2021 Annual Report

of December 31, 2021 and 2020, the Company's interest rate cap counterparties have pledged cash collateral to the Company of $8.6 million and $2.7 million, respectively. The following table presents the effect of derivative instruments in cash flow hedging relationships on the consolidated statements of income for the year ended December 31, 2021, 2020 and 2019:

Year Ended December 31,

2021

2020

2019

(dollars in thousands)

Derivatives in

Location of Gain or (Loss) Reclassified

Gain (Loss)

Cash Flow Hedging

Reclassified from AOCI into Earnings

Relationships

from AOCI into Income

$

(1,117)

$

(579)

$

9

Interest rate swaps . . . . . . . . . Interest rate caps . . . . . . . . . .

Interest expense Interest expense

(403)

—

—

No amounts were reclassified from accumulated other comprehensive income into net income related to hedge ineffectiveness for these derivatives during the years ended December 31, 2021, 2020 and 2019, and no amounts are expected to be reclassified from accumulated other comprehensive income into net income related to hedge ineffectiveness over the next twelve months. Note 10: Federal Home Loan Bank Advances and Other Borrowings Federal Home Loan Bank Advances. The Company has entered into an Advances, Pledge, and Security Agreement with the FHLB whereby specific mortgage loans of the Bank’s with principal balances of $930.9 million and $739.9 million at December 31, 2021 and 2020, respectively, were pledged to the FHLB as collateral. FHLB advances are also secured with FHLB stock owned by the Company. Total remaining available capacity under the agreement was $550.8 million and $361.2 million at December 31, 2021 and 2020, respectively. The following table presents FHLB advances, by maturity, at December 31, 2021 and 2020:

2021

2020

Weighted Average

Weighted Average

Total

Total

Rate

Outstanding

Rate

Outstanding

(dollars in thousands)

2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

N/A $

— — —

1.99 % $ 15,000

— —

N/A N/A

N/A N/A

1.66 % 22,500 1.22 16,000

1.66 22,500 1.22 16,000

0.78

4,000

0.78

4,000

$ 42,500

$ 57,500

Convertible advances are callable at the option of the FHLB. If an advance is called, the Company has the option to pay off the advance without penalty or re-borrow funds on different terms. The Company had $28.5 million of convertible advances with the FHLB at December 31, 2021, and 2020. Federal Reserve Discount Window. At December 31, 2021 and 2020, the Company had the ability to draw additional borrowings of $126.0 million and $76.8 million, respectively, from the Federal Reserve Bank of Minneapolis. The ability to draw borrowings is based on loan collateral pledged with principal balances of $240.4 million and $120.7 million as of December 31, 2021 and 2020, subject to the approval from the Board of Governors of the Federal Reserve System. There were no federal reserve borrowings outstanding as of December 31, 2021 and 2020. Federal Funds Purchased. Federal funds purchased mature one business day from the transaction date. There were no federal funds purchased outstanding as of December 31, 2021 and 2020.

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