XML 39 R18.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Borrowings | 12 Months Ended
--- | ---
Dec. 31, 2023
Debt Disclosure [Abstract] |
BORROWINGS | BORROWINGS The Company may periodically borrow from a correspondent federal funds line of credit arrangement, under a secured reverse repurchase agreement, or from the FHLB to meet short-term liquidity needs. The following table summarizes certain information on short-term borrowings as of and for the years ended December 31, 2023 and December 31, 2022.
|  | December 31, 2023 |  | December 31, 2022
(Dollars in thousands) |  | Amount |  | Rate |  | Amount |  | Rate
Average for the Year |  |  |  |  |  |  |  |
Repurchase agreements |  | $ | — |  |  | — | % |  | $ | 683 |  |  | 0.25 | %
FHLB Advances |  | 111,392 |  |  | 4.95 |  |  | 1,863 |  |  | 3.87 |
At Year End |  |  |  |  |  |  |  |
Repurchase agreements |  | $ | — |  |  | — | % |  | $ | — |  |  | — | %
FHLB Advances |  | — |  |  | — |  |  | 40,000 |  |  | 4.57 |
Securities sold under agreements to repurchase are securities sold to customers, at the customers’ request, under a “roll-over” contract that matures in one business day. The underlying securities sold are U.S. Government agency securities, which are segregated in the Company’s custodial accounts from other investment securities. The Bank had $45.0 million in federal funds lines of credit and a reverse repurchase agreement available on a short-term basis from correspondent banks at December 31, 2023 and 2022. In addition, the Bank had secured credit availability of approximately $659.0 million from the FHLB at December 31, 2023. The Bank has pledged as collateral, under a blanket lien, all qualifying residential loans under borrowing agreements with the FHLB. The Bank had letters of credit with FHLB of $86.1 million and $6.1 million as of December 31, 2023 and 2022, respectively. These letters of credit are used to secure public deposits held with various municipal customers. The Bank had no borrowings from the FHLB at December 31, 2023 and $40.0 million short term FHLB borrowings at December 31, 2022.
(dollars in thousands) |  | December 31, 2023 |  | December 31, 2022 |  | Issue Date |  | Stated Maturity Date |  | Earliest Call Date |  | Interest Rate
September 2030 Subordinated Debentures |  | $ | 25,000 |  |  | $ | 25,000 |  |  | 2020 |  | 2030 |  | 2025 |  | 5.375% through September 2025, 3-month SOFR + 5.265% thereafter
October 2030 Subordinated Debentures |  | 19,500 |  |  | — |  |  | 2020 |  | 2030 |  | 2025 |  | 4.75% through October 2025, 3-month SOFR + 4.58% thereafter
Total subordinated debentures |  | 44,500 |  |  | 25,000 |  |  |  |  |  |  |  |  |
Severn Capital Trust I |  | 20,619 |  |  | 20,619 |  |  | 2004 |  | 2035 |  |  |  | 3-month SOFR + 2.00%
Tri-County Capital Trust I |  | 7,000 |  |  | — |  |  | 2004 |  | 2034 |  |  |  | 90-day SOFR + 2.60%
Tri-County Capital Trust II |  | 5,000 |  |  | — |  |  | 2005 |  | 2035 |  |  |  | 90-day SOFR + 1.70%
Total trust preferred securities |  | 32,619 |  |  | 20,619 |  |  |  |  |  |  |  |  |
Less net discount and unamortized issuance costs |  | (4,822) |  |  | (2,547) |  |  |  |  |  |  |  |  |
Total long-term debt |  | $ | 72,297 |  |  | $ | 43,072 |  |  |  |  |  |  |  |  |
At December 31, 2023, subordinated notes consisted of $25.0 million of long-term debt issued by the Company in August 2020, and $19.5 million of long-term debt assumed as a result of the merger with TCFC. As of December 31, 2023, the recorded balance of subordinated debt issued by the Company and the assumed subordinated debt from TCFC, net of unamortized issuance costs and fair value discounts, were $24.8 million and $18.3 million, respectively. The Company also assumed trust preferred securities in the aggregate of $32.6 million as a result of the merger with TCFC in 2023 and the acquisition of Severn in 2021. Trust preferred securities consisted of $20.6 million issued to Severn Capital Trust I, $7.0 million issued by Tri-County Capital Trust I and $5.0 million issued by Tri-County Capital Trust II. The recorded balance of the debt acquired from Severn at December 31, 2023 was $18.6 million, net of the unamortized fair value adjustment of $2.0 million. At December 31, 2023, the junior subordinated debt securities of Tri-County Capital Trust I and Tri-County Capital Trust II had a recorded balance of $6.4 million and $4.2 million, which are presented as net of the unamortized fair value adjustment of $0.6 million and $0.8 million, respectively. As both the Capital Trust I and Capital Trust II variable-rate capital securities were originally LIBOR-linked instruments that matured after June 30, 2023, the interest rate transitioned from a LIBOR-based rate to an alternative reference rate. Both instruments were subject to the Adjustable Interest Rate (LIBOR) Act (the “LIBOR Act”) and neither instrument contains fallback provision or a clearly practicable fallback provision in the event that LIBOR was no longer published or quoted. The interest rate on both the Capital Trust I and Capital Trust II transitioned pursuant to the LIBOR Act to a rate based on the Secured Overnight Financing Rate (“SOFR”) on July 1, 2023.

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for short-term debt. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 470 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//470/tableOfContent + Details
Name: | us-gaap_ShortTermDebtTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration