NOTE 9 – Federal Home Loan Bank Advances and Other Borrowings

At December 31, 2018 the Company had $50.0 million in FHLB Advances. At December 31, 2017, the Company had $67.2 million in FHLB advances and other borrowings. Of the $67.2 million outstanding at December 31, 2017, FHLB advances represented $60.0 million and securities sold under structured agreements to repurchase represented $7.2 million.

The FHLB advances are secured with approximately $597.6 million of mortgage loans and $3.6 million of stock in the FHLB. During the third quarter of 2017, the Company restructured two FHLB advances totaling $25.0 million. In accordance with accounting guidance, we determined that the present value of the cash flows of the modified advance did not change by more than 10% from the present value of the cash flows of the original advances. Therefore, the modified FHLB advance was considered to be a restructuring and no gain or loss was recorded in the transaction. The original FHLB advances had a weighted rate of 4.39% and an average remaining life of 8 months. Under the modified arrangement, the FHLB advances had a weighted average rate of 3.36% and an average remaining life of 22 months. There were no FHLB advances restructured during 2018.

Listed below is a summary of the terms and maturities of the advances outstanding at December 31, 2018 and 2017. As of December 31, 2018, each of the Company’s advances were at fixed rates.


	December 31,
(dollars in thousands)			2018			2017
Maturity	Amount		Rate	Amount		Rate
January 30, 2018	$	-	-%	$	5,000	4.06%
December 31, 2018		-	-%		30,000	1.59%
December 31, 2019		25,000	2.65%		-	-%
July 7, 2022		10,000	3.11%		10,000	3.11%
July 7, 2023		15,000	3.53%		15,000	3.53%
	$	50,000	3.01%	$	60,000	2.53%

At December 31, 2017, the Company had two structured debt agreements secured by approximately $7.7 million of various investment securities. Both agreements were repaid at maturity during 2018.

The Company also has an unsecured, interest only line of credit for $15 million with another financial institution which was unused at December 31, 2018. The line of credit bears interest at LIBOR plus 2.50% and matures on June 30, 2020. The loan agreement contains various financial covenants related to capital, earnings and asset quality.