Note 10 - Federal Home Loan Bank Advances

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Federal Home Loan Bank Advances, Disclosure [Text Block]

Note 10.         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.   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%. On April 23, 2020 and June 22, 2020 the company took two additional advances with two year terms. The interest rate at issue was 0.37% and 0.28% respectively. As of December 31, 2021 and 2020, the Company had outstanding advances of $2,000,000. 

As of December 31, 2021, USALSC had pledged $2,554,993 of mortgage backed securities, US treasuries and overnight deposits to FHLB in support of its outstanding advance.