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Note 8 - Borrowings
 9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Debt Disclosure [Text Block]

NOTE 8 – BORROWINGS

 

Long-term debt at September 30, 2024 and December 31, 2023 was as follows (dollars in thousands):

 

  

September 30, 2024

  

December 31, 2023

 
  

Amount

  

Rate

  

Amount

  

Rate

 

Term loan

 $10,662   4.25% $12,154   4.25%

FHLB long-term advances

  145,000   4.62%  100,969   4.87%
  $155,662   4.60% $113,123   4.80%

 

The term loan with a correspondent financial institution bears a fixed interest rate of 4.25%, amortizes quarterly, and has a final balloon payment due on June 15, 2025.

 

Contractual maturities of long-term debt at September 30, 2024 and December 31, 2023 were as follows (in thousands):

 

  

September 30,

  

December 31,

 
  

2024

  

2023

 

Maturing within one year

 $10,662   4,988 

Maturing after one year through two years

  25,000   13,135 

Maturing after two years through three years

  35,000   25,000 

Maturing after three years through four years

  45,000   25,000 

Maturing after four years through five years

  30,000   25,000 

Thereafter

  10,000   20,000 

Total

 $155,662   113,123 

 

 

Short-term borrowings at September 30, 2024 and December 31, 2023 were as follows (dollars in thousands):

 

  

September 30, 2024

  

December 31, 2023

 
  

Amount

  

Rate

  

Amount

  

Rate

 

Lines of credit

 $—   —% $21,395   6.00%

FHLB short-term advances

  —   —%  76,000   5.53%
  $—   —% $97,395   5.63%

 

At September 30, 2024, LCNB had a short-term revolving line of credit arrangement with a financial institution for a maximum amount of $10 million at an interest rate equal to the Wall Street Journal Prime Rate minus 25 basis points. This agreement expires on June 15, 2025.

 

At September 30, 2024, LCNB had overnight line of credit borrowing arrangements with three correspondent financial institutions. Under the terms of the first arrangement, LCNB can borrow up to $30 million at an interest rate equal to the lending institution’s federal funds rate plus a spread of 50 basis points. Under the terms of the second arrangement, LCNB can borrow up to $50 million at an interest rate equal to the FOMC targeted federal funds rate plus a spread of 25 basis points. Under the terms of the third arrangement, LCNB can borrow up to $25 million at the interest rate in effect at the time of borrowing.

 

All long-term and short-term advances from the FHLB of Cincinnati are secured by a blanket pledge of LCNB's 1-4 family first lien mortgage loans in the amount of approximately $452 million and $417 million at September 30, 2024 and December 31, 2023, respectively. Remaining borrowing capacity with the FHLB, including both long-term and short-term borrowings, at September 30, 2024 was approximately $120.9 million.