Note 10 - FHLB Advances

12 Months Ended

Dec. 31, 2018

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 the FHLB as of December 31, 2018 and 2017 is as follows:


	December 31, 2018				December 31, 2017
			Weighted				Weighted
			Average				Average
			Interest Rate				Interest Rate
	Amount Due		at Year-End		Amount Due		at Year-End
Maturity:
Year ending December 31:
2018	$	—	—		$	190,400,000	1.82	%
2019		239,957,672	2.60			—	—
2020		11,484,203	1.74			1,600,000	1.75
2021		15,050,164	2.32			—	—
Total FHLB advances	$	266,492,039	2.55	%	$	192,000,000	1.82	%

Advances are collateralized by loans of $1.3 billion and $850.1 million as of December 31, 2018 and 2017, respectively, in aggregate. On pledged loans, the FHLB applies varying collateral maintenance levels from 125% to 333% based on the loan type. Advances are also collateralized by securities of $26.9 million and $6.7 million as of December 31, 2018 and 2017, respectively, in aggregate. The Company continues to pledge loans under blanket liens to provide off balance sheet liquidity.

As of December 31, 2018 and included with the 2019 maturity grouping above are $190.2 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 $165.4 million as of December 31, 2017 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
			Weighted
			Average		Range of	Prepayment
Date of Restructuring	Amount		Interest Rate		Maturity Dates	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, 2018 and 2017, the subsidiary banks held $15.7 million and $11.7 million, respectively, of FHLB stock, which is included in restricted investment securities on the consolidated balance sheet.