33
FR Y-6 OMB Number 7100-0297 Approval explres November 30,2019 Page 1 ol 2 Board of Governors ofthe Federal Reserve System .iffi m JUL 3 0 20tg Annual Report of Holding G ompan Y-6 Report at the close of business as ofthe end offiscal year This Report is required by law: Section S(cX1XA) of the Bank This report form is to be filed by all toptier bank holding compa- Holding Company Act (12 U.S.C. S 18a4(c)(1)(A)); sections 8(a) nies, top-tier savings and loan holding companies, and U.S. inter- and 13(a)of the lntemationalBankingAct(12 U.S.C. SS3106(a) mediate holding companies organized under U.S. law, and by and 3108(a)); sections 11(aX1 ),25, and 25Aol the Federal anyforeignbankingorganizationthatdoesnotmeettherequire- Reserve Act (12 U.S.C. SS 2a8@l(1),602, and 611a); and sec- ments of and is not treated as a qualifying foreign banking orga- tions113,165,312,618,and809oftheDodd-FrankAct(12U.S.C. nization under Section 211.23 of Regulation K (12 C.F.R. S SS 5361, 5365, 5412, 1850a(c)(1), and 5468(b)(1)). Return to the 211.231. (See page one of the general instructions for more detail appropriate Federal Reserve Bank the original and the number of of who must file.) The Federal Reserve may not conduct or spon- copies specined' i":'#f,ffi:t3l''*i"*ffi",iii::il ';JffT:',.;fl':,',ff?:l]: OMB control number. NOTE: The Annual Report of Holding Companies must be signed by one director of the top-tier holding company. Thls individual should also be a senior official of the top-tier holding company. ln the event that the top-tier holding company does not have an individual who is a senior official and is also a director, the chairman of the board must sign the report. lf the holding company is an ESOP/ESOT formed as a corporation or is an LLC, see the General lnstructions for the authorized individual who must sign the report. l, Tommy Gunstream Name of the Holding Company Director and Official Chairman Title of the Holding Company Director and Official attest that lhe Annual Repod of Holding Companies (including the supporting attachments) for this report date has been pre- pared in conformance with the instructions issued by the Federal Reserve System and are true and correct to the best of my knowledge and belief. Wth respect to infonnation regarding individuals contained in this report, the Reporter cefilfies that it has the authority to provide this information to the Federal Reserve. The Reporter also certifies that it has the authorigl, on behalf of each individual, to consent or object to public release of information regarding thal individual. The Federal Reserve may assume, in the absence of a request for confidential treatment submifted in accordance with the Board's "Rules Regarding Availability of lnformation," 12 C.F.R. Part 261, that the Reporter and individual consent to public release of all details in the repoft Date of Report (top-tier holding company's fiscal year-end) 12t31t2018 Monlh/Oay/Year N'A Reporte/s Legal Entity ldentmer (LEl) (2o-Character LEI Code) Reporte/s Name, Street, and Mailing Address Danny Management, lnc. Legal Title of Holding Company P.O. Box 565 (Mailing Address of the Holding Company) Street / P.O. Box Muteshoe Texas EI 79317 City 202 South Firct Zip Code Physical Location (if different from mailing address) Person to whom questions about this report should be directed; lhilln C I CPA Name E06-293"1287 Tltle Area Code / Phone Number / Extension 805.293-7674 Area Code / FAX Number [email protected] State that individual. Signature Company Director and Official E-mailAddress fbmuleshoe.com 7126t2019 Address (URL) for the Holding Company's web page Date of For Federal Reserve Bank Use Only RSSD rD 23\'1651 c.t Office of Management and Budgol, Paperwork R€duction Proiect (7'100-0297), washington, DC 20503. O3/201g For holding companies not registered with the SEC- lndicate status of Annual Report to Shareholders: EI is included with the FR Y-6 report E will be sent under separate cover f] is not prepared 0=No 1=Yes 0 ls confidential treatment requested for any portion of this report submission? ln accordance with the General lnstructions for this report (check only one), 1. a letter justifying this request is being provided along with the report. . . . . ... .. , 2. a letter justifying this request has been provided separately . . . NOTE: lnformation for which confidential treatment is being requested must be provided separately and labeled as *confidential.'

