XML 28 R18.htm IDEA: XBRL DOCUMENT v3.24.2.u1
Borrowings
 6 Months Ended
Jun. 30, 2024
Borrowings  
Borrowings

​

11. Borrowings

​

Short-term borrowings consist of FHLB advances representing overnight borrowings or with stated original terms of less than twelve months and other borrowings related to collateral held from derivative counterparties. Total short-term borrowings at June 30, 2024 were $104.3 million and consisted primarily of overnight FHLB advances as compared to $17.6 million at December 31, 2023. Other borrowings, which include cash collateral pledged by derivative

counterparties to offset interest rate exposure, totaled $20.4 million at June 30, 2024 and $17.6 million at December 31, 2023.

​

The table below outlines short-term borrowings at and for the six months ended June 30, 2024 and at and for the year ended December 31, 2023:   

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

At and for the six months ended June 30, 2024

​

​

​

​

​

​

​

​

​

​

​

Weighted

​

Weighted

 

​

​

​

​

​

​

​

​

Maximum

​

Average

​

Average

 

​

​

Ending

​

Average

​

Month-End

​

Rate for

​

Rate at End

 

(Dollars in thousands, except percents)

    

Balance 

    

Balance 

    

Balance 

    

the Year

    

of the Period

 

Other borrowings

    

$

20,350

    

$

20,861

    

$

25,050

    

5.39

%  

5.33

%

FHLB advances

​

​

83,900

​

​

11,674

​

​

83,900

 

5.78

​

5.67

​

Total short-term borrowings

​

$

104,250

​

$

32,535

​

$

108,950

 

5.53

%  

5.60

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

At and for the year ended December 31, 2023

 

​

​

​

​

​

​

​

​

​

​

​

Weighted

​

Weighted

 

​

​

​

​

​

​

​

​

Maximum

​

Average

​

Average

 

​

​

Ending

​

Average

​

Month-End

​

Rate for

​

Rate at End

 

(Dollars in thousands, except percents)

    

Balance

    

Balance

    

Balance

    

the Year

    

of the Year

 

Other borrowings

    

$

17,590

    

$

19,160

    

$

28,470

    

5.54

%  

5.35

%

FHLB advances

​

​

​

​

​

19,171

​

​

158,000

 

4.48

​

​

​

Total short-term borrowings

​

$

17,590

​

$

38,331

​

$

186,470

 

5.01

%  

5.35

%

​

The Company has an agreement with the FHLB which allows for borrowings up to its maximum borrowing capacity based on a percentage of qualifying collateral assets. At June 30, 2024, the maximum borrowing capacity was $1.3 billion of which $108.9 million was outstanding in borrowings and $239.5 million was used to issue standby letters of credit to collateralize public fund deposits. At December 31, 2023, the maximum borrowing capacity was $1.2 billion of which $25.0 million was outstanding in long-term debt and $345.4 million was used to issue standby letters of credit to collateralize public fund deposits.

​

Advances with the FHLB are secured under terms of a blanket collateral agreement by a pledge of FHLB stock and certain other qualifying collateral, such as investments and mortgage-backed securities and mortgage loans. Interest accrues daily on the FHLB advances based on rates of the FHLB discount notes. The overnight borrowing rate resets each day.

​

In addition to borrowings from FHLB and correspondent bank lines of credit, we have availability through the Federal Reserve Bank’s Discount Window and Bank Term Funding Program (“BTFP”) of $413.5 million at June 30, 2024. The FRB’s borrower-in-custody program allows depository institutions to pledge loans as collateral for Discount Window advances while retaining possession of the loan documentation. At June 30, 2024, $331.2 million in loans were pledged as collateral for the borrower-in-custody program and provided $235.4 million in borrowing capacity. At June 30, 2024, securities with a current par value of $166.0 million were pledged at the Discount Window resulting in borrowing capacity of $153.1 million. An additional $25.0 million in securities were pledged at the BTFP at June 30, 2024 in anticipation of the merger with FNCB and the assumption of their BTFP debt.

​

At December 31, 2023, $365.8 million in loans were pledged as collateral for the borrower-in-custody program and provided $246.1 million in borrowing capacity. At December 31, 2023, $191.0 million in securities were pledged to the BTFP and $11 thousand was pledged to the Discount Window. The BTFP allowed depository institutions to borrow up to the par value of eligible securities pledged at the FRB. The BTFP expired on March 11, 2024 and the Company transferred the eligible securities pledged to the Federal Reserve Discount Window.

​

Long-term debt consisting of advances from the FHLB at June 30, 2024 and December 31, 2023 is as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest Rate 

​

    

​

​

    

​

​

 

(Dollars in thousands, except percents)

    

Fixed 

​

​

​

June 30, 2024

​

​

December 31, 2023

 

March 2025

​

4.37

%  

​

$

10,000

​

$

10,000

​

March 2026

​

4.20

​

​

​

15,000

​

​

15,000

​

​

​

​

​

​

$

25,000

​

$

25,000

​

​

Maturities of long-term debt, by contractual maturity, for the remainder of 2024 and subsequent years are as follows:

​

​

​

​

​

​

(Dollars in thousands)

​

​

​

​

2025

​

$

10,000

​

2026

​

 

15,000

​

​

​

$

25,000

​

​

The advances from the FHLB totaling $25.0 million are not convertible and have a fixed rate.