number

Annual Report to Shareholders ................................................................... 1b 1 – 5

Organization Chart ...................................................................................... 2 6

Shareholders ................................................................................................ 3 7 – 8

Directors and Officers ................................................................................. 4 9 – 12


FINANCIAL STATEMENTS


TOGETHER WITH ACCOUNTANTS’ COMPILATION THEREON

ACCOUNTANTS’ COMPILATION REPORT

To the Board of Directors

of Groesbeck Bancshares, Inc.

Management is responsible for the accompanying financial statements of Groesbeck

Bancshares, Inc. (a corporation), which comprise the balance sheets as of December 31, 2017 and 2016,

and the related statements of income and comprehensive income, the statements of changes in

stockholders’ equity and cash flows for the years then ended, included in the accompanying prescribed

form. We have performed a compilation engagement in accordance with Statements on Standards for

Accounting and Review Services promulgated by the Accounting and Review Services Committee of

the AICPA. We did not audit or review the financial statements included in the accompanying

prescribed form nor were we required to perform any procedures to verify the accuracy or the

completeness of the information provided by management. Accordingly, we do not express an

opinion, a conclusion, nor provide any form of assurance on these financial statements.

The supplementary information on pages 6 through 12 is presented for purposes of additional

analysis and is the representation of management. The information was subject to our compilation

engagement; however, we have not audited or reviewed the information and, accordingly, do not express

an opinion, a conclusion, nor provide any assurance on such information.

We are not independent with respect to Groesbeck Bancshares, Inc.

The financial statements included in the accompanying prescribed form are intended to comply

with the requirements of the Board of Governors of the Federal Reserve System, and are not intended

to be a presentation in accordance with accounting principles generally accepted in the United States of

America.

March 29, 2018

Waco, Texas

1

401 WEST HIGHWAY 6 P. O. BOX 20725 WACO, TX 76702-0725 (254) 772-4901 FAX: (254) 772-4920 www.pbhcpa.com

AFFILIATE OFFICES: HILLSBORO, TX (254) 582-2583 HOUSTON, TX (281) 671-6259 RIO GRANDE VALLEY, TX (956) 544-7778 TEMPLE, TX (254) 791-3460 ALBUQUERQUE, NM (505) 266-5904

Report Item 1b

2017 2016

Cash 89,799$ 82,587$

Investment in Farmers State Bank 12,355,738 12,168,832

Goodwill, net 683,584 683,584

Other assets 17,586 59,906

Total Assets 13,146,707$ 12,994,909$

Liabilities -$ 25,000$

Capital stock 66,950 66,950

Additional paid-in capital 2,450,053 2,450,053

Treasury stock 141,614)( 710)(

Retained earnings (loss) 10,371,707 10,116,214

Equity - net income (loss) 1,501,265 1,300,892

Dividends paid 1,034,830)( 1,045,399)(

Net unrealized gain (loss) on SEC. AFS 66,824)( 81,909

Total Capital 13,146,707 12,969,909

Total Liabilities and Capital 13,146,707$ 12,994,909$

See accountants' compilation report.

FORM FRY-6

LIABILITIES

CAPITAL


BALANCE SHEETS


ASSETS

2

Report Item 1b

2017 2016

INCOME (LOSS)

Dividends 1,210,892$ 1,135,620$

Total Income (Loss) 1,210,892 1,135,620

OPERATING EXPENSES

Margin tax - 3,338

Directors' life insurance 89,400 99,750

Professional fees 13,570 13,572

Other expenses 42,320 -

Total Operating Expenses 145,290 116,660

INCOME (LOSS) FROM OPERATIONS 1,065,602 1,018,960

OTHER INCOME (LOSS)

Earnings in subsidiary 335,638 281,932

Other Income 100,025 -

Total Other Income (Loss) 435,663 281,932

Total Net Income (Loss) 1,501,265 1,300,892

OTHER COMPREHENSIVE INCOME

Unrealized holding gain (loss) on available-for-sale securities 148,733)( 462,595)(

