Note 11 - Other Borrowings

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Other Borrowings [Text Block]

11. OTHER BORROWINGS

Other borrowings consist of advances from the FHLB and subordinated debt as follows:

				Weighted-			Stated interest
(Dollar amounts in thousands)	Maturity range			average			rate range
Description	from		to	interest rate			from			to			2019		2018
Fixed-rate amortizing	07/01/25	10/01/28			4.06	%		4.02	%	4.47	%	$	404	$	555
Finance lease liabilities	12/31/21	06/01/40			3.29	%		2.70	%	3.51	%		4,098		-
Junior subordinated debt	12/21/37	12/21/37			4.10	%		3.61	%	4.42	%		8,248		8,248
Total												$	12,750	$	8,803

The scheduled maturities of other borrowings are as follows:

(Dollar amounts in thousands)
			Weighted-
Year Ending December 31,	Amount		Average Rate
2020	$	445		3.36	%
2021		442		3.36	%
2022		434		3.36	%
2023		433		3.36	%
2024		430		3.36	%
Beyond 2024		10,566		3.87	%
Total	$	12,750		3.84	%

Fixed-rate amortizing advances from the FHLB require monthly principal and interest payments and an annual

20

percent pay-down of outstanding principal. Monthly principal and interest payments are adjusted after each

20

percent pay-down. Under the terms of a blanket agreement, FHLB borrowings are secured by certain qualifying assets of the Company which consist principally of

first

mortgage loans or mortgage-backed securities. Under this credit arrangement, the Company has a remaining borrowing capacity of approximately

$273.4

million at

December 31, 2019.

At

December 31, 2019,

the Company also had available a

$10.0

million letter of credit with FHLB, which expired

January 23, 2020.

At

December 31, 2019,

there was

no

outstanding borrowings on this letter of credit.

The Company formed a special purpose entity (“Entity”) to issue

$8.0

million of floating rate, obligated mandatorily redeemable securities, and

$248,000

in common securities as part of a pooled offering. The rate adjusts quarterly, equal to LIBOR plus

1.67%.

The Entity

may

redeem them, in whole or in part, at face value. The Company borrowed the proceeds of the issuance from the Entity in

December 2006

in the form of an

$8.3

million note payable, which matures in

December 2037,

and is included in the other borrowings on the Company’s Consolidated Balance Sheet.

On

January 1, 2019,

the Company adopted ASU

2016

-

02

which resulted in the recording of finance lease liabilities of

$3.8

million on the Consolidated Balance Sheet. See Note

15

of the financial statements.