At December 31, 2023 and 2022 , the Company had outstanding advances from the FHLB that are summarized as follows (in thousands):


December 31, 2023:
Advance		Maturity	Rate			Rate Type
$	55,000,000	6/28/2024		4.96	%	Fixed Rate Hybrid
	25,000,000	12/31/2024		5.57	%	Daily Rate Credit
	25,000,000	12/22/2025		4.52	%	Fixed Rate Hybrid
	25,000,000	12/21/2026		4.31	%	Fixed Rate Hybrid
	40,000,000	12/20/2028		3.55	%	Convertible
	60,000,000	9/27/2033		3.46	%	Convertible
$	230,000,000

December 31, 2022:
Advance		Maturity	Rate			Rate Type
$	40,000,000	12/20/2023		4.95	%	Fixed Rate Hybrid
	55,000,000	12/29/2023		4.57	%	Daily Rate Credit
$	95,000,000

At December 31, 2023 the Company had $75 million unfunded standby letters of credit with the FHLB. At December 31, 2022 the Company had no unfunded standby letters of credit with the FHLB.

The Company had pledged under blanket floating liens approximately $929.2 million and $673.3 million in residential first mortgage loans, home equity lines of credit, commercial real estate loans, and loans secured by multi-family real estate as security for these advances, letters of credit, and possible future advances as of December 31, 2023 and 2022, respectively. The value of the pledged collateral, when using appropriate discount percentages as prescribed by the FHLB, equals or exceeds the advances and unfunded letters of credit outstanding. At December 31, 2023 and 2022, the Company had approximately $210.3 million and $326.8 million of additional borrowing capacity under its borrowing arrangement with the FHLB.

Another borrowing source is the Federal Reserve discount window. At December 31, 2023 and 2022 the Company had approximately $247.8 million and $235.7 million of loans pledged and $157.6 million and $133.1 million of available borrowing capacity at the Federal Reserve discount window, respectively. At December 31, 2023 the Company had no outstanding advances from the Federal Reserve discount window. At December 31, 2022, the Company had $25.0 million of outstanding advances from the Federal Reserve discount window.

On August 9, 2021, the Company entered into a line of credit agreement with ServisFirst Bank for $10 million. The line of credit agreement was amended on March 17, 2023 to increase the line to $20 million. The line of credit is to be used for general capital needs and investments. The line, when drawn, will require quarterly payments of interest only and matures on March 17, 2024. The interest rate floats at Wall Street Journal Prime with a floor of 3.25%. The line of credit is secured by 51% of the Company’s stock. There was no balance outstanding at December 31, 2023 and 2022.

On March 9, 2021, River Financial Corporation (the “Company”) entered into a Subordinated Note Purchase Agreement (the “Purchase Agreement”) with the purchasers signatory thereto providing for a private placement of $40 million in aggregate principal amount of 4.00% fixed-to-floating rate Subordinated Notes due March 15, 2031 (the “Notes”). The Notes were issued by the Company to the purchasers at a price equal to 100% of their face amount. Interest on the Notes will accrue from March 9, 2021, and the Company will pay interest semi-annually on March 15th and September 15th of each year, beginning on September 15, 2021, until the Notes mature. The Notes will bear interest at a fixed rate of 4.00% per year, from and including March 9, 2021 to, but excluding, March 15, 2026. From and including March 15, 2026, but excluding the maturity date or early redemption date, the interest rate will reset quarterly at a variable rate equal to the then current three-month term Secured Overnight Financing Rate (SOFR) plus 342 basis points. The Notes may not be prepaid by the Company prior to March 15, 2026. From and after March 15, 2026, the Company may prepay all or, from time to time, any part of the Notes at 100% of the principal amount (plus accrued interest) without penalty, subject to any requirement under Federal Reserve Board regulations to obtain prior approval from the Board of Governors of the Federal Reserve System before making any prepayment. The Notes may also be prepaid by the Company at any time after the occurrence of an event that would preclude the Notes from being included in the Tier 2 Capital of the Company. The Purchase Agreement contains customary representations and warranties, events of default, and affirmative and negative covenants, including the requirement that, subject to certain limitations, the Company restructure any portion of the Notes that ceases to be deemed Tier 2 Capital. The Company used approximately $19.7 million of the net proceeds from the issuance of the Notes to pay off its note with CenterState Bank dated October 31, 2018, including interest accrued on such notes, and the remaining proceeds for general corporate purposes, including providing capital to support the organic growth of its bank subsidiary, River Bank.

Principal payments on the Subordinated Note Purchase Agreement are due as follows:


2024	$	-
2025		-
2026		-
2027		-
2028		-
Afterward		39,492
Total	$	39,492

The Company had available lines of credit for overnight federal funds borrowings totaling $88.5 million at December 31, 2023 and 2022. At December 31, 2023 and 2022, the Company had no outstanding federal funds purchased.