Borrowings

12 Months Ended

Dec. 31, 2025

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 15% of total assets or $490.6 million at December 31, 2025 and $454.1 million at December 31, 2024. 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, 2025, the Company's available borrowing line is $433.05 million, representing approximately 13% of total assets. Additional advances of up to 45% of eligible assets, or $1.48 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 $12.8 million and $13.2 million as of December 31, 2025 and 2024, 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%.

    The Federal Reserve Bank is holding $70 million of securities as collateral to secure available borrowing lines through the discount window of $69.2 million at December 31, 2025. There were no discount window advances outstanding at December 31, 2025 and 2024.  The Company paid less than $1,000 in interest in 2025 and 2024 on this agreement.

    Securities sold under agreements to repurchase were zero for both December 31, 2025 and 2024. 

    The future principal payments that are required on the Company’s borrowings as of December 31, 2025, are as follows:

(In Thousands)
2026	$453
2027	462
2028	474
2029	485
2030	498
Thereafter	10,433
Total	$12,805

    The Company recognized interest expense of $1.5 million, $1.0 million, and $1,783,000 on borrowings and securities sold under repurchase agreements in 2025, 2024, and 2023, respectively. The average interest rates paid on long-term debt in the same periods was 3.76%, 3.13%, and 2.93%, respectively.