Note 9 - Lines of Credit and Federal Home Loan Bank Advances

6 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Federal Home Loan Bank Advances, Disclosure [Text Block]

Note 9: Lines of Credit and Federal Home Loan Bank Advances

The Bank

may

borrow up to

$5.0

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

$1.0

million 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

September 30, 2018

and

March 31, 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

September 30, 2018,

and

March 31, 2018,

the Bank had

$76.7

million and

$68.3

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

$117.5

million at

September 30, 2018

and

$127.1

million at

March 31, 2018.

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

September 30, 2018

and

March 31, 2018

is presented below.

	September 30, 2018				March 31, 2018
	Amount		Rate	Maturity Date	Amount		Rate	Maturity Date
FHLB advance (1)	$	5,550,000	2.27%	12/10/2018	$	5,550,000	1.84%	6/11/2018
FHLB advance (2)		6,000,000	2.36%	12/29/2018		6,000,000	1.90%	6/29/2018
FHLB advance		1,000,000	2.43%	12/31/2018		1,000,000	2.60%	7/2/2018
FHLB advance		3,000,000	2.33%	8/26/2019		1,000,000	3.05%	7/3/2018
FHLB advance		3,000,000	1.59%	8/26/2019		5,000,000	3.94%	7/23/2018
FHLB advance		1,500,000	1.95%	11/25/2019		1,000,000	1.74%	7/31/2018
FHLB advance		1,500,000	1.78%	11/27/2019		1,000,000	1.40%	8/21/2018
FHLB advance		3,000,000	2.31%	2/3/2020		4,000,000	1.94%	8/27/2018
FHLB advance		1,000,000	2.86%	8/4/2020		3,000,000	1.41%	8/27/2018
FHLB advance		2,000,000	2.56%	8/27/2020		5,000,000	3.38%	9/19/2018
FHLB advance		1,000,000	2.15%	11/30/2020		1,000,000	2.60%	10/2/2018
FHLB advance		2,000,000	2.28%	12/28/2020		1,000,000	1.95%	12/31/2018
FHLB advance		2,000,000	2.49%	2/1/2021		3,000,000	1.38%	7/31/2019
FHLB advance		3,000,000	2.93%	7/26/2021		3,000,000	1.96%	8/26/2019
FHLB advance		2,000,000	3.01%	8/4/2021		3,000,000	1.59%	8/26/2019
FHLB advance		1,000,000	2.88%	8/23/2021		3,000,000	1.42%	8/26/2019
FHLB advance		3,000,000	1.48%	8/25/2021		1,500,000	1.95%	11/25/2019
FHLB advance		2,000,000	2.68%	8/27/2021		1,500,000	1.78%	11/27/2019
FHLB advance		3,000,000	2.79%	8/29/2022		3,000,000	2.31%	2/3/2020
FHLB advance		2,000,000	3.14%	9/19/2022		1,000,000	2.15%	11/30/2020
FHLB advance		3,000,000	2.70%	8/28/2023		2,000,000	2.28%	12/28/2020
FHLB advance		2,000,000	3.20%	9/19/2023		2,000,000	2.49%	2/1/2021
FHLB advance		-	-	-		3,000,000	1.48%	8/25/2021
		53,550,000				60,550,000
Premium on FHLB advances assumed		1,896				122,140
Total borrowings	$	53,551,896			$	60,672,140

( 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.