Note 9 - Short-term Borrowings

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Short-term Debt [Text Block]

Note

9.

Short-Term Borrowings

Short-term borrowings as of

December

31,

2016

and

2015

are summarized as follows:

	2016		2015
Overnight repurchase agreements with customers	$	8,131,387	$	73,872,716
Federal funds purchased		31,840,000		70,790,000
	$	39,971,387	$	144,662,716

The Company’s overnight repurchase agreements with customers are collateralized by investment securities with carrying values as follows:

	2016		2015
U.S. govt. sponsored agency securities	$	630,077	$	29,499,803
Residential mortgage-backed and related securities		19,090,261		65,888,911
Total securities pledged to overnight customer repurchase agreements	$	19,720,338	$	95,388,714
Less: overcollateralized position		11,588,951		21,515,998
	$	8,131,387	$	73,872,716

Inherent in the overnight purchase agreements is a risk that the fair value of the collateral pledged on the agreements could decline below the amount obligated under our customer repurchase agreements. The Company considers this risk minimal. The Company monitors balances daily to ensure that collateral is sufficient to meet obligations. Additionally, the Company maintains an overcollateralized position that is sufficient to cover any minor interest rate movements.

The securities underlying the agreements as of

December

31,

2016

and

2015

were under the Company's control in safekeeping at

third

-party financial institutions.

Information concerning overnight repurchase agreements with customers is summarized as follows as of

December

31,

2016

and

2015:

	2016			2015
Average daily balance during the period	$	30,082,866		$	121,186,231
Average daily interest rate during the period		0.07	%		0.11	%
Maximum month-end balance during the period	$	59,833,229		$	159,407,193
Weighted average rate as of end of period		0.02	%		0.11	%

Information concerning federal funds purchased is summarized as follows as of

December

31,

2016

and

2015:

	2016			2015
Average daily balance during the period	$	19,105,595		$	32,826,489
Average daily interest rate during the period		0.56	%		0.41	%
Maximum month-end balance during the period	$	51,750,000		$	126,220,000
Weighted average rate as of end of period		0.70	%		0.57	%