Note 7 - Federal Home Loan Bank of Indianapolis Advances

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Federal Home Loan Bank Advances, Disclosure [Text Block]

7.    FEDERAL HOME LOAN BANK OF INDIANAPOLIS ADVANCES

Federal Home Loan Bank of Indianapolis (“FHLBI”) bullet advances totaled $310 million at September 30, 2022, and were expected to mature at varying dates from October 2022 through June 2027, with fixed rates of interest from 0.55% to 3.18% and averaging 1.92%. FHLBI bullet advances totaled $374 million at December 31, 2021, and were expected to mature at varying dates from January 2022 through June 2027, with fixed rates of interest from 0.55% to 3.18% and averaging 2.00%.

Maturities of FHLBI bullet advances as of September 30, 2022 were as follows:

2022	$	30,000,000
2023		80,000,000
2024		80,000,000
2025		50,000,000
2026		30,000,000
Thereafter		40,000,000

FHLBI amortizing advances totaled $28.3 million as of September 30, 2022, with an average rate of 2.52%. We had no FHLBI amortizing advances outstanding as of December 31, 2021. FHLBI amortizing advances are obtained periodically to assist in managing interest rate risk associated with certain longer-term fixed rate commercial loans, with annual principal payments that closely align with the scheduled amortization of the underlying commercial loans.

Scheduled principal payments on FHLBI amortizing advances as of September 30, 2022 were as follows:

2022	$	0
2023		353,000
2024		826,000
2025		862,000
2026		899,000
Thereafter		25,323,000

Each advance is payable at its maturity date and is subject to a prepayment fee if paid prior to the maturity date. The advances are collateralized by residential mortgage loans, first mortgage liens on multi-family residential property loans, first mortgage liens on commercial real estate property loans, and substantially all other assets of our bank, under a blanket lien arrangement. Our borrowing line of credit as of September 30, 2022 totaled $1.0 billion, with remaining availability based on collateral equaling $659 million.