Note 12 - FHLB Advances and Other Borrowings

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Debt Disclosure [Text Block]

NOTE

1

2

FHLB

Advances

and

Other B

orrowings

The

Bank had

no

outstanding advances from the FHLB or borrowings from the Federal Reserve Bank of Minneapolis as of

December 31, 2017

or

December 31, 2016.

At

December 31, 2017

it had collateral pledged to the FHLB consisting of FHLB stock, mortgage loans, and investments with a borrowing capacity of approximately

$106.3

million, subject to a requirement to purchase FHLB stock. The Bank also had the ability to draw additional borrowings of

$77.9

million from the Federal Reserve Bank of Minneapolis, based upon the loans that were pledged to them as of

December 31, 2017,

subject to approval from the Board of Governors of the Federal Reserve System (FRB).

At

December 31, 2016

it had collateral pledged to the FHLB consisting of FHLB stock, mortgage loans, and investments with

an available borrowing capacity of approximately

$104.7

million, subject to a requirement to purchase FHLB stock. The Bank also had the ability to draw additional borrowings of

$85.8

million from the Federal Reserve Bank of Minneapolis, based upon the loans that were pledged to them as of

December 31, 2016,

subject to approval from the FRB.

On

December 15, 2014,

the Company entered into a Loan Agreement with an unrelated

third

party, providing for a term loan of up to

$10.0

million that was evidenced by a promissory note (the Note) with an interest rate of

6.50%

per annum. The principal balance of the Note was payable in consecutive equal annual installments of

$1.0

million on each anniversary of the date of the Loan Agreement, commencing on

December 15, 2015,

with the balance due on

December 15, 2021.

The Company had the option to voluntarily prepay the Note in whole or in part without penalty. The Company made the scheduled

$1.0

million principal payment on

December 15, 2015,

a

$2.0

million payment on

December 15, 2016,

and on

August 31, 2017

paid off the remaining principal balance of

$7.0

million. There was

no

outstanding loan balance at

December 31, 2017

and the loan balance was

$7.0

million at

December 31, 2016.