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FR Y-6OMB Number 7100-0297Approval explres November 30,2019Page 1 ol 2

Board of Governors ofthe Federal Reserve System .iffi m

JUL 3 0 20tg

Annual Report of Holding Gompan Y-6

Report at the close of business as ofthe end offiscal year

This Report is required by law: Section S(cX1XA) of the Bank This report form is to be filed by all toptier bank holding compa-Holding Company Act (12 U.S.C. S 18a4(c)(1)(A)); sections 8(a) nies, top-tier savings and loan holding companies, and U.S. inter-and 13(a)of the lntemationalBankingAct(12 U.S.C. SS3106(a) mediate holding companies organized under U.S. law, and byand 3108(a)); sections 11(aX1 ),25, and 25Aol the Federal anyforeignbankingorganizationthatdoesnotmeettherequire-Reserve Act (12 U.S.C. SS 2a8@l(1),602, and 611a); and sec- ments of and is not treated as a qualifying foreign banking orga-tions113,165,312,618,and809oftheDodd-FrankAct(12U.S.C. nization under Section 211.23 of Regulation K (12 C.F.R. S

SS 5361, 5365, 5412, 1850a(c)(1), and 5468(b)(1)). Return to the 211.231. (See page one of the general instructions for more detailappropriate Federal Reserve Bank the original and the number of of who must file.) The Federal Reserve may not conduct or spon-copies specined'

i":'#f,ffi:t3l''*i"*ffi",iii::il ';JffT:',.;fl':,',ff?:l]:OMB control number.

NOTE: The Annual Report of Holding Companies must be signed byone director of the top-tier holding company. Thls individual shouldalso be a senior official of the top-tier holding company. ln the eventthat the top-tier holding company does not have an individual who isa senior official and is also a director, the chairman of the board mustsign the report. lf the holding company is an ESOP/ESOT formed asa corporation or is an LLC, see the General lnstructions for theauthorized individual who must sign the report.

l, Tommy GunstreamName of the Holding Company Director and Official

ChairmanTitle of the Holding Company Director and Official

attest that lhe Annual Repod of Holding Companies (includingthe supporting attachments) for this report date has been pre-pared in conformance with the instructions issued by the FederalReserve System and are true and correct to the best of myknowledge and belief.

Wth respect to infonnation regarding individuals contained in thisreport, the Reporter cefilfies that it has the authority to provide thisinformation to the Federal Reserve. The Reporter also certifiesthat it has the authorigl, on behalf of each individual, to consent orobject to public release of information regarding thal individual.The Federal Reserve may assume, in the absence of a request forconfidential treatment submifted in accordance with the Board's"Rules Regarding Availability of lnformation," 12 C.F.R. Part 261,that the Reporter and individual consent to public release of alldetails in the repoft

Date of Report (top-tier holding company's fiscal year-end)

12t31t2018Monlh/Oay/Year

N'AReporte/s Legal Entity ldentmer (LEl) (2o-Character LEI Code)

Reporte/s Name, Street, and Mailing Address

Danny Management, lnc.Legal Title of Holding Company

P.O. Box 565(Mailing Address of the Holding Company) Street / P.O. Box

Muteshoe Texas EI 79317

City

202 South Firct

Zip Code

Physical Location (if different from mailing address)

Person to whom questions about this report should be directed;lhilln C I CPA

Name

E06-293"1287

Tltle

Area Code / Phone Number / Extension

805.293-7674Area Code / FAX Number

[email protected]

State

that individual.

Signature Company Director and Official

E-mailAddress

fbmuleshoe.com7126t2019 Address (URL) for the Holding Company's web page

Date of

For Federal Reserve Bank Use Only

RSSD rD 23\'1651c.t

Office of Management and Budgol, Paperwork R€duction Proiect (7'100-0297), washington, DC 20503. O3/201g

For holding companies not registered with the SEC-lndicate status of Annual Report to Shareholders:

EI is included with the FR Y-6 report

E will be sent under separate cover

f] is not prepared

0=No

1=Yes 0ls confidential treatment requested for any portion ofthis report submission?

ln accordance with the General lnstructions for this report(check only one),

1. a letter justifying this request is being provided alongwith the report. . . . . ... .. ,

2. a letter justifying this request has been provided separately . . .

NOTE: lnformation for which confidential treatment is being requestedmust be provided separately and labeledas *confidential.'

