FRY.6(IrB ilum!..7100ffi7Apelw.l.rgf.. No,uilr 30, 1010Pre[ I cr2

Boed dGwcrnon of tlp Fcdcrel Rerrvc Syilem

; Annual Report of Holding Gompanies-FR Y-o

Rcport rt thc cloco of burlnor m of lhr cnd ol flrcel yeer

This Roporr b requlrcd by law: Secfron 5(cXlM) of the BankHolding CompanyAd (12 U.S.C. $ 1444(oX1XA));recfronr 8(a)and l3(a) of thc lntrnetlonal Banldng Ad (12 U.S.C. SS 3106(a)and 3108(a)); rcctona t1(a[1), 25, and 25A of 0te FoderalRmnle Ad (12 U.S.C. S$ z4qaXl), 802, and 6l1a); and soetons 113, 185,312,618, end 8m of ho Dodd#rankAnt (12 U.S.C.SS 5361, 5385, 5412, 165ft(cxl), and 5108(b[1)). Rdm to 0teappmprtab F€doral Re0snrc Bank the odginal and the number ofcopl€s lpodllcd.

Thia rryoil hm is to be ltbd by all bptier bank hofttirq compa-nies, toftis savinga and ban hoEing cmrpaniec, and U.S. Inbr-mcdbb holdirp comp.rdcc organEcd undcr U.S. law' and byany fomlgn banHng organtsatlon that doar nd moot thc raqdm'montB of and b nd Ueatad m a quallfying lbrolgn benHtg orga-ntsaton under Scc&n 211.n d Ragulafion K (12 C.F.R. S211.231. (Sse paOs one of tha genenl in&rdone br mom dstailof rvho murt tlle.) The Fcdaral Raare mry rd condud or !pon-sor, and an orgnntsatlon (or a penon) le not rsqdred b reryondto, an inftrmatlon ollecffon mlecs lt displrys a anonty rralldOMB confd numbtr

NOTE: Thc ,rlan,N Rclp6t d Hffiig Gortrams mr/st bo aigned byone dindor d hs totr06r hldlng compeny. Thi. lldvldusl shorHalso bo a rcnia oflhirl ol he @{o( holdlng oomp.ny. ln the wpnttlat tte bpter holdlng cornpany dme not hero an lndfuldual wtro isa rnlor ol[dal rtd lr dso e di]€ctor, tho dtalman dthe board muetsign he cport. lf ho holdltU oorpary b an ESOP/ESOTlbrncd ese corpoiBton or b an LLC, soe frc Gon€rd lnsfrtldiom for theauhottsod irdividud who muet rlgt ho roportl, Tommy Gunstream

Itlllil 01lh0 Hokrre Compdty oitdor rnd OltlcH

ChairmanTI0. of ll1. Holdng Coqoy Unfir md O{lldd

atbst thet tltn tunud Rryrrt d lffirg CanrW*e (includlngthe rupport[g ettmfimeda) lbr thir ]Eport dab ha boen pm-pamd tn omhfin ncc u,th thc insfrrrcilons Eilod by the FederalResoile S!/Sm and ale tue and corect b ha bcat of mylmowlcdgeand belbf.

Wih tr,sE,dro ffiuntilwr ffi,gr,rdtsttg ttfivttuds a flffi?tr(l in thistr{ptt frp Relplrff orfl,N M fr l,e8 tp atilrltily b ptovtcf tllsinfqrnafim b tu rued Recenp. The tupottal, dco sfrbcilratfrhactn attlritily, m 0chdlcf,sarlt ffihtd, bsrsgrtorobjed to pn!#c ruleene d kffion ftgrrdfrtg thtt ffinLTlp Federd fu*tw fiW acrlttrr., h frp aimrte d a nqnd bra nfunW te'ffi stbtnffi kr ,rtritds7E vtrt tp BoaftfslRl.l* Rqlrdfrtg AvrdaDffity d lrffin,'12 C.F.R M 261,t d fito Rqpoibr M. ffivflud cprtrlil b plfib r"Mg of iltffifrs ln tle tryft s@mtng hat heddud.a -4,,&-

Drt ot Rcpod (toftler holding comparvs llscalyear-end):

1U31not?llon$/ Dry/Y*rN/Ancporudr Uaea En0ty klcnutlcr (lEl) (20{hrt r.r [El Cod.)

