Note 8 - Federal Home Loan Bank of Indianapolis Advances

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Federal Home Loan Bank Advances, Disclosure [Text Block]

NOTE 8 - FEDERAL HOME LOAN BANK OF INDIANAPOLIS ADVANCES

FHLBI bullet advances totaled $440 million at December 31, 2023, and were expected to mature at varying dates from January 2024 through December 2028, with fixed rates of interest from 0.55% to 5.05% and averaging 2.93%. FHLBI bullet advances totaled $280 million at December 31, 2022, and were expected 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%.

NOTE 8 - FEDERAL HOME LOAN BANK OF INDIANAPOLIS ADVANCES (Continued)

Maturities of FHLBI bullet advances as of December 31, 2023 were as follows:

(Dollars in thousands)
2024	$	90,000
2025		80,000
2026		80,000
2027		100,000
2028		90,000

FHLBI amortizing advances totaled $27.9 million and $28.3 million as of December 31, 2023 and 2022, respectively, with an average fixed rate of 2.52% and 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 December 31, 2023 were as follows:

(Dollars in thousands)
2024	$	827
2025		862
2026		900
2027		938
2028		979
Thereafter		23,404

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 December 31, 2023 totaled $903 million, with remaining availability based on collateral of $429 million.