Borrowings

12 Months Ended

Dec. 31, 2024

Debt Disclosure [Abstract]

Borrowings

Borrowings

    The Company has a maximum line of credit with the FHLB approximating 45% of eligible assets, however the Company is subject to provisions under Alaska state law, which generally limit the amount of the Bank's outstanding debt to 35% of total assets or $1.06 billion at December 31, 2024 and $975.9 million at December 31, 2023. FHLB advances are subject to collateral criteria that require the Company to pledge assets under a blanket pledge arrangement as collateral for its borrowings from the FHLB. Based on assets currently pledged and advances currently outstanding at December 31, 2024, the Company's available borrowing line is $331.1 million, representing approximately 11% of total assets. Additional advances of up to 45% of eligible assets, or $1.36 billion, are dependent on the availability of acceptable collateral such as marketable securities or real estate loans, although all FHLB advances are secured by a blanket pledge of the Company’s assets. The Company has outstanding FHLB advances of $13.2 million and $13.7 million as of December 31, 2024 and 2023, respectively, which were originated to match fund low income housing projects that qualify for long-term fixed interest rates. These advances have original terms of either 18 or 20 years with 30 year amortization periods and fixed interest rates ranging from 1.23% to 3.25%. Additionally, the Company has a short-term $9.8 million advance from the FHLB outstanding as of December 31, 2024 at an interest rate of 4.62% which resets daily.

    The Federal Reserve Bank is holding $70 million of securities as collateral to secure available borrowing lines through the discount window of $68.5 million at December 31, 2024.  There were no discount window advances outstanding at December 31, 2024 and 2023.  The Company paid less than $1,000 in interest in 2024 and 2023 on this agreement.

    Securities sold under agreements to repurchase were zero for both December 31, 2024 and 2023. 

    The future principal payments that are required on the Company’s borrowings as of December 31, 2024, are as follows:

(In Thousands)
2025	$10,241
2026	453
2027	462
2028	474
2029	485
Thereafter	10,930
Total	$23,045

    The Company recognized interest expense of $1.0 million, $1.8 million, and $339,000 on borrowings and securities sold under repurchase agreements in 2024, 2023, and 2022, respectively. The average interest rates paid on long-term debt in the same periods was 3.13%, 2.93%, and 2.92%, respectively.