Note 12 - FHLB Advances

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Federal Home Loan Bank Advances, Disclosure [Text Block]

(12) FHLB Advances

Bancorp had 37 separate advances totaling $32 million outstanding as of December, 2020, as compared with 57 separate advances totaling $80 million as of December 31, 2019. As a result of the 2019 KSB acquisition, Bancorp assumed 46 advances totaling $43 million, with maturities extending to 2028. These advances were discounted to fair value as of the acquisition date. See the footnote titled “Acquisitions” for further details. As of December 31, 2020, for 2 advances totaling $12 million, all of which are non-callable, interest payments are due monthly, with principal due at maturity. For the remaining advances, 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:

(dollars in thousands)	December 31, 2020
Maturity			Weighted average
Year	Advance		Fixed Rate
2021		12,148		0.68
2022		—		—
2023		268		1.00
2024		1,389		2.36
2025		2,827		2.43
2026		5,401		1.96
2027		5,323		1.73
2028		4,283		2.27
Total	$	31,639		1.52	%

Principal payments based on amortization schedules follows:

(in thousands)
Year
2021	$	16,322
2022		2,976
2023		2,433
2024		2,673
2025		1,943
2026		4,250
2027		1,014
2028		28
Total	$	31,639

FHLB advances are collateralized by certain CRE and residential real estate mortgage loans under blanket mortgage collateral pledge agreements, as well as a portion Bancorp’s PPP loan portfolio and FHLB stock. Bancorp views these advances as an effective lower-costing alternative to brokered deposits to fund loan growth. At December 31, 2020 and December 31, 2019, the amount of available credit from the FHLB totaled $804 million and $599 million, respectively.

Bancorp also had $80 million and $105 million in FFP lines available from correspondent banks at December 31, 2020 and December 31, 2019, respectively, with the decrease resulting from the closing of an inactive correspondent relationship during the second quarter.