FEDERAL HOME LOAN BANK ADVANCES

12 Months Ended

Dec. 31, 2020

FEDERAL HOME LOAN BANK ADVANCES [Abstract]

FEDERAL HOME LOAN BANK ADVANCES

NOTE 9 – 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, 2020 the total amount of borrowing permitted by the FHLB-Cin was $62,149 and the total amount of borrowing permitted by the FHLB-Pitt was $465,236.

As part of the acquisition of First Bank, the Company assumed advances from FHLB-Pitt.  During 2019, $2,500 matured and were paid off.  The remaining $6,375 matured and were paid off in 2020. Reported interest expense on the advances includes the periodic accretion of the fair value adjustments and any prepayment penalties incurred.

During 2020 and 2019, the Banks borrowed on a short-term basis and paid-off these FHLB advances as they matured.  There were $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%. At December 31, 2020, all FHLB advances have been paid off.