Note 14 - Subsequent Event

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Subsequent Events [Text Block]

Note

14:

Subsequent Event

The Company fully redeemed

$6.186

million aggregate principal of Hometown Bancshares Capital Trust Floating Rate Junior Subordinated Debentures (the “Debentures”) on

August 7, 2019 (

the “Redemption Date”). These Debentures were originally issued in

2002

by Hometown Bancshares, Inc. (“Hometown”) and were assumed by the Company in its acquisition of Hometown. The redemption price was

100%

of the principal amount of the Debentures, plus accrued and unpaid interest. In conjunction with the redemption, the Company increased an existing note payable with another financial institution from

$5.0

million to

$11.2

million with the proceeds primarily being used to redeem the Debentures. The new note will mature on

June 30, 2024

and carried a variable interest rate tied to

one

-month LIBOR plus

2.50%.

Additionally, an operating line of credit has been established with the same financial institution to be used for general corporate purposes of up to

$3.0

million. There are

no

amounts borrowed against this line as of

August 9, 2019.

The line of credit has a variable interest rate tied to

one

-month LIBOR plus

2.50%

and matures on

June 28, 2021.