LONG-TERM BORROWINGS

12 Months Ended

Dec. 31, 2023

LONG-TERM BORROWINGS

LONG-TERM BORROWINGS

NOTE 7 — LONG-TERM BORROWINGS

Long-term borrowings are comprised of advances from FHLB. Under terms of a blanket agreement, collateral for the FHLB loans is certain qualifying assets of the Bank. The qualifying assets are real estate mortgages and certain investment securities.

A schedule of long-term borrowings by maturity as of December 31, 2023 and 2022 follows:

(Dollars in thousands)

	2023		2022
Due 2023, 2.96%	$	—	$	3,000
Due 2024, 1.68%		20,000		20,000
Due 2026, 4.62% to 4.92%		60,000		—
Due 2028, 4.46% to 5.14%		42,000		2,000
Total long-term borrowings	$	122,000	$	25,000

The Corporation’s long-term borrowings consist of notes at fixed interest rates. Upon any default, under the terms of a master agreement, FHLB may declare all indebtedness of the Corporation immediately due. In addition, FHLB shall not be required to fund advances under any outstanding commitments.

Irrevocable standby letters of credit may be issued to a customer/beneficiary by the FHLB on the Corporation’s behalf in order to secure public/municipal unit deposits, provide credit enhancement to certain transaction types, or to support payment obligations to third parties. These irrevocable standby letters of credit are supported by an irrevocable and independent guarantee by the FHLB for the Corporation’s pledging obligation to secure public/municipal unit deposits which eliminates the need for the Corporation to pledge collateral in the amount necessary to secure these funds. There were no irrevocable standby letters of credit which could be drawn on through FHLB’s close of business on December 31, 2023 or 2022. Any irrevocable standby letters of credit are issued as necessary in an amount appropriate to secure specific public/municipal unit deposits.

Under terms of a blanket agreement, collateral for the FHLB loans and letters of credit consists of certain qualifying assets of the Bank. Principal qualifying assets are certain real estate mortgages and investment securities. As of December 31, 2023, loans of $740,384,000 were pledged to FHLB which resulted in a FHLB maximum borrowing capacity of $517,782,000. As of December 31, 2023, no securities were pledged as collateral to FHLB to secure FHLB loans and letters of credit.