Subsequent Events

12 Months Ended

Dec. 31, 2015

Subsequent Events [Abstract]

Subsequent Events [Text Block]

NOTE 20, Subsequent Events

In February of 2016, the Company elected to pay off its advance from the Federal Home Loan Bank. This $25 million advance, which would have matured in June of 2016, bore an interest rate of 4.83%, significantly higher than other borrowing sources in the current rate environment. Previously, the Company had elected not to prepay this advance due to the penalty that would be assessed in the event of prepayment. As the amount of the penalty was dependent on market rates of interest, the volatility in the financial markets during the first quarter of 2016 provided the Company with an opportunity to prepay the advance for a penalty that was less than the amount of interest it would have paid for the remaining term of the advance. The amount of the penalty was $391 thousand.

Also in February of 2016, the Company transferred its portfolio of held-to-maturity securities to available-for-sale to increase liquidity and flexibility in the future. This transfer allows the Company to sell these securities as necessary to manage interest rate risk or to fund loan growth. For a detailed discussion of this transfer and its effects on the consolidated financial statements, refer to Note 3, Securities Portfolio.