COMPREHENSIVE INCOME 1,352,532$ 838,297$


FORM FRY-6


STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2017 AND 2016

3

Report Item 1b

Accumulated

Additional Other

Common Paid-in Retained Treasury Comprehensive

Stock Capital Earnings Stock Income/(Loss) Total

Balance, December 31, 2015 66,950$ 2,450,053$ 10,116,214$ 710)$( 544,504$ 13,177,011$

Net income - - 1,300,892 - - 1,300,892

Dividends paid - - 1,045,399)( - - 1,045,399)(

Change in net unrealized gain (loss)

on securities available-for-sale - - - - 462,595)( 462,595)(

Balance, December 31, 2016 66,950 2,450,053 10,371,707 710)( 81,909 12,969,909

Net income - - 1,501,265 - - 1,501,265

Dividends paid - - 1,034,830)( - - 1,034,830)(

Purchase of Treasury Stock - - - 140,904)( - 140,904)(

Change in net unrealized gain (loss)

on securities available-for-sale - - - - 148,733)( 148,733)(

Balance, December 31, 2017 66,950$ 2,450,053$ 10,838,142$ 141,614)$( 66,824)$( 13,146,707$



STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2017 AND 2016

FORM FRY-6

4

Report Item 1b

2017 2016

CASH FLOWS FROM OPERATING ACTIVITIES

Net income (loss) 1,501,265$ 1,300,892$

(Increase) decrease in other assets 42,319 -

Increase (decrease) in Liabilities 25,000)( -

(Increase) decrease in earnings of Subsidiary 1,546,530)( 1,417,592)(

Net Cash Provided (Used) by Operating Activities 27,946)( 116,700)(

CASH FLOWS FROM INVESTING ACTIVITIES

Dividends received from subsidiary 1,210,892 1,135,620

Net Cash Provided (Used) by Investing Activities 1,210,892 1,135,620

CASH FLOWS FROM FINANCING ACTIVITIES

Dividends paid 1,034,830)( 1,045,399)(

Purchase of Treasury Stock 140,904)( -

Net Cash Provided (Used) by Financing Activities 1,175,734)( 1,045,399)(

NET INCREASE (DECREASE) IN CASH AND

CASH EQUIVALENTS 7,212 26,479)(

CASH AND CASH EQUIVALENTS AT

BEGINNING OF YEAR 82,587 109,066

CASH AND CASH EQUIVALENTS AT

END OF YEAR 89,799$ 82,587$

SUPPLEMENTAL SCHEDULE OF NONCASH

INVESTING ACTIVITIES:

Total increase (decrease) in unrealized gain

on securities available for sale 148,733)$( 462,595)$(


FORM FRY-6


STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2017 AND 2016

5

6

Report Item 2


SCHEDULE I - FORM FRY-6 – ORGANIZATION CHART

YEAR ENDED DECEMBER 31, 2017

1: Groesbeck Bancshares, Inc. prepares an annual report for its securities holders and is not registered

with the SEC. Enclosed are copies of the financial statements as specified by the appropriate Reserve

Bank.

2a: Organizational Chart

100%

100%

2b: Domestic branch listing provided to the Federal Reserve Bank.

See accountants’ compilation report.

Common Stockholders

Groesbeck Bancshares, Inc. Groesbeck, Texas, USA

Incorporated in Texas

(LEI: None)

Farmers State Bank Groesbeck, Texas, USA

Chartered in Texas

(LEI: None)

100%

FSB Realty Holdings, Inc. Groesbeck, Texas, USA

Incorporated in Texas

(LEI: None)

