Note 13 - Federal Home Loan Bank Advances and Lines of Credit

12 Months Ended

Mar. 31, 2018

Notes to Financial Statements

Federal Home Loan Bank Advances, Disclosure [Text Block]

Note 13: Federal Home Loan Bank Advances and Lines of Credit

The Bank

may

borrow up to

$5,000,000

from a correspondent bank under a secured federal funds line of credit and

$1,000,000

under an unsecured federal funds line of credit. The Bank would be required to pledge investment securities to draw upon the secured line of credit. There were

no

borrowings under these lines of credit at

March 31, 2018

and

2017.

The Bank also maintained a note payable on an automobile purchased during fiscal

2017.

The original amount of the note was

$28,805

with an interest rate of

1.95%

for

36

months. The note was paid-off in

January 2018.

Borrowings consist of advances from the Federal Home Loan Bank (FHLB). The Bank

may

borrow up to

25

percent of its assets under a line of credit agreement with the FHLB. Advances under the line of credit are secured by certain loans owned by the Bank. As of

March 31, 2018

and

2017,

the Bank had

$68.3

million and

$88.2

million, respectively, of available credit from the FHLB. Advances are limited by the balance of loans available for pledge. The amount of loans that were deemed eligible to pledge as collateral totaled

$127.1

million at

March 31, 2018

and

$159.1

million at

March 31, 2017.

As a condition of obtaining the line of credit from the FHLB, the FHLB also requires the Bank purchase shares of capital stock in the FHLB. Information relating to borrowings at

March 31, 2018

and

2017

is presented below.

	March 31, 2018				March 31, 2017
	Amount		Rate	Maturity Date	Amount		Rate	Maturity Date
FHLB advance (1)	$	5,550,000	1.84%	6/11/2018	$	5,550,000	0.94%	6/9/2017
FHLB advance (2)		6,000,000	1.90%	6/29/2018		6,000,000	0.93%	6/29/2017
FHLB advance		1,000,000	2.60%	7/2/2018		1,000,000	4.24%	7/31/2017
FHLB advance		1,000,000	3.05%	7/3/2018		5,000,000	4.28%	7/31/2017
FHLB advance		5,000,000	3.94%	7/23/2018		1,000,000	4.01%	8/21/2017
FHLB advance		1,000,000	1.74%	7/31/2018		1,000,000	0.91%	8/31/2017
FHLB advance		1,000,000	1.40%	8/21/2018		1,500,000	3.23%	11/24/2017
FHLB advance		4,000,000	1.94%	8/27/2018		1,500,000	3.40%	11/27/2017
FHLB advance		3,000,000	1.41%	8/27/2018		1,000,000	2.60%	7/2/2018
FHLB advance		5,000,000	3.38%	9/19/2018		1,000,000	3.05%	7/3/2018
FHLB advance		1,000,000	2.60%	10/2/2018		5,000,000	3.94%	7/23/2018
FHLB advance		1,000,000	1.95%	12/31/2018		5,000,000	3.38%	9/19/2018
FHLB advance		3,000,000	1.38%	7/31/2019		1,000,000	2.60%	10/2/2018
FHLB advance		3,000,000	1.96%	8/26/2019		-
FHLB advance		3,000,000	1.59%	8/26/2019		-
FHLB advance		3,000,000	1.42%	8/26/2019		-
FHLB advance		1,500,000	1.95%	11/25/2019		-
FHLB advance		1,500,000	1.78%	11/27/2019		-
FHLB advance		3,000,000	2.31%	2/3/2020		-
FHLB advance		1,000,000	2.15%	11/30/2020		-
FHLB advance		2,000,000	2.28%	12/28/2020		-
FHLB advance		2,000,000	2.49%	2/1/2021		-
FHLB advance		3,000,000	1.48%	8/25/2021		-
Note payable - auto		-				27,250	1.95%	2/17/2020
		60,550,000				35,577,250
Premium on FHLB advances assumed		122,140				547,649
Total borrowings	$	60,672,140			$	36,124,899

( 1 ) -

FHLB Advance is tied to three derivative cash flow hedges in increments of $1.85 million each. The three individual cash flow hedges are for a term of five , seven and ten years, respectively and are tied to the 3 -month LIBOR rate. In order for the cash flow hedges to remain effective, the corresponding FHLB Advance will have to be renewed every three months until the respective cash flow hedge matures.

( 2 ) -

FHLB Advance is tied to three derivative cash flow hedges in increments of $2.0 million each. The three individual cash flow hedges are for a term of five , seven and ten years, respectively and are tied to the 3 -month LIBOR rate. In order for the cash flow hedges to remain effective, the corresponding FHLB Advance will have to be renewed every three months until the respective cash flow hedge matures.