Federal Home Loan Bank Advances

6 Months Ended

Jun. 30, 2019

Federal Home Loan Banks [Abstract]

Federal Home Loan Bank Advances

NOTE 8 – FEDERAL HOME LOAN BANK ADVANCES

Federal Home Loan Bank advances consist of the following:

	June 30, 2019			December 31, 2018
	Rate	Amount		Rate	Amount
	(dollars in thousands)
Open line of credit	—%	$	—	2.61%	$	5,350
Fixed rate, fixed term advances	1.41% to 1.50%		12,000	1.13% to 1.50%		24,000
Advance structured note, payments due monthly, maturing February 2030	7.47%		642	7.47%		660
Total		$	12,642		$	30,010

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

	June 30, 2019
	Weighted Average Rate		Amount
	(dollars in thousands)
2019		1.53%	$	5,038
2020		7.47%		41
2021		1.45%		7,044
2022		7.47%		47
2023		7.47%		51
Thereafter		7.47%		421
Total			$	12,642

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 value of 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 $150,505 and $151,708 of qualifying loans as collateral for Federal Home Loan Bank advances as of June 30, 2019 and December 31, 2018, respectively. Federal Home Loan Bank advances are also secured by approximately $913 and $1,261 of Federal Home Loan Bank stock held by the Bank as of June 30, 2019 and December 31, 2018, respectively. The Bank’s available and unused portion of this borrowing agreement totaled $0 and $800 as of June 30, 2019 and December 31, 2018, respectively.