Note 10 - Borrowed Funds

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Debt Disclosure [Text Block]

10

. Borrowed Funds

Securities Sold Under Agreements to Repurchase.

Securities sold under agreements to repurchase were

$50

million with a weighted average rate of

2.98%

as of

June 30, 2018,

compared to

$100

million with a weighted average rate of

2.86%

as of

December 31, 2017.

Final maturity for the fixed rate non-callable securities sold under agreements to repurchase was

$50.0

million in

July 2018.

These transactions are accounted for as collateralized financing transactions and recorded at the amounts at which the securities were sold. The Company

may

have to provide additional collateral for the repurchase agreements, as necessary. The underlying collateral pledged for the repurchase agreements consists of U.S. Treasury securities and mortgage-backed securities with a fair value of

$55.4

million as of

June 30, 2018,

and

$108.4

million as of

December 31, 2017.

Borrowing from the F

ederal

H

ome

L

oan

B

ank (“FHLB”)

.

As of

June 30, 2018,

over-night borrowings from the FHLB were

$160

million at a rate of

2.08%

compared to

$325

million at a rate of

1.41%

as of

December 31, 2017.

As of

June 30, 2018,

the advances from the FHLB were

$320

million at a rate of

1.78%

compared to

$105

million at a rate of

1.41%

as of

December 31, 2017.

As of

June 30, 2018,

FHLB advances of

$245

million will mature in

July 2018,

$5

million in

October 2018,

$50

million in

December 2019,

and

$20

million in

May 2023.

Other Borrowing.

Pursuant to the Stock Purchase Agreement with Bank SinoPac Co. Ltd,

$35.2

million of the purchase price were held back at a floating rate of

three

-month LIBOR rate plus

150

basis points and

50%,

30%,

and

20%

will be disbursed annually over

three

years on the anniversary dates, respectively. As of

June 30, 2018,

the outstanding balance was

$36.0

million with a rate of

2.8%

compared to

$35.2

million at

December 31, 2017.

Long-term Debt

.

On

October 12, 2017,

the Bank entered into a term loan agreement of

$75.0

million with U.S. Bank. The loan has a floating rate of

one

-month LIBOR plus

175

basis points. As of

June 30, 2018,

the term loan has an interest rate of

3.750%

compared to

3.125%

at

December 31, 2017.

The principal amount of the long-term debt from U.S. Bank is due and payable in consecutive quarterly installments of

$4.7

million each on the last day of each calendar quarter commencing

December 31, 2018,

with the final installment due and payable on

October 12, 2020.

The U.S. Bank loan proceeds were used to fund a portion of our acquisition of SinoPac Bancorp.