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Borrowings
12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Borrowings

Note 10 – Borrowings

Bank Term Funding Program (“BTFP”)

At December 31, loans from the BTFP were as follows:

(Dollars in thousands)

 

2023

 

 

2022

 

 

 

 

 

 

 

 

Maturity of May 2024 with fixed interest rate of 4.71%

 

$

160,000

 

 

$

-

 

Maturity of December 2024 with fixed interest rate of 4.83%

 

 

10,000

 

 

 

-

 

Total advances outstanding at year-end

 

$

170,000

 

 

$

-

 

Federal Home Loan Bank Advances

At December 31, advances from the FHLB were as follows:

 

(Dollars in thousands)

 

2023

 

 

2022

 

 

 

 

 

 

 

 

Maturity of January 2023 with fixed interest rate of 4.16%

 

$

-

 

 

$

50,000

 

Maturity of July 2025 with fixed interest rate of 4.88%

 

 

20,000

 

 

 

-

 

Maturity of December 2026 with fixed interest rate of 4.20%

 

 

10,000

 

 

 

-

 

Total advances outstanding at year-end

 

$

30,000

 

 

$

50,000

 

 

Advances from the Federal Reserve Bank were secured by securities with a carrying value of approximately $526.4 million and loans with a carrying value of approximately $433.2 million at December 31, 2023. Based on this collateral, the Bank was eligible to borrow an additional $649.0 million at year end 2023.

 

Advances from the FHLB were secured by residential real estate loans with a carrying value of approximately $191.1 million and securities with a carrying value of approximately $278.5 million at December 31, 2023 and residential real estate loans with a carrying value of approximately $169.7 million at December 31, 2022, respectively. Based on this collateral, the Bank was eligible to borrow an additional $284.3 million at year-end 2023.

In June 2021, ChoiceOne obtained a $20 million line of credit with an annual renewal. The line carries a floating rate of prime rate with a floor of 3.25% and current rate of 8.5% at December 31, 2023. The credit agreement includes certain financial covenants, including minimum capital ratios, asset quality ratios, and the requirements of achieving certain profitability thresholds.

ChoiceOne was in compliance with all covenants as of December 31, 2023. The line of credit balance was $0 at December 31, 2023.