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Federal Home Loan Bank Borrowings
12 Months Ended
Dec. 31, 2019
Federal Home Loan Bank Borrowings  
Federal Home Loan Bank Borrowings

(10) Federal Home Loan Bank Borrowings

 

The Bank has a line of credit, renewable annually each September, with the FHLB under which there were $3.0 million of borrowings at December 31, 2019 compared to $20.0 million of borrowings as of December 31, 2018. Interest on any outstanding balance on the line of credit accrues at the federal funds rate plus 0.15% (1.79% at December 31, 2019). The Company had issued letters of credit through the FHLB totaling $30.0 million and $10.0 million at December 31 2019 and 2018, respectively to secure municipal deposits. The Company did not have any term advances from FHLB at December 31, 2019 and December 31, 2018.

 

Although no loans are specifically pledged, the FHLB requires the Bank to maintain eligible collateral (qualifying loans and investment securities) that has a lending value at least equal to its required collateral. At December 31, 2019 and 2018, there was a blanket pledge of loans and securities totaling $155.2 million and $156.9 million, respectively. At December 31, 2019 and 2018, the Bank’s total borrowing capacity with the FHLB was approximately $113.1 million and $115.3 million, respectively. At December 31, 2019 and 2018, the Bank’s available borrowing capacity was $78.8 million and $85.0 million, respectively. The available borrowing capacity with the FHLB is collateral based, and the Bank’s ability to borrow is subject to maintaining collateral that meets the eligibility requirements. The borrowing capacity is not committed and is subject to FHLB credit requirements and policies. In addition, the Bank must maintain a restricted investment in FHLB stock to maintain access to borrowings.