Note 5 - Federal Home Loan Bank Advances

9 Months Ended

Sep. 30, 2015

Disclosure Text Block [Abstract]

Federal Home Loan Bank Advances, Disclosure [Text Block]

NOTE 5 – FEDERAL HOME LOAN BANK ADVANCES

The subsidiary banks are members of the FHLB of Des Moines or Chicago. As of September 30, 2015 and December 31, 2014, the subsidiary banks held $9,227,800 and $11,279,000, respectively, of FHLB stock, which is included in restricted investment securities on the consolidated balance sheet.

During the second quarter of 2015, QCBT and CRBT prepaid a total of $75,500,000 of fixed rate FHLB advances with a weighted average interest rate of 4.36% and maturity dates ranging from May 2016 to June 2019. The prepayment fees associated with these advances totaled $5,692,185 and are included in losses on debt extinguishment in the statements of income. The prepayments were a part of the Company’s balance sheet restructuring, which is described in Note 7 to the Consolidated Financial Statements.

Maturity and interest rate information on advances from the FHLB as of September 30, 2015 and December 31, 2014 is as follows:

	September 30, 2015
	Amount Due		Weighted Average Interest Rate at Quarter-End			Amount Due with Putable Option *		Weighted Average Interest Rate at Quarter-End
Maturity:
Year ending December 31:
2015	$	68,000,000		0.33	%	$	-		-	%
2016		14,000,000		2.08			2,000,000		4.00
2017		18,000,000		2.89			-		-
2018		33,000,000		3.33			5,000,000		2.84
Total FHLB advances	$	133,000,000		1.61	%	$	7,000,000		3.17	%

	December 31, 2014
	Amount Due		Weighted Average Interest Rate at Year-End			Putable Option *		Weighted Average Interest Rate at Year-End
Maturity:
Year ending December 31:
2015	$	63,000,000		0.87	%	$	-		-	%
2016		44,500,000		3.81			32,500,000		4.56
2017		33,000,000		3.59			15,000,000		4.42
2018		43,000,000		3.49			5,000,000		2.84
2019		20,000,000		4.12			-		-
Total FHLB advances	$	203,500,000		2.83	%	$	52,500,000		4.36	%

*Of the advances outstanding, a portion have putable options which allow the FHLB, at its discretion, to terminate the advances and require the subsidiary banks to repay at predetermined dates prior to the stated maturity date of the advances. The amount of advances with putable options decreased $45.5 million from December 31, 2014 to September 30, 2015 due to the prepayment of advances having putable options.

Advances are collateralized by loans totaling $450.9 million and $499.1 million, in the aggregate, as of September 30, 2015 and December 31, 2014, respectively. On pledged loans, the FHLB applies varying collateral maintenance levels from 125% to 333% based on the loan type. No securities were pledged as collateral on advances as of September 30, 2015 or December 31, 2014.

As of September 30, 2015, and included with the 2015 maturity grouping above, are $61.0 million of short-term and overnight advances from the FHLB. These advances have maturities ranging from one day to one month. As of December 31, 2014, and included with the 2015 maturity grouping above, are $37.0 million of short-term advances from the FHLB. These advances have maturities ranging from two weeks to one month.