BORROWED FUNDS

3 Months Ended

Mar. 31, 2024

Advance from Federal Home Loan Bank [Abstract]

BORROWED FUNDS

BORROWED FUNDS

FHLBNY advances are collateralized by the FHLBNY stock owned by the Bank plus a pledge of other eligible assets comprised of securities and mortgage loans. Assets are pledged to collateral capacity. As of March 31, 2024, the value of the other eligible assets had an estimated market value net of haircut totaling $2.07 billion (comprised of securities of $395.1 million and mortgage loans of $1.67 billion). The fair value of assets pledged to the FHLBNY is required to exceed outstanding advances. There were $9.1 million outstanding FHLB advances as of March 31, 2024 and $4.4 million in outstanding FHLBNY advances as of December 31, 2023. For the three months ended March 31, 2024, and 2023, interest expense on FHLBNY advances was zero and $3.0 million, respectively.

In addition to FHLBNY advances, the Company uses other borrowings for short-term borrowing needs. Federal funds lines of credit are extended to the Company by nonaffiliated banks with which a correspondent banking relationship exists. At March 31, 2024, and December 31, 2023 there was no outstanding balance related to federal funds purchased. In addition, following the bank failures in 2023, the Federal Reserve created a new Bank Term Funding Program ("BTFP") as an additional source of liquidity against high-quality securities, offering loans of up to one year to eligible institutions pledging qualifying assets as collateral. At March 31, 2024, there was an outstanding balance of $60.0 million related to the BTFP due in 2024 with a weighted average rate of 4.71%, and an outstanding balance of $230.0 million due in 2024 with a weighted average rate of 4.50% at December 31, 2023. For the three months ended March 31, 2024, and 2023, interest expense on other borrowings was $2.4 million and $0.2 million, respectively.