Gilmer National Bancshares, Inc.

Form FR Y-6

Gilmer, Texas

Fiscal Year Ending December 31, 2021

Report Item:

1: The bank holding company prepares an annual report for its shareholders and is not

registered with the SEC. A copy of the annual report is attached.

2: a. Organization Chart

Gilmer National

Bancshares, Inc.

(LEI: None)

Gilmer, Texas

Incorporated in Texas



 100%



Gilmer National Bank

(LEI: 549300YBM0K5N6REP663)

Gilmer, Texas

Incorporated in Texas

2: b. See attached for the domestic branch listing

Results:Alistofbranchesforyourholdingcompany:GILMERNATIONALBANCSHARES,INC.(2839969)ofGILMER,TX.

Thedataareasof12/31/2021.Datareflectsinformationthatwasreceivedandprocessedthrough01/12/2022.

ReconciliationandVerificationSteps

1.IntheDataActioncolumnofeachbranchrow,enteroneormoreoftheactionsspecifiedbelo

2.Ifrequired,enterthedateintheEffectiveDatecolumn

Actions

OK: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Procedure

When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 Countr

FDICUNINUM* OfficeNumber* HeadOffice HeadOfficeID_RSSD* Comments

OK FullService(HeadOffice) 323651 GILMERNATIONALBANK713USHIGHWAY271NGILMER TX 75644 UPSHURUNITEDSTATES NotRequired NotRequired GILMERNATIONALBANK 323651

ConsolidatedConsolidated

Statement of ConditionStatement of Condition

20212021

Gilmer National Bancshares Inc.

P.O. Box 460 • Gilmer, TX 75644 • 903-843-5653

GILMER NATIONAL BANK OFFICERS

EDWIN P. HERRMANN ........................................................... Chairman of the Board

LARRY COWAN

..................................................................................... Vice Chairman

RANDY DUKE

.............................................................................................. President & CEO

ROY HARRIS

............................................................................................Senior Vice President

DONNA LEE VARNER

........................................................ Senior Vice President & COO

PAUL WILSON

......................................................................... Senior Vice President & CFO

LES MORRIS

............................................................................................. Senior Vice President

AVERY BUCHER

.............................. Assistant Vice President & Director of Operartions

RILEY ADKINSON

........................................................................... Assistant Vice President

FELECIA HUX

..................................................................Vice President Mortgage Lending

KELLY CALDWELL

..................................................Administrative Assistant to President

KIM WALL

................................................................... Administrative Assistant to President

POLLY WALLER

............................................................................................ Assistant Cashier

NANCY HILL

................................................................................................ Assistant Cashier

SABRINA SUTTON KELLEY................................................................... Assistant Cashier

JUDY MURRAY.............................................................................................. Assistant Cashier

TINA McCURRY

........................................................................................... Assistant Cashier

DONNA STEELMAN

................................................................................. Assistant Cashier

MISTY OWENS

............................................................................................................... Cashier

LARIANN SMITH............................................................................. Manager Special Assets

KENNY HOLT.........................................................................................................Director HR

MATT JOHNSON

.................................................................................... Compliance Ofcer

SIERRA DRENNAN

....................................................................................................... Auditor



JOHN ELLIOTT DEAN ROY HARRIS

EDWIN P. HERRMANN GARY PATTERSON

RANDY DUKE STEVE SANSOM

KENNETH STEWART STEVE STEWART

DAVID GRIFFITH LARRY COWAN

GILMER NATIONAL BANCSHARES DIRECTORS

Member FDIC

Sincerely,

Randy Duke

President and C.E.O.

2021

PAUL WILSON

Dear Shareholder,

On behalf of the Directors, Ofcers, and Employees, weare pleased

to submit the annual consolidated report of operations for Gilmer

NationalBancshares,Inc.andGilmerNationalBankfor2021.

Asyoucansee,2021wasanother successfulyearforourbank.Net

incomewas$2,615,432whichwasa19.7%increaseover2020.Earnings

arestrongandmorethansufcienttosupportoperationsandmaintain

adequatecapitallevels.Loandemandcontinuestobegoodwithincreases

inourconsumer, mortgage, and agricultural loanportfolios. Dividend

levelscontinuetobestrongwithstockvaluesincreasingannually.

Aswebegin2022,wearecondentthatitwillbeanothergoodyearfor

ourbank.Wehaveaverydedicatedstaffthatisundernewleadership

and has the full support of the BoardofDirectors.Together, we are

committedtoimprovingthebankwhileservingourlocalcommunity.

PleasemarkyourcalendartojoinusonTuesdayFebruary15,2022,at

4:00p.m.fortheannualstockholdersmeeting.Welookforforwardto

seeingyou.

CONSOLIDATED STATEMENTS OF CONDITION

at the close of business December 31

(in thousands of dollars)

ASSETS 2020 2021

CashandBalancesduefromDepositoryInstitutions

CashandNoninterest-bearingbalances

$3,553 $5,695

Interest-bearingbalances $10,217 $5,739

U.S.TreasurySecuritiesHTM(heldtomaturity) 0 0

CMOAFS(availableforsale) $681 0

ObligationsofOtherU.S.Govt.Agencies

andCorporationsHTM

0 0

ObligationsofOtherU.S.Govt.Agencies

andCorporationsAFS

$27,693 $41,190

ObligationsofStatesandPoliticalSubdivisionHTM/AFS $7,577 $7,914

NetUnrealizedGains/(Losses)onAFSSecurities $584 ($380)

Federal Funds Sold $16,487 $9,106

TotalLoans(excludingunearnedincome) $174,037 $180,600

Less:Reserveforpossibleloanlosses ($3,094) ($3,487)

Loans, net $170,943 $177,113

BankPremises,FurnitureandFixtures $1,512 $1,466

OtherRealEstateOwned $363 0

Other Assets $3,603 $3,521

Total Assets $243,213 $251,364

DemandDepositsofIndividuals,

Partnerships&Corporations

$42,012 $45,427

TimeandSavingsDepositsofIndividuals,Partnership&Corporations $164,751 $170,745

DepositofU.S.Government 0 0

DepositofStatesandPoliticalSubdivisions 0 0

CertiedandOfcer’sChecks 0 0

Total Deposits $206,763 $216,172

RepurchaseAgreements 0 0

Other Liabilities $557 $281

Total Liabilities $207,320 $216,453

EQUITY CAPITAL ACCOUNTS

CommonStock $500 $500

1,000,000sharesauthorized,500,000sharesissued,and484,561sharesoutstanding

Surplus $16,801 $16,801

UndividedProts $18,765 $18,768

Treasury Stock (at cost) ($637) ($858)

Unrealized Gains (Loss) on AFS Securities $463 ($300)

Total Equity Capital $35,892 $34,911

Total Liabilities and Equity Capital $243,212 $251,364

CONSOLIDATED STATEMENTS OF INCOME

AND EXPENSES

for the year ending December 31

(in thousands of dollars)

OPERATING INCOME 2020 2021

Interest and Fees on Loans $9,651 $9,396

IncomeonFederalFundsSold $31 $15

InterestonU.S.Govt.Securities $355 $437

InterestonMunicipalBonds $128 $125

InterestonBalancesduefromDepositoryInstitution $447 $205

OtherIncome $974 $964

Total Operating Income $11,586 $11,142

OPERATING EXPENSES

SalariesandEmployeeBenits $3,746 $3,878

InterestonTimeandSavingsDeposits $2,203 $1,343

InterestonSecuritiesSoldUnderRepurchaseAgreements $6 $2

BuildingandEquipmentExpense $348 $462

AdValoremTaxesandCorporateFranchiseTaxes $92 $87

F.D.I.C.Expense $104 $133

ProvisionforLoanLosses $1,130 $475

OtherExpenses $1,262 $1,561

Total Operating Expenses $8,891 $7,941

IncomebeforeIncomeTaxes $2,695 $3,201

ApplicableIncomeTaxes $553 $663

Securities Gains or (Losses)

Net of Tax Effects $39

$70

ExtraordinaryItems,

Net of Taxes 0 0

Net Income $2,181 $2,608

Net Income per Share $4.50 $5.42

CONSOLIDATED STATEMENTS OF

SHAREHOLDERS’ EQUITY

Year Ended December 31

(in thousands of dollars)

