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BORROWINGS
 3 Months Ended
Mar. 31, 2026
BORROWINGS  
BORROWINGS

8. BORROWINGS

Federal Home Loan Bank (“FHLB”) Advances

During the three months ended March 31, 2026, the Company restructured five existing FHLB advances with a total principal balance of $60.3 million and a weighted average rate of 4.27%. These advances were replaced with two new putable fixed-rate advances with FHLB totaling $60.3 million at a weighted average rate of 3.47%. $13.5 million and $46.8 million maturing on February 23, 2029 and February 24, 2031, respectively, are structured with an embedded option allowing the FHLB to terminate the advances at par on specified dates after a one-year and two-year lock-out period, respectively. If the FHLB exercises this option, the Company will need to replace this funding at market rates. A prepayment penalty of $481 thousand was incurred but deferred and is being amortized as a yield adjustment over the life of the new advances.

At March 31, 2026 and December 31, 2025, FHLB term borrowings outstanding were $59.8 million (net of $470 thousand deferred prepayment penalty) and $100.7 million, respectively, all of which were fixed rate.

There were no FHLB overnight borrowings outstanding at March 31, 2026 and December 31, 2025.

Each advance is payable at its maturity date, with a prepayment penalty for fixed rate advances. The advances were collateralized by residential and commercial mortgage loans under a blanket lien arrangement at March 31, 2026 and December 31, 2025. Based on this collateral and the Company’s holdings of FHLB stock, the Company was eligible to borrow up to an additional total of $106.5 million and $8.9 million at March 31, 2026 and December 31, 2025, respectively.

The following tables set forth the contractual maturities in the next five years and weighted average interest rates of the Company’s fixed rate FHLB advances (dollars in thousands):

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​

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​

​

​

​

​

​

Balance at March 31, 

​

​

​

2026

​

​

​

​

​

​

Weighted

​

Contractual Maturity

  ​ ​ ​

Amount

  ​ ​ ​

Average Rate

​

Overnight

​

$

—

​

—

%

​

​

​

​

​

​

​

2029, rate 3.87%

​

​

13,278

​

3.87

%

2031, rate 3.38%

​

 

46,502

 

3.38

%

Total term advances

​

​

59,780

​

3.49

%

Total FHLB advances

​

$

59,780

 

3.49

%

​

​

​

​

​

​

​

​

​

​

Balance at December 31, 

​

​

​

2025

​

​

​

​

​

​

Weighted

​

Contractual Maturity

  ​ ​ ​

Amount

  ​ ​ ​

Average Rate

​

Overnight

​

$

—

​

—

%

​

​

​

​

​

​

​

2026, rates from 4.29% to 4.98%

​

​

40,475

​

4.50

%

2027, rates from 4.13% to 4.74%

​

​

40,250

​

4.32

%

2028, rates from 3.99% to 4.58%

 

​

20,000

 

4.18

%

Total term advances

 

​

100,725

 

4.36

%

Total FHLB advances

​

$

100,725

 

4.36

%

​

Federal Reserve Borrowings

The Company pledges residential and commercial loans and investments to the Federal Reserve Bank of New York’s Discount Window. Based on this collateral, the Company was eligible to borrow up to $91.2 million and $97.3 million as of March 31, 2026 and December 31, 2025, respectively. The Company did not have any outstanding borrowings against this line as of March 31, 2026 and December 31, 2025.

Correspondent Bank Borrowings

At March 31, 2026, approximately $92.0 million in unsecured lines of credit extended by correspondent banks were available to be utilized for short-term funding purposes. No borrowings were outstanding under lines of credit with correspondent banks at March 31, 2026 and December 31, 2025.