Note 11 - Borrowings -

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Debt Disclosure [Text Block]

Note

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– Borrowings –

The Bank had outstanding advances from the Federal Home Loan Bank (FHLB) of

$93.0

million and

$55.0

million at

December 31, 2019

and

2018,

respectively, consisting of:

One fixed rate loan of

$30.0

million at

December 31, 2019

and

2018,

with interest at

2.41%

paid monthly. Principal is due at maturity in

November 2022.

One fixed rate loan of

$10.0

million at

December 31, 2019,

with interest at

2.14%

paid monthly. Principal is due at maturity in

June 2020.

One fixed rate loan of

$30.0

million at

December 31, 2019,

with interest at

2.03%

paid monthly. Principal is due at maturity in

June 2022.

One fixed rate loan of

$23.0

million at

December 31, 2019,

with interest at

1.59%

paid monthly. Principal is due at maturity in

June 2024.

One fixed rate loan of

$25.0

million at

December 31, 2018,

with interest at

2.54%

paid monthly. Principal was paid at maturity in

June 2019.

These advances are collateralized by the Bank’s investment in Federal Home Loan Bank stock and a blanket lien on qualifying loans in the Bank’s loan portfolio consisting of performing

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-

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family mortgages and certain small business, small farm and small agriculture loans. The blanket lien totaled approximately

$626.3

million at

December 31, 2019

with unused availability for advances and letters of credit of approximately

$330.2

million.

The Bank has outstanding lines of credit with several of its correspondent banks available to assist in the management of short-term liquidity. These agreements provide for interest based upon the federal funds rate on the outstanding balance. Total available lines of credit as of

December 31, 2019

and

2018

were

$126.0

million and

$126.0

million, respectively. There was

no

balance on these lines at

December 31, 2019

and

2018.

The Company has a line of credit with First National Bankers Bank (FNBB) and is allowed to borrow on a revolving basis up to

$5.0

million. This line of credit, established on

September 12, 2016,

is secured by a pledge of and security interest in the common stock of our wholly-owned subsidiary,

b1BANK.

The Company did

not

have a balance on the line of credit at

December 31, 2019

and

2018,

respectively. The line of credit carries a variable interest rate equal to the Wall Street Journal Prime rate. This FNBB line was established for the purpose of repurchasing shares of our common stock from certain of our shareholders and for general corporate purposes.

In

December 2018,

the Company issued subordinated notes in the amount of

$25.0

million. The subordinated notes bear a fixed rate of interest at

6.75%

until

December 31, 2028

and a floating rate thereafter through maturity in

2033.

The subordinated notes were issued for the purpose of paying off the long term advance and line of credit with FNBB, for general corporate purposes and to provide Tier

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capital. The subordinated notes are redeemable by the Company at its option beginning in

2028.