Reporb/r Name, Stuet and MailingMOlnacc

Danny Management, lnc.

L.g.l TItc ot Hol&lg Comprry

P.O. Box 565(illffm Addil. d lh. l.blitrrg Contp.ry) Sfilrt , P.O. Eo(

Mulashoe Texas E 79347$fr Zpood.Clty

202 South FirstPtr!/dcd Locdon (trdbrutttutr rdhe d4!..)

Pemon to lytrorfl quudonc about this r€port $ouH be dlmded:Martin C. Lervis CPA

IilaN]rr806-29S4287AraOo.h,PfurNumbc,E.ffin8062937674Anr Co&/FAXNumtc

mcl@coaontheweb.com

Stguti offilg Compay DtGr.nd Ollldd

3/3012018

E{.[Addrufbmuleshoe.comArrdE (URL) fu lrr. Hok*lg Coop.nyt ltb pqp

D.b oa

For Fdrnl Rmorw Blnk Uro Onty

RSSD IDc.t.

23lLt r(1tutlc r?(Ifhg htldrr for hb Hmnlbn Gd.&n f rdn bd b vry l|ql! 1.3 b tot hqrn p.r rupo.r-, rllh ar arar d t50 ]!ult P.r lt.fE, IdfiE til b g.!lr rdr*rthdthlh. lt$*ldbilf|db ]tYhrmrdoilfrdomClf lhffineldon. S.o.lcdrltrn!ilgrth8lhbbrl,rlonodnrbanydrrrpddldrffirdMonr&r. fr.ffrigrfrt thafr.drdng!*hdrn UgroIy. BordolOor.nrstdh. ffidREFWlttZXhtrldC$..n, NW.tlfiIn*n, DC2066l.mdbh.dholfh.FilrtrndSsdg.t h.ilnrtR.drslr m.d0fl}}m4, mJfngbn, DClIFog. GJ:lott

Fthffitg crrnpanhe M,,aidcioml wil, fre SEG[ldh.b rffir otAnnu.l R@rt b Sharuholdal:

E u Inauoea urur thc FR Y4 oportE um bc rsrt unrbr rcpareb oovcr

E rnaprcperaa

trY.. 0l! @nlldcntLl trchlont mquobd lbr any porton ofthh Eport qrDmblbn?......,...ln aocodacs wttr fio Goned lnrhrc0oru lbr lhb ttDort(chedrorfyqu),

1. a lctbrJuCfyhg thb roquat lt b.lt0 ptot ldad.lo,tgwffi fte Epott..

2. a htbrlurdil4ng O|b Equo.t he3 been povldcd reparably ...

NOTE: lnbrncton hrslrhrr conidonl5 torfirrnt b behg ]lqlotbdmst be govt ed lop.flHyen,ltboltdr'ffi.'

trtr

FRY{Prg.zd2

For Use By Tlercd Holding CompaniesTqrfiondffing rrlnpilecnwtlitttp rptnce, nffing &,urr,, ail flrydal furrlflbnso/-erdlt cftfrf-rl,drddcryiddiryorpentbrWt

DG Parherehio. LtdLcOd ltlr d &ffiry HddrE Comprry

202 South First

be.l TL o,Iut irfy Hddfre CatPrry

(ilflrEAdot . dh &Dddry Hdfte Oomprty) Sh..a, P.O. Bo(

Muleshoe Texas El tgUt(llltng Attdru o, lhc &rbdd..y Holdne Colpany) Stul / P.O. Bor

EActv qil 4Oqh ott $.b 4Cod.

Phrtlarl Loo.ton 0 dlfhltltl frsn m-rg.det .)

Mulesho€ Bancshares, lnc.

Ml t oc.ton (lt dilhrnt fiqn m.{hg .ddro)

lre.l Iil. d suH(lfy Hddn! Cottprry

P.O. Box 565

L.ed il. d Sn[.[fEy }bktrg C(lr?ry

(ffl[Ar*h.. dO. E bdd.ry Hol*re Oomgrny] Strt t P.O. Bor Ohnng^ddu 40t &t ld.ry Hoadne Conp.ily) Slrr.t, P.O. Bo,.

