FEDERAL HOME LOAN BANK ADVANCES

3 Months Ended

Mar. 31, 2015

Banking and Thrift [Abstract]

Federal Home Loan Bank Advances, Disclosure [Text Block]

NOTE 10. FEDERAL HOME LOAN BANK ADVANCES

As of March 31, 2015 and December 31, 2014, advances from the FHLB were as follows:

	March 31, 2015		December 31, 2014
	(Dollars in Thousands)
Maturity on January 23, 2015, fixed rate at 0.24%	$	-	$	5,000
Maturity on April 15, 2015, fixed rate at 0.21%		32,000		-
Maturity on August 26, 2016, fixed rate 2.32% (1)		10,000		10,000
Maturity on September 28, 2016, fixed rate 4.15%		10,000		10,000
Maturity on December 8, 2016, fixed rate at 4.26%		10,000		10,000
Maturity on May 30, 2017, fixed rate at 4.33%		10,000		10,000
Maturity on June 20, 2017, fixed rate 0.73%		3,750		4,167
Maturity on August 1, 2017, fixed rate at 4.39%		20,000		20,000
Maturity on August 22, 2017, fixed rate at 3.74%		5,000		5,000
Maturity on August 28, 2017, fixed rate at 2.87% (1)		10,000		10,000
Maturity on December 21, 2017, fixed rate at 3.77%		15,000		15,000
Maturity on December 29, 2017, fixed rate at 3.89%		15,000		15,000
Maturity on March 26, 2018, fixed rate 4.11%		5,000		5,000
Maturity on June 20, 2019, fixed rate at 1.27%		4,250		4,500
Total	$	150,000	$	123,667

  

(1) As a result of the prepayment and restructure of two $10.0 million advances, on August 26, 2014, $0.8 million of deferred prepayment penalties were factored into the new interest rate of the two $10.0 million advances granted on August 26, 2014.

The FHLB advances had a weighted-average maturity of 22 months and a weighted-average rate of 2.93% at March 31, 2015. The Company had $248.8 million in portfolio loans posted as collateral for these advances as of March 31, 2015.

During the three months ended March 31, 2015, the Company paid off $10.7 million of the FHLB borrowings, including $5.0 million that had been borrowed during 2015.

The Bank’s remaining borrowing capacity with the FHLB is $27.1 million at March 31, 2015. The FHLB requires that the Bank collateralize the excess of the fair value of the FHLB advances over the book value with cash and securities. As of March 31, 2015, fair value exceeded the book value of the individual advances by $7.2 million, which was partially collateralized by portfolio loans (included in the $248.8 million discussed above). The Bank intends to supplement its loan collateral with investment securities as needed to secure the FHLB borrowings or prepay advances to reduce the amount of collateral required to secure the debt. Unpledged securities available for collateral amounted to $46.5 million as of March 31, 2015. In the event the Bank prepays additional advances prior to maturity, it must do so at fair value.