Borrowings

12 Months Ended

Sep. 30, 2022

Borrowings

Borrowings

Note 7. Borrowings

Federal Home Loan Bank (“FHLB”) Advances

At September 30, 2022 and 2021, FHLB term borrowings outstanding were $37.8 million and $42.0 million, respectively, all of which were fixed rate.

At September 30, 2022, the Company had $55.0 million in FHLB overnight borrowings outstanding at a rate of 3.29%. There were no overnight borrowings outstanding at September 30, 2021.

The following table sets forth the contractual maturities and weighted average interest rates of the Company’s fixed rate FHLB overnight and term advances:

	Balance at September 30,
	2022
			Weighted
Contractual Maturity	Amount		Average Rate
Overnight	$	55,000	3.29	%
2023, rates from 0.37% to 2.96%		11,860	2.23	%
2024, rates from 0.39% to 2.53%		18,860	0.98	%
2025, rates from 0.56% to 0.59%		7,080	0.58	%
Total term advances		37,800	1.30	%
Total FHLB advances	$	92,800	2.48	%

	Balance at September 30,
	2021
			Weighted
Contractual Maturity	Amount		Average Rate
Overnight	$	—	—	%
2022, rates from 2.01% to 2.05%		4,000	2.02	%
2023, rates from 0.37% to 2.96%		12,040	2.23	%
2024, rates from 0.39% to 2.53%		18,860	0.98	%
2025, rates from 0.56% to 0.59%		7,080	0.58	%
Total term advances		41,980	1.37	%
Total FHLB advances	$	41,980	1.37	%

Each advance is payable at its maturity date, with a prepayment penalty for fixed rate advances. The advances were collateralized by $822.2 million and $432.7 million of residential and commercial mortgage loans under a blanket lien arrangement at September 30, 2022 and 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 $183.6 million at September 30, 2022.

Federal Reserve Borrowings

At September 30, 2022 and 2021, the Company’s borrowings from the Federal Reserve’s Paycheck Protection Program Liquidity Facility (“PPPLF”) were $9.0 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 September 30, 2022 and 2021.

Correspondent Bank Borrowings

At September 30, 2022, approximately $65 million in unsecured lines of credit extended by correspondent banks were available to be utilized for short-term funding purposes. No borrowings were outstanding under lines of credit with correspondent banks at September 30, 2022 and 2021.