Federal Home Loan Bank Borrowings	6 Months Ended
Jun. 30, 2023
Federal Home Loan Bank Borrowings	9. Federal Home Loan Bank Borrowings The Bank has a line of credit, renewable annually each September, with the Federal Home Loan Bank (“FHLB’) under which there were $76.2 million of borrowings at June 30, 2023 and $8.2 million at December 31, 2022. Interest on any outstanding balance on the line of credit accrues at the federal funds rate plus 0.15% (5.23% at June 30, 2023). The Company had no letters of credit issued through the FHLB at June 30, 2023 or December 31, 2022 to secure municipal deposits. The Company did not have any term advances from FHLB at June 30, 2023 or December 31, 2022. Although no loans are specifically pledged, the FHLB requires the Bank to maintain eligible collateral (qualifying loans and investment securities) that has a lending value at least equal to its required collateral. At June 30, 2023 and December 31, 2022, there was a blanket pledge of loans and securities totaling $277.5 million and $139.0 million, respectively. At June 30, 2023 and December 31, 2022, the Bank’s total borrowing capacity with the FHLB was approximately $206.3 million and $111.0 million, respectively. At June 30, 2023 and December 31, 2022, the Bank’s available borrowing capacity was $129.0 million and $101.8 million, respectively. The difference between the Bank’s total borrowing capacity and available borrowing capacity is related to the amount of borrowings outstanding. The available borrowing capacity with the FHLB is collateral based, and the Bank’s ability to borrow is subject to maintaining collateral that meets the eligibility requirements. The borrowing capacity is not committed and is subject to FHLB credit requirements and policies. In addition, the Bank must maintain a restricted investment in FHLB stock to maintain access to borrowings.

Federal Home Loan Bank Borrowings

6 Months Ended

Jun. 30, 2023

9. Federal Home Loan Bank Borrowings

The Bank has a line of credit, renewable annually each September, with the Federal Home Loan Bank (“FHLB’) under which there were $76.2 million of borrowings at June 30, 2023 and $8.2 million at December 31, 2022. Interest on any outstanding balance on the line of credit accrues at the federal funds rate plus 0.15% (5.23% at June 30, 2023). The Company had no letters of credit issued through the FHLB at June 30, 2023 or December 31, 2022 to secure municipal deposits. The Company did not have any term advances from FHLB at June 30, 2023 or December 31, 2022.

Although no loans are specifically pledged, the FHLB requires the Bank to maintain eligible collateral (qualifying loans and investment securities) that has a lending value at least equal to its required collateral. At June 30, 2023 and December 31, 2022, there was a blanket pledge of loans and securities totaling $277.5 million and $139.0 million, respectively. At June 30, 2023 and December 31, 2022, the Bank’s total borrowing capacity with the FHLB was approximately $206.3 million and $111.0 million, respectively. At June 30, 2023 and December 31, 2022, the Bank’s available borrowing capacity was $129.0 million and $101.8 million, respectively. The difference between the Bank’s total borrowing capacity and available borrowing capacity is related to the amount of borrowings outstanding. The available borrowing capacity with the FHLB is collateral based, and the Bank’s ability to borrow is subject to maintaining collateral that meets the eligibility requirements. The borrowing capacity is not committed and is subject to FHLB credit requirements and policies. In addition, the Bank must maintain a restricted investment in FHLB stock to maintain access to borrowings.