BORROWINGS

9 Months Ended

Jun. 30, 2022

BORROWINGS

BORROWINGS

10. BORROWINGS

Federal Home Loan Bank (“FHLB”) Advances

At June 30, 2022 and September 30, 2021, FHLB advances outstanding were $37.8 million and $42.0 million, respectively. The advances were all at fixed rates ranging from 0.37% to 2.96%, and with maturities ranging from January 2023 to August 2025 and from October 2021 to August 2025, respectively, at June 30, 2022 and September 30, 2021.

Each advance is payable at its maturity date, with a prepayment penalty for fixed rate advances. The advances were collateralized by $673.5 million and $432.7 million of residential and commercial mortgage loans under a blanket lien arrangement at June 30, 2022 and September 30, 2021, respectively. Based on this collateral and the Company’s holdings of FHLB stock, the Company was eligible to borrow up to an additional total of $183.3 million at June 30, 2022.

The following table sets forth the contractual maturities and weighted average interest rates of the Company’s fixed rate FHLB advances (in thousands):

	Balance at June 30,
	2022
			Weighted
Contractual Maturity	Amount		Average Rate
2022	$	—	—	%
2023		11,905	2.23	%
2024		18,860	0.98	%
2025		7,080	0.58	%
Total	$	37,845	1.30	%

	Balance at September 30,
	2021
			Weighted
Contractual Maturity	Amount		Average Rate
2022	$	4,000	2.02	%
2023		12,040	2.23	%
2024		18,860	0.98	%
2025		7,080	0.58	%
Total	$	41,980	1.37	%

Federal Reserve Borrowings

At June 30 2022 and September 30, 2021, the Company’s borrowings from the Federal Reserve’s Paycheck Protection Program Liquidity Facility (“PPPLF”) were $18.9 million and $117.7 million, respectively. The borrowings have a rate of 0.35% and the maturity date will equal the maturity date of the underlying PPP loan pledged to secure the extension of credit. The maturity date of a PPP loan is either two or five years from origination date. The Company utilized the PPPLF to fund PPP loan production. The borrowings are fully secured by pledged PPP loans as of June 30, 2022 and September 30, 2021.

Correspondent Bank Borrowings

At June 30, 2022, approximately $55 million in unsecured lines of credit extended by correspondent banks were available to be utilized for short-term funding purposes. The Company has $250 thousand in borrowings outstanding under lines of credit with correspondent banks at June 30, 2022 and zero at September 30, 2021.