Quarterly report pursuant to Section 13 or 15(d)

Note 15 - Borrowings

v3.23.3
Note 15 - Borrowings
 9 Months Ended
Sep. 30, 2023
Notes to Financial Statements  
Debt Disclosure [Text Block]

Note 15 - Borrowings

 

At September 30, 2023, and December 31, 2022, borrowed funds are summarized below:

 

   

(Dollars in thousands)

  
   

September 30,

    

December 31,

  
   

2023

    

2022

  

Fixed rate advances from the BTFP with outstanding rates of 4.38% as of September 30, 2023

   $ 100,000     $ -  

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

   $ -     $ 120,000  

Total

   $ 100,000     $ 120,000  

 

At September 30, 2023, scheduled maturities of borrowed funds were as follows:

 

   

(Dollars in thousands)

  
2023   $ -  
2024     100,000  

Total

   $ 100,000  

 

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. As of September 30, 2023, the Bancorp had pledged securities as collateral for the program with a par value of $107.1 million. The Bancorp’s liquidity position remains strong with solid core deposit customer relationships, excess cash, debt securities, and access to diversified borrowing sources. The Bancorp has available liquidity of $757.9 million including borrowing capacity from the FHLB and Federal Reserve facilities. In addition to the BTFP, the Bancorp maintains a $25.0 million line of credit with the Federal Home Loan Bank of Indianapolis. The Bancorp did not have a balance on the line of credit at September 30, 2023 or December 31, 2022.