Note 11 - Other Borrowed Money

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Debt Disclosure [Text Block]

(1

1

)

Other

Borrowed

Money

Other borrowed money at

December

31

is summarized as follows:

	201 6		2015
Federal Home Loan Bank Advances	$	46,000,000	$	40,000,000

Advances from the Federal Home Loan Bank (FHLB) have maturities ranging from

2018

to

2026

and interest rates ranging from

0.98

percent to

3.51

percent. As collateral on the outstanding FHLB advances, the Company has provided a blanket lien on its portfolio of qualifying residential

first

mortgage loans and commercial loans. At

December

31,

2016,

the book value of those loans pledged is

$104,769,821.

At

December

31,

2016,

the Company had remaining credit availability from the FHLB of

$241,746,000.

The Company

may

be required to pledge additional qualifying collateral in order to utilize the full amount of the remaining credit line.

The aggregate stated maturities of other borrowed money at

December

31,

2016

are as follows:

Year	Amount
2018	$	2,500,000
2019		5,000,000
2020		2,500,000
2021		-
2022 and Thereafter		36,000,000
	$	46,000,000

At

December

31,

2016,

$13,000,000

of FHLB advances are subject to fixed rates of interest, while the remaining

$33,000,000

is subject to floating interest rates which will convert to fixed rates of interests in the next few years.

The Company also has available federal funds lines of credit with various financial institutions totaling

$43,500,000,

of which there were none outstanding at

December

31,

2016.

The Company has the ability to borrow funds from the Federal Reserve Bank (FRB) of Atlanta utilizing the discount window. The discount window is an instrument of monetary policy that allows eligible institutions to borrow money from the FRB on a short-term basis to meet temporary liquidity shortages caused by internal or external disruptions. At

December

31,

2016,

the Company had borrowing capacity available under this arrangement, with

no

outstanding balances. The Company would be required to pledge certain available-for-sale investment securities as collateral under this agreement.