Note 9 - Borrowed Funds

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Debt Disclosure [Text Block]

9. Borrowed Funds

The following table summarizes the Corporation’s borrowed funds as of and for the year ended December 31:

(Dollar amounts in thousands)	2021						2020
			Average		Average				Average		Average
	Balance		Balance		Rate		Balance		Balance		Rate
Short-term borrowed funds	$	7,050	$	2,143		4.13%	$	2,050	$	4,366		3.00%
Long-term borrowed funds		15,000		27,658		2.12%		30,000		35,530		2.16%
Total	$	22,050	$	29,801			$	32,050	$	39,896

Short-term borrowed funds at December 31, 2021 consisted of $5.0 million in overnight advances with a rate of 0.28% and $2.1 million outstanding on a $4.5 million unsecured line of credit with a correspondent bank with a rate of 4.25%, compared to $2.1 million outstanding on a $4.5 million unsecured line of credit with a correspondent bank with a rate of 4.25% at December 31, 2020.

Long-term borrowed funds at December 31, 2021 consisted of three $5.0 million FHLB term advances totaling $15.0 million, maturing between 2023 and 2025 and having fixed interest rates between 1.65% and 2.79%. This compares to six $5.0 million FHLB advances totaling $30.0 million at December 31, 2020. All borrowings from the FHLB are secured by a blanket lien of qualified collateral. Qualified collateral at December 31, 2021 totaled $407.8 million.

Scheduled maturities of borrowed funds for the next five years are as follows:

(Dollar amounts in thousands)	Amount
2022	$	7,050
2023		5,000
2024		—
2025		10,000
2026		—
Thereafter		—
Total	$	22,050

The Bank maintains a credit arrangement with the FHLB as a source of additional liquidity. The total maximum borrowing capacity with the FHLB, excluding loans outstanding of $20.0 million and irrevocable standby letters of credit issued to secure certain deposit accounts of $138.5 million at December 31, 2021 was $249.3 million. In addition, the Corporation has $2.4 million of funds available on a line of credit through a correspondent bank.