Note 10 - Long-tern Debt

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Long-Term Debt [Text Block]

Note 10. Long-Term Debt

(in thousands)

Long-term debt as of December 31, 2022 and 2021 is summarized as follows:

	2022		2021
Secured line of credit	$	18,000	$	18,000
Total long-term debt	$	18,000	$	18,000

Secured line of credit

On June 9, 2021, the Company obtained a secured revolving line of credit (“Line”) in the amount of $20,000 with First Horizon Bank. The proceeds of the Line were used to enhance the Bank’s capital structure. The Line bears interest at a floating interest rate linked to WSJ Prime Rate with an initial interest rate of 3.25%, which is payable quarterly on the first day of each calendar quarter, commencing on July 1, 2022, with the final installment of interest being due and payable concurrently on the same date that the principal balance is due. The Line also bears an unused line fee at a rate equal to 0.25%, applied to the unused balance of the Line. The Line is fully secured by the common stock of the Bank. The Line matures on June 9, 2023, at which time all unpaid interest and principal is due and payable. The Company had availability of $2,000 of unused funds of the secured line of credit at December 31, 2022.

The aggregate stated maturities of long-term debt outstanding at December 31, 2022, are summarized as follows:

Year Ending
December 31,	Amount
2023	$	18,000
Thereafter		-
	$	18,000