FR Y.6Page 2 ol 2

For Use By Tiered Holding CompaniesTop-tiered holding companies must list the names, mailing address, and physical locations of each of their subsidiary holding companiesbelow.

DG Partnership, LtdLegal Title of Subsidiary Holding Company

202 South First

LegalTille of Subsidiary Holding Company

(Mailing Address of the Subsidiary Holding Company) Street / PO. Box

iluleshoe Texas 79347

City State Zip Code

(Mailing Address of the Subsidiary Holding Company) Street / PO. Box

City State Zip Code

Physical Location (if different from mailing address)

Muloshoe Bancshares, lnc.

Physical Location (if different from mailing address)

Legal Title of Subsidiary Holding Company

P.O. Box 565

Legal Title of Subsidiary Holding Company

(Mailing Address of the Subsidiary Holding Company) Street / P.O. Box

Muleshoe 79347City

202 South First

State Zip Code

(Mailing Address of the Subsidiary Holding Company) Street / P.O. Box

City State Zip Code

Physical Location (if different from mailing address) Physical Location (if different from mailing address)

Legal Title of Subsidiary Holding Company Legal Title of Subsidiary Holding Company

(Mailing Address of the Subsidiary Holding Company) Stroet / P.O. Box

City State Zip Code

(Mailing Address of the Subsidiary Holding Company) Street / P.O. Box

City State Zip Code

Physical Location (if different from mailing address) Physical Location (if difforent from mailing address)

Legal Title of Subsidiary Holding Company Legal Title of Subsidiary Holding Company

(Mailing Address of the Subsidiary Holding Company) Skeet / PO. Box

City State Zip Code

(Mailing Address of the Subsidiary Holding Company) Street / P.O. Box

City State Zip Code

Physical Localion (if different from mailing address) Physical Location (if different from mailing address)

12,2012

DANNY MANAGEMENT, INCORPORATED

DECEMBER 3tn 201E

F'R Y-6

REPORT ITEM l: Annual Reports to Shareholders'

Ths annual report to shareholders' consists of the attached psrent company only comparativefinancial statements for the years ending December 3 I , 201 t and 20 I 7.

DANNY IUANAGEiIENT, INC.(Parent Company Only)

COMPILED FINANCIAL STATEi'ENTS

Years Ended December 31,2018 and2017

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

COMPI ON RE

Management is responsible for the accompanying financial slatements of Danny Management, lnc. (acorporation) which comprise the balance sheets as of December 31,2018 and2017 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 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 lhese 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, Kaaimaw, Re;Ar, Sdilq4 €t qafi'w€r Ca., ?.C.

Lewis, Kaufman, Reid, Stukey, Gattis & Co., P.CJanuary 28,2019

(o,i,1 pAtJY

Ittvtr l.ir'tr.r,\N l(lll) \il'\lr t;),tlr\\t() lr

-1-

LKRSG

' Iirt'rlli".1r,\r\

GD J"@

Cashlnvestment in SubsidiaryDeferred Tax Assets

IOIATASETS

Federal lncome Tax Payable

TOTAL LIABILITIES

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

TOTAL STOCKHOLDERS' EQU ITY

TOTAL LIABILITIES &STOCKHOI-DERS' EOUffi

DANNY MANAGETIENT, INC.(Parent Company Only)

COMPARATIVE BALANCE SHEETSDecember 31,2018 and 2017

ASSETS

2018

$ 8,97143,335

-0-

$ 52.306

LIABILITIES & PARTNERS' CAPITAL

$ -0-

-0-

(1,995)

2017

8,02544,959

-0-

883

-0-

-0-

000504797

1

I1

33

1,00019,50432,294

95

52.306

$ 52.306

See Accountant's Compilation Report.

-2-

.883

52 883

lncome:Other lncome

Expenses:Professional Fees

Net lncome (Loss) Before Federallncome Taxes and Equity in lncomeof Subsidiary

Federal lncome Tax (Expense) Benefit

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

Equity in Net lncome of Subsidiary

Net lncome (Loss)

Retained Earnings atBeginning of Year

Prior Period AdjustmentsDividends Paid

netaineO Earninos a

DANNY MANAGEMENT, INC.(Parent Company Only)

STATEMENTS OF INCOME AND RETAINED EARNINGSYears Ended December 31,2018 and2O17

2018

11

11

550

550

2017

$ 7

7

529

529

(53e)

-0-

(522)

-0-

(53e)

2.052

(s22)

1.675

1,513

32.284

$ 33.797

See Accountant's Compilation Report.

