Note 11 - Borrowings - |
12 Months Ended |
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Dec. 31, 2016 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note 1 1 – Borrowings – The Bank had outstanding advances from the Federal Home Loan Bank ( FHLB) of $46.4 million and $47.7 million at December 31, 2016 and 2015, respectively, consisting of:Three fixed rate loans totaling $ 30.0 December 31, 2016 and 2015, with interest rates ranging from 2.92 %3.07 %November 2017 2008. One fixed rate loan of $1.4 million and $2.7 million, at December 31, 2016 and 2015, respectively, with interest at 3.18 %December 2017 . One fixed rate loan of $ 15.0 December 31, 201 6 and 2015, with interest at 1.90 %December 2018 2013. These advances are collateralized by the Bank ’s investment in Federal Home Loan Bank stock and a blanket lien on qualifying loans in the Bank’s loan portfolio consisting of performing 1 -4 family mortgages and certain small business, small farm and small agriculture loans. The blanket lien totaled approximately $321.1 million at December 31, 2016 with unused availability for advances and letters of credit of approximately $193.7 million.As a result of the merger with AGFC, the Bank assumed the outstanding FHLB advances of American Gateway Bank. These advances were recorded at fair value as of acquisition, which totaled $41.2 million, and resulted in a market value adjustment of $2.0 million which is being accreted over the life of the respective advances as a reduction of interest expense on borrowings. The unaccreted market value adjustment totaled $670,000 and $1.4 million at December 31, 2016 and 2015, respectively.The Bank has outstanding lines of credit with several of its correspondent banks available to assist in the management of short-term liquidity. These agreements provide for interest based upon the federal funds rate on the outstanding balance. Total available lines of credit as of December 31, 201 6 and 2015 were $109.5 million and $83.7 million, respectively. There was no December 31, 2016 and 2015. First Tennessee Bank National Association (FTN) allowed the Company to borrow on a revolving basis up to $3.0 million. This line of credit, established on September 3, 2015, was unsecured, but the Company agreed that it would not pledge any of the capital stock of its wholly-owned subsidiary, Business First Bank, to secure any other obligation. The line of credit was established for the purpose of repurchasing shares of the Company’s common stock from certain of its shareholders and for general corporate purposes. This line of credit was paid off on September 12, 2016. At December 31, 2015 the line was fully funded with a balance of $3.0 million bearing interest at a variable rate of 3 -month LIBOR plus 2.5%. The rate was 2.93% as December 31, 2015, and adjusted quarterly.On September 12, 2016 the Company borrowed $3.0 million from First National Bankers Bank (FNBB) with a maturity date of September 12, 2026. This advance is due in nine $300 ,000 beginning on September 12, 2017 one final principal and interest payment of $303,000 due on September 12, 2026. This advance is secured by a pledge of and December 31, 2016, the balance outstanding was $3.0 million. The advance carries a variable interest rate equal to the Wall Street Journal Prime rate. The rate was 3.75% at December 31, 2016. The FNBB advance was established for the purpose of paying off the revolving line of credit with FTN.First National Bankers Bank (FNBB) also allows the Company to borrow on a revolving basis up to $5.0 million. This line of credit, established on September 12, 2016, is secured by a pledge of and security interest in the common stock of our wholly-owned subsidiary, Business First Bank. As of December 31, 2016, the balance outstanding was $862,000. The line of credit bears a variable interest rate equal to the Wall Street Journal Prime rate. The rate was 3.75% at December 31, 2016. The FNBB line matures in one year and was established for the purpose of repurchasing shares of our common stock from certain of our shareholders and for general corporate purposes. |