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Borrowings and Line of Credit
 12 Months Ended
Dec. 31, 2022
Borrowings and Line of Credit [Abstract]  
Borrowings and Line of Credit

Note 9. Borrowings and Line of Credit

Securities Sold Under Agreements to Repurchase:

Securities sold under repurchase agreements, which are secured borrowings, generally mature within one to four days from the transaction date. Securities sold under repurchase agreements are reflected at the amount of cash received in connection with the transaction. The Company may be required to provide additional collateral based on the fair value of the underlying securities. The Company monitors the fair value of the underlying securities on a daily basis.

At December 31, 2022 and 2021, the Company had securities sold under agreements to repurchase of $4.8 million and $5.1 million, respectively, with commercial checking customers which were secured by government agency securities. The average balance for 2022 and 2021 was $5.4 million and $5.7 million, respectively. The maximum month-end outstanding balance for 2022 and 2021 was $5.9 million and $7.3 million, respectively. The carrying value of investment securities pledged as collateral under repurchase agreements was $9.2 million and $10.1 million at December 31, 2022 and December 31, 2021, respectively.

Federal Reserve Bank:

The Bank has agreements with the Federal Reserve Bank’s discount window to provide additional funding to the Bank. The Federal Reserve discount window line is collateralized by a pool of commercial real estate loans and commercial and industrial loans.

​

At December 31, 2022 and 2021, the funding capacity and loans secured for borrowings was as follows (in thousands):

​

​

​

​

​

​

​

​

​

2022

​

2021

Maximum funding capacity

    

$

74,054

​

$

116,942

Borrowings

    

​

—

​

​

—

Additional funding capacity

​

$

74,054

​

$

116,942

Loans secured for borrowings

    

$

99,728

​

$

194,543

​

Federal Home Loan Bank Advances:

The Bank has agreements with the Federal Home Loan Bank of Cincinnati ("FHLB") that can provide advances to the Bank. All of the advances are secured by a blanket lien on qualifying first mortgages on 1-4 family residential, multi-family properties and commercial properties and are pledged as collateral for these advances. There were no securities pledged to FHLB at December 31, 2022 and 2021.

At December 31, 2022 and 2021, the borrowing capacity and loans secured for advances was as follows (in thousands):

​

​

​

​

​

​

​

​

​

2022

​

2021

Maximum borrowing capacity

    

$

593,759

​

$

243,467

FHLB advances

    

​

—

​

​

(75,000)

Standby letters of credit

​

​

(3,981)

​

​

(3,981)

Additional borrowing capacity

​

$

589,778

​

$

164,486

Loans secured for advances

    

$

777,480

​

$

342,206

​

At December 31, 2022 and 2021, FHLB advances consist of the following (in thousands):

​

​

​

​

​

​

​

​

​

2022

​

2021

Long-term advance dated September 10, 2019, requiring monthly interest payments, fixed at 0.93%, with a put option exercisable on September 10, 2020 and then quarterly thereafter, principal due in September 2029.1

    

$

—

​

$

25,000

​

​

​

​

​

​

​

Long-term advance dated February 28, 2020, requiring monthly interest payments, fixed at 0.46%, with a put option exercisable on February 26, 2021 and then quarterly thereafter, principal due in February 2030.1

    

​

—

​

​

50,000

Total

    

$

—

​

$

75,000

1On agreements with put options, the FHLB has the right, at its discretion, to terminate the entire advance prior to the stated maturity date. The termination option may only be exercised on the expiration date of the predetermined lockout period and on a quarterly basis thereafter. During 2022 the FHLB called these advances.

Scheduled maturities:

At December 31, 2022, the Company had no scheduled maturities for FHLB advances.

Federal Funds Purchased:

There were no federal funds purchased as of December 31, 2022 and 2021 respectively.

Line of Credit:

The Company has a Loan and Security Agreement and revolving line of credit for an aggregate amount of $25 million. The maturity of the line of credit is March 24, 2023. At December 31, 2022, $12.5 million was outstanding under the line of credit, and $12.5 million of the line of credit remained available to the Company. On February 1, 2023, the Loan and Security Agreement was amended, increasing the revolving line of credit to an aggregate amount of $35.0 million and extending the maturity date to February 1, 2025.

Secured Borrowings:

The Bank occasionally enters into loan participation agreements with other banks in the ordinary course of business to diversify credit risk. For certain sold participation loans, the Bank has retained effective control of the loans, typically by restricting the participating institutions from pledging or selling their share of the loan without permission from the Bank. GAAP requires the participated portion of these loans to be recorded as secured borrowings. The secured borrowings of this nature totaled $24.6 million at December 31, 2022, and none at December 31, 2021. Subsequent to year-end, these loan participation agreements were amended in order to permit sales treatment accounting.