Federal Home Loan Bank Advances

6 Months Ended

Jun. 30, 2024

NOTE 7 – FEDERAL HOME LOAN BANK ADVANCES

A summary of Federal Home Loan Bank advances follows:


	June 30, 2024					December 31, 2023
	Rate			Amount		Rate			Amount
	(dollars in thousands)

Open line of credit		—		$	—		5.72	%	$	8,000
Fixed rate, fixed term advance, maturing July 2027		2.90	%		5,000		2.90	%		5,000
Putable advance, maturing January 2028, first option date January 2024		—			—		3.44	%		5,000
Putable advance, maturing February 2028, first option date February 2024		—			—		3.63	%		5,000
Putable advance, maturing March 2028, first option date March 2024		—			—		3.47	%		5,000
Putable advance, maturing May 2026, first option date May 2024		—			—		3.92	%		2,500
Putable advance, maturing May 2028, first option date May 2024		—			—		3.51	%		2,500
Putable advance, maturing January 2029, first option date July 2024		3.32	%		5,000		—			—
Putable advance, maturing January 2029, first option date July 2024		3.67	%		5,000		—			—
Putable advance, maturing March 2029, first option date September 2024		3.79	%		2,500		—			—
Putable advance, maturing March 2029, first option date September 2024		3.52	%		5,000		—			—
Putable advance, maturing January 2029, first option date January 2025		3.70	%		5,000		—			—
Putable advance, maturing February 2029, first option date February 2025		3.78	%		5,000		—			—
Putable advance, maturing February 2029, first option date February 2026		3.85	%		5,000		—			—
Putable advance, maturing March 2030, first put option date March 2025		0.89	%		10,000		0.89	%		10,000
Putable advance, maturing March 2032, first put option date March 2027		1.74	%		10,000		1.74	%		10,000
Advance structured note, payments due monthly, maturing April 2030		1.05	%		5,960		1.05	%		6,454
Advance structured note, payments due monthly, maturing May 2030		1.19	%		6,060		1.19	%		6,553
SOFR Floater advance, maturing October 2024		5.63	%		5,000		5.68	%		5,000
Total				$	74,520				$	71,007

The scheduled maturities and required principal payments of Federal Home Loan Bank advances are presented below:


	June 30, 2024
	Weighted Average Rate			Amount
	(dollars in thousands)
2024		4.88	%	$	5,992
2025		1.12	%		2,002
2026		1.12	%		2,024
2027		2.38	%		7,047
2028		1.12	%		2,070
Thereafter		2.68	%		55,385
Total		2.70	%	$	74,520

Actual maturities may differ from scheduled maturities due to call options on various FHLB advances.

The Company maintains a master contract agreement with the FHLB, which provides for borrowing up to the lesser of 22.22 times the value of the FHLB stock owned, a determined percentage of the book value of the Company’s qualifying real estate loans, or a determined percentage of the Company’s assets. The FHLB provides both fixed and floating rate advances. Floating rates are tied to short-term market rates of interest such as the Secured Overnight Financing Rate ("SOFR"), federal funds or Treasury bill rates. FHLB advances are subject to a prepayment penalty if they are repaid prior to maturity. The Company has pledged qualifying real estate and commercial and industrial loans with collateral values of approximately $170.9 million at June 30, 2024 and $173.0 million at December 31, 2023. FHLB advances were also secured by approximately $4.6 million and $4.2 million of FHLB stock held by the Company as of June 30, 2024 and December 31, 2023, respectively. The Company’s available and unused portion of this borrowing agreement totaled $95.2 million and $100.9 million as of June 30, 2024 and December 31, 2023, respectively. Additional borrowing would require additional stock purchase.

Additionally, at June 30, 2024 we had a $12.0 million federal funds rate line of credit with the BMO Harris Bank, none of which was drawn at June 30, 2024. The Company also had an $10.0 million line of credit at the Federal Reserve based on pledged commercial real estate loans of approximately $12.2 million at June 30, 2024. The Company had not drawn on the Federal Reserve line as of June 30, 2024.