CAPITAL STOCK 2020 2021

Balanceatbeginning&endofyear $500 $500

SURPLUS

Balanceatbeginning&endofyear $16,801 $16,801

UNDIVIDED PROFITS

AND CAPITAL RESERVES

Balanceatbeginningofyear $18,083 $18,765

NetIncome $2,181 $2,608

TranfertoSurplus 0 0

CashDividends ($1,499) ($2,606)

Balance at end of year $18,765 $18,767

Equity Portion of Net Unrealized

Gain/(Loss)onAFSSecurities $463 ($300)

Less:TreasuryStock ($637) ($640)

TotalShareholders’EquityEndofYear $35,892 $35,128

RESERVE FOR LOAN

LOSSES RECONCILEMENT

(ValuationReserve)

Balanceatbeginningofyear $2,714 $3,094

Recoveriescreditedtoreserve $78 $477

Changesincidenttomergersandabsorption 0 0

Provisionforpossibleloanlosses $1,130 $475

Losseschargedtoreserve ($828) ($559)

Adjustments 0 0

Balance at end of year $3,094 $3,487

W. F. Patterson Family

31,000 shares (6.4338%) Common

W.F. Patterson

Gilmer, Texas, USA USA 1,500 - 0.312% Common

Mary Ann Patterson

Gilmer, Texas, USA USA 1,500 - 0.312% Common

WF Patterson Family Limited Partnership

Gilmer, Texas, USA USA 27,000 - 5.608% Common

James S. Patterson

Dallas, Texas, USA USA 250 - 0.052% Common

Thomas F. Patterson

San Antonio, Texas, USA USA 250 - 0.052% Common

William R. Patterson

Austin, Texas, USA USA 250 - 0.052% Common

Elizabeth Patterson Pruitt

San Antonio, Texas, USA USA 250 - 0.052% Common

Dean Family

40,507 shares (8.413%) Common

NONE

Elliott Holmes Dean

Gilmer, Texas, USA USA 15,775 - 3.276% Common

Caroline Dean

Gilmer, Texas, USA USA 383 - 0.080% Common

Jacob Dean

Gilmer, Texas, USA USA 383 - 0.080% Common

Katherine Dean

Gilmer, Texas, USA USA 383 - 0.080% Common

John Edward Dean, II

Gilmer, Texas, USA USA 383 - 0.080% Common

John Elliott Dean

Gilmer, Texas, USA USA 100 - 0.021% Common

(1)(a)

Name & Address

(City, State, Country)

(1)(b)

Country of

Citizenship or

incorporation

(2)(a)

Name & Address

(City, State, Country)

(1)(c)

Number and Percentage of Each

Class of Voting Securities

Form FR Y-6

December 31, 2021

Report Item 3: Shareholders

(1)(a) (1)(b) (1)(c) (2)(a) (2)(b) (2)(c)

Current Shareholders with ownership, control or holdings of 5% or more with power to vote as of 12-

31-21

Gilmer National Bancshares, Inc.

Shareholders not listed in (3)(1)(a) through 3(1)(c) that had ownership, control or

holdin

s of 5% or more with

ower to vote durin

the fiscal

ear endin

12-31-21

(2)(b)

Country of Citizenship

or Incorporation

(2)(c)

Number and Percentage of

Each class of Voting

Securities

(1)(a)

Name & Address

(City, State, Country)

(1)(b)

Country of

Citizenship or

incorporation

(2)(a)

Name & Address

(City, State, Country)

(1)(c)

Number and Percentage of Each

Class of Voting Securities

Form FR Y-6

December 31, 2021

Report Item 3: Shareholders

(1)(a) (1)(b) (1)(c) (2)(a) (2)(b) (2)(c)

Current Shareholders with ownership, control or holdings of 5% or more with power to vote as of 12-

31-21

Gilmer National Bancshares, Inc.