-3-

1 53

3'.1.474

1

-0--0-

(343)-0-

284

DG PARTNERSHIP, LTD.

DECEMBER 3I,2018

FR Y-6

REPORT ITEM l: Annual Reports to Shareholders'

The annual report to shareholders' consists of the anached parent company only comparativefinancial statements for the years ending December 3 I , 201 8 and 20 I 7.

DG PARTNERSHIP, LTD.

COTIPILED FINANCIAL STATEMENTS

Yearc Ended December 31, 2018 and2O17

LKRSGCOMPAft'

lltrlr [\r:t\t\!. litll) \ttt-t', (;.\llt:\rrr l't

To the PartnersDG Partnership, LtdMuleshoe, Texas

ACCOUNTANT'S COMPI LATION REPORT

Management is responsible for the accompanying financial statements of DG Partnership, Ltd.. (apartnership) which comprise the balance sheets as of December 31, 2018 and2017 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 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.

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.

LenW Ka,ovfoa,w, Reidr, Std<p,y, qaf:fi* €t Co-., ?.C.

Lewis, Kaufman, Reid, Stukey, Gattis & Co., P.CJanuary 28,2019

i l,.r,..ilrl\'.rl r1r

GD) J"Eg

DG PARTNERSHIP, LTD.

COMPARATIVE BALANCE SHEETSDecember 31, 2018 and 2017

ASSETS

2018

CashAccounts Receivablelnvestment in Subsidiarylnvestment in Certificates of Deposit

IOIAI,.AS.SETS

11,700-0-

4,321,800-o-

$ 4 333 s00

LIABILITIES & PARTNERS' CAPITAL

-o-

-0-

2,243,8512,243,851

45,331(199.s33)

4.333.500

$ 4.333.500

See Accountant's Compilation Report.

-2-

$

2017

5,478-0-

4,480,318-0-

A 7S6

Liabilities

TOTAL LIABILITIES

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

$ -0-

-0-

2,215,7602,215,760

44,7629,514

TOTAL PARTNERS' CAPITAL

TOTAL LIABILITIES

4.485.796

4.485.796

DG PARTNERSHIP, LTD.

STATEMENTS OF INCOME AND PARTNERS' CAPITALYearc Ended December 31,2018 and2O17

2018

$

-0-

lncome:lnterest lncome

Expenses:Professional FeesMiscellaneous Expenses

Net lncome (Loss) Before Equityin lncome of Subsidiary

Equity in Net lncome of Subsidiary

llellnc&melloss)

Pafiners' Capital at Beginning of YearCapital ContributionsCapital WithdrawalsPrior Period AdjustmentsChange in Unrealized Gain (Loss)

on AFS Securities

Partners' Caoitata

2017

-0--0-

-0-

-0-689-0-

669

689

(68e)

205.926

205.237

4,485,796-0-

(148,486)-0-

(209.047)

$ 4.333.500

(66e)

168.187

669

1 67 518

4,475,157-0-

(160,606)(34,32s)

38.052

4.485.796

See Accountant's Compilation Report

-J-

MULESHOE BANCSHARES, INC.

DECEMBER 31,20t8

FR Y.6

REPORT ITEM l: Annual Reports to Shareholders'

The annual report to sharrcholders' consists of the anached parent company only comparativefinancial statements for the years ending December 3 l, 201 t and 2017.

ilIULESHOE BANCSHARES, INC.(Parcnt Company Only)

COMPILED FINANCIAL STATEiiENTS

Years Ended December 31,2018 and 2017

MULESHOE BANGSHARES, INC.(Parcnt Company Only)

TABLE OF CONTENTS

Accountant's Compilation Report

Comparative Financial Statements:

Comparative Balance Sheets

Cornparative Statements of lncome

Gomparative Statements of Changes in Stockholders' Equity

Comparative Statements of Cash Flows

Notes to Financial Statements

Paoe

1

2

4

5

6

7

co,\lPAfl\

ll\\'l\ h\ll'.i\N lllll) \ltllr (r\lll\\(ir lt

LKRSG

reD t"Eg

ACCOUNTANT'S COMPILATION 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, 2018 and 2017 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 United 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 opinron, a conclusion, nor provide any form of assurance on these financial mafters.