Muleshoe Texas E zg34z EIClty

202 South First

gir 4Cod! ot, Sr! 4w

ffil Loarion (f dftltni flqtt m-re.d.ff, ) M Ls0oa flf drIlilrtllurm.the fft )

Lrgl llc d Amry Hdthe Conry tq.l Til. o{ 8lt ldl-y t.hl*rE Ciltry

(tldlneAdilu of !r. ES.kfUy Hol*te Comgny) Strct t P.O. Eot

clvE

sffi

(ll.fm Add!.. dlhr S$*nry Hddng ColtPfry) $r!d / P.O. Bq

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Stb 4Coir.

Phl,|lcd Locdon (lf dlh.rntltfi! nr$ltr.ddnr, Ptry.lcd Loc.{on 0f illMffilr mr{hg.ddrtr)

Lrft Tlth or Etddry Hdifre Coiltprty t e.l I0. of Srn Ehty Hd.5g Cott"ity

(mld Aer d$. gttddfy lbffte Comery) llbact, P.O. 8ot

CltyE

$rb

OLm Adth.. of tr &netry gdane Cqrtfl ettd / P.O. Bot

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ffil Locdon (f dfnot fiun n*t dt lUl Pb'dcd kc.ton (ltilflrntlisn m.he eu)

l?1x12

DAl\tN[Y MANAGEMENT, INC.

DECEMBER 31, 2017

FR Y.6

REPTORT ITEM 2a: Oreanization Chart

Danny Managemen{ Inc.Muleshog Texas / USAIncorporated in Texas

LEI: None

1.000% Ownership in DG Partnership(General Pertner of DG Partnership, Ltd.)

DG Partnership, Ltd.Muleshog Texas / USAIncorporated in Texas

LEI: None

32.204 7o Ownership in Muleshoe)@encshares, Inc.)

Muleshoe Bancshares, Inc.Muleshog Texas / USAIncorporated in Texas

LEI: None

96.556 7o Ownership in First Bmkof Muleshoe

I'irst Bank of MuleshoeMuleshog Texes / USAIncorporated in Texas

LEI: None

NOTE: M.D. Gunstream tansferred his shares of stock in Muleshoe Bancshares, Inc. in exchangefor a 99.0Yo limited partrership interest in DG Parhrership, Ltd" effective May 15, 1995. M.D.Gunstream died May 1,2015. As per his last will and testament, his limited partnership intoest inDG Partnership, Ltd- was transferred to his two sons, Tommy Gunsteam and Danny Gunsfteano"

DECEMBER 31, 2017

FR Y-6

REPTORT ITEM 2b: Domestic BranchListing

Submitted via email 313012018.

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DAIINIY MANAGEMENT, INC.

DECEMBER 31, 2017

FRY-6

REPTORT ITEM 3: Securities Holders

(lXa)Name and Address

Tommy GunsteamMuleshoe, Texas 79347

Danny GunstreamShreveport, Louisiana 71105

Q)@)Name and Address

(lXc)Shares Owned

510

(2)(c)Shares Owned

N/A

(1Xc)% Owned

5r.00%

49.00%

(2)(c)%Oumed

(r)o)Country

USA

USA

(2Xb)Country

490

REPTORT ITEM3: Securities Holders

(l)(a)Name andAddress

Tommy Gunsteam (Limited Partrer)Muleshog TexasAJSA

Danny Gunsteam (Limited Parher)Shreveport, Louisiana/USA

Danny ManagemenL Inc. (General Partner)202 South FirstMuleshog Texas 79347

Q)@)Name and Address

DG PARTNERSHIP, LTD.

DECEMBER 31, 2017

FR Y-6

(1Xc)% Oumd

49.50%

49.50%

1.00o/o

(1Xb)Countrv

USA

USA

USA

(2Xc)Shares Owned

(2Xc)% Oumed

(2Xb)Country

N/A

MIILESTTOE BANCSHARES, rNC.

DECEMBER 31, 2017

FR Y-6

REPTORT ITEM 3: Socurities Holders

(1Xa)Name and Address

DG Partnership, Ltd-Muleshog Texas 79347

TommyGursfeamMuleshoe, Texas 79347

PhilKentMuleshoe, Teiras 79347

(2)(a)Name and Address

N/A

(1Xc)Shares Owned

12,333

5,758

3,352

(2Xc)Shares Owned

(1Xc)% Owned

32.204o/o

15.0360/o

8.753o/o

(2Xc)% Owned

(1)O)Country

USA

USA

USA

(2Xb)Country

DANNTY MANAGEMENT, INC.

