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Note 10 - Borrowings
 12 Months Ended
Dec. 31, 2023
Notes to Financial Statements  
Debt Disclosure [Text Block]

Note 10. Borrowings

 

FHLB advances are collateralized by FHLB stock, certain 1-4 family residential real estate loans, multifamily real estate loans, commercial real estate loans and agricultural real estate loans. The Banks had available borrowing capacity with the FHLB of Des Moines, Iowa of $280.9 million and $285.3 million at December 31, 2023 and 2022, respectively. As of December 31, 2023, the Company had $24 million of FHLB advances maturing in 2024 with a weighted average interest rate of 5.51%. As of December 31, 2022, the Company had $35.4 million of FHLB advances maturing in 2023 with a weighted average interest rate of 4.50%.

 

The Federal Reserve Board created the Bank Term Funding Program (BTFP) in 2023, offering loans of up to one year in length to banks pledging U.S. Treasuries, agency debt and mortgage-backed securities, and other qualifying assets as collateral. The BTFP allows for borrowing from the Federal Reserve Bank up to the par value of the pledged collateral. As of December 31, 2023, the Company had $83.1 million borrowed under the BTFP maturing in 2024 with a weighted average interest rate of 4.41%.

 

On August 15, 2023, the Company borrowed $400 thousand on a credit agreement with a commercial bank. Principal and interest is payable quarterly over 15 years and the agreement matures in June 2038. The interest rate is fixed at 6.5% for five years and variable beginning September 15, 2028. The outstanding balance was $388 thousand as of December 31, 2023. The note is secured by property in Ames, Iowa.

 

On June 6, 2022, the Company borrowed $4.0 million on a credit agreement with a commercial bank. The borrowings were used for general corporate purposes. Interest under the note is payable quarterly over four years. Required quarterly principal payments of $150 thousand began in September 2022, with the remaining balance due June 2026. The interest rate is fixed at 3.35% and the outstanding balance was $3.1 million and $3.7 million as of December 31, 2023 and 2022, respectively. The note is secured by property in West Des Moines, Iowa.

 

Future required principal payments for long-term debt as of December 31, 2023 are shown in the table below (in thousands).

 

2024

     617  

2025

     618  

2026

     1,920  

2027

     21  

2028

     22  

Thereafter

     290  
    $ 3,488