Federal Home Loan Bank Advances and Other Borrowings

9 Months Ended

Sep. 30, 2022

Federal Home Loan Bank Advances and Other Borrowings

Federal Home Loan Bank Advances and Other Borrowings

Note 7: Federal Home Loan Bank Advances and Other Borrowings

Federal Home Loan Bank Advances. The Company has entered into an Advances, Pledge, and Security Agreement with the FHLB whereby specific mortgage loans of the Bank with principal balances of $1.14 billion and $930.9 million at September 30, 2022 and December 31, 2021, respectively, were pledged to the FHLB as collateral. FHLB advances are also secured with FHLB stock owned by the Company. Total remaining available capacity under the agreement was $426.6 million and $550.8 million at September 30, 2022 and December 31, 2021, respectively.

The following table presents FHLB advances, by maturity, at September 30, 2022 and December 31, 2021:

	September 30, 2022				December 31, 2021
	Weighted				Weighted
	Average		Total		Average		Total
(dollars in thousands)	Rate		Outstanding		Rate		Outstanding
Less than 1 Year	2.83	%	$	55,000	—	%	$	—
1 to 2 Years	1.29			7,500	—			—
2 to 3 Years	1.22			5,000	1.66			22,500
3 to 4 Years	—			—	1.22			16,000
4 to 5 Years	0.78			4,000	0.78			4,000
Totals			$	71,500			$	42,500

Line of Credit. In 2021, the Company entered into a Loan and Security Agreement and related revolving note with an unaffiliated financial institution that was secured by 100% of the issued and outstanding stock of the Bank. The note contains customary representations, warranties, and covenants, including certain financial covenants and capital ratio requirements. As of September 30, 2022 and December 31, 2021, the Company believes it was in compliance with all covenants.

On September 1, 2022, the Company entered into a second amendment to the agreement which increased the maximum principal amount of the Company’s revolving line of credit from $25.0 million to $40.0 million and extended the maturity date from February 28, 2023 to September 1, 2024. As of September 30, 2022 and December 31, 2021, there were no outstanding balances under the revolving line of credit.