DECEMBER 31, 2017

FR Y-6

REPTORTITEM4: Insid€rs

See Attached Ibr information on all holding coryanies.

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DAI\INTY MANAGEMENT, INC.

DECEMBER 31, 2OI7

FR Y.6

REPTORT ITEM 1: Anrual Reocts to Sharehold€rs'

The annual report to shareholders' consists of the attached parent company only coryarativefinancial statements for the years ending December 31,2017 and 2016.

DANNY MANAGEtf, ENT, tNC.(Parent Gompany Only)

COMPILED FINAN CIAL STATEMENTS

Yearc Ended December31,2O17 and 2016

LKRSGCEIMPANY

LEWIS, KAUFMAN. III]ID, S1'tJKtiY, CATTIS & CO,. I'.C

To the Board of DirectorsDanny Management, lnc.Muleshoe, Texas

ACCOUNTANT'S COMPI LATION REPORT

Management is responsible for the accompanying financia! statements of Danny Management, lnc. (acorporation) which comprise the balance sheets as of December 31 ,2017 and 2016 and the relatedstatements of income and changes in stockholders' equity and cash flows for the years then ended, andthe related notes to the financial statements in accordance with accounting principles generally acceptedin the United States of America. We have performed a compilation engagement in accordance withStatements on Standards for Accounting and Review Services promulgated by the Accounting andReview Services Committee of the AICPA. We did not audit or review the financia! statements nor werewe required to perform any procedures to verify the accuracy or completeness of the information providedby management. Accordingly, we do not express an opinion, a conclusion, nor provide any form ofassurance on these financial matters.

The accompanying financial statements are not intended to be the primary statements of DannyManagement, lnc. as they have been prepared in conformity with accounting principles that wouldotherwise be considered a departure from generally accepted accounting principles because theCompany's subsidiaries, DG Partnership, Ltd., Muleshoe Bancshares, lnc. and the First Bank ofMuleshoe, are not consolidated, but rather shown as an investment carried on the equity method.

Management has elected to omit substantially all of the disclosures and the statement of cash flowsrequired by accounting principles generally accepted in the United States of America. lf the omitteddisclosures and statement of cash flows were included in the financial statements, they might influencethe user's conclusions about the Company's financial position, results of operations, and cash flows.Accordingly, these financial statements are not designed for those who are not informed about suchmatters.

LauW Kaufuorv Reill, Stlt*z4t et GafiIry& Ca., ?.C.

Lewis, Kaufman, Reid, Stukey, Gattis & Co., P.C.January 31,2018

-1-

GEIg@230t3W5l1lSrtrEt't I I'l.AlNvrr,w,fX7,)072 jI'll0().2.).1.-l2l{7 | l,tt(Xr.2.)-1.707.1 I ct'A()NIlttwfB.C()M

Cashlnvestment in SubsidiaryDeferred Tax Assets

TITXLASSETS

Federal Income Tax Payable

TOTAL LIABILITIES

Stockholders' Equity:Common StockAdditional Paid-ln CapitalRetained EarningsUnrealized Gain (Loss)-AFS Securities

TOTAL STOCKHOLDERS' EQUITY

TOTAL LIABILITIES &STOCKHOLDERS' EOU

DANNY MANAGEMENT, ING.(Parent Company Only)

COMPARATIVE BALANCE SHEETSDecember 31,2017 and 2016

ASSETS

2017

$ 8,02544,858

-0-

52.883

LIAB!LITIES & PARTNERS' CAPITAL

$ -0-

2016

6,94044,752

-0-

$ 51.692

-0-

-0-

1,00019,50432,284

95

s2.883

1,00019,50431,474

(286)

-0-

51.692

$ 52.883

See Accountant's Compilation Report

-, -L

51.692

lncome:Other Income

Expenses:Professional Fees

Net Income (Loss) Before Federallncome Taxes and Equity in Incomeof Subsidiary

Federal lncome Tax (Expense) Benefit

Net lncome (Loss) Before Equity inNet Income (Loss) of Subsidiary

Equity in Net lncome of Subsidiary

Net lncome (Loss)

Retained Earnings atBeginning of Year

Prior Period AdjustmentsDividends Paid

Retaaned Eaminos at

DANNY MANAGEMENT, INC.(Parent Company Only)

STATEMENTS OF INCOME AND RETAINED EARNINGSYearc Ended December 31,2017 and 2016

2017

7

7

529

529

2016

$ 7

7

509

509

(522)

-0-

(502)

-0-

(522)

1.675

(502)

1.611

1,153

31.474

1,109

30.365

(343)-0-

-0--0-

$ 32.284

See Accountant's Compilation Report.

