Note 10 - FHLB Advances

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

FHLB Advances

Note 10. FHLB Advances

The subsidiary banks are members of the FHLB of Des Moines. Maturity and interest rate information on advances from the FHLB as of December 31, 2020 and 2019 is as follows:

	December 31, 2020				December 31, 2019
			Weighted				Weighted
			Average				Average
			Interest Rate				Interest Rate
	Amount Due		at Year-End		Amount Due		at Year-End
	(dollars in thousands)
Maturity:
Year ending December 31:
2020	$	—	—	%	$	110,900	1.73	%
2021		15,000	0.29			5,000	1.55
2022		—	—			23,400	1.73
2023		—	—			20,000	1.84
2024		—	—			—	—
Total FHLB advances	$	15,000	0.29	%	$	159,300	1.74	%

The Company prepaid $55.3 million of FHLB advances in 2020 and $30.3 million in 2019 with excess funds generated by strong deposit growth. The loss on the prepayment of the FHLB advances totaled $1.9 million and $386 thousand for the year ended December 31, 2020 and 2019, respectively.

Advances are collateralized by loans of $1.1 billion as of December 31, 2020 and 2019, in aggregate. On pledged loans, the FHLB applies varying collateral maintenance levels from 125% to 333% based on the loan type. Advances are also collateralized by securities of $590 thousand and $1.4 million as of December 31, 2020 and 2019, respectively, in aggregate. The Company continues to pledge loans under blanket liens to provide off balance sheet liquidity.

As of December 31, 2020 and included within the 2021 maturity grouping above are $15.0 million of short-term advances from the FHLB. These advances have maturities ranging from 1 day to 1 month. Short-term and overnight advances totaled $109.3 million as of December 31, 2019 and had maturities ranging from 1 day to 1 month.

As of December 31, 2020 and 2019, the subsidiary banks held $6.6 million and $11.7 million, respectively, of FHLB stock, which is included in restricted investment securities on the consolidated balance sheet.