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FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS | 9 Months Ended
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Sep. 30, 2023
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 advances and other borrowings at September 30, 2023 and December 31, 2022 is as follows:
|  | September 30, 2023 |  | December 31, 2022
|  | Stated Maturity |  | Amount |  | Range of Stated Rates |  | Stated Maturity |  | Amount |  | Range of Stated Rates
Federal Home Loan Bank advances (1), (2), (3) (4) |  | 2023 |  | $ | 74,000 |  |  | 1.43 | % |  | 5.46 | % |  | 2023 |  | $ | 117,000 |  |  | 1.43 | % |  | 4.31 | %
|  | 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 | %
|  | 2028 |  | 15,000 |  |  | 3.57 | % |  | 3.59 | % |  |  |  |  |  |  |  |
Federal Home Loan Bank advances |  |  |  | $ | 114,530 |  |  |  |  |  |  |  |  | $ | 142,530 |  |  |  |  |
Senior Notes (5) |  | 2034 |  | $ | 18,083 |  |  | 6.75 | % |  | 7.75 | % |  | 2034 |  | $ | 23,250 |  |  | 3.00 | % |  | 6.75 | %
Subordinated Notes (6) |  | 2030 |  | $ | 15,000 |  |  | 6.00 | % |  | 6.00 | % |  | 2030 |  | $ | 15,000 |  |  | 6.00 | % |  | 6.00 | %
|  | 2032 |  | 35,000 |  |  | 4.75 | % |  | 4.75 | % |  | 2032 |  | 35,000 |  |  | 4.75 | % |  | 4.75 | %
|  |  |  | $ | 50,000 |  |  |  |  |  |  |  |  | $ | 50,000 |  |  |  |  |
Unamortized debt issuance costs |  |  |  | (676) |  |  |  |  |  |  |  |  | (841) |  |  |  |  |
Total other borrowings |  |  |  | $ | 67,407 |  |  |  |  |  |  |  |  | $ | 72,409 |  |  |  |  |
Totals |  |  |  | $ | 181,937 |  |  |  |  |  |  |  |  | $ | 214,939 |  |  |  |  |
(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 a pledged balance of $1,065,913 and $984,878 at September 30, 2023 and December 31, 2022, respectively. At September 30, 2023, the Bank’s available and unused portion under the FHLB borrowing arrangement was approximately $314,521 compared to $256,773 as of December 31, 2022. (2) Maximum month-end borrowed amounts outstanding under this borrowing agreement were $217,530 and $157,530, during the nine months ended September 30, 2023 and the twelve months ended December 31, 2022, respectively. (3) The weighted-average interest rate on FHLB borrowings maturing within twelve months as of September 30, 2023 and December 31, 2022 were 4.58% and 4.09%, respectively. (4) FHLB term notes totaling $15,000, with 2028 maturity dates, are callable once by the FHLB in December of 2023. (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 and modified in February of 2023, requiring quarterly interest-only payments through March 2027, 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 August 1, 2024, that remains undrawn upon. (6) Subordinated notes resulted from the following: (a) 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. (b) 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. The letters of credit balances were $469,530 and $191,650 at September 30, 2023 and December 31, 2022, respectively. Federal Reserve Borrowings At September 30, 2023 and December 31, 2022, the Bank had the ability to borrow $22,059 and $4,118 from the Federal Reserve Bank of Minneapolis. The ability to borrow is based on mortgage-backed securities pledged with a carrying value of $23,210 and $5,421 as of September 30, 2023 and December 31, 2022, respectively. There were no Federal Reserve borrowings outstanding as of September 30, 2023 and December 31, 2022. In March of 2023, the Bank was approved to obtain funding from the Federal Reserve’s new Bank Term Funding Program (“BTFP”). As of September 30, 2023, the Bank has not borrowed from this facility and has not pledged any collateral to this facility. Federal Funds Purchased Lines of Credit As of September 30, 2023, the Bank maintains two unsecured federal funds purchased lines of credit with its banking partners which total $70,000. As of December 31, 2022, the Bank maintained three unsecured federal funds purchased lines of credit with its banking partners which totaled $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 September 30, 2023 or December 31, 2022.

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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 -Topic 942 -SubTopic 470 -Name Accounting Standards Codification -Section 45 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480876/942-470-45-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 942 -SubTopic 470 -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480848/942-470-50-3 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 1 -SubTopic 10 -Topic 470 -Publisher FASB -URI https://asc.fasb.org//1943274/2147481544/470-10-50-1 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 942 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.9-03.13(a)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479853/942-210-S99-1 + Details
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