Note 9 - Federal Home Loan Bank Advances

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Federal Home Loan Bank Advances, Disclosure [Text Block]

Note

9

.

Federal Home Loan Bank Advances

One of the Company’s subsidiaries, USALSC, is a member of the Federal Home Loan Bank of Topeka (FHLB), which provides access to collateralized borrowings.  Any borrowings from FHLB requires the purchase of FHLB common stock in an amount equal to

4.5%

of the borrowing.  On

October 31, 2019,

USALSC received an advance of $

1,000,000

based on USALSC purchasing $

45,000

of FHLB common stock.   The Company had outstanding advances from the Federal Home Loan Bank of Topeka of

$1,000,000

at

December 31, 2019.

Advances from the FHLB are secured by the Federal Home Loan Bank of Topeka stock and pledged assets consisting of mortgage backed securities and overnight deposit funds with a fair value of

$1,132,099.

This regular fixed convertible advance has a

10

year term with an FHLB option to convert to an adjustable rate on the

5

th

anniversary. The interest rate at issue was

1.66%.

As of

December 31, 2019,

USALSC had pledged

$932,099

of mortgage backed securities and

$200,000

of overnight deposits to FHLB in support of its outstanding advance.