Debt and FHLB Stock

12 Months Ended

Dec. 31, 2022

Debt and FHLB Stock

Debt and FHLB Stock

8.    Debt and FHLB Stock

FHLB Borrowings and Stock

The Company is a member of the FHLB. At December 31, 2022 and 2021, the Company had access to a preapproved secured line of credit with the FHLB of $667,905 and $640,500, respectively. Borrowings under this line require collateralization through the pledge of specific loans and securities. At December 31, 2022 and 2021, the Company had pledged assets of $195,455 and $170,385, respectively. The Company had no outstanding overnight line of credit balances with the FHLB at either December 31, 2022 or 2021. These borrowings would mature the following business day. At December 31, 2022, the Company had structured borrowings in the amount of $57,723. The outstanding principal amounts and the related terms and rates at December 31, 2022 were as follows:

Term	Principal		Maturity	Rate		Due in one year		Long term
Fixed short-term	$	5,000	January 3, 2023	3.83	%	$	5,000		—
Fixed short-term		5,000	January 20, 2023	4.32	%		5,000		—
Fixed short-term		5,000	February 3, 2023	4.02	%		5,000		—
Fixed short-term		5,000	February 21, 2023	4.53	%		5,000		—
3 year amortizing		1,273	February 28, 2023	1.32	%		1,273		—
Fixed short-term		5,000	March 3, 2023	4.20	%		5,000		—
Fixed short-term		5,000	March 20, 2023	4.67	%		5,000		—
Fixed short-term		10,000	April 3, 2023	4.72	%		10,000		—
Fixed short-term		10,000	May 15, 2023	4.87	%		10,000		—
Fixed medium-term		722	October 31, 2025	4.87	%		—		722
Fixed medium-term		5,000	November 3, 2025	4.87	%		—		5,000
Fixed medium-term		728	December 5, 2025	4.34	%		—		728
Total	$	57,723	Weighted Average Rate	4.44	%	$	51,273	$	6,450

The Company is required to maintain an investment in capital stock of the FHLB, as collateral, in an amount equal to a certain percentage of its outstanding debt. FHLB stock is considered restricted stock and is carried at cost. The Company evaluates for impairment based on the ultimate recovery ability of the cost. No impairment was recognized at either December 31, 2022 or 2021.

Subordinated Debt

In addition to the Bank, the Company has one other wholly-owned subsidiary, RSB Capital Trust I (the “Trust”). In 2005, the Trust issued $5,000 of pooled trust preferred securities in a private placement and issued 155 shares of common stock at $1 par value per share, now owned by the Company. The Trust, which has no independent assets or operations, was formed in 2005 for the sole purpose of issuing trust preferred securities and investing the proceeds thereof in an equivalent amount of junior subordinated debentures. The proceeds from the issuance of the trust preferred securities were down-streamed to the Bank and are currently considered Tier 1 capital for purposes of determining the Bank’s capital ratios. The duration of the Trust is 30 years.

The subordinated debt securities of $5,155 are unsecured obligations of the Company and are subordinate and junior in right of payment to all present and future senior indebtedness of the Company. The Company has entered into a guarantee, which together with its obligations under the subordinated debt securities and the declaration of trust governing the Trust, including its obligations to pay costs, expenses, debts and liabilities, other than trust securities, provides a full and unconditional guarantee of amounts on the capital securities. The subordinated debentures, which bear interest at 3-month LIBOR plus 2.00% (6.69% at December 31, 2022 and 2.16% at December 31, 2021) mature on May 23, 2035. After June 30, 2023, the three month LIBOR rate will be replaced by the three month CME term Secured Overnight Financing Rate (“SOFR”) as adjusted by 0.26%, the relevant spread adjustment.

Other Borrowings

The Company has an unsecured, uncommitted $10,000 line of credit with Zions Bank. There were no advances outstanding under this line of credit at December 31, 2022 or 2021.

On October 1, 2021, the Company entered into an agreement with Pacific Community Bankers Bank, for a $50,000 line of credit. There were no advances outstanding under this line of credit at December 31, 2022 or 2021.