BORROWINGS

12 Months Ended

Dec. 31, 2024

BORROWINGS

BORROWINGS

11. BORROWINGS

Short-term borrowings, and the related maximum amounts outstanding at the end of any month in the years ended December 31, 2024 and 2023, are presented below.

					Maximum Outstanding at
(Dollars in thousands)	Years Ended December 31,				Any Month End
	2024		2023		2024		2023
Repurchase agreements	$	14,342	$	12,810	$	17,214	$	15,266
Short-term borrowings:
Overnight FHLB advances		27,900		—		27,900		38,000
3-month FHLB advances		—		—		—		20,000
FRB advances		—		40,000		40,000		40,000
	$	42,242	$	52,810	$	85,114	$	113,266

The Company participated in the Federal Reserve’s Bank Term Funding Program (“BTFP”) to take advantage of the program’s advantageous borrowing rate. These borrowings are listed as FRB advances on the Consolidated Statements of Financial Condition. All FRB advances matured in 2024; therefore, no outstanding balance remained as of December 31, 2024. FRB advances totaled $40.0 million as of December 31, 2023.

The following table presents supplemental information related to short-term borrowings.

	Securities sold under
(Dollars in thousands)	agreements to repurchase						Short-term borrowings
	2024			2023			2024			2023
Amount outstanding as of December 31	$	14,342		$	12,810		$	27,900		$	40,000
Weighted average interest rate as of December 31		3.51	%		4.37	%		4.81	%		4.89	%
Average amount outstanding during the year	$	15,258		$	9,868		$	41,316		$	32,336
Weighted average interest rate during the year		4.01	%		3.89	%		5.10	%		5.01	%

The Bank has repurchase agreements with some of its depositors, under which customers’ funds are invested daily into an interest bearing account. These funds are carried by the Company as short-term debt. It is the Company’s policy to completely collateralize repurchase agreements with U.S. Government securities. As of December 31, 2024, the securities that serve as collateral for securities sold under agreements to repurchase had a fair value of $21.1 million. The interest rate paid on these funds is variable and subject to change daily.

Long-term debt is comprised only of FHLB advances with an original maturity of one year or more. Outstanding balances were $5.0 million as of December 31, 2024 and $20.0 million December 31, 2023.

The following table summarizes the scheduled maturities of long-term debt as of December 31, 2024.

(Dollars in thousands)	Scheduled		Weighted Average
Year	Maturities		Interest Rate
2025	$	5,000	2.41	%
2026		—	—
2027		—	—
2028		—	—
2029		—	—
Thereafter		—	—
	$	5,000	2.41	%

The Bank must maintain sufficient qualifying collateral with the FHLB to secure borrowings. Therefore, a Master Collateral Agreement has been entered into which pledges all mortgage related assets as collateral for future borrowings. Mortgage related assets could include loans or investment securities. As of December 31, 2024, the amount of loans included in qualifying collateral was $360.7 million. As of December 31, 2023, the amount of loans included in qualifying collateral was $333.5 million. No investment securities were included in qualifying collateral as of December 31, 2024 or 2023.

The Bank’s maximum borrowing capacity with the FHLB was $249.3 million, with a balance of $32.9 million outstanding as of December 31, 2024. The Bank’s maximum borrowing capacity with the FHLB was $230.2 million, with a balance of $20.0 million outstanding as of December 31, 2023. To borrow additional amounts, the FHLB would require the Bank to purchase additional FHLB Stock. The FHLB is a source of both short-term and long-term funding. The Bank must maintain sufficient qualifying collateral to secure all outstanding advances. Qualifying collateral is defined by the FHLB and includes outstanding balances of the Company’s real estate loans, excluding loans with certain risk mitigants, including delinquencies and loans made to insiders, borrowers with low credit scores or loans with high loan-to-value ratios.