Debt and FHLB Stock

12 Months Ended

Dec. 31, 2023

Debt and FHLB Stock

Debt and FHLB Stock

.7.    Debt and FHLB Stock

FHLB Borrowings and Stock

The Company is a member of the FHLB. At December 31, 2023 and 2022, the Company had access to a preapproved secured line of credit with the FHLB of $656,516 and $667,905, respectively. Borrowings under this line require collateralization through the pledge of specific loans and securities. At December 31, 2023 and 2022, the Company had pledged assets of $228,172 and $195,455, respectively. The Company had no outstanding overnight line of credit balances with the FHLB at either December 31, 2023 or 2022. These borrowings would mature the following business day. At December 31, 2023, the Company had structured borrowings in the amount of $128,064. The outstanding principal amounts and the related terms and rates at December 31, 2023 were as follows:

Term	Principal		Maturity	Rate		Due in one year		Long term
Fixed short-term		10,000	January 8, 2024	5.64	%		10,000		—
Fixed short-term		10,000	February 6, 2024	5.68	%		10,000		—
Fixed medium-term		20,000	March 21, 2024	5.18	%		20,000		—
Fixed short-term		10,000	April 23, 2024	5.70	%		10,000		—
Fixed short-term		10,000	May 17, 2024	5.59	%		10,000		—
Fixed short-term		10,000	June 17, 2024	5.60	%		10,000		—
Fixed short-term		10,000	July 17, 2024	5.59	%		10,000		—
Fixed medium-term		20,000	March 20, 2025	4.47	%		—		20,000
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
Fixed medium-term		1,233	September 21, 2026	5.20	%		—		1,233
Fixed medium-term		381	November 9, 2026	5.04	%		—		381
Fixed medium-term		20,000	May 2, 2028	3.88	%		—		20,000
Total	$	128,064	Weighted Average Rate	5.06	%	$	80,000	$	48,064

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, 2023 or 2022.

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 three month CME term Secured Overnight Financing Rate (“SOFR”) plus 2% and a relative spread adjustment of 0.26% was 7.64% at December 31, 2023. The rate at December 31, 2022 was 6.69% and was based on the three month LIBOR plus 2.00%. The subordinated debentures mature on May 23, 2035.

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, 2023 or 2022.

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, 2023 or 2022.