OTHER BORROWED FUNDS |
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| OTHER BORROWED FUNDS [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| OTHER BORROWED FUNDS |
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):
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 $453.2 million and $446.1 million under a blanket lien arrangement at March 31, 2023 and December 31, 2022, respectively. The remaining $20.0 million putable advance at March 31, 2023 and December 31, 2022 had a one-time put option on November 13, 2020. The FHLB did not
exercise this option.
NOTE 7 - OTHER BORROWED FUNDS (Continued) Scheduled repayments of FHLB advances as of March 31, 2023 were as follows (in thousands):
Federal Reserve Bank borrowings
The Company has a financing arrangement with the
Federal Reserve Bank. There were no borrowings outstanding at March 31, 2023 and December 31, 2022, and the Company had approximately $1.5 million and $5.5 million
in unused borrowing capacity based on commercial and mortgage loans pledged to the Federal Reserve Bank totaling $1.6 million
and $5.8 million at March 31, 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 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 March 31, 2023, the Company had no advances under this program and had $642.2 million in unused borrowing capacity under this program. The program expires on March 11, 2024.
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