Note 9 - Borrowed Funds

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Debt Disclosure [Text Block]

9. Borrowed Funds

The following table summarizes the Corporation’s borrowed funds as of and for the year ended

December 31:

(Dollar amounts in thousands)	2018						2017
			Average		Average				Average		Average
	Balance		Balance		Rate		Balance		Balance		Rate
Short-term borrowed funds	$	12,850	$	5,660		3.70%	$	2,500	$	4,588		2.82%
Long-term borrowed funds		32,500		18,590		2.43%		23,500		35,949		3.03%
Total	$	45,350	$	24,250			$	26,000	$	40,537

Short-term borrowed funds at

December 

31,

2018

 consisted of

$10.8

million in overnight advances with a rate of

2.62%

and 

$2.1

 million outstanding on a

$7.0

million unsecured line of credit with a correspondent bank with a rate of

5.75%,

compared to

$2.5

 million outstanding on a

$6.0

million unsecured line of credit with a correspondent bank with a rate of

4.75%

at

December 

31,

2017.

Long-term borrowed funds at

December 

31,

2018

 consisted of

six

 

$

5.0

million FHLB term advances totaling

$30.0

million, maturing between

2019

 and

2023

 and having fixed interest rates between

1.94%

and

2.85%.

This compares to

four

 

$

5.0

million FHLB advances totaling

$20.0

million at

December 

31,

2017.

All borrowings from the FHLB are secured by a blanket lien of qualified collateral. Qualified collateral at

December 

31,

2018

 totaled

$343.2

 million. In addition, the Corporation has a

five

year unsecured term advance with a correspondent bank. The term advance has a fixed rate of

4.75%

and principal payments of

$250,000

are due on the

first

day of each quarter until maturity. At

December 31, 2018 

and

2017,

the outstanding balance on this term advance was

$2.5

million and

$3.5

million, respectively.

Scheduled maturities of borrowed funds for the next

five

years are as follows:

(Dollar amounts in thousands)	Amount
2019	$	17,850
2020		5,000
2021		12,500
2022		—
2023		10,000
Thereafter		—
Total	$	45,350

The Bank maintains a credit arrangement with the FHLB as a source of additional liquidity. The total maximum borrowing capacity with the FHLB, excluding loans outstanding of

$40.8

 million and irrevocable standby letters of credit issued to secure certain deposit accounts of

$134.8

 million at

December 

31,

2018

 was

$167.7

 million. In addition, the Corporation has

$4.9

 million of funds available on a line of credit through a correspondent bank.