FEDERAL HOME LOAN BANK ADVANCES

12 Months Ended

Dec. 31, 2019

FEDERAL HOME LOAN BANK ADVANCES [Abstract]

FEDERAL HOME LOAN BANK ADVANCES

NOTE 10 – FEDERAL HOME LOAN BANK ADVANCES

The Banks own stock of the Federal Home Loan Bank of Cincinnati, Ohio (FHLB-Cin), and Federal Home Loan Bank of Pittsburgh, Pennsylvania (FHLB-Pitt). This stock allows the Banks to borrow advances from the FHLB.  At December 31, 2019 the total amount of borrowing permitted by the FHLB-Cin was $51,596 and the total amount of borrowing permitted by the FHLB-Pitt was $452,840.

As part of the acquisition of First Bank, the Company assumed advances from FHLB-Pitt, with principal outstanding totaling $28,400 as of the October 12, 2018 acquisition date.  During the remainder of 2018 seven of these advances matured and were paid off in the amount of $19,500.  An additional two advances in the amount of $2,500 matured and were paid off in 2019.  Reported interest expense on the advances includes the periodic accretion of the fair value adjustments and any prepayment penalties incurred.

During 2019 and 2018, the Banks borrowed on a short-term basis and paid-off these FHLB advances as they matured.  There are $6,375 of FHLB borrowings with original maturities greater than one-year, net of fair value adjustments, outstanding at December 31, 2019, which have interest rates ranging from 1.77% to 2.33% with an average rate of 2.08%.  There were $8,819 of FHLB borrowings with original maturities greater than one-year, net of fair value adjustments, outstanding at December 31, 2018, which have interest rates ranging from 1.73% to 2.33% with an average rate of 2.05%.  All of the advances at December 31, 2019 mature in the calendar year 2020.