Report Item 3

COUNTRY OF

NAMES AND ADDRESSES CITIZENSHIP

James L. Bradley, Sr. United States 810 12.32%

Bradley 2012 Irrevocable Trust 300 4.56%

James L. Bradley, Sr., Trustee

Groesbeck, Texas USA

The David & Carolyn Hughes Trust United States 847 12.88%

David Hughes, Trustee


Diana McBay Bradley Intervivos Trust United States 555 8.44%

Diana Bradley, Trustee

Fairfield, Texas USA

Robert L. Fewell United States 517 7.86%


James E. Fewell United States 500 7.61%


Estate of Bryan L. Bradley United States 450 6.85%

Wortham, Texas USA

Christopher Bradley United States 400 6.08%


Jimmy Bradley United States 400 6.08%


Brenda Hughes United States 340 5.17%


Donald R. Rand United States 112 1.70%


Richard K. Rand United States 112 1.70%


Douglas R. Rand United States 98 1.49%


Brett Fewell United States 37 0.56%



OF VOTING OF VOTING

SHARES OWNED SHARES OWNED

Shareholders that directly or indirectly own, control or hold with power to vote 5% or more of the voting stock of

Groesbeck Bancshares, Inc.:


SCHEDULE II - FORM FRY-6 - SHAREHOLDERS


NUMBER PERCENT

7

Report Item 3

COUNTRY OF

NAMES AND ADDRESSES CITIZENSHIP

Jimmy Fewell United States 37 0.56%


June Fewell Stone United States 37 0.56%


Sherrie Fewell McGilvray United States 37 0.56%


Chris Rand United States 15 0.23%




SCHEDULE II - FORM FRY-6 - SHAREHOLDERS

(Continued)


NUMBER PERCENT

None

OF VOTING OF VOTING

SHARES OWNED SHARES OWNED

Shareholders not listed above that owned or controlled 5% or more of any class of voting securities in Groesbeck

Bancshares, Inc., during the fiscal year ended December 31, 2017:

8

Report Item 4

Director, Officer, Principal'sName, Address, and Principal Title or

Occupation Organization Position

James L. Bradley, Sr. * Groesbeck Bancshares, Inc. Principal Shareholder 16.88%Groesbeck, Texas USA Subsidiaries - n/a n/a n/aAttorney- Retired Banker Bradley & Bradley, Attorneys Owner 100% Bradley & Bradley, Attorneys

Circle J Ranch Owner 100% Circle J RanchFreestone County Abstract Owner 40% Freestone County Abstract

James E. Fewell Groesbeck Bancshares, Inc. Director, Principal Shareholder 7.61%Groesbeck, Texas USA Farmers State Bank - Groesbeck Director 0%Rancher James Cattle Co. Owner 100% James Cattle Co.

David K. Hughes ** Groesbeck Bancshares, Inc. Chairman, Principal Shareholder 12.88%Groesbeck, Texas USA Farmers State Bank - Groesbeck Chairman 0%Trader/Investor Groesbeck Mini Storage Owner 100% Groesbeck Mini Storage

Holloway, Jackson & Hughes Partner 33.33% Holloway, Jackson & HughesKyle's Trading Post Owner 100% Kyle's Trading PostKyle's U-Haul Owner 100% Kyle's U-Haul

Dan Collins Groesbeck Bancshares, Inc. Director 0.38%Groesbeck, Texas USA Farmers State Bank - Groesbeck Director 0%Retired Banker Other companies - n/a n/a n/a

John L. Awalt Groesbeck Bancshares, Inc. Director 0.65%Fairfield, Texas USA Farmers State Bank - Groesbeck Director 0%Real Estate Investor/Car Wash Owner Awalt Wholesale Owner 60% Awalt Wholesale

Roadster Car Wash Owner 100% Roadster Car WashJA & SA Management, LLC Partner 60% JA & SA Management, LLCJ & S Awalt Realty LTD Partner 60% J & S Awalt Realty LTD


Percentage of Shares Owned

Controlled, or HeldWith Power to Vote

GROESBECK BANCSHARES, INC.SCHEDULE III - FORM FRY-6 - DIRECTORS AND OFFICERS


9

Report Item 4



Robin E. Bradley, Executor **** Groesbeck Bancshares, Inc. Principal Shareholder 6.85%Wortham, Texas USA Subsidiaries - n/a n/a 0%Homemaker Other companies - n/a n/a n/a

Rick Sadler Groesbeck Bancshares, Inc. Director 0.65%Mexia, Texas USA Farmers State Bank - Groesbeck Director 0%CPA Rick Sadler, CPA Sole Proprietor 100.00% Rick Sadler, CPA

John W. Hughes *** Groesbeck Bancshares, Inc. Director, Principal Shareholder 3.26%Jewett, Texas USA Farmers State Bank - Groesbeck Director 0%Rancher Bill Hughes Cattle Co. Owner 100% Bill Hughes Cattle Co.

