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Lines Of Credit
9 Months Ended
Dec. 31, 2011
Lines Of Credit Disclosure [Abstract]  
Lines Of Credit Disclosure [Text Block]
8. Lines of Credit

 

The Company’s $2.5 million revolving line of credit note payable matured September 30, 2011 and was renewed until September 30, 2012. The balance of the revolving line of credit was $2,000,000 and $1,800,000 as of December 31, 2011 and March 31, 2011, respectively. The note bears interest at the prime commercial rate with a floor of 3.50% which was the rate on December 31, 2011, and is secured by all the stock of the Bank. The line was paid to zero on January 3, 2012.

 

During the nine months ended December 31, 2011, the revolving line of credit maintained by the Bank with an unaffiliated financial institution increased to $6,700,000 from the $5,000,000 line at March 31, 2011, of which no amounts were outstanding at December 31, 2011 or March 31, 2011. The line bears interest at the federal funds rate of the financial institution (1.15% at December 31, 2011), has an open-end maturity and is unsecured if used for less than thirty (30) consecutive days.

 

The Bank has also established borrowing capabilities at the Federal Reserve Bank of St. Louis discount window. Investment securities of $3,014,000 have been pledged as collateral. The amount available to borrow is equal to or less than the amount pledged as collateral. As of December 31, 2011 and March 31, 2011 no amounts were outstanding. The primary credit borrowing rate at December 31, 2011 was 0.50%, has a term of up to 90 days, and has no restrictions on use of the funds borrowed.

 

The Bank also maintains a $17.6 million line of credit with the Federal Home Loan Bank of Chicago (“FHLB”). No FHLB advances were outstanding for the periods ended December 31, 2011 or March 31, 2011.