Note H - Borrowings

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Debt Disclosure [Text Block]

NOTE H - BORROWINGS:

At

December 31, 2019,

the Company was able to borrow up to

$14,647,619

from the Federal Reserve Bank Discount Window Primary Credit Program. The borrowing limit is based on the amount of collateral pledged, with certain loans from the Bank’s portfolio serving as collateral. Borrowings bear interest at the primary credit rate, which is established periodically by the Federal Reserve Board, and have a maturity of

one

day. The primary credit rate was

2.25%

at

December 31, 2019.

There was

no

outstanding balance at

December 31, 2019.

At

December 31, 2019,

the Company had

$3,526,319

outstanding in advances under a

$59,008,622

line of credit with the FHLB. One advance in the amount of

$2,500,000

bears interest at

1.45%

at

December 31, 2019

and matures in

2020.

New advances

may

subsequently be obtained based on the liquidity needs of the bank subsidiary. The remaining balance consists of smaller advances bearing interest from

2.604%

to

7.00%

with maturity dates from

2030

–

2040.

The advances are collateralized by specific loans, for which certain documents are held in custody by the FHLB, and, if needed, specific investment securities that are held in safekeeping at the FHLB.