Short Term Borrowings And Long-Term Debt

6 Months Ended

Jun. 30, 2022

Federal Home Loan Banks [Abstract]

Short Term Borrowings And Long-Term Debt

NOTE 5 – SHORT TERM BORROWINGS AND LONG-TERM DEBT

Short-Term Borrowings

The Company had outstanding borrowings totaling $45.0 million as of June 30, 2022 via various FHLB advances. These advances are non-callable; interest payments are due monthly, with principal due at maturity. The Company had no outstanding advances as of December 31, 2021.

The following is a summary of the contractual maturities and average effective rates of outstanding advances (dollars in thousands):

	June 30, 2022
Year	Amount	Interest Rates
2022	45,000	1.56%

Advances from the FHLB are collateralized by investment securities with a market value of $23.4 million and certain commercial and residential real estate mortgage loans totaling $208.1 million under a blanket mortgage collateral agreement. At June 30, 2022, the amount of available credit from the FHLB totaled $116.9 million.

Subordinated Notes

The Company issued $30.0 million of fixed-to-floating rate subordinated notes during the third quarter of 2020, which were recorded net of issuance costs of $0.6 million, that mature June 30, 2030. Beginning on or after June 30, 2025, the Company may redeem the notes, in whole or in part, at their principal amount plus any accrued and unpaid interest. The notes have a fixed interest rate of 5.25% per annum for the first five years. Thereafter, the interest rate will reset quarterly to an interest rate per annum equal to a benchmark rate (which is expected to be Three-Month Term SOFR) plus 513 basis points. The carrying value of subordinated notes was $29.6 million at June 30, 2022 and $29.5 million at December 31, 2021.