-3-

31_474

DG PART1\IERSIilP, LTD.

DECEMBER 31, 2017

FR Y.6

REPTORT ITEM 1: Annual Reoorts to Shareholders'

The annual report to shareholders' consists of the attached parent company only comparativefinancial statements for the years e,nding December 31,2017 and 2016.

DG PARTNERSHIP, LTD.

COMPILED FINANCIAL STATEMENTS

Years Ended December31,2017 and 2016

LKRSGCOMPANY

I.IWIS. KAI.JFMAN I{[ID, STIIKI\', G^ITIS & CO.. I].C

To the PartnersDG Partnership, Ltd.Muleshoe, Texas

ACCOUNTANT'S COMPII.ATION REPORT

Management is responsible for the accompanying financial statements of DG Partnership, Ltd.. (apartnership) which comprise the balance sheets as of December 31 ,2017 and 2016 and the relatedstatements of income and changes in stockholders' equity and cash flows for the years then ended, andthe related notes to the financial statements in accordance with accounting principles generally acceptedin the United States of America. We have performed a compilation engagement in accordance withStatements on Standards for Accounting and Review Services promulgated by the Accounting andReview Services Committee of the AICPA. We did not audit or review the financial statements norwerewe required to perform any procedures to verify the accuracy or completeness of the information providedby management. Accordingly, we do not express an opinion, a conclusion, nor provide any form ofassuranoe on these financial matters.

Management has elected to omit substantially all of the disclosures and the statement of cash flowsrequired by accounting principles generally accepted in the United States of America. lf the omitteddisclosures and statement of cash flows were included in the financial statements, they might influencethe user's conclusions about the Company's financial position, results of operations, and cash flows.Accordingly, these financial statements are not designed for those who are not informed about suchmatters.

LapW Kaufoa,rv Reilr, Sttll<ey, Qaltw& Ca., ?.C

Lewis, Kaufman, Reid, Stukey, Gattis & Co., P.C.January 31, 2018

1

cE s@2308WStlrSllu,LI I I'tAtNVilw. l'X7()()72 It'tt0()2,).l .l2li;' I l: 80().29.i.7674 I (],A()NTHlwrH.(t()M

CashAccountrs Receivablelnvestment in SubsidiaryInvestment in Certificates of Deposit

TOTAL ASSETS

DG PARTNERSHIP, LTD.

COMPARATIVE BALANGE SHEETSDecember 31,2017 and 2016

ASSETS

2017

5,478-0-

4,480,318-0-

$ 4.485,796

LIABILITIES & PARTNERS' CAPITAL

-0-

-0-

2,215,7602,215,760

44,7629.514

4.485.796

$ 4_485.796

See Acoountrant's Compilation Report.

-2-

$

2016

11,357-0-

4,463,900-0-

4.475157

-0-

-0-

2,229,3292,229,329

45,036.537)

4.475.157

4.475.157

Liabilities

TOTAL LIABILITIES

Partners' Capital:Tommy GunstreamDanny GunstreamDanny Management, lnc.Unrealized Gain (Loss) on AFS Securities

$

TOTAL PARTNERS' CAPITAL

TOTAL LIABILITIES &

DG PARTNERSHIP, LTD.

STATEMENTS OF INCOME AND PARTNERS' CAPITALYears Ended December31,2017 and 2016

2017

$

-0-

lncome:!nterest lncome

Expenses:Professional FeesMiscellaneous Expenses

Net lncome (Loss) Before Equityin lncome of Subsidiary

Equity in Net lncome of Subsidiary

l{etlneme-lloss)

Partners' Gapital at Beginning of YearCapital ContributionsCapital WithdrawalsPrior Period AdjustmentsChange in Unrealized Gain (Loss)on AFS Securities

Partners'Caoltal at En

2016

-0--0-

-0-

669

669

(66e)

168.187

167.518

4,475,157-0-

(160,606)(34,325)

38.052

$ 4 485796

See Accountiant's Compilation Report.

