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Borrowings

12 Months Ended

Dec. 31, 2023

(7) Borrowings.

The maturities and interest rates on the Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank (“FRB”) advances were as follows (dollars in thousands)

Maturity Year Ending	Interest			At December 31,
December 31,	Rate			2023		2022
FRB 2024		1.96	%		13,600		—
FHLB 2024		4.96	%		30,000		—
FHLB 2024		5.57	%		22,000		—
FHLB 2025		1.01	%		10,000		10,000
				$	75,600	$	10,000

At December 31, 2023, three FHLB Advances were structured advances with potential calls on a quarterly basis.

(continued)

OPTIMUMBANK HOLDINGS, INC. AND SUBSIDIARY

Notes to Consolidated Financial Statements

(7) Borrowings. Continued

FHLB advances are collateralized by a blanket lien requiring the Company to maintain certain first mortgage loans as pledged collateral. At December 31, 2023, the Company had outstanding borrowings of $62 million, against its $178 million in established borrowing capacity with the FHLB. At December 31, 2023, the Company had loans pledged with a carrying value of $240 million as collateral for FHLB advances.

In addition, the Bank has a line of credit with the Federal Reserve Bank which is secured by investment securities with fair value of $11.5 million as of December 31, 2023. FRB borrowings bear interest at variable rates based on the Federal Open Market Committee’s target range for the federal funds rate. Based on this collateral, the Company borrowed $13.6 million from the FRB at December 31, 2023.

At December 31, 2023, the Company also had lines of credit amounting to $29.5 million with five correspondent banks to purchase federal funds. Disbursements on the lines are subject to the approval of correspondent banks. At December 31, 2023 and 2022 there were no borrowings under these lines of credit.