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Note 10 - Other Borrowings

12 Months Ended

Dec. 31, 2014

10.

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			2014		2013
Fixed-rate amortizing		06/01/15	10/01/28		4.00	%		2.99	%	4.48	%	$	2,376	$	3,361
Junior subordinated debt		12/21/37	12/21/37		1.90	%		1.89		1.91			8,248		8,248

Total												$	10,624	$	11,609

The scheduled maturities of other borrowings are as follows:

(Dollar amounts in thousands)
			Weighted-
Year Ending December 31,	Amount		Average Rate

2015	$	685		4.01	%
2016		502		4.00	%
2017		373		4.00	%
2018		252		4.02	%
2019		155		4.04	%
Beyond 2019		8,657		2.00	%

Total	$	10,624		2.37	%

Fixed-rate amortizing advances from the FHLB require monthly principal and interest payments and an annual 20 percent paydown of outstanding principal. Monthly principal and interest payments are adjusted after each 20 percent paydown. 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 $87.9 million at December 31, 2014.

The Company formed a special purpose entity (“Entity”) to issue $8,000,000 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 $8,248,000 note payable, which is included in the other borrowings on the Company’s Consolidated Balance Sheet.