Long-Term Debt

12 Months Ended

Dec. 31, 2014

Debt Disclosure [Abstract]

Long-Term Debt

8. LONG-TERM DEBT

Long-term debt at December 31, 2014 and 2013 consisted of the following:

	2014		2013
Advance from FHLB with a 3.39% fixed rate of interest maturing August 20, 2018  (convertible to a variable rate at quarterly options of FHLB – no conversion option has been made).	$	5,000,000	$	5,000,000
Advance from FHLB with a 2.78% fixed rate of interest maturing September 10, 2018  (convertible to a variable rate at quarterly options of FHLB – no conversion option has been made).		5,000,000		5,000,000
Advance from FHLB with 1.43% fixed rate of interest with annual installment payments maturing September 4, 2018.		5,400,000		7,200,000
Advance from FHLB with 0.89% fixed rate of interest with annual installment payments maturing July 24, 2017.		6,666,667		0
Total long-term debt	$	22,066,667	$	17,200,000

The advances from FHLB are collateralized by the pledging of a combination of 1-4 family residential mortgages and investment securities. At December 31, 2014, 1-4 family residential mortgage loans only with a lendable collateral value of $34,813,653 were pledged to secure these advances. In 2013, the advances were secured by 1-4 family residential mortgage loans with a lendable collateral value of $31,594,920. The amount of FHLB Stock held is based on membership and level of FHLB advances. At year end 2014 and 2013, the amount of stock held that is based on membership was $336,000 and $416,000, respectively, and the amount of stock held that is based on the level of FHLB advances was $1,224,000 and $1,305,000, respectively. At December 31, 2014, the Corporation had approximately $66,200,000 of unused lines of credit with the FHLB.

The following are maturities of long-term debt for the next five years. At December 31, 2014, there was no floating rate long-term debt; however, two of these advances have convertible call features. Two advances totaling $10,000,000 have convertible options by the issuer to convert the rates to a 3-month LIBOR. The Bank intends to pay off these advances at the conversion dates. The Bank has the ability to hold this debt until conversion and the means of repayment.

Due in:			Fixed Rate Amount
	2015		$	0
	2016			5,133,333
	2017			5,133,333
	2018	*		11,800,000
	Total long-term debt		$	22,066,667

*Fixed rate advances with convertible options of $10,000,000.