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649-0--0-

649

(o4e)

1 61.740

't61.091

4,526,796-0-

(126,263)-0-

(86.467)

4 475 157

MTILESHOE BAI\ICSIIARES, INC.

DECEMBER 31, 2017

FR Y-6

REPTORT ITEM 1: Annual Reports to Shareholders'

The annual report to shareholders' consists of the attached parent coryany only comparativefinancial state,ments for the years e,nding December 31,2017 and 2016.

MULESHOE BANCSHARES, INC.(Parcnt GompanyOnly)

COTPILED FINAI{GIAL STATET EiITS

Years Ended December 31,2017 and 2016

TUIULESHOE BANCSHARES, ING.(Parent Gompany Only)

TABLE OF GONTENTS

Accountanfs Compilation Report

Comparative Financial Statements:

Compamtive Balance Sheets

Comparative Statements of lncome

Comparative Statements of Changes in Stockholders' Equity

Gomparative Statements of Cash Flotivs

Notes to Financial Statements

PaG

1

2

4

5

6

7

COMPANY

LLtvl\. KAtrr.NlAN. RLll). \IUKI\'. CAt I ts r\ (-tr., I'.(]

ACCOUNTANT'S COMPI LATION REPORT

The Board of DirectorsMuleshoe Bancshares, lnc.Muleshoe, Texas

Management is responsible for the accompanying financial statements of Muleshoe Bancshares, lnc. (acorporation) which comprise the balance sheets as of December 31, 2017 and 2016 and the related statementsof income and changes in stockholders' equity and cash flows for the years then ended, and the related notesto the financial statements in accordance with accounting principles generally accepted in the Unitecl States ofAmerica. We have performed a compilation engagement in accordance with Statements on Standards forAccounting and Review Services promulgated by the Accounting and Review Services Commiftee of theAICPA. We did not audit or review the financial statements nor were we required to perform any proceduresto verify the accuracy or completeness of the information provided by management. Accordingly, we do notexpress an opinion, a conclusion, nor provide any form of assurance on these financial matters.

The accompanying financial statements are not intended to be the primary statements of MuleshoeBancshares, lnc. as they have been prepared in conformig with accounting principles that would othenrise beconsidered a departure from generally accepted accounting principles because the Company's subsidiary, theFirst Bank of Muleshoe, is not consolidated but rather shown as an investment canied on the equity method.

LKRSG

Leutw Ka,ufua,ru R?il/, Shz'*ed, Qwttw€r Ca., P.C.

Lewis, Kaufrnan, Reid, Stukey, Gattis & Co., P.CJanuary 31,2018

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MULESHOE BANCSHARES, INC.(Parent Company Only)

GOMPARATIVE BALANGE SHEETSDecember 31,2017 and 2016

ASSETS

$Cunent Assets:

CashDue From Subsidiary BankPrepaid Federal lncome Taxes

lnvestments:lnvestment in First Bank of Muleshoe,Texas, 48,278 Shares (Note 1)

lntangible Assets:Goodwill, Less Accum ulated Amortization

of $406,790 and $406,790, respectively

Total Assets

2017 2016

36,051-0-

M.814

35,81316,180

-0-

100,865

13,630,389

246.050

51,993

13,579,334

246.050

$ 13977 3M

See Accountants' Compilation Report and Notes to Financial Statements

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13 877 377

MULESHOE BANCSHARES, INC.(Parent Company Only)

GOTIPARATIVE BALANGE SHEETSDecember 31,2017 and 2016

LIABILITIES & STOCKHOLDERS' EOUITY

2017 20'16

Cunent Liabilities:Amount Due Subsidiary Banklncome Taxes Payable

Term Debt (Note 3)

Stockholders' Equity:8% Cumulative Prefened Stock, ParValue $35; Authorized 31,747 Shares;-0- and -0- Shares lssued andOutstanding, Respectively

Common stock, Par Value $1 0; Authorized48,426 Shares; 38,297 Shareslssued and Outstanding

Additional Paid-ln CapitalRetained EamingsTreasury StockUnrealized Gain (Loss) on Available-For-Sale Securities (net of tax)

