OTHER BORROWED FUNDS |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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 $442.6 million and $361.9 million under a blanket lien arrangement at September 30, 2022
and December 31, 2021, respectively.
NOTE 7 - OTHER BORROWED FUNDS (Continued) Scheduled repayments of FHLB advances as of September 30, 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. On May 27, 2022, the Company prepaid three other advances, totaling $20.0 million, with rates ranging from 2.91% to 3.05%, resulting in a prepayment penalty of $87,000, which is included in interest expense in the nine months ended September 30, 2022. Federal Reserve Bank borrowings
The Company has a financing arrangement with the
Federal Reserve Bank. There were no borrowings outstanding at September 30, 2022 and December 31, 2021, and the Company had approximately $3.6 million and $4.0 million
in unused borrowing capacity based on commercial and mortgage loans pledged to the Federal Reserve Bank totaling $3.9 million
and $4.4 million at September 30, 2022 and December 31, 2021, respectively.
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