Borrowings

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Borrowings

Note 8. Borrowings

FHLBNY Advances: As a member of FHLBNY, the Bank has the ability to borrow from the FHLBNY based on a certain percentage of the value of the Bank's qualified collateral, as defined in FHLBNY Statement of Credit Policy, at the time of the borrowing. In accordance with an agreement with FHLBNY, the qualified collateral must be free and clear of liens, pledges and encumbrances.

The Bank had $106.3 million and $109.3 million of outstanding term advances from FHLBNY at December 31, 2021 and 2020, respectively. The Bank repaid $11.0 million in advances from FHLBNY during the year ended December 31, 2021. Additionally, the Bank has an unsecured line of credit in the amount of $25.0 million with a correspondent bank at both December 31, 2021 and 2020, none of which was outstanding as of such dates. The Bank also had a guarantee from the FHLBNY through letters of credit of up to $21.5 million and $61.5 million at December 31, 2021 and 2020, respectively.  

Note 8. Borrowings (Continued)

Borrowed funds at December 31, 2021 and 2020 consist of the following and are summarized by maturity and call date below:

	December 31,							December 31,
	2021							2020
	Scheduled Maturity		Redeemable at Call Date		Weighted Average Rate			Scheduled Maturity		Redeemable at Call Date		Weighted Average Rate
	(Dollars in thousands)
FHLBNY overnight advances	$	—	$	—		—	%	$	8,000	$	8,000		0.34	%
FHLBNY term advances ending :
2021		—		—		—	%		3,000		3,000		1.84
2022		77,880		77,880		1.73			77,880		77,880		1.73
2023		28,375		28,375		2.82			28,375		28,375		2.82
	$	106,255	$	106,255		2.02	%	$	117,255	$	117,255		1.90	%

Interest expense on FHLBNY term advances totaled $2.2 million, $2.5 million and $1.7 million for the years ended December 31, 2021, 2020 and 2019, respectively. There were no interest expense on FHLBNY overnight advances for the year ended December 31, 2021.  Interest expense on FHLBNY overnight advances totaled $173,000, and $130,000 for the years ended December 31, 2020 and 2019, respectively.

As of December 31, 2021 and 2020, the Bank had eligible collateral of approximately $362.3 million and $336.8 million, respectively, in mortgage loans available to secure advances from the FHLBNY.

Warehouse Lines of Credit:  Mortgage World maintains two warehouse lines of credit with financial institutions for the purpose of funding the originations and sale of residential mortgages. The lines of credit are repaid with proceeds from the sale of the mortgage loans. The lines are secured by the assets collaterizing underlying mortgages. The agreements with the warehouse lenders provide for certain restrictive covenants such as minimum net worth and liquidity ratios for Mortgage World. All warehouse facilities are guaranteed by Mortgage World. As of December 31, 2021, Mortgage World was in full compliance with all financial covenants.

Warehouse Line of Credit #1

The interest rate is based on the 30-day LIBOR rate plus 3.25%. The effective rate at December 31, 2021 and 2020 was 3.35% and 3.39%, respectively. The line of credit is an evergreen agreement that terminates upon request by either the financial institution or the borrower.

Warehouse Line of Credit #2

The interest rate is based on the 30-day LIBOR rate plus 3.00% for loans funded by wires. The effective rate at December 31, 2021 and 2020 was 3.10% and 3.14%, respectively. The warehouse line of credit is due to expire on June 30, 2022.

	December 31, 2021
	Credit Line		Unused Line
	Maximum		of Credit		Balance
	(in thousands)
Warehouse Line of Credit #1	$	15,000	$	8,636	$	6,364
Warehouse Line of Credit #2		15,000		6,274		8,726
Total long-term debt	$	30,000	$	14,910	$	15,090

Note 8. Borrowings (Continued)

	December 31, 2020
	Credit Line		Unused Line
	Maximum		of Credit		Balance
	(in thousands)
Warehouse Line of Credit #1	$	29,900	$	2,171	$	27,729
Warehouse Line of Credit #2		5,000		2,768		2,232
Total long-term debt	$	34,900	$	4,939	$	29,961

Mortgage Loan Funding Payable: Mortgage loan funding payable consists of liabilities to borrowers in connection with Mortgage World origination of residential loans originated and intended for sale in the secondary market, that remain unfunded because there is typically a three day period from when the loans close to when they are funded by the warehouse line of credit. This liability is presented at cost and fully offsets the principal balance of the related loans included in mortgage loans held for sale, at fair value on the consolidated statement of financial condition. At December 31, 2021, there were no mortgage loan funding payable. At December 31, 2020 the balance of mortgage loan funding payable was $1.5 million.