REPURCHASE AGREEMENTS AND OTHER BORROWINGS

12 Months Ended

Dec. 31, 2017

REPURCHASE AGREEMENTS.

REPURCHASE AGREEMENTS

NOTE 9 - REPURCHASE AGREEMENTS AND OTHER BORROWINGS

Securities sold under agreements to repurchase are secured by U.S. Government securities and mortgage-backed securities with a total carrying amount of $26.5 million and $29.4 million at year-end 2017 and 2016.

Repurchase agreements range in maturities from 1 day to 41 months.  The securities underlying the agreements are maintained in a third-party custodian’s account under a written custodial agreement.  Information concerning repurchase agreements for 2017, 2016 and 2015 is summarized as follows (in thousands):

	2017			2016				2015
Average daily balance during the year	$	21,989			$	23,755			$	16,596
Average interest rate during the year		0.47	%			0.45	%			0.59	%
Maximum month-end balance during the year	$	24,070			$	27,214			$	19,874
Weighted average interest rate at year end		0.52	%			0.50	%			0.54	%

On July 20, 2015, the Company borrowed $5 million which had paid down to $3.3 million at December 31, 2017 and $4.1 million at December 31, 2016. The term loan has a fixed interest rate of 5.02%, requires quarterly principal and interest payments, matures July 20, 2025 and is collateralized by Kentucky Bank stock. The maturity schedule for the term loan as of December 31, 2017 is as follows:

2018	$	466
2019		498
2020		523
2021		550
2022		578
Thereafter		706
	$	3,321

At December 31, 2016 the Company had a $5 million revolving promissory note which matured in July 2017.  Upon maturity, the Company did not renew this note. The Company had no outstanding balances related to this promissory note at December 31, 2017 or 2016.