Stephen Bradley Groesbeck Bancshares, Inc. Director, President 0%Groesbeck, Texas USA Farmers State Bank - Groesbeck Director 0%Rancher/Manager Livestock Auction Groesbeck Auction & Livestock Partner n/a

Diana McBay Bradley Intervivos Trust Groesbeck Bancshares, Inc. Principal Shareholder 8.44%Diana Bradley, Trustee Subsidiaries - n/a n/a n/aFairfield, Texas USA Other companies - n/a n/a n/aHomemaker

Jimmy Bradley Groesbeck Bancshares, Inc. Principal Shareholder 6.08%Groesbeck, Texas USA Subsidiaries - n/a n/a n/aRancher Bradley's Circle J Cattle Services Sole Proprietor 100.00% Bradley's Circle J Cattle Services

Christopher Bradley Groesbeck Bancshares, Inc. Principal Shareholder 6.08%Groesbeck, Texas USA Subsidiaries - n/a n/a n/aCabinetmaker Bradley Woodworking Sole Proprietor 100% Bradley Woodworking

See accountants' compilation report. 6,574





(Continued)SCHEDULE III - FORM FRY-6 - DIRECTORS AND OFFICERS

10

Report Item 4



Brenda Hughes Groesbeck Bancshares, Inc. Principal Shareholder 5.17%Groesbeck, Texas USA Subsidiaries - n/a n/a n/aRancher Other companies - n/a n/a n/a

Robert L. Fewell Groesbeck Bancshares, Inc. Principal Shareholder 7.86%Groesbeck, Texas USA Subsidiaries - n/a n/a n/aRetired Farmer/Rancher Other companies - n/a n/a n/a

Brett Fewell Groesbeck Bancshares, Inc. Principal Shareholder 0.56%Groesbeck, Texas USA Subsidiaries - n/a n/a n/aEnergy Services Office Supervisor Other companies - n/a n/a n/a

Jimmy Fewell Groesbeck Bancshares, Inc. Principal Shareholder 0.56%Groesbeck, Texas USA Subsidiaries - n/a n/a n/aBeverage Industry/Rancher Other companies - n/a n/a n/a

June Fewell Stone Groesbeck Bancshares, Inc. Principal Shareholder 0.56%Groesbeck, Texas USA Subsidiaries - n/a n/a n/aCosmetologist Shear Elegance Sole Proprietor 100% Shear Elegance





(Continued)SCHEDULE III - FORM FRY-6 - DIRECTORS AND OFFICERS


11

Report Item 4



Sherrie Fewell McGilvray Groesbeck Bancshares, Inc. Principal Shareholder 0.56%Groesbeck, Texas USA Subsidiaries - n/a n/a n/aBanker BBVA Compass Mortgage Banking Officer n/a

Chris Rand Groesbeck Bancshares, Inc. Director 0.23%Groesbeck, Texas USA Farmers State Bank - Groesbeck Director 0%Optometrist Chris R. Rand O.D. P.A. Owner 100% Chris R. Rand O.D. P.A.


**** Note: The Percentage of Shares, Owned, Controlled, or Held with Power to Vote represents shares controlled as Executor of the Estate of Bryan Bradley.

Percentage of

** Note: The Percentage of Shares, Owned, Controlled, or Held with Power to Vote represents shares controlled as Trustee of The David & Carolyn Hughes Trust.

