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FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS | 12 Months Ended
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Dec. 31, 2022
Federal Home Loan Banks [Abstract] |
FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS | FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS A summary of Federal Home Loan Bank (FHLB) advances and other borrowings at December 31, 2022 and December 31, 2021 is as follows:
|  | December 31, 2022 |  | December 31, 2021
|  | Stated Maturity |  | Amount |  | Range of Stated Rates |  | Stated Maturity | Amount |  | Range of Stated Rates
Federal Home Loan Bank advances (1), (2), (3), (4) |  | 2022 |  | $ | — |  |  | — | % |  | — | % |  | 2022 | $ | 11,000 |  |  | 2.45 | % |  | 2.45 | %
|  | 2023 |  | 117,000 |  |  | 1.43 | % |  | 4.31 | % |  | 2023 | 20,000 |  |  | 1.43 | % |  | 1.44 | %
|  | 2024 |  | 20,530 |  |  | 0.00 | % |  | 1.45 | % |  | 2024 | 20,530 |  |  | 0.00 | % |  | 1.45 | %
|  | 2025 |  | 5,000 |  |  | 1.45 | % |  | 1.45 | % |  | 2025 | 5,000 |  |  | 1.45 | % |  | 1.45 | %
|  | 2029 |  | — |  |  | — | % |  | — | % |  | 2029 | 42,500 |  |  | 1.00 | % |  | 1.13 | %
|  | 2030 |  | — |  |  | — | % |  | — | % |  | 2030 | 12,500 |  |  | 0.52 | % |  | 0.86 | %
Subtotal |  |  |  | 142,530 |  |  |  |  |  |  |  | 111,530 |  |  |  |  |
Unamortized discount on acquired notes |  |  |  | — |  |  |  |  |  |  |  | (3) |  |  |  |  |
Federal Home Loan Bank advances, net |  |  |  | $ | 142,530 |  |  |  |  |  |  |  | $ | 111,527 |  |  |  |  |
Other borrowings: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Senior notes (5) |  | 2034 |  | $ | 23,250 |  |  | 3.00 | % |  | 6.75 | % |  | 2031 | $ | 28,856 |  |  | 3.00 | % |  | 3.50 | %
Subordinated notes (6) |  | 2027 |  | $ | — |  |  | — | % |  | — | % |  | 2027 | $ | 15,000 |  |  | 6.75 | % |  | 6.75 | %
|  | 2030 |  | 15,000 |  |  | 6.00 | % |  | 6.00 | % |  | 2030 | 15,000 |  |  | 6.00 | % |  | 6.00 | %
|  | 2032 |  | 35,000 |  |  | 4.75 | % |  | 4.75 | % |  | 2032 | — |  |  | — | % |  | — | %
|  |  |  | $ | 50,000 |  |  |  |  |  |  |  | $ | 30,000 |  |  |  |  |
Unamortized debt issuance costs |  |  |  | (841) |  |  |  |  |  |  |  | (430) |  |  |  |  |
Total other borrowings |  |  |  | $ | 72,409 |  |  |  |  |  |  |  | $ | 58,426 |  |  |  |  |
Totals |  |  |  | $ | 214,939 |  |  |  |  |  |  |  | $ | 169,953 |  |  |  |  |
(1) The FHLB advances bear fixed rates, require interest-only monthly payments, and are collateralized by a blanket lien on pre-qualifying first mortgages, home equity lines, multi-family loans and certain other loans which had pledged balances of $984,878 and $861,900 at December 31, 2022 and 2021, respectively. At December 31, 2022, the Bank’s available and unused portion under the FHLB borrowing arrangement was approximately $256,773 compared to $204,271 as of December 31, 2021. (2) Maximum month-end borrowed amounts outstanding under this borrowing agreement were $157,530 and $123,530, during the twelve months ended December 31, 2022 and December 31, 2021, respectively. (3) The weighted-average interest rates on FHLB borrowings, with maturities less than twelve months, outstanding as of December 31, 2022 and December 31, 2021 were 4.09% and 2.45%, respectively. (4) At December 31, 2022, no FHLB term notes can be called by the FHLB. At December 31, 2021, FHLB term notes totaling $55,000 could be called by the FHLB on a quarterly basis, and if not called, would mature at various dates in 2029 and 2030. These notes were called by the FHLB in 2022. (5) Senior notes, entered into by the Company in June 2019 consist of the following: (a) A term note, which was subsequently refinanced in March 2022, requiring quarterly interest-only payments through March 2025, and quarterly principal and interest payments thereafter. Interest is variable, based on US Prime rate minus 75 basis points with a floor rate of 3.00%. (b) A $5,000 line of credit, maturing in August 2023, that remains undrawn upon. (6) Subordinated notes resulted from the following: (a) The Company’s private sale in August 2017, which bore a fixed interest rate of 6.75% for five years. In August 2022, they converted to a three-month LIBOR plus 4.90% rate, and the interest rate will reset quarterly thereafter. The note was callable by the Bank when, and anytime after, the floating rate is initially set. Interest-only payments