BORROWINGS

12 Months Ended

Dec. 31, 2023

BORROWINGS [Abstract]

BORROWINGS

8. BORROWINGS

FHLB Advances

The following table summarizes the Company’s FHLB advances by maturity date:

	December 31,
	2023					2022
Contractual Maturity Date	Amount		Rate			Amount		Rate
	(dollars in thousands)
April 15, 2025	$	6,000		0.76	%	$	6,000		0.76	%
April 15, 2025		39,000		0.78	%		39,000		0.78	%
June 23, 2025		30,000		0.95	%		30,000		0.95	%
June 23, 2025		15,000		0.92	%		15,000		0.92	%
Total FHLB advances	$	90,000				$	90,000
Weighted average rate				0.86	%				0.86	%

All of the Company’s outstanding advances as of December 31, 2023 and 2022, were at fixed rates of interest.

The Company also had $27.0 million of letters of credit with FHLB at December 31, 2023, to secure public funds. The Company, through the Bank, has a blanket lien credit line with the FHLB. FHLB advances are collateralized in the aggregate by the Company’s eligible loans and securities. At December 31, 2023, the Company had $9.3 million of securities and $371.9 million of loans pledged to the FHLB. At December 31, 2023, the Company had $112.8 million available for additional borrowing based on the value of the collateral pledged. At December 31, 2022, the Company had pledged to the FHLB $21.1 million of securities and $232.6 million of loans. Total FHLB interest expense for the years ended December 31, 2023, 2022, and 2021, was $0.9 million, $0.8 million, and $0.9 million, respectively.

Line of Credit

The Company has an unsecured line of credit agreement to borrow up to $10.0 million at Prime +0.25%. The Company must maintain a compensating deposit with the lender of $1.0 million. In addition, the Company must maintain a minimum debt service coverage ratio of 1.65 to 1, a minimum Tier 1 leverage ratio of 7.0%, a minimum total risked based capital ratio of 10.0%, and a maximum net non-accrual ratio of not more than 3%. The Company is in compliance with all of the covenants at December 31, 2023. The line of credit matured in September 2023 and the Company renewed the line of credit for an additional two-year term with no other changes to the financial terms or covenants. As of December 31, 2023, there was $10.0 million outstanding on the revolving line of credit and the interest rate in effect was 8.75%; there were no outstanding balances on the revolving line of credit as of December 31, 2022.

Federal Reserve Bank

The Company has established a credit line with the FRB. Advances are collateralized in the aggregate by eligible loans. As of December 31, 2023 and 2022, there were $293.7 million and $248.6 million, respectively, of loans pledged as collateral to the FRB. There were no outstanding FRB advances as of December 31, 2023 and 2022. Available borrowing capacity based on the balance of loans pledged was $110.7 million at December 31, 2023.

Federal Funds Purchased Lines

The Company has federal funds borrowing lines at correspondent banks totaling $20.0 million. There were no amounts outstanding on these lines as of December 31, 2023 and 2022.