BORROWINGS

12 Months Ended

Dec. 31, 2025

BORROWINGS

BORROWINGS

11. BORROWINGS

Short-Term Borrowings

Short-term borrowings, which consist of federal funds purchased and other short-term borrowings are summarized as follows:

	AT DECEMBER 31, 2025
	FEDERAL
	FUNDS			SHORT-TERM
	PURCHASED			BORROWINGS
	(IN THOUSANDS, EXCEPT RATES)
Balance at year-end	$	—		$	—
Maximum balance at any month end		—			31,551
Average balance during year		27			5,528
Average rate paid for the year		4.89	%		4.78	%
Interest rate on year-end balance		—			—

	AT DECEMBER 31, 2024
	FEDERAL
	FUNDS			SHORT-TERM
	PURCHASED			BORROWINGS
	(IN THOUSANDS, EXCEPT RATES)
Balance at year-end	$	—		$	14,642
Maximum balance at any month end		—			36,650
Average balance during year		7			27,956
Average rate paid for the year		6.59	%		5.66	%
Interest rate on year-end balance		—			4.71

Average amounts outstanding during the year represent daily averages. Average interest rates represent interest expense divided by the related average balances.

The Company has the ability to purchase federal funds under lines with two correspondent banks which have an average maturity of overnight. There were no borrowings under these lines at December 31, 2025 and 2024. In addition, as a member of the Federal Home Loan Bank, the Company’s subsidiary bank can obtain advances on a revolving line of credit (open repo plus), which are typically overnight borrowings and are reported as short-term borrowings. The rate on these advances can change daily. There were no borrowings under the FHLB open repo plus line at December 31, 2025 compared to borrowings of $14.6 million at December 31, 2024.

During 2025, the Parent Company established a $3 million revolving line of credit with an unrelated financial institution which can be used for general corporate purposes. Amounts outstanding under the line of credit bear interest at a rate of the daily secured overnight financing rate (SOFR) plus an unadjusted spread of 250-basis points (2.50%) plus a SOFR adjustment of 10-basis points (0.10%). The line of credit expires in May 2026 and is secured by investment securities. Advances under the line are reported as short-term borrowings. There were no borrowings under this line at December 31, 2025.

Term Advances from Federal Home Loan Bank (FHLB)

Term advances from the FHLB consist of the following:

	AT DECEMBER 31, 2025
	WEIGHTED
	AVERAGE YIELD		BALANCE
MATURING	(IN THOUSANDS, EXCEPT RATES)
2026	4.26	%	$	17,770
2027	4.23			15,100
2028	4.46			11,745
Total advances from FHLB	4.30		$	44,615

	AT DECEMBER 31, 2024
	WEIGHTED
	AVERAGE YIELD		BALANCE
MATURING	(IN THOUSANDS, EXCEPT RATES)
2025	4.76	%	$	11,943
2026	4.27			17,270
2027	4.23			15,100
2028	4.46			11,745
Total advances from FHLB	4.40		$	56,058

The Company’s subsidiary Bank is a member of the FHLB which provides this subsidiary with the opportunity to obtain short- to long-term advances based upon the Company’s investment in assets secured by one- to four-family residential real estate and certain types of commercial and commercial real estate loans. Rates on the term advances are fixed until the maturity of the advance. All FHLB stock along with an interest in certain residential mortgage, commercial real estate, and commercial and industrial loans with an aggregate statutory value equal to the amount of the advances, are pledged as collateral to the FHLB of Pittsburgh to support these borrowings and advances on the open repo plus line. At December 31, 2025, the Company had immediately available $311 million of overnight borrowing capability at the FHLB, $41 million of short-term borrowing availability at the Federal Reserve Bank and $35 million of unsecured federal funds lines with correspondent banks.

Subordinated Debt

On August 26, 2021, the Company completed a private placement of $27 million in fixed-to-floating rate subordinated notes to certain accredited investors. The notes mature September 1, 2031 and are non-callable for five years. The notes have a fixed annual interest rate of 3.75%, payable until September 1, 2026. From and including September 1, 2026, the interest rate will reset quarterly to the then-current three-month SOFR plus 3.11%. The subordinated debt was structured to qualify as tier 2 capital under the Federal Reserve’s capital guidelines.

The Company used approximately $20 million of the net proceeds to retire its existing subordinated debt and guaranteed junior subordinated deferrable interest debentures (trust preferred securities) on September 30, 2021. Specifically, the Company retired $12 million of 8.45% trust preferred securities which had been issued on April 28, 1998 and $7.7 million of 6.50% subordinated debt which had been issued on December 29, 2015. The remainder of the proceeds were utilized for general corporate purposes, including the downstream of $3.5 million as capital to the Bank in the third quarter of 2021. The net balance of subordinated debt as of December 31, 2025 and 2024 was $26.8 million and $26.7 million, respectively.