BORROWINGS

12 Months Ended

Dec. 31, 2024

Debt Disclosure [Abstract]

BORROWINGS

NOTE 10 – BORROWINGS

Federal Funds Purchased and Retail Repurchase Agreements

Federal funds purchased and retail repurchase agreements included the following at December 31, 2024 and 2023.

	2024		2023
Federal funds purchased	$	—	$	—
Retail repurchase agreements	$	37,247	$	43,582

Securities sold under agreements to repurchase (retail repurchase agreements) consist of obligations of the Company to other parties. The obligations are secured by residential mortgage-backed securities held by the Company with a fair value of $45,249 and $47,282 at December 31, 2024 and 2023. The agreements are on a day-to-day basis and can be terminated on demand.

The following table presents the borrowing usage and interest rate information for federal funds purchased and retail repurchase agreements at and for the years ended December 31, 2024 and 2023.

	2024			2023
Average daily balance during the period	$	39,791		$	43,469
Average interest rate during the period		1.89	%		1.43	%
Maximum month-end balance during the period	$	47,312		$	46,798
Weighted average interest rate at period-end		1.74	%		1.69	%

Federal Home Loan Bank advances

The Federal Home Loan Bank advances as of December 31, 2024, and 2023 were as follows.

	2024		2023
Federal Home Loan Bank line of credit advances	$	78,073	$	—
Federal Home Loan Bank fixed-rate term advances		100,000		100,000
Total Federal Home Loan Bank advances	$	178,073	$	100,000

At December 31, 2024 and 2023, the Company had undisbursed advance commitments (letters of credit) with the Federal Home Loan Bank of $118,326 and $39,922. These letters of credit were obtained in lieu of pledging securities to secure public fund deposits that are over the FDIC insurance limit.

The advances, Mortgage Partnership Finance credit enhancement obligations and letters of credit were collateralized by certain qualifying loans of $885,128 and securities of $79,417 for a total of $964,545 at December 31, 2024, and qualifying loans of $846,601 and securities of $65,209 for a total of $911,810 at December 31, 2023. Based on this collateral and the Company’s holdings of Federal Home Loan Bank stock, the Company was eligible to borrow an additional $667,092 and $770,711 at December 31, 2024 and 2023.

Federal Reserve Bank Borrowings

At December 31, 2024 and 2023, the Company had a borrowing capacity of $648,183 and $471,569, for which the Company has pledged loans with an outstanding balance of $852,957 and $394,810 and securities with a fair value of $9,070 and $155,934. At December 31, 2023 there was $140,000 in borrowings secured from this facility under the Federal Reserve's Bank Term Funding Program with a rate of 4.38% and a maturity date of March 22, 2024. The Company repaid this borrowing at maturity and there were no outstanding borrowings at December 31, 2024.

Bank Stock Loan

The Company entered into an agreement with an unaffiliated financial institution secured by the Company’s stock in Equity Bank. The loan had a maturity date of August 15, 2021, and was extended to February 11, 2022. Each draw of funds on the facility will create a separate note that is repayable over a term of five years. Each note will bear interest at the greater of a variable interest rate equal to the prime rate published in the “Money Rates” section of The Wall Street Journal (or any generally recognized successor), floating daily, or a floor of 3.50%. Accrued interest and principal payments will be due quarterly with one final payment of unpaid principal and interest due at the end of the five-year term of each separate note. The Company is also required to pay an unused commitment fee in an amount equal to 20 basis points per annum on the unused portion of the maximum borrowing facility.

The loan was renewed and amended on February 11, 2022, with the same terms as the previous renewal, a new maturity date of February 11, 2023 and a new floor of 3.25%. With this amendment, the maximum borrowing amount was decreased from $40,000 to $25,000.

The loan was renewed and amended on February 10, 2023, with the same terms as the previous renewal and a new maturity date of February 10, 2024.

The loan was renewed and amended on February 10, 2024, with the same terms as the previous renewal and a new maturity date of February 10, 2025. The maximum borrowing amount at December 31, 2024, was $25,000.

There were no bank stock loan advances as of December 31, 2024, or December 31, 2023.

The terms of the borrowing facility require the Company and Equity Bank to maintain minimum capital ratios and other covenants. For the twelve months ended December 31, 2024, the Company was in compliance with all terms of the borrowing facility. For the twelve months ended December 31, 2023, the Company failed to satisfy the return on assets ratio covenant set forth in the terms of the borrowing facility.