The accompanying financial statements are not intended to be the primary statements of MuleshoeBancshares, lnc as they have been prepared in conformity 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 carried on the equity method.

Leww, Ka+tfua.nt Re;d,r, Sfu*e.y, qatfw€r Co., P.C

Lewis, Kautman, Reid, Stukey, Gattis & Co., P.CJanuary 28,2019

1

I , i'\r)'.lllli', i1.1 t)\!

muLEsHoE BANCSHARES, tNC.(Parent Company Only)

COilIPARATIVE BALANCE SHEETSDecember 31, 2018 and 2017

ASSETS

$Current Assets:

CashDue From Subsidiary BankPrepaid Federal lncome Taxes

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

lntangible Assets:Goodwill, Less Accumulated Amortizationof $406,790 and $406,790, respectively

TotalAssets

2018 2017

36,289-0-

3.415

36,051-0-

u.814

39,704

13,137,915

246.050

100,865

13,630,389

.050

$ 13.423.659

See Accountants' Compilation Report and Notes to Financial Statements

-2-

13.977.304

MULESHOE BANCSHARES, tNC.(Parent Company Only|

COUPARATIVE BALANCE SHEETSDecember 31, 2018 and 2017

LIABIL]TIES & STOCKHOLDERS' EQUITY

2018 2017

Gurrent Liabilities:Amount Due Subsidiary Banklncome Taxes Payable

Term Debt (Note 3)

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

Common stock, Par Value $10; Authorized48,426 Shares; 38,297 Shareslssued and Outstanding

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

$ 3,415-0-

64,814-0-

3,415

-0-

382,970170,651

13,486,233-0-

(619.600)

64,814

-0-

382,970170,651

13,329,326-0-

29.543

-0--0-

Total Stockholders' Equity 13.420.254

Total Liabilities and Stockholders' Equi$ $ 13 423 669

See Accountants' Compilation Report and Notes to Financial Statements

-3-

13.912 490

13977 3M

]f, ULESHOE BANCSHARES, INC.(Parent Company Only)

COMPARATIVE STATEMENTS OF INCOMEYears Ended December 31, 2018 and 2017

lncome:RentallncomeGain on Sale of Assets

Expense:lnterest ExpenseAmortizationFranchise TaxesDepreciationMiscellaneous Expenses

Net Income Before Federal lncome Taxand Equity in lncome of Subsidiary

Federal lncome Tax Expense (Benefit)

Net lncome (Loss) Before Equity in Netlncome of Subsidiary

Equity in Net lncome of Subsidiary

Net lncome

2018

$

-0-

-0-

-0-

639.449

$ 639 449

2017

-0--0-

-0--0-

-0-

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

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

-0-

-0-

-0-

-0-

-0-

-0-

522.263

522263

See Accountants' Compilation Report and Notes to Financial Statements

-4-

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MULESHOE BANCSHARES, INC(Parent Company Only)

COiiPARATIVE STATEMENTS OF GASH FLOWSYears Ended December 31, 2018 and 2017

2018 2017

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

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

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

Due from subsidiary bankPrepaid federal income taxesAmount 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 payments on term debtsDividends paid

$ 639,449

-0-61,399

(61,3e9)-0-

-0-482.780

-0--0-

5421

16,1 80(64,814)(16,180)u.814

-0- -0-

522,263

522,2631-0--0--0-

(639,449)-0--0--0-

-0-482.780

780 482.780

-0--0-

G82.542\

Net cash provided (used) by financing activities (482.542\

238

36.051

Net increase (decrease) in cash

Cash at beginning of year

Cash at end of year $ 36.289

See Accountants'Compilation Report and Notes to Financial Statements

-b-

u82.542\

238

35.813

36.0s1

i,IULESHOE BANCSHARES, INC.(Parent Company Only)

NOTES TO FINANCIAL STATEMENTSYear Ended December 31, 2018

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

INVESTMENT IN STOCK OF FIRST BANK OF MULESHOE

The Company carries its investment in the First Bank of Muleshoe, Texas, at cost, plus its equityin net earnings since date of organization (August 8, 1979). Straight-line amortization is taken onthe difference 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 represenlsshares sold to the Board of Directors to meet regulatory requirements. Under the terms of theseagreements, the Company retains the rightto reacquire these shares at $10.00 per share. lnaddition, the Company retains the right to any dividends paid. As of December 31, 2018 and2Q17, all stock sold under the repurchase agreement had been acquired by the Company.

