Note 7 - Federal Home Loan Bank of Indianapolis Advances

6 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Federal Home Loan Bank Advances, Disclosure [Text Block]

7.    FEDERAL HOME LOAN BANK OF INDIANAPOLIS ADVANCES

FHLBI bullet advances totaled $440 million at June 30, 2023, and were scheduled to mature at varying dates from July 2023 through June 2028, with fixed rates of interest from 0.55% to 5.05% and averaging 2.79%. FHLBI bullet advances totaled $280 million at December 31, 2022, and were scheduled to mature at varying dates from January 2023 through June 2027, with fixed rates of interest from 0.55% to 3.13% and averaging 1.84%.

Maturities of FHLBI bullet advances as of June 30, 2023 were as follows:

2023	$	40,000,000
2024		90,000,000
2025		80,000,000
2026		80,000,000
2027		90,000,000
Thereafter		60,000,000

FHLBI amortizing advances totaled $27.9 million as of June 30, 2023, with an average rate of 2.52% and with final maturities in 2042. FHLBI amortizing advances totaled $28.3 million as of December 31, 2022, with an average rate of 2.52% and with final maturities in 2042. 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 June 30, 2023 were as follows:

2023	$	0
2024		826,000
2025		862,000
2026		899,000
2027		938,000
Thereafter		24,385,000

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 June 30, 2023 totaled $860 million, with remaining availability based on collateral of $386 million.