Advances from Federal Home Loan Bank

12 Months Ended

Jun. 30, 2022

Advances from Federal Home Loan Bank

Advances from Federal Home Loan Bank

Note 10 – Advances from Federal Home Loan Bank

The Bank is a member of the FHLB system, which consists of 11 regional Federal Home Loan Banks. The FHLB provides a central credit facility primarily for member institutions. The Bank has a maximum borrowing capacity with the FHLB of Pittsburgh of approximately $292.7 million and $280.8 million at June 30, 2022 and 2021, respectively, of which $65.0 million and $41.0 million was outstanding at June 30, 2022 and 2021, respectively. FHLB advances are secured by qualifying assets of the Bank, which include Federal Home Loan Bank stock and loans. The Bank had $423.1 million and $407.4 million of loans pledged as collateral as of June 30, 2022 and 2021, respectively. The Bank, as a member of the FHLB of Pittsburgh, is required to acquire and hold shares of capital stock in that FHLB. The Bank was in compliance with the requirements for the FHLB of Pittsburgh with an investment of $3.5 million and $2.7 million at June 30, 2022 and 2021, respectively. In addition, as of June 30, 2022, the Bank had $10.0 million of available credit from the Atlantic Community Bankers Bank to purchase federal funds.

Advances from the FHLB of Pittsburgh consist of the following as of June 30, 2022 and 2021:

(Dollars in thousands)	June 30, 2022		June 30, 2021
FHLB advances:
Convertible	$	—	$	20,000
Fixed		65,000		14,000
Mid-term		—		7,000
Total FHLB advances	$	65,000	$	41,000

Contractual maturities and the associated weighted average interest rate of FHLB advances at June 30, 2022 are presented in the table below.  As of June 30, 2022, the interest rates on the $65.0 million of FHLB advances ranged from 1.51% to 1.94%.

	June 30, 2022
(Dollars in thousands)			Weighted
Twelve months ending:	Amount		Average Rate
2023	$	65,000	1.73	%
Total FHLB advances	$	65,000	1.73	%