$ u,814-0-

-0-16.180

u,814

-0-

382,970170,651

13,329,326-0-

29.ils

16,180

-0-

382,970170,651

13,396,191-0-

(88.615)

-0--0-

Total Stockholders' Equity 13.912.490 13.861.197

Total Liabilities and Stockholders' Equity $ 13.977.304 ___73.827-3n

See Accountants' Compilation Report and Notes to Financial Statements

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MULESHOE BANCSHARES, INC.(Parcnt Company Only)

COMPARATIVE STATEMEiITS OF INCOMEYearc Ended December 11,2017 and 2016

20'17 2016

lncome:RentallncomeGain on Sale of Assets

Expense:lnterest ExpenseAmortizationFranchise TaxesDepreciationMiscellaneous Expenses

Net lncorne Before Federal lncome Taxand Equity in lncome of Subsidiary

Federal lncome Tax Expense (Beneft)

Net lncome (Loss) Before Equity in Netlncome of Subsidiary

Net lncome

$ -0--0-

-0--0-

-0- -0-

-0-

-0--0--0--0--0-

.G

.G-0--0-.(L

-0-

-0-

-0-

.(L

-0-

-G -0-

Equity in Net lncorne of Subsidiary 522.263

$

-122.253

See Accountants' Compilation Report and Notes to Financial Statements

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TULESHOE BANCSHARES, INC.(Parent Company Only)

COMPARATIVE STATEMENTS OF GASH FLOWSYears Ended December 31,2017 and 2016

2017

Cash flows from operating activities:Net lncomeAdjustments to reconcile net income to

net cash provided by operating activities:Equity in subsidiaries eamingsDepreciationAmortizationGain on sale of assets

(lncrease) decrease in assets andincrease (decrease) in liabilities:

Due from subsidiary bankPrepaid federal income ta:<esAmount Due Subsidiary Banklncome taxes payable

Net cash provided (used) by operations

Cash flows from investing activities:Proceeds from sale of assetsCash dividends received from subsidiary

Net cash provided (used) by investing activities

Cash flows from financing activities:Proceeds from term debtsPrincipal payrnents on term debtsDividends paid

$ 522,263

2016

502,243

18,931-0--0-

(18.931)

-o-

-0-4'10.363

410.363

-0--0-

(410.161)

A10.161)

202

35.611

35.813

(502,243)(522,263)-0--0--0-

-0--0--0-

16,180(64,814)(16,180)u.814

-0-

-0-482.780

482.780

-0--0-

(482.il21

Net cash provided (used) by financing activities @82.il21

Net increase (decrease) in cash 238

35.813Cash at beginning of year

Cash at end of year $ 36 051

See Accountants' Compilation Report and Notes to Financial Statements

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MULESHOE BANCSHARES, INC.(Parent Gompany Only)

NOTES TO FINANCIAL STATEiIIEhITSYear Ended December 31,2017

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

INVESTMENT IN STOCK OF FIRST BANK OF MULESHOE

The Company canies its investment in the First Bank of Muleshoe, Texas, at cost, plus its equityin net eamings since date of organization (August 8, 1979). Straight-line amortization is taken onthe dffierence between the Company's cost of such investment and its proportionate share of theunderlying net assets at date of acquisition.

CASH AND CASH EQUIVALENTS

Cash and cash equivalents include time deposits, certificates of deposit and marketable securitieswith original maturities of three months or less.

NOTE 2: STOCK OF SUBSIDIARY SOLD UNDER REPURCHASE AGREEMENTS

The shares of stock of the First Bank of Muleshoe sold under repurchase agreements representsshares sold to the Board of Directors to meet regulatory requirements. Under the terms of theseagreements, the Company retains the right to reacquire these shares at $10.00 per share. lnaddition, the Company retains the right to any dividends paid. As of December 31, 2017 and2016, all stock sold under the repurchase agreement had been acquired by the Cornpany.

NOTE3: TERM DEBT

There were no term debts outstanding at December 3'1,2017 and 2016.

NOTE 4: FEDERAL INCOME TAX E)(PENSE (BENEFIT)

The Company and its subsidiary file a consolidated income tax retum.

NOTE 5: SUPPLEMENTAL DISCLOSURES CASH FLOW INFORMATION

20'17

Cash paid during the year for interestCash paid during the year for taxes

-0-187,500

2016

-0-184,300

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