Quarterly report pursuant to Section 13 or 15(d)

Note 7 - Other Borrowed Funds

v3.23.3
Note 7 - Other Borrowed Funds
9 Months Ended
Sep. 30, 2023
Notes to Financial Statements  
Debt Disclosure [Text Block]

NOTE 7 - OTHER BORROWED FUNDS

 

Other borrowed funds include advances from the Federal Home Loan Bank and borrowings from the Federal Reserve Bank.

 

Federal Home Loan Bank Advances

 

At period-end, advances from the Federal Home Loan Bank were as follows (dollars in thousands):

 

 

             

Weighted

 
   

Advance

     

Average

 

Principal Terms

 

Amount

 

Range of Maturities

 

Interest Rate

 

September 30, 2023

                 

Single maturity fixed rate advance

  $ 10,000  

February 2024

    2.63 %

Putable advance

    20,000  

November 2024

    1.81 %
    $ 30,000            

 

             

Weighted

 
   

Advance

     

Average

 

Principal Terms

 

Amount

 

Range of Maturities

 

Interest Rate

 

December 31, 2022

                 

Single maturity fixed rate advance

  $ 10,000  

February 2024

    2.63 %

Putable advance

    20,000  

November 2024

    1.81 %
    $ 30,000            

 

Each advance is subject to a prepayment fee if paid prior to its maturity date. Fixed rate advances are payable at maturity. Amortizable mortgage advances are fixed rate advances with scheduled repayments based upon amortization to maturity. These advances were collateralized by residential and commercial real estate loans totaling $463.5 million and $446.1 million under a blanket lien arrangement at September 30, 2023 and December 31, 2022, respectively. The $20.0 million putable advance at September 30, 2023 and  December 31, 2022 had a one-time put option on November 13, 2020. The FHLB did not exercise this option.

 

 

 

Scheduled repayments of FHLB advances as of September 30, 2023 were as follows (in thousands):

 

2023

  $  

2024

    30,000  

2025

     

2026

     

2027

     

Thereafter

     
    $ 30,000  

 

Federal Reserve Bank borrowings

 

The Company has a financing arrangement with the Federal Reserve Bank.  There were no borrowings outstanding at September 30, 2023 and December 31, 2022, and the Company had approximately $1.3 million and $5.5 million in unused borrowing capacity based on commercial and mortgage loans pledged to the Federal Reserve Bank totaling $1.4 million and $5.8 million at September 30, 2023 and December 31, 2022, respectively.  In March 2023, the Federal Reserve Bank implemented a new lending facility called the Bank Term Funding Program.  This program allows a bank to borrow against its investment portfolio, at par value, with no reduction for unrealized losses.  The term is for one year and the interest rate is fixed at the time the advance is taken and there is no prepayment penalty.  Allowable investments for pledge are those the Federal Reserve Bank can own.  This would include all of the Company's investments except municipal securities and corporate bonds.  At September 30, 2023, the Company had no advances under this program and had $634.4 million in unused borrowing capacity under this program.  The program expires on March 11, 2024.