Note 11 - Borrowings

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Debt Disclosure [Text Block]

NOTE  1 1 : BORROWINGS

Federal Home Loan Bank Advances

Federal Home Loan Bank advances consist of the following:

	December 31, 2018					December 31, 2017
Maturity Date	Amount		Weighted Average Rate			Amount		Weighted Average Rate
2019		105,300,000		2.69	%		92,200,000		1.90	%
2020		-		0.00	%		2,100,000		4.87	%
2021		-		0.00	%		-		0.00	%
	$	105,300,000		2.69	%	$	94,300,000		1.97	%

The FHLB requires the Bank to maintain collateral in relation to outstanding balances of advances. For collateral purposes, the FHLB values mortgage loans free of other pledges, liens and encumbrances at

80%

of their fair value, and investment securities free of other pledges, liens and encumbrances at

95%

of their fair value. Based on existing collateral as well as the FHLB’s limitation of advances to

35%

of assets, the Bank has the ability to borrow an additional

$120.6

million from the FHLB, as of

December 31, 2018.

Federal Reserve Bank Borrowings

During

2008,

the Bank established a borrowing line with the Federal Reserve Bank. The Bank has the ability to borrow

$53.7

million as of

December 31, 2018.

The Federal Reserve Bank requires the Bank to maintain collateral in relation to borrowings outstanding. The Bank had

no

borrowings outstanding on this line as of

December 31, 2018

and

2017.

Note Payable to Bank

During

2018,

the Company entered into a

$5,000,000

note payable with another financial institution to provide for additional capital to fund Bank asset growth. The note bears a variable interest rate tied to

three

-month LIBOR and matures

June 28, 2020.

As of

December 31, 2018,

$5,000,000

was borrowed on this line.