NOTE 5 - BORROWINGS

FHLB Topeka Borrowings

The Bank has executed a blanket pledge and security agreement with the Federal Home Loan Bank (“FHLB”) Topeka that requires certain loans and securities be pledged as collateral for any outstanding borrowings under the agreement. The collateral pledged as of June 30, 2018 and December 31, 2017 amounted to $424.3 million and $361.7 million, respectively. Based on this collateral and the Company’s holdings of FHLB Topeka stock, the Company is was eligible to borrow an additional $202.4 million at June 30, 2018. Each advance is payable at its maturity date.

The Company had the following borrowings from FHLB Topeka at the dates noted (in thousands):


		June 30,		December 31,
Maturity Date	Rate %	2018		2017
August 3, 2018	2.11	$	55,598	$	8,563
October 31, 2018	1.75		10,000		10,000
August 26, 2020	1.94		10,000		10,000
		$	75,598	$	28,563

The Bank has borrowing capacity associated with two unsecured federal funds lines of credit up to $13.0 million and $25.0 million. As of June 30, 2018 and December 31, 2017, there were no amounts outstanding on either of the federal funds lines.

The Company’s borrowing facilities include various financial and other covenants, including, but not limited to, a requirement that the Bank maintains regulatory capital that is deemed “well capitalized” by federal banking agencies (see Note 14). As of June 30, 2018 and December 31, 2017, the Company was in compliance with the covenant requirements.