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FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS
 6 Months Ended
Jun. 30, 2024
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 June 30, 2024 and December 31, 2023, is as follows:
June 30, 2024
December 31, 2023
Stated MaturityAmountRange of Stated RatesStated MaturityAmountRange of Stated Rates
Federal Home Loan Bank advances (1), (2), (3), (4)2024$26,500 1.44 %5.45 %2024$64,530 0.00 %5.45 %
20255,000 1.45 %1.45 %20255,000 1.45 %1.45 %
2028— 0.00 %— %202810,000 3.82 %3.82 %
Federal Home Loan Bank advances$31,500 $79,530 
Senior Notes (5)2039$12,000 7.75 %7.75 %2034$18,083 6.75 %7.75 %
Subordinated Notes (6)2030$15,000 6.00 %6.00 %2030$15,000 6.00 %6.00 %
203235,000 4.75 %4.75 %203235,000 4.75 %4.75 %
$50,000 $50,000 
Unamortized debt issuance costs(502)(618)
Total other borrowings$61,498 $67,465 
Totals$92,998 $146,995 
(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 $1,099,969 and $1,106,267 at June 30, 2024 and December 31, 2023, respectively. At June 30, 2024, the Bank’s available and unused portion under the FHLB borrowing arrangement was approximately $416,063 compared to $370,569 as of December 31, 2023.
(2) Maximum month-end borrowed amounts outstanding under this borrowing agreement were $81,000 and $217,530, during the six months ended June 30, 2024 and the twelve months ended December 31, 2023, respectively.
(3) The weighted-average interest rate on FHLB borrowings maturing within twelve months as of June 30, 2024 and December 31, 2023 were 3.54% and 4.16%, respectively.
(4) In June 2024, the FHLB called the $10,000, 3.82% advance maturing in 2028.     
(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, modified in February of 2023, and refinanced in May 2024, requiring quarterly interest-only payments through January 2029, 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 $435,250 and $452,280 at June 30, 2024 and December 31, 2023, respectively.
Federal Reserve Borrowings
At June 30, 2024 and December 31, 2023, the Bank had the ability to borrow $21,386 and $22,417 from the Federal Reserve Bank of Minneapolis. The ability to borrow is based on mortgage-backed securities pledged with a carrying value of $28,454 and $29,191 as of June 30, 2024, and December 31, 2023, respectively. There were no Federal Reserve borrowings outstanding as of June 30, 2024, and December 31, 2023.
Federal Funds Purchased Lines of Credit
As of June 30, 2024, the Bank maintains two unsecured federal funds purchased lines of credit with its banking partners which total $70,000. As of December 31, 2023, the Bank maintained three unsecured federal funds purchased lines of credit with its banking partners which totaled $70,000. 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 June 30, 2024 or December 31, 2023.