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Borrowings, Line of Credit and Subordinated Debt
 3 Months Ended
Mar. 31, 2025
Borrowings, Line of Credit and Subordinated Debt [Abstract]  
Borrowings, Line of Credit and Subordinated Debt

Note 6. Borrowings, Line of Credit and Subordinated Debt

Borrowings:

At March 31, 2025, total borrowings were $7.6 million compared to $8.1 million at December 31, 2024.  Borrowings consist of the following (in thousands):

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March 31, 

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December 31, 

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2025

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2024

Securities sold under customer repurchase agreements

    

$

3,610

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$

4,135

Other borrowings

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4,000

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4,000

Total

    

$

7,610

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$

8,135

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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.

The Company had securities sold under agreements to repurchase with commercial checking customers which were secured by government agency securities.  The carrying value of investment securities pledged as collateral under repurchase agreements was $6.4 million and $6.5 million at March 31, 2025 and December 31, 2024, respectively. The average balance of repurchase agreements during the three-month period ended March 31, 2025, and 2024 was $4.2 million and $4.8 million, respectively.  The maximum month-end outstanding balance for the three-month period ended March 31, 2025, and 2024 was $4.5 million and $5.3 million, respectively.

Other Borrowings:

The Company has a revolving line of credit for an aggregate amount of $35 million, at March 31, 2025, with a maturity of May 1, 2025.  On May 1, 2025, the maturity date was extended to May 1, 2027.  At March 31, 2025, and December 31, 2024, $4.0 million was outstanding under the line of credit.

Subordinated Debt:

On September 28, 2018, the Company issued $40 million of 5.625% fixed-to-floating rate subordinated notes (the "Notes"), which were outstanding as of March 31, 2025 and December 31, 2024. Unamortized debt issuance cost was $295 thousand and $316 thousand at March 31, 2025 and December 31, 2024, respectively.

The Notes initially bore interest at a rate of 5.625% per annum from and including September 28, 2018, to but excluding October 2, 2023, with interest during this period payable semi-annually in arrears. As of October 2, 2023, to but excluding the maturity date or early redemption date, the interest rate has, with the sunset of the London Inter-bank Offered Rate, reset quarterly to an annual floating rate equal to three-month Chicago Mercantile Exchange published term Secured Overnight Financing Rate (“SOFR”), plus 281.161 basis points, with interest during this period payable quarterly in arrears. The Notes are redeemable by the Company, in whole or in part, on or after October 2, 2023, and at any time, in whole but not in part, upon the occurrence of certain events. The Notes have been structured to qualify initially as Tier 2 capital for the Company for regulatory capital purposes.

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The Notes’ unamortized debt issuance costs totaled $295 thousand at March 31, 2025 and will be amortized through the Notes’ maturity date. Amortization expense totaled $21 thousand for the three months ended March 31, 2025, and 2024, respectively.