Note 9 - FHLB Advances

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Federal Home Loan Bank Advances, Disclosure [Text Block]

(9) FHLB Advances

Bancorp had 47 separate advances totaling $57 million outstanding as of September 30, 2020, as compared with 57 separate advances totaling $80 million as of December 31, 2019. As a result of the May 2019 acquisition, Bancorp assumed 46 advances totaling $43 million, with maturities extending to 2028. These advances were discounted to fair value as of the acquisition date. See the footnote titled “Acquisition” for further details. As of September 30, 2020, for 8 advances totaling $34 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)	September 30, 2020					December 31, 2019
Maturity			Weighted average					Weighted average
Year	Advance		Fixed Rate			Advance		Fixed Rate
2020	$	33,455		0.47	%	$	50,004		1.99	%
2021		2,215		2.60			2,400		2.52
2022		—		—			—		—
2023		297		1.00			456		1.00
2024		1,434		2.36			2,023		2.36
2025		2,941		2.43			3,774		2.41
2026		5,544		1.95			8,156		1.96
2027		5,989		1.75			7,445		1.73
2028		4,661		2.32			5,695		2.32
Total	$	56,536		1.14	%	$	79,953		2.02	%

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 September 30, 2020 and December 31, 2019, the amount of available credit from the FHLB totaled $846 million and $599 million, respectively.

Bancorp also had $80 million and $105 million in FFP lines available from correspondent banks at September 30, 2020 and December 31, 2019, respectively, with the decrease resulting from the closing of an inactive correspondent relationship during the second quarter.