were due quarterly. The Company sent the required redemption notice to the note holders in June 2022, and this subordinated note was called and repaid in full on August 10, 2022. (b) The Company’s Subordinated Note Purchase Agreement entered into with certain purchasers in August 2020, which bears a fixed interest rate of 6.00% for five years. In September 2025, the fixed interest rate will be reset quarterly to equal the three-month term Secured Overnight Financing Rate plus 591 basis points. The note is callable by the Bank when, and anytime after, the floating rate is initially set. Interest-only payments are due semi-annually each year during the fixed interest period and quarterly during the floating interest period. (c) The Company’s Subordinated Note Purchase Agreement entered into with certain purchasers in March 2022, which bears a fixed interest rate of 4.75% for five years. In April 2027, the fixed interest rate will be reset quarterly to equal the three-month term Secured Overnight Financing Rate plus 329 basis points. The note is callable by the Bank when, and anytime after, the floating rate is initially set. Interest-only payments are due semi-annually each year during the fixed interest period and quarterly during the floating interest period. Federal Home Loan Bank Letters of Credit The Bank has an irrevocable Standby Letter of Credit Master Reimbursement Agreement with the Federal Home Loan Bank. This irrevocable standby letter of credit (“LOC”) is supported by loan collateral as an alternative to directly pledging investment securities on behalf of a municipal customer as collateral for their interest bearing deposit balances. These balances were $191,650 and $176,150 at December 31, 2022 and 2021, respectively. Federal Funds Purchased Lines of Credit The Bank maintains three unsecured federal funds purchased lines of credit with its banking partners which total $75,000. These lines bear interest at the lender bank’s announced daily federal funds rate, mature daily and are revocable at the discretion of the lending institution. There were no borrowings outstanding on these lines of credit as of December 31, 2022 or December 31, 2021. Federal Reserve Borrowings At December 31, 2022 and 2021, the Bank had the ability to borrow $4,118 and $847 from the Federal Reserve Bank of Minneapolis. The ability to borrow is based on mortgage-backed securities pledged with a carrying value of $5,421 and $863 as of December 31, 2022 and 2021, respectively. There were no Federal Reserve borrowings outstanding as of December 31, 2022 and 2021. Federal Reserve Bank Paycheck Protection Program Liquidity Facility (“FRB PPPLF”) Program The Bank originated Small Business Administration’s Paycheck Protection Program (“SBA PPP”) loans and complied with the requirements to pledge these loans to the FRB PPPLF program which provided 100% funding for SBA PPP loans upon request. This FRB PPPLF program expired on July 30, 2021. The Bank had no outstanding loan balances under this facility at December 31, 2021. There were no month-end borrowed amounts outstanding under this agreement during the twelve months ended December 31, 2021. In July 2021, the bank pledged these SBA PPP loans to the FHLB.

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- Definition The entire disclosure for borrowing from the Federal Home Loan Bank, including: (i) general description; (ii) title and nature of obligation; (iii) interest rate; (iv) payment terms; (v) maturity dates by year; (vi) collateral requirements; (vii) restrictive covenants; (viii) priority; (ix) conversion or redemption features; (x) carrying value of assets pledged as collateral; (xi) combined aggregate maturities for next five years; (xii) unused or available balances. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.9-03.13(a)) -URI https://asc.fasb.org/extlink&oid=126897435&loc=d3e534808-122878 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 470 -Section 50 -Paragraph 3 -URI https://asc.fasb.org/extlink&oid=123599511&loc=d3e64711-112823 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 10 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=123465755&loc=d3e1835-112601 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 470 -Section 45 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=6479118&loc=d3e64650-112822 + Details
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