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CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 9 – FHLB Borrowings

The Company’s FHLB borrowings and weighted average interest rates are summarized below:

	December 31, 2019						December 31, 2018
	Amount			Rate			Amount		Rate
	(dollars in thousands)
Total FHLB borrowings	$	500,293			1.96	%	$	600,001		2.59	%

By remaining period to maturity:
Less than 1 year	$	400,000			1.84	%	$	405,000		2.57	%
1 year through less than 2 years		62,000			2.26	%		110,000		2.75	%
2 years through less than 3 years		10,737			2.45	%		60,000		2.27	%
3 years through less than 4 years		25,000			2.92	%		-
4 years through 5 years		-						25,000		2.92	%
After 5 Years		2,882			2.43	%		-
Total FHLB borrowings		500,619			1.96	%		600,000		2.59	%
Fair value (discount) premium		(326	)					1
FHLB borrowings, net	$	500,293					$	600,001

The FHLB borrowings are secured by pledges of certain collateral including, but not limited to, U.S. government and agency mortgage-backed securities and a blanket assignment of qualifying first lien mortgage loans, consisting of both residential mortgages and commercial real estate loans.

Advances are payable at stated maturity, with a prepayment penalty for fixed rate advances. All FHLB advances are fixed rates. The advances at December 31, 2019 were primarily collateralized by approximately $1.9 billion of commercial mortgage and residential loans, net of required over collateralization amounts, under a blanket lien arrangement. At December 31, 2019 the Company had remaining borrowing capacity of approximately $1.0 billion at FHLB.