Note 12 - FHLB Advances

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Federal Home Loan Bank Advances, Disclosure [Text Block]

(12) FHLB Advances

Bancorp had outstanding 57 separate advances totaling $80 million as of December 31, 2019, as compared with 14 separate advances totaling $48 million as of December 31, 2018. As a result of the KSB acquisition, Bancorp assumed 46 advances totaling $43 million, with maturities ranging from 2019 to 2028. These advances were discounted to fair value as of the acquisition date. See the Note titled “Acquisition of KSB” in this section of the filing for additional detail. As of December 31, 2019, for 15 advances totaling $50 million, all of which are non-callable, interest payments are due monthly, with principal due at maturity. For the remaining advances, principal and interest payments are due monthly based on an amortization schedule.

The following is a summary of the contractual maturities and average effective rates of outstanding advances:

(dollars in thousands)	December 31, 2019					December 31, 2018
Maturity			Weighted average					Weighted average
Year	Advance		Fixed Rate			Advance		Fixed Rate
2020	$	50,004		1.99		$	1,691		2.23
2021		2,400		2.52			215		2.12
2023		456		1.00			—		—
2024		2,023		2.36			2,240		2.36
2025		3,774		2.41			4,626		2.42
2026		8,156		1.96			8,185		1.99
2027		7,445		1.73			—		—
2028		5,695		2.32			1,220		1.49
Total	$	79,953		2.02	%	$	18,177		2.14	%

Payments based on amortization schedules over the next five years are as follows:

(dollars in thousands)
Year
2020	$	55,680
2021		6,004
2022		3,193
2023		2,655
2024		3,122
2025 and beyond		9,299

FHLB advances are collateralized by certain CRE and residential real estate mortgage loans under a blanket mortgage collateral pledge agreement and FHLB stock. Bancorp views these advances to be an effective alternative to brokered deposits to fund loan growth. At December 31, 2019, and 2018, the amount of available credit from the FHLB totaled $599 million and $537 million. Bancorp also had $105 million in FFP lines available from correspondent banks at both December 31, 2019 and 2018.