NOTE 3 TERM DEBT

There were no term debts outstanding at December 31, 2018 and 2017

NOTE 4: FEDERAL INCOME TAX EXPENSE (BENEFIT)

The Company and its subsidiary file a consolidated income tax return

NOTE 5 SUPPLEMENTAL DISCLOSURES CASH FLOW INFORMATION

2018

Cash paid during the year for interest -0-Cash paid during the year for taxes 141,204

2017

-0-1 87,500

7

DANIYY MANAGEMENT, INCORPORATED

DECEMBER 31, 2018

F'R Y.6

REPORT ITEM 2a: Orsanization Chart

Danny Management, IncorporatedMuleshoe, Texas / USAIncorporated in Texas

LEI: None

(General Partner of DG Partnership, Ltd.)

DG Partnership, Ltd.Muleshoe, Texas / USAIncorporated in Texas

LEI: None

32Yo Ownership in Muleshoe)(Bancshares, [nc.)

Muleshoe Bancshares, Inc.Muleshoe, Texas / USAIncorporated in Texas

LEI: None

960/o Ownership in First Bankof Muleshoe

f irst Bank of MuleshoeMuleshoe, Texas i USAIncorporated in Texas

LEI: None

NOTE: M.D. Gunstream transferred his shares of stock in Muleshoe Bancshares, lnc. in exchangefor a99.0%o limited partnership interest in DG Partnership, Ltd. effective May 15, 1995. M.D.Gunstream died May l, 2015. As per his last will and testament, his limited partnership interest inDG Partnership, Ltd. was transferred to his two sons, Tommy Gunstream and Danny Gunstream.

DECEMBER 3I, 2OI8

FR Y-6

REPORT ITEM 2b: Domestic Branch Listine

Submitted via email 312612019

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DAI{NY MANAGEMENT, INCORPORATED

DECEMBER 31, 2018

F.R Y.6

REPORT ITEM 3: Seourities Holders

(1Xa)Name and Address

Tommy GunstreamMuleshoe, Texas 79347

Daony GunstreamShreveport, Louisiana 71 105

(2Xa)Name and Address

(1Xc)Shares Owned

510

(2Xc)Shares Owned

NIA

(1Xe)% Owned

5r.00%

49:0AP/o

(2Xc)% Owned

(1Xb)Coutry

(2Xb)Countrv

USA,

USA490

REPORTITEM 3: Securities Holders

(tXa)Name andAddress

Tommy Gunstream (Limited Fartner)Muleshoq TexasAJSA

Danny Gunstream (Limited Partner)Shreveport, LouisianaAJSA,

Danny Management, lncorporated (Gen Ptr)Muleshog Texas 79347

(2Xa)Namo and Address

DG PARTNERSHIP, LTI).

DECEMBER 31, 2018

FR Y.6

(1Xc)% Owned

49.s4%

49.50Yo

1.00o/o

(1Xb)Country

USA

USA

USA

(2Xc)Shares Owned

(2Xc)% Owned

(2Xt)Country

N/A

MULESHOE BANCSHARES, INC.

DECEMBER 31,2018

FRY-6

REPORT ITEM 3: Securities Holders

(1Xa)Name andAddress

DG Partnership, Ltd.Muleshoe, Texas 79347

Tommy GunstreamNfuleshoe,Texas 79347

Phil KentMuloshoe, Texas 79347

(2Xa)Name and Address

N/A

(lXc)Shares Owned

12,333

5,794

3,390

(2Xc)Shares Owned

(1Xc)% Owned

32.204o/o

15.l29o/o

8.8s2%

(2Xc)% Owned

(lxb)Country

USA

USA

USA

(2Xb)Country

DAI{NY MANAGEMENT, INCORPORATEI)

DECEMBER 31,2018

FR Y-6

REPORT ITEM 4: Insiders

See Attached for information on all holding companies.

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