Note 9 - Subordinated Debentures

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Subordinated Borrowings Disclosure [Text Block]

NOTE

9:

     

SUBORDINATED DEBENTURES

During

2005,

the Company formed

two

wholly owned grantor trust subsidiaries, Guaranty Statutory Trust I and Guaranty Statutory Trust II,

to issue preferred securities representing undivided beneficial interests in the assets of the trusts and to invest the gross proceeds of the preferred securities in notes of the Company. Trust I issued

$5,000,000

of preferred securities and Trust II issued

$10,000,000

of preferred securities. The sole assets of Trust I were originally

$5,155,000

aggregate principal amount of the Company’s fixed rate subordinated debenture notes due

2036,

which were redeemable beginning in

2011.

The sole assets of Trust II were originally

$10,310,000

aggregate principal amount of the Company’s fixed/variable rate subordinated debenture notes due

2036,

which were redeemable beginning in

2011.

Trust II subordinated debenture notes bear interest at a fixed rate for

five

years and thereafter at a floating rate based on LIBOR. The preferred securities qualify as either Tier I or Tier II capital for regulatory purposes, subject to certain limitations.