Note 11 - FHLB Advances and Other Borrowings

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Federal Home Loan Bank Advances, Disclosure [Text Block]

(11) FHLB Advances and Other Borrowings

FHLB advances outstanding at March 31, 2024 consist of a rolling $200 million three-month advance that matures in May 2024, 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, 2023 also consisted of a rolling $200 million three-month advance that matured in early January 2024, which was also utilized in conjunction with the previously mentioned interest rate swaps.

For the three month period ended March 31, 2024, gross proceeds and repayments related to FHLB advances totaled $725 million and $725 million, respectively. Net proceeds and repayments related to FHLB advances (excluding those with maturities of 90 days or less) totaled $200 million and $200 million for the three months ended March 31, 2024. For the three month period ended March 31, 2023, gross proceeds and repayments totaled $700 million and $475 million, respectively. Net proceeds and repayments (excluding those with maturities of 90 days or less) for the three month period ended March 31, 2023 totaled $275 million and $50 million.

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

(dollars in thousands)	March 31, 2024			December 31, 2023
Outstanding balance at end of period	$	200,000		$	200,000
Weighted average interest rate at end of period		4.04	%		4.11	%

FHLB advances are collateralized by certain CRE and residential real estate mortgage loans under blanket mortgage collateral pledge agreements, as well as FHLB stock. Bancorp views these advances as an effective lower-costing funding option compared to other alternatives, such as brokered deposits, to fund loan growth. At both March 31, 2024 and December 31, 2023, the amount of available credit from the FHLB totaled $1.33 billion, respectively.

Bancorp also had unsecured available FFP lines with correspondent banks totaling $80 million at both March 31, 2024 and December 31, 2023, respectively.