XML 26 R15.htm IDEA: XBRL DOCUMENT v3.25.3
Note 6 - Borrowings
 9 Months Ended
Sep. 30, 2025
Notes to Financial Statements  
Debt Disclosure [Text Block]

Note 6 — Borrowings

 

Borrowings consist of the following:

 

 

  

September 30, 2025

  

December 31, 2024

 

Category

 

Balance

  

Weighted Average Rate

  

Balance

  

Weighted Average Rate

 
  

(Dollars in Thousands)

 

FHLB advances

                

FHLB short-term advances

 $250,166   4.19% $293,553   4.41%

FHLB long-term advances maturing 2027

  50,000   1.73%  80,000   2.39%

FHLB long-term advances maturing 2028

  60,000   3.31%  -   - 

FHLB long-term advances maturing 2029

  60,000   3.48%  70,000   3.46%

FHLB long-term advances maturing 2030

  40,000   3.21%  -   - 

Total FHLB advances

  460,166   3.63%  443,553   3.89%

Repurchase agreements

  8,895   7.24%  2,966   7.49%

Total borrowings

 $469,061   3.70% $446,519   3.92%

 

The short-term repurchase agreement represents the outstanding portion of a total $50.0 million commitment with one unrelated bank as of September 30, 2025.  The short-term repurchase agreement is utilized by Waterstone Mortgage Corporation to finance loans originated for sale. This agreement is secured by the underlying loans being financed.  Related interest rates are based upon the note rate associated with the loans being financed. The short-term repurchase agreement had a $8.9 million balance at September 30, 2025 and a $3.0 million balance at December 31, 2024.

 

The $250.2 million in FHLB short-term advances as of  September 30, 2025 have fixed rates.

 

The $210.0 million in FHLB long-term advances as of  September 30, 2025 have fixed rates. A total of $160.0 million in FHLB long-term advances have FHLB call options available. 

 

The Company enters into agreements under which it sells securities subject to an obligation to repurchase the same or similar securities. In addition, the Company enters into agreements under which it sells loans held for sale subject to an obligation to repurchase the same loans. Under these arrangements, the Company may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Company to repurchase the assets. As a result, these repurchase agreements are accounted for as collateralized financing arrangements (i.e., secured borrowings) and not as a sale and subsequent repurchase of assets. The obligation to repurchase the assets is reflected as a liability in the Company's consolidated statements of financial condition, while the securities and loans held for sale underlying the repurchase agreements remain in the respective investment securities and loans held for sale asset accounts. In other words, there is no offsetting or netting of the investment securities or loans held for sale assets with the repurchase agreement liabilities. The Company's repurchase agreement is subject to master netting agreements, which sets forth the rights and obligations for repurchase and offset. Under the master netting agreement, the Company is entitled to set off the collateral placed with a single counterparty against obligations owed to that counterparty.

 

At September 30, 2025, the Company had approximately $334.0 million in unused borrowing capacity at the FHLB.

 

The Company selects loans that meet underwriting criteria established by the FHLB as collateral for outstanding advances. The Company’s borrowings from the FHLB are limited to 76% of the carrying value of unencumbered one- to four-family mortgage loans, 73% of the carrying value of multi-family loans and 62% of the carrying value of home equity loans. In addition, these advances were collateralized by FHLB stock of $20.7 million at September 30, 2025 and $20.3 million at  December 31, 2024, respectively. In the event of prepayment, the Company is obligated to pay all remaining contractual interest on the advance.