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Note 8 - Federal Home Loan Bank Advances
6 Months Ended
Jun. 30, 2018
Notes to Financial Statements  
Federal Home Loan Bank Advances, Disclosure [Text Block]
(
8
)
Federal Home Loan Bank Advances
 
Bancorp had outstanding borrowings totaling
$48.8
million and
$49.5
million at
June 30, 2018
and
December 31, 2017,
respectively, via
14
separate fixed-rate advances. As of
June 30, 2018,
for
two
advances totaling
$30
million, both of which are non-callable, interest payments are due monthly, with principal due at maturity. For the remaining advances totaling
$18.8
million, principal and interest payments are due monthly based on an amortization schedule.
 
The following is a summary of the contractual maturities and average effective rates of outstanding advances:
 
(In thousands)
 
June 30, 2018
   
December 31, 2017
 
Year
 
Advance
   
Fixed Rate
   
Advance
   
Fixed Rate
 
2018
  $
30,000
     
2.13
%
  $
30,000
     
1.48
%
2020
   
1,716
     
2.23
     
1,741
     
2.23
 
2021
   
251
     
2.12
     
288
     
2.12
 
2024
   
2,348
     
2.36
     
2,454
     
2.36
 
2025
   
4,889
     
2.42
     
5,149
     
2.42
 
2026
   
8,376
     
1.99
     
8,564
     
1.99
 
2028
   
1,241
     
1.49
     
1,262
     
1.49
 
                                 
Total
  $
48,821
     
2.13
%
  $
49,458
     
1.74
%
 
 
In addition to fixed-rate advances listed above, Bancorp had cash management advances from the FHLB of
$275
million, and
$150
million as of
June 30, 2018
and
December 31, 2017,
respectively. These advances typically have a term of
one
week.
$200
million of the
$275
million advances as of
June 30, 2018,
and all of the
$150
million in advances as of
December 31, 2017
were part of a quarterly tax minimization strategy and matured in the
first
week following the end of the quarter.
$75
million of the
June 30, 2018
advances were used to supplement liquidity as part of Bancorp’s management of its’ overall cash position. Due to the short-term nature of the cash management advances, they were recorded on the consolidated balance sheet within federal funds purchased.
 
Advances from the FHLB are collateralized by certain commercial and residential real estate mortgage loans under a blanket mortgage collateral agreement and FHLB stock. Bancorp believes these borrowings to be an effective alternative to higher cost time deposits to manage interest rate risk associated with long-term fixed rate loans. At
June 30, 2018,
the amount of available credit from the FHLB totaled
$205.8
million.