Borrowed Funds

3 Months Ended

Mar. 31, 2025

Debt Disclosure [Abstract]

Borrowed Funds

Note 5: Borrowed Funds

Borrowed funds consisted of the following at March 31, 2025 and December 31, 2024:

	March 31, 2025					December 31, 2024
	Average Rate			Amount		Average Rate			Amount
Federal Home Loan Bank:
Fixed rate, short term advances		4.45	%	$	8,835,000		4.44	%	$	4,700,000
Fixed rate, fixed term advances		3.81	%		19,000,000		3.82	%		19,500,000
Total borrowings				$	27,835,000				$	24,200,000

The Company utilizes fixed rate short term advances from the Federal Home Loan Bank (“FHLB”) as a flexible source of liquidity. Terms of these advances range from 1 – 27 days.

The following is a summary of scheduled maturities of non-short term borrowed funds as of March 31, 2025:

	Average Rate			Amount
2025		4.11	%	$	5,000,000
2026		3.74	%		6,000,000
2028		3.68	%		8,000,000
Total				$	19,000,000

Actual maturities may differ from the scheduled principal maturities due to call options on the various advances.

The Company has a master contract agreement with the FHLB that provides for borrowing up to a FHLB determined percent of the book value of the Company’s qualifying one- to four-family residential real estate loans. The loans pledged as security for FHLB borrowings totaled approximately $72,259,000 and $68,175,000 at March 31, 2025 and December 31, 2024, respectively. FHLB advances are also secured by $1,903,782 and $1,879,971 of FHLB stock owned by the Company at March 31, 2025 and December 31, 2024, respectively. At March 31, 2025, the Company has current borrowing capacity of $43,698,000 based on total collateral pledged as of this date. The Company will be required to purchase FHLB activity stock to support additional borrowings beyond current activity stock holdings.

At March 31, 2025 and December 31, 2024, the Company has short-term borrowing availability through the Federal Reserve Bank’s discount window of up to $25 million. The Company is required to pledge securities and/or loans in order to borrow at the discount window. The Company had no short-term borrowings through the Federal Reserve discount window and did not pledge securities or loans as of March 31, 2025 and December 31, 2024.

At March 31, 2025 and December 31, 2024, the Company had an unsecured $6.0 million federal funds line of credit with a correspondent bank.