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Note 21: Immaterial Error Corrections

12 Months Ended

Dec. 31, 2016

21) Immaterial Error Corrections

Immaterial Error in Accounting for Loan Commitments

This Annual Report on Form 10-K of the Company for the fiscal year ended December 31, 2016, includes the restatement of the Company’s previously filed consolidated balance sheets and the related consolidated statements of earnings, comprehensive income, stockholders’ equity and cash flows for the fiscal years ended December 31, 2014 and 2015, as well as the revised quarterly results of operations for the periods ending March 31, June 30, and September 30, 2016. The Company will now show the changes in fair value of its loan commitments through current earnings and not as a component of Other Comprehensive Income. The previous accounting treatment was determined to be an error, and required a change from the methodology employed in prior financial statements.

The Company’s management has concluded that including the change in fair value of the Company’s loan commitments in current earnings instead of showing the change in Other Comprehensive Income on its financial position and operating results for the quarterly, year-to-date, and annual periods are not material modifications. Accordingly, the Company has determined that prior financial statements should be corrected, even though such revisions are immaterial with respect to the prior year financial statements. Furthermore, the Company has determined that correcting prior year financial statements for immaterial changes would not require previously filed reports to be amended.

As a result of this change, total mortgage fee income increased by $1,403,240 and $441,943 for the periods ended December 31, 2015 and December 31, 2014, respectively. Income tax expense increased by $547,263 and $172,358 for the periods ended December 31, 2015 and December 31, 2014, respectively. Similarly, the Company’s net earnings increased by $855,977 and $269,585 for the periods ended December 31, 2015 and December 31, 2014, respectively. This change did not have an impact on the consolidated total equity, nor did it have an impact on the Company’s statement of cash flows. The effect of these restatements on the Company’s 2016 quarterly consolidated statements of operations, as reported on the Form 10-Q reports, are as follows:

Total mortgage fee income increased by $1,340,992, $913,583 and $67,242 for the periods ended March 31, June 30 and September 30, 2016, respectively. Income tax expense increased by $522,987, $356,297 and $26,224 for the periods ended March 31, June 30 and September 30, 2016, respectively. Similarly, the Company’s net earnings increased by $818,005, $557,286 and $41,018 for the periods ended March 31, June 30 and September 30, 2016. The effects of the restatements on the Company’s balance sheets and statements of cash flows for the restated periods were not material. For the revised quarterly results of operations for the fiscal years ended December 31, 2014, 2015 and 2016, see “Quarterly Financial Data” in Note 22 of this Form 10-K.

The Company believes that presenting all of this information regarding the restated periods in this Annual Report allows investors to review all pertinent data in a single presentation. Accordingly, investors should rely only on the financial information and other disclosures regarding the restated periods in this Annual Report on Form 10-K, and not on the affected reports or any reports, earnings releases or similar communications relating to those periods.

	Year Ended December 31, 2015			Year Ended December 31, 2014
	As Filed	Adjustments	Restated	As Filed	Adjustments	Restated
Mortgage fee income	$ 174,323,452	$ 1,403,240	$ 175,726,692	$ 128,696,998	$ 441,943	$ 129,138,941
Total revenues	283,161,000	1,403,240	284,564,240	226,936,674	441,943	227,378,617
Earnings before income taxes	19,821,565	1,403,240	21,224,805	12,480,953	441,943	12,922,896
Income tax expense	(7,198,685)	(547,263)	(7,745,948)	(4,726,305)	(172,358)	(4,898,663)
Net earnings	12,622,880	855,977	13,478,857	7,754,648	269,585	8,024,233
Net earnings per common share (1)	$0.87	$0.06	$0.93	$0.56	$0.02	$0.58
Net earnings per common share assuming dilution (1)	$0.84	$0.06	$0.90	$0.54	$0.02	$0.56

	Year Ended December 31, 2015			Year Ended December 31, 2014
	As Filed	Adjustments	Restated	As Filed	Adjustments	Restated
Net earnings	$ 12,622,880	$ 855,977	$ 13,478,857	$ 7,754,648	$ 269,585	$ 8,024,233
Net unrealized gains (losses) on derivative instruments	866,605	(855,977)	10,628	286,018	(269,585)	16,433
Other comprehensive gain (loss)	95,262	(855,977)	(760,715)	220,170	(269,585)	(49,415)

	As of December 31, 2015			As of December 31, 2014
	As Filed	Adjustments	Restated	As Filed	Adjustments	Restated
Accumulated other comprehensive income, net of taxes	$ 1,533,828	$ (2,033,186)	$ (499,358)	$ 1,438,566	$ (1,177,209)	$ 261,357
Retained earnings	52,021,764	2,033,186	54,054,950	44,101,252	1,177,209	45,278,461

	As of January 1, 2014
	As Filed	Adjustments	Restated
Accumulated other comprehensive income, net of taxes	$ 1,218,396	$ (907,624)	$ 310,772
Retained earnings	39,666,587	907,624	40,574,211

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(1) Earnings per share amounts have been adjusted retroactively for the effect of annual stock dividends.