Note 9 - Federal Home Loan Bank Borrowings

12 Months Ended

Dec. 31, 2013

Disclosure Text Block [Abstract]

Federal Home Loan Bank Advances, Disclosure [Text Block]

Note 9. Federal Home Loan Bank Borrowings

The Company has outstanding long-term debt with the Federal Home Loan Bank of Atlanta in the amount of $22.0 million as of December 31, 2013 and 2012. The long-term debt at December 31, 2013 is comprised of one convertible advance in the amount of $4 million, one fixed rate advance in the amount of $3 million, one fixed rate advance in the amount of $12 million, and one variable rate advance in the amount of $3 million. The Federal Home Loan Bank of Atlanta has the option to convert the convertible advance on the conversion date below, and on any quarterly interest payment date thereafter, with at least two business days’ notice. If called, the advance will be converted into a 3-month London Interbank Offered Rate (LIBOR) based adjustable rate credit. The variable rate advance provided short-term financing at the FHLB’s equivalent of a Fed Funds rate with the ability to prepay without a penalty.

At December 31, 2013 and 2012, borrowings from the Federal Home Loan Bank of Atlanta were as follows:

(Dollars In Thousands)
Advance Date	Maturity Date	Conversion Date	Current Rate			2013		2012
September 7, 2007	September 7, 2017	March 7, 2011		3.690	%	$	4,000	$	4,000
July 27, 2011	July 28, 2014			2.190	%		3,000		3,000
April 13, 2012	April 13, 2016			1.265	%		12,000		12,000
November 7, 2012	November 7, 2013			0.355	%		−		3,000
December 11, 2013	December 11, 2014			0.355	%		3,000		−
						$	22,000	$	22,000

The Company had collateral pledged on these borrowings at December 31, 2013 including real estate loans totaling $43.1 million, investment securities totaling $4.4 million, and Federal Home Loan Bank stock with a book value of $1.4 million.