Note 11 - FHLB Advances and Other Borrowings

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Federal Home Loan Bank Advances, Disclosure [Text Block]

(11) FHLB Advances and Other Borrowings

FHLB advances outstanding at September 30, 2024 consist of a rolling $300 million three-month advance that matures in November 2024, which Bancorp utilizes in conjunction with interest rate swaps in an effort to hedge cash flows, and a $25 million cash management advance with an overnight maturity. FHLB advances outstanding at December 31, 2023 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 nine month period ended September 30, 2024, gross proceeds and repayments related to FHLB advances totaled $2.5 billion and $2.4 billion, respectively. Net proceeds and repayments related to FHLB advances (excluding those with maturities of 90 days or less) totaled $725 million and $600 million for the nine months ended September 30, 2024. For the nine month period ended September 30, 2023, gross proceeds and repayments totaled $2.2 billion and $1.9 billion, respectively. Net proceeds and repayments (excluding those with maturities of 90 days or less) for the nine month period ended September 30, 2023 totaled $700 million and $400 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)	September 30, 2024			December 31, 2023
Outstanding balance at end of period	$	325,000		$	200,000
Weighted average interest rate at end of period		4.10	%		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 September 30, 2024 and December 31, 2023, the amount of available credit from the FHLB totaled $1.21 billion and $1.33 billion, respectively.

Bancorp also had unsecured available FFP lines with correspondent banks totaling $80 million at both September 30, 2024 and December 31, 2023, respectively.