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Note 12 - Other Borrowings

12 Months Ended

Dec. 31, 2024

12.

OTHER BORROWINGS

Other borrowings for the years ended December 31, consist of the following:

(Dollar amounts in thousands)
Description	2024		2023
Finance lease liabilities	$	3,412	$	3,614
Junior subordinated debt		8,248		8,248

Total	$	11,660	$	11,862

The Company formed a special purpose entity (“Entity”) to issue $8.0 million of floating rate, obligated mandatorily redeemable securities, and $248,000 in common securities as part of a pooled offering. The rate adjusts quarterly, equal to SOFR plus 1.67%. The debt had a weighted-average interest rate of 7.23% at December 31, 2024, and 7.16% at December 31, 2023. The Entity may redeem them at face value in whole or in part. The Company borrowed the issuance proceeds from the Entity in December 2006 in the form of an $8.2 million note payable, which matures in December 2037. There are no principal payments scheduled within the next five years.

The Bank has a $25.0 million irrevocable Standby Letter of Credit Agreement with the FHLB outstanding at December 31, 2024. This letter of credit is issued to secure municipal deposit accounts as required by law. The amount of funds available from the FHLB to the Bank is reduced by any letters of credit outstanding.

See Note 15, Commitments and Contingent Liabilities, for additional information on the Company's finance lease liabilities.