Note 14 - FHLB Advances and Other Borrowings

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Federal Home Loan Bank Advances, Disclosure [Text Block]

(14) FHLB Advances and Other Borrowings

FHLB advances outstanding at December 31, 2023 consisted of rolling $200 million three-month advances that mature in February 2023, which Bancorp utilizes in conjunction with interest rate swaps entered into during 2023 in an effort to hedge cash flows. FHLB advances outstanding at December 31, 2022 consisted entirely of a $50 million cash management advance that matured in early January 2023.

For the year ended December 31, 2023, gross proceeds and repayments related to FHLB advances totaled $2.40 billion and $2.25 billion, respectively. Net proceeds and repayments related to FHLB advances (excluding those with maturities of 90 days or less) totaled $950 million and $800 million for the year ended December 31, 2023, respectively.

Information regarding FHLB advances follows. The average interest rate information provided includes the benefit associated with the related interest rate swaps:

December 31, (dollars in thousands)	2023			2022
Outstanding balance at end of period	$	200,000		$	50,000
Weighted average interest rate at end of period		4.11	%		4.37	%

FHLB advances are collateralized by certain CRE and residential real estate mortgage loans under blanket mortgage collateral pledge agreements and FHLB stock. Bancorp views these advances as an effective lower-costing alternative to brokered deposits to fund loan growth. At December 31, 2023 and December 31, 2022, the amount of available credit from the FHLB totaled $1.33 billion and $1.36 billion, respectively.

Bancorp also had $80 million FFP lines available from correspondent banks at both December 31, 2023 and December 31, 2022, respectively.