* Note: The Percentage of Shares, Owned, Controlled, or Held with Power to Vote represents shares owned personally and controlled as Trustee of the Bradley 2012 Irrevocable Trust.


SCHEDULE III - FORM FRY-6 - DIRECTORS AND OFFICERS(Continued)


Shares OwnedControlled, or HeldWith Power to Vote

*** Note: The Percentage of Shares, Owned, Controlled, or Held with Power to Vote represents shares controlled as Trustee of The J. W. & S.J. Hughes Living Trust.

12

Results: A list of branches for your depository institution: FARMERS STATE BANK (ID_RSSD: 461058).This depository institution is held by GROESBECK BANCSHARES, INC. (1144228) of GROESBECK, TX.The data are as of 12/31/2017. Data reflects information that was received and processed through 01/01/2018.

Reconciliation and Verification Steps1. In the Data Action column of each branch row, enter one or more of the actions specified below2. If required, enter the date in the Effective Date column

ActionsOK: If the branch information is correct, enter 'OK' in the Data Action column.Change: If the branch information is incorrect or incomplete, revise the data, enter 'Change' in the Data Action column and the date when this information first became valid in the Effective Date column.Close: If a branch listed was sold or closed, enter 'Close' in the Data Action column and the sale or closure date in the Effective Date column.Delete: If a branch listed was never owned by this depository institution, enter 'Delete' in the Data Action column.Add: If a reportable branch is missing, insert a row, add the branch data, and enter 'Add' in the Data Action column and the opening or acquisition date in the Effective Date column.

If printing this list, you may need to adjust your page setup in MS Excel. Try using landscape orientation, page scaling, and/or legal sized paper.

Submission ProcedureWhen you are finished, send a saved copy to your FRB contact. See the detailed instructions on this site for more information.If you are e‐mailing this to your FRB contact, put your institution name, city and state in the subject line of the e‐mail.

Note:To satisfy the FR Y‐10 reporting requirements, you must also submit FR Y‐10 Domestic Branch Schedules for each branch with a Data Action of Change, Close, Delete, or Add.The FR Y‐10 report may be submitted in a hardcopy format or via the FR Y‐10 Online application ‐ https://y10online.federalreserve.gov.

* FDIC UNINUM, Office Number, and ID_RSSD columns are for reference only. Verification of these values is not required.

Data Action Effective Date Branch Service Type Branch ID_RSSD* Popular Name Street Address City State Zip Code County Country FDIC UNINUM* Office Number* Head Office Head Office ID_RSSD* CommentsOK Full Service (Head Office) 461058 FARMERS STATE BANK 121 S. ELLIS STREET GROESBECK TX 76642‐0499 LIMESTONE UNITED STATES 9694 0 FARMERS STATE BANK 461058OK Full Service 2850423 FAIRFIELD BRANCH 360 W COMMERCE FAIRFIELD TX 75840 FREESTONE UNITED STATES 233780 5 FARMERS STATE BANK 461058OK Full Service 3835379 JEWETT BRANCH 523 SOUTH MAIN STREET JEWETT TX 75846‐4605 LEON UNITED STATES 481877 7 FARMERS STATE BANK 461058OK Full Service 3174984 KOSSE BRANCH 104 N NARCISSUS KOSSE TX 76653 LIMESTONE UNITED STATES 418616 6 FARMERS STATE BANK 461058OK Full Service 2168089 MEXIA BRANCH 604 W MILAM MEXIA TX 76667 LIMESTONE UNITED STATES 233778 3 FARMERS STATE BANK 461058Close Full Service 188766 THORNTON BRANCH 708 HIGHWAY 14 THORNTON TX 76687 LIMESTONE UNITED STATES 10601 1 FARMERS STATE BANK 461058OK Full Service 1831564 WORTHAM BRANCH 110 WEST MAIN STREET WORTHAM TX 76693 FREESTONE UNITED STATES 3808 2 FARMERS STATE BANK 461058

domestic bank holding company - dallasfed.org/media/documents/banking/… · 31/12/2017 ·...

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