Note 9 - Short-term Borrowings

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Short-term Debt [Text Block]

Note

9.

Short-Term Borrowings

Short-term borrowings as of

December 31,

2017

and

2016

are summarized as follows:

	2017		2016
Overnight repurchase agreements with customers	$	7,003,122	$	8,131,387
Federal funds purchased		6,990,000		31,840,000
	$	13,993,122	$	39,971,387

The Company

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

	2017		2016
U.S. govt. sponsored agency securities	$	2,077,702	$	630,077
Residential mortgage-backed and related securities		18,816,280		19,090,261
Total securities pledged to overnight customer repurchase agreements		20,893,982		19,720,338
Less: overcollateralized position		13,890,860		11,588,951
	$	7,003,122	$	8,131,387

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,

2017

and

2016

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, 2017

and

2016:

	2017			2016
Average daily balance during the period	$	7,475,824		$	30,082,866
Average daily interest rate during the period		0.08	%		0.07	%
Maximum month-end balance during the period	$	11,829,201		$	59,833,229
Weighted average rate as of end of period		0.15	%		0.02	%

Information concerning federal funds purchased is summarized as follows as of

December 31,

2017

and

2016:

	2017			2016
Average daily balance during the period	$	13,486,239		$	19,105,595
Average daily interest rate during the period		1.31	%		0.56	%
Maximum month-end balance during the period	$	33,650,000		$	51,750,000
Weighted average rate as of end of period		1.24	%		0.70	%