Annual report pursuant to Section 13 and 15(d)

Note 9 - Borrowed Funds

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Note 9 - Borrowed Funds
 12 Months Ended
Dec. 31, 2023
Notes to Financial Statements  
Debt Disclosure [Text Block]

Note 9 – Borrowed Funds

At December 31, 2023 and 2022, borrowed funds and their outstanding rates are summarized below:

 

   

(Dollars in thousands)

  
   

December 31,

    

December 31,

  
   

2023

    

2022

  

Fixed rate advances from the Federal Reserve with outstanding rates of 4.38% as of December 31, 2023

   $ 80,000     $ -  

Fixed rate advances from the FHLB with outstanding rates of 4.30% as of December 31, 2022

   $ -     $ 120,000  

Total

   $ 80,000     $ 120,000  

 

Outstanding borrowings at December 31, 2023 were scheduled to mature in 2024.

 

On March 12, 2023, the Federal Reserve Board announced the creation of a new Bank Term Funding Program (the “BTFP”). The BTFP offers loans of up to one year to banks, savings associations, credit unions, and other eligible depository institutions pledging U.S. Treasury securities, agency debt and mortgage-backed securities, and other qualifying assets as collateral. These assets are valued at par for purposes of the collateral pledge under the BTFP. During the first quarter of 2023, the Bancorp participated in the BTFP by accessing $100 million of low-cost capital under the program, and reducing that funding to $80 million by paying off BTFP funds as liquidity needs changed throughout the year. As of December 31, 2023, the Bancorp had pledged securities as collateral for the program with a par value of $105.3 million.

 

Fixed rate advances from the FHLB were collateralized by mortgage loans with a carrying value totaling approximately $593.0 million at December 31, 2022. In addition to the fixed rate advances, the Bank maintains a $25.0 million line of credit with the Federal Home Loan Bank of Indianapolis. The Bank did not have a balance on the line of credit at December 31, 2023 or 2022. The Bank had no other borrowings at December 31, 2023, or 2022.

 

At December 31, 2023, the Bank had available approximately $824.0 million in credit lines with various money center banks, including the FHLB and Federal Reserve.

 

Repurchase agreements generally mature within one year and are secured by U.S. government and U.S. agency securities, under the Bank’s control. At December 31, information concerning these retail repurchase agreements is summarized below:

 

   

(Dollars in thousands)

  
   

2023

    

2022

  
                 

Ending balance

   $ 38,124     $ 15,503  
                 

Average balance during the year

     35,543       20,649  
                 

Maximum month-end balance during the year

     48,947       28,328  

Securities underlying the agreements at year end:

                

Carrying value

     54,458       32,660  

Fair value

     54,458       32,660  

Average interest rate during the year

     4.00 %     0.94 %

Average interest rate at year end

     5.14 %     2.43 %