Note 6 - Stock in Financial Institutions

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Stock in Financial Institutions [Text Block]

NOTE

6

– STOCK IN FINANCIAL INSTITUTIONS

The Bank has stock in the FHLB of Dallas, The Independent Bankers Bank (TIB) and Pacific Coast Bankers’ Bancshares (PCBB). The carrying value of the stocks at

December 31, 2019

and

2018

was

$4.0

million and

$3.9

million, respectively, and is accounted for using the cost basis of accounting. The Bank is required to maintain minimum levels of FHLB stock based on various factors, including the amount of borrowings outstanding, mortgage assets and the Bank’s total assets.