OTHER BORROWED FUNDS |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| OTHER BORROWED FUNDS [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| OTHER BORROWED FUNDS |
NOTE 10 - 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 year-end, advances from the Federal Home Loan Bank were as follows (dollars in thousands):
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. Advances were collateralized by residential and commercial real estate loans totaling $446.1 million and $361.9 million under a blanket lien
arrangement at December 31, 2022 and 2021, respectively. The remaining $20.0 million putable advance at December 31, 2022 had a
one time put option on November 13, 2020. The FHLB did not exercise this option.
NOTE
10 - OTHER BORROWED FUNDS (Continued)
Scheduled repayments of FHLB advances as of December 31, 2022 were as
follows (in thousands):
On January 21,
2022, the FHLB exercised its option to put an advance totaling $25.0 million to the Company. This advance carried an
interest rate of 0.01% and had a maturity date of July 21, 2031 . The Company paid off this advance as
required on January 21, 2022. On
January 21, 2022, the Company executed a new $25.0 million advance with the FHLB with similar terms. This advance carried
an interest rate of 0.05% and a maturity date of January 21, 2032. The first put date for this advance was April 21, 2022. The FHLB exercised its put option on this advance and it was paid off by the Company as
required on April 21, 2022. on May 27, 2022, the FHLB exercised its put option on a $10.0 million advance that carried an
interest rate of 0.45% and the Company paid the advance off as required on May 27, 2022. In addition, on May 27, 2022, the
Company prepaid $20.0 million in FHLB advances, with interest rates ranging from 2.91% to 3.05%. Prepayment fees of $87,000 were incurred and are included in interest expense.
Federal Reserve Bank Borrowings
The Company has a financing arrangement with the Federal Reserve Bank. There were no borrowings outstanding at December 31, 2022 and 2021, and the Company had approximately $5.5 million and $4.0 million in unused borrowing capacity
based on commercial and mortgage loans pledged to the Federal Reserve Bank totaling $5.8 million and $4.4 million at December 31, 2022 and 2021, respectively.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||