Note 10 - Borrowed Funds

9 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Debt Disclosure [Text Block]

10.

Borrowed Funds

Borrowing from the F

ederal

H

ome

L

oan

B

ank (“FHLB”)

.

As of

September 30, 2018,

over-night borrowings from the FHLB were

$240

million at a rate of

2.33%

compared to

$325

million at a rate of

1.41%

as of

December 31, 2017.

As of

September 30, 2018,

the advances from the FHLB were

$75

million at a rate of

1.99%

compared to

$105

million at a rate of

1.41%

as of

December 31, 2017.

As of

September 30, 2018,

FHLB advances of

$5

million will mature 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

September 30, 2018,

the outstanding balance was

$18.3

million with a rate of

3.39%

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

September 30, 2018,

the term loan has an interest rate of

3.875%

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.