Note 5 - Federal Home Loan Bank Advances

6 Months Ended

Jun. 30, 2016

Federal Home Loan Bank Advances, Disclosure [Text Block]

(5)	Federal Home Loan Bank Advances

Bancorp had outstanding borrowings totaling of $43.0 million and $43.5 million at June 30, 2016 and December 31, 2015, respectively, via 12 separate fixed-rate advances. For two advances totaling $30 million, both of which are non-callable, interest payments are due monthly, with principal due at maturity. For the remaining advances totaling $13.0 million, principal and interest payments are due monthly based on an amortization schedule.

The following is a summary of the contractual maturities and average effective rates of outstanding advances:

(In thousands)	June 30, 2016					December 31, 2015
Year	Advance		Fixed Rate			Advance		Fixed Rate
2016	$	30,000		0.67	%	$	30,000		0.55	%
2020		1,814		2.23			1,838		2.23
2021		394		2.12			429		2.12
2024		2,764		2.36			2,865		2.36
2025		6,705		2.44			6,991		2.44
2028		1,325		1.48			1,345		1.48

Total	$	43,002		1.16	%	$	43,468		1.09	%

In addition to the fixed-rate advances listed above, Bancorp had a $60 million cash management advance from the FHLB. This advance matured in the first week of July and was utilized to manage Bancorp’s overall cash position. Due to the short nature of the advance, it was recorded within Federal fund purchased and other short-term borrowings.

Advances from the FHLB are collateralized by certain commercial and residential real estate mortgage loans totaling $627.7 million under a blanket mortgage collateral agreement and FHLB stock. Bancorp believes these borrowings to be an effective alternative to higher cost time deposits to manage interest rate risk associated with long-term fixed rate loans. At June 30, 2016, the amount of available credit from the FHLB totaled $306.9 million.