Shareholders not listed in (3)(1)(a) through 3(1)(c) that had ownership, control or

holdin

s of 5% or more with

ower to vote durin

the fiscal

ear endin

12-31-21

(2)(b)

Country of Citizenship

or Incorporation

(2)(c)

Number and Percentage of

Each class of Voting

Securities

Linda K. Dean

Gilmer, Texas, USA USA 500 - 0.104% Common

Mary Jo Dean

Gilmer, Texas, USA USA 22,600 - 4.694% Common

Randy Hapgood Estat

Trustees: Douglas Armstrong and Joe Davidson

Wichita Falls, Texas, USA USA 27,000 - 5.608% Common

* Based on 481,494 outstandin

(1) includes spouse's shares (1,000) and RBC Dain Rausher Custodian for K. account (2,000)

(

)

Includes spouse's shares

(

2,325

)

(

)

Includes spouse's shares

(

)

(

)

Includes spouse's and children's shares

(

2,795

)

(

)

Includes spouse's shares

(

175

)

(

)

Includes spouse's shares

(

600

)

(

)

Includes children's shares

(

1,000

)

Paul Wilson

Gilmer, TX

USA

N/A Director Director / CFO

(Gilmer National Bank)

N/A 0.837% None N/A

TDR Contractors, Inc. (25%)

Cypress Properties (50%)

Jenco Land, LLC (50%)

JJJ Ventures, Inc. (100%)

JKMJ Properties, Inc. (25%)

Accountant DirectorJohn Elliott Dean

Gilmer, TX

USA

N/A

Director

(Gilmer National Bank)

N/A None

Director

(Gilmer National Bank)

N/A

Director

(Gilmer National Bank)

N/A 2.729% (1) None

President - TDR Contractors, Inc.

Limited Partner - 401 Rendon Crowley, LP

General Partner - Cypress Properties

President - East Texas Duct Manufacturing

President - Jenco Land, LLC

President - JJJ Ventures, Inc.

President - JKMJ Properties, Inc.

Limited Partner - JSMJ Investments, Ltd.

0.02% None

N/A DirectorKenneth Stewart

Gilmer, TX

USA

Steve Sansom

Gilmer, TX

USA

N/A Director 1.138%

Stewart Insurance (100%)

Stewart Realty (100%)

Steve Stewart

Gilmer, TX

USA

Insurance Agent Director Director

(Gilmer National Bank)

Owner - Stewart Insurance Agency 0.990% (4) None

Larry Cowan

Gilmer, TX

USA

N/A

Director & Secretary

(

Gilmer National Bank

)

N/A

N/A N/ANone1.123% (2)

N/A1.032% (7)

Director & Chairman

of the Board

Director & Chairman of

the Board (Gilmer

National Bank)

N/A N/A0.41% (3) NoneDirector & Treasurer Director & Vice-

Chairman (Gilmer

National Bank)

Edwin P. Herrmann

Gilmer, TX

USA

N/A

NoneRoy A. Harris

Gilmer, TX

USA

N/A Director & Secretary

None N/A0.289% (6)

Form FR Y-6

December 31, 2021

Report Item 4: Directors and Officers

(1) (2) (3)(a)(b)(c) and (4)(a)(b)(c)

Gilmer National Bancshares, Inc.

(3)(c )

Title & Position with Other businesses (include

names of other businesses)

(4)(a)*

Percentage of

oting Shares

in Bank Holding

Company

(4)(b)

Percentage of Voting

Shares In subsidiaries

(include names of

subsidiaries)

(4)(c) List names of other companies

(includes partnerships) If 25% or more

of voting securities are held (List

names of companies and percentage

of voting securities held)

(1)

Names & Address (City, State, Country)

(2)

Principal Occupation

if other than with Bank

Holding Company

(3)(a)

Title & Position

with Bank Holding

Company

(3)(b)

Title & Position with

Subsidiaries (include

names of subsidiaries)

James R. Duke

Gilmer, TX

USA

N/A Director & President Director / CEO /

President (Gilmer

National Bank)

N/A

David Griffith

Gilmer, TX

USA

Lawyer Director Director

(Gilmer National Bank)

N/AN/A 0.510% (5) NoneGary Patterson

Gilmer, TX

USA

N/A Director Director

(Gilmer National Bank)

Owner - Griffith and Smoak Law Firm 1.356% None Griffith and Smoak Law Firm (100%)