Note 10 - FHLB Advances

12 Months Ended

Dec. 31, 2022

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, 2022 and 2021 is as follows:

	December 31, 2022				December 31, 2021
			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:
2022	$	—	—	%	$	15,000	0.31	%
2023		415,000	4.58			—	—
Total FHLB advances	$	415,000	4.58	%	$	15,000	0.31	%

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

Advances are collateralized by loans of $1.7 billion and $1.3 billion as of December 31, 2022 and 2021, respectively, 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 $290 thousand and $334 thousand as of December 31, 2022 and 2021, respectively, in aggregate. The Company continues to pledge loans under blanket liens to provide off balance sheet liquidity.

All advances outstanding as of December 31, 2022 and 2021 are short-term advances from the FHLB. These advances have maturities ranging from 1 day to 2 weeks.

As of December 31, 2022 and 2021, the subsidiary banks held $25.6 million and $7.8 million, respectively, of FHLB stock, which is included in restricted investment securities on the consolidated balance sheet.