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Borrowings, Line of Credit and Subordinated Debt
 9 Months Ended
Sep. 30, 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 September 30, 2025, total borrowings were $1.3 million compared to $8.1 million at December 31, 2024.  Borrowings consist of the following (in thousands):

​

​

​

​

​

​

​

​

​

September 30, 

​

December 31, 

​

​

2025

​

2024

Securities sold under customer repurchase agreements

    

$

1,301

​

$

4,135

Other borrowings

​

​

—

​

​

4,000

Total

    

$

1,301

​

$

8,135

​

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 $6.1 million and $6.5 million at September 30, 2025, and December 31, 2024, respectively. The average balance of repurchase agreements during the nine-month period ended September 30, 2025, and 2024 was

$3.3 million and $4.8 million, respectively.  The maximum month-end outstanding balance for the nine-month period ended September 30, 2025, and 2024 was $4.5 million and $5.8 million, respectively.

Other Borrowings:

The Company has a revolving line of credit for an aggregate amount of $35 million.  The maturity of the line of credit is May 1, 2027. At September 30, 2025, and December 31, 2024, $0 and $4.0 million, respectively, was outstanding under the line of credit.

Subordinated Debt:

On August 20, 2025, the Company issued $100 million of 7.25% fixed-to-floating rate subordinated notes (the "2025 Notes"), which were outstanding as of September 30, 2025. Unamortized debt issuance cost was $1.4 million at September 30, 2025.

The 2025 Notes have a stated maturity of September 1, 2035, are redeemable by the Company (i) in whole or in part, on or after September 1, 2030, and (ii) in full, at any time upon the occurrence of certain events. The 2025 Notes will bear interest at a fixed rate of 7.25% per year, from and including August 20, 2025, to, but excluding September 1, 2030, or earlier redemption date. From and including September 1, 2030, to, but excluding the maturity date or early redemption date, the interest rate will reset quarterly at a variable rate equal to the then current three-month term secured overnight financing rate (“SOFR”), plus 385 basis points. As provided in the 2025 Notes, the interest rate on the 2025 Notes during the applicable floating rate period may be determined based on a rate other than three-month term SOFR.

The unamortized debt issuance costs for the 2025 Notes totaled $1.4 million at September 30, 2025, and will be amortized through September 1, 2030. Amortization expense totaled $24 thousand for the three and nine months ended September 30, 2025.

On September 28, 2018, the Company issued $40 million of 5.625% fixed-to-floating rate subordinated notes (the "2018 Notes"), which were outstanding as of September 30, 2025 and December 31, 2024. Unamortized debt issuance cost was $0 and $316 thousand at September 30, 2025 and December 31, 2024, respectively.  The unamortized debt issuance cost was written off as of September 30, 2025, and subsequently the 2018 Notes were retired on October 2, 2025.