Note 10 - FHLB Advances

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Federal Home Loan Bank Advances, Disclosure [Text Block]

Note

10

. 

FHLB Advances

The subsidiary banks are members of the FHLB of Des Moines or Chicago. Maturity and interest rate information on advances from FHLB as of

December

31,

2016

and

2015

is as follows:

	December 31, 2016
			Weighted					Weighted
			Average			Amount Due		Average
			Interest Rate			with		Interest Rate
	Amount Due		at Year-End			Putable Option *		at Year-End
Maturity:
Year ending December 31:
2017	$	112,500,000		0.78	%	$	-		-
2018		25,000,000		3.35			-		-
Total FHLB advances	$	137,500,000		1.25	%	$	-		-

	December 31, 2015
			Weighted					Weighted
			Average			Amount Due		Average
			Interest Rate			with		Interest Rate
	Amount Due		at Year-End			Putable Option *		at Year-End
Maturity:
Year ending December 31:
2016	$	103,000,000		0.56	%	$	2,000,000		4.00	%
2017		18,000,000		2.89			-		-
2018		30,000,000		3.27			5,000,000		2.84
Total FHLB advances	$	151,000,000		1.37	%	$	7,000,000		3.17	%

*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.

Advances are collateralized by loans of

$669,513,037

and

$480,466,274

as of

December

31,

2016

and

2015,

respectively, in aggregate. On pledged loans, the FHLB applies varying collateral maintenance levels from

125%

to

333%

based on the loan type. Although advance balances have decreased significantly in

2015

and

2016,

the Company continues to pledge loans under blanket liens to provide off balance sheet liquidity.

As of

December

31,

2016

and included with the

2016

maturity grouping above are

$104.5

million of short-term advances from the FHLB. These advances have maturities ranging from

1

day to

1

month. Short-term and overnight advances totaled

$84.0

million as of

December

31,

2015

and had maturities ranging from

1

day to

1

month.

Throughout

2015

and

2016,

the Company has executed several balance sheet restructuring strategies in an effort to reduce reliance on wholesale funding. These strategies will continue to be evaluated in the future. A summary of prepayments of FHLB advances related to these restructurings is summarized in the following table for the years ended

December

31,

2016

and

2015,

respectively:

2016
Date of Restructuring	Amount		Weighted Average Interest Rate			Range of Maturity Dates	Prepayment Fees
First Quarter of 2016	$	10,000,000		3.86	%	December 2017	$	524,197
Third Quarter of 2016		5,000,000		2.84	%	February 2018		127,310
Fourth Quarter of 2016		15,000,000		3.14	%	September 2017 to November 2017		357,161
Total for 2016	$	30,000,000		3.33	%		$	1,008,668

2015
Date of Restructuring	Amount		Weighted Average Interest Rate			Range of Maturity Dates	Prepayment Fees
Second Quarter of 2015	$	75,500,000		4.36	%	May 2016 to June 2019	$	5,692,185
Fourth Quarter of 2015		3,000,000		3.98	%	May 2018		209,416
Total for 2015	$	78,500,000		4.35	%		$	5,901,601

All prepayment fees shown in the table above are included in losses on debt extinguishment in the statements of income.

As of

December

31,

2016

and

2015,

the subsidiary banks held

$9,271,300

and

$9,135,900,

respectively, of FHLB stock, which is included in restricted investment securities on the consolidated balance sheet.