Note 9 - Short-Term Borrowings

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Short-term Debt [Text Block]

Note 9. Short-Term Borrowings

Short-term borrowings as of December 31, 2018 and 2017 are summarized as follows:

	2018		2017
Overnight repurchase agreements with customers	$	2,084,157	$	7,003,122
Federal funds purchased		26,690,000		6,990,000
	$	28,774,157	$	13,993,122

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

	2018		2017
U.S. govt. sponsored agency securities	$	3,661,995	$	2,077,702
Residential mortgage-backed and related securities		20,654,345		18,816,280
Total securities pledged to overnight customer repurchase agreements		24,316,340		20,893,982
Less: overcollateralized position		22,232,183		13,890,860
	$	2,084,157	$	7,003,122

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 interest rate movements.

The securities underlying the agreements as of December 31, 2018 and 2017 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, 2018 and 2017:

	2018			2017
Average daily balance during the period	$	7,830,860		$	7,475,824
Average daily interest rate during the period		0.38	%		0.08	%
Maximum month-end balance during the period	$	10,391,529		$	11,829,201
Weighted average rate as of end of period		0.90	%		0.15	%

Information concerning federal funds purchased is summarized as follows as of December 31, 2018 and 2017:

	2018			2017
Average daily balance during the period	$	13,059,102		$	13,486,239
Average daily interest rate during the period		2.18	%		1.31	%
Maximum month-end balance during the period	$	32,330,000		$	33,650,000
Weighted average rate as of end of period		2.46	%		1.24	%