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Note 14 - FHLB Advances and Other Borrowings
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Federal Home Loan Bank Advances, Disclosure [Text Block]

(14)

FHLB Advances and Other Borrowings

 

FHLB advances outstanding at December 31, 2022 totaled $50 million, consisting entirely of a one-week cash management advance utilized at year-end for short-term liquidity purposes. This advance represents the only FHLB advance utilized by Bancorp in 2022 and matured in early January 2023.

 

At December 31, 2021, Bancorp had no outstanding FHLB advances. FHLB advances totaling $91 million were assumed on May 31, 2021 in relation to the KB acquisition, all of which were paid off immediately upon acquisition.

 

The elective pay offs noted above were made in the first and second quarters of 2021. During the first quarter of 2021, Bancorp elected to pay down certain advances prior to maturity without incurring pre-payment penalties. During the second quarter of 2021, Bancorp paid off $14 million of term advances, with a weighted average cost of 2.03%, prior to their maturity incurring an early-termination fee of $474,000.

 

Information regarding FHLB advances follows:

 

December 31, (dollars in thousands)

 

2022

  

2021

 

Outstanding balance at end of period

 $50,000  $- 

Weighted average interest rate at end of period

  4.37

%

  -

%

 

FHLB advances are collateralized by certain CRE and residential real estate mortgage loans under blanket mortgage collateral pledge agreements, as well as a portion Bancorp’s PPP loan portfolio and FHLB stock. Bancorp views these advances as an effective lower-costing alternative to brokered deposits to fund loan growth. At December 31, 2022 and December 31, 2021, the amount of available credit from the FHLB totaled $1.36 billion and $1.00 billion, respectively.

 

Bancorp also had $80 million FFP lines available from correspondent banks at both December 31, 2022 and December 31, 2021, respectively. In addition, Bancorp had borrowing capacity of $20 million available through an unsecured borrowing line at the holding company as of December 31, 2022, which was added during the first quarter of 2022 to allow capital flexibility at the Bank level, if ever needed.