Note 12 - Other Borrowed Money

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Debt Disclosure [Text Block]

(

1

2

)

Other

Borrowed

Money

Other borrowed money at

December 31

is summarized as follows:

	20 1 8		2017
Federal Home Loan Bank Advances	$	44,000,000	$	46,000,000
Other Borrowings		-		1,500,000
	$	44,000,000	$	47,500,000

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

2019

to

2028

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, 2018,

the book value of those loans pledged is

$108,634,687.

At

December 31, 2018,

the Company had remaining credit availability from the FHLB of

$252,071,000.

The Company

may

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

The Company borrowed

$5,000,000

during the

first

quarter of

2017

as a short term loan to be paid off within

one

year with an interest rate of prime plus

0.75

percent, currently

5.25

percent. The Company paid down

$3,500,000

during

November 2017.

The remaining amount was paid off during

January 2018.

The aggregate stated maturities of other borrowed money at

December 31, 2018

are as follows:

Year	Amount
2019	$	5,000,000
2020		2,500,000
2021		-
2022		18,000,000
2023		6,000,000
2024 and Thereafter		12,500,000
	$	44,000,000

At

December 31, 2018,

$10,500,000

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

$33,500,000

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, 2018.

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, 2018,

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.