Note 10 - FHLB Advances

12 Months Ended

Dec. 31, 2017

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, 2017

and

2016

is as follows:

	December 31, 2017					December 31, 2016
			Weighted					Weighted
			Average					Average
			Interest Rate					Interest Rate
	Amount Due		at Year-End			Amount Due		at Year-End
Maturity:
Year ending December 31:
2017	$	-		-		$	112,500,000		0.78	%
2018		190,400,000		1.82			25,000,000		3.35
2020		1,600,000		1.75			-		-
Total FHLB advances	$	192,000,000		1.82	%	$	137,500,000		1.25	%

*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 $

850,115,910

and

$669,513,037

as of

December 31, 2017

and

2016,

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

125%

to

333%

based on the loan type. Advances are collateralized by securities of

$6,690,525

as of

December 31, 2017,

in aggregate. As of

December 31, 2016,

there were

no

securities pledged to advances. The Company continues to pledge loans under blanket liens to provide off balance sheet liquidity.

As of

December 31,

2017

and included with the

2018

maturity grouping above are

$165.4

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

$104.5

million as of

December 31, 2016

and had maturities ranging from

1

day to

1

month.

Throughout

2016,

the Company 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 year ended

December 31, 2016:

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

All

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

As of

December 31,

2017

and

2016,

the subsidiary banks held

$11,676,700

and

$9,271,300,

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