NOTE 7 – FEDERAL HOME LOAN BANK ADVANCES

Federal Home Loan Bank advances consist of the following:


	September 30, 2018				December 31, 2017
	Rate		Amount		Rate		Amount
	(dollars in thousands)
Open line of credit		2.39%	$	12,000		0.88%	$	10,000
Fixed rate, fixed term advances		1.13% - 1.50%		24,000		1.13% - 1.50%		24,000
Advance structured note, payments due monthly, maturing February 2030		7.47%		668		7.47%		693

Total			$	36,668			$	34,693

The scheduled maturities of Federal Home Loan Bank advances are presented below:


	September 30, 2018
	Weighted Average Rate			Amount
	(dollars in thousands)
2018		2.39	%	$	12,009
2019		1.25	%		17,036
2020		7.47	%		39
2021		1.45	%		7,042
2022		7.47	%		46
Thereafter		7.47	%		496

Total				$	36,668

Actual maturities may differ from scheduled maturities due to call options on various Federal Home Loan Bank advances.

The Bank maintains a master contract agreement with the Federal Home Loan Bank, which provides for borrowing up to the lesser of 22.22 times the Federal Home Loan Bank stock owned, a determined percentage of the book value of the Bank’s qualifying real estate loans, or a determined percentage of the Bank’s assets. The Federal Home Loan Bank provides both fixed and floating rate advances. Floating rates are tied to short-term market rates of interest such as the London InterBank Offered Rate, federal funds or Treasury bill rates. Federal Home Loan Bank advances are subject to a prepayment penalty if they are repaid prior to maturity. The Bank has pledged approximately $129,076 and $137,400 of qualifying loans as collateral for Federal Home Loan Bank advances as of September 30, 2018 and December 31, 2017, respectively. Federal Home Loan Bank advances are also secured by approximately $1,525 and $1,436 of Federal Home Loan Bank stock held by the Bank as of September 30, 2018 and December 31, 2017, respectively. There were no available and unused funds under this borrowing agreement as of September 30, 2018 and December 31, 2017 due to the level of the Bank’s holdings of Federal Home Loan Bank stock.