Borrowings

12 Months Ended

Dec. 31, 2022

Borrowings [Abstract]

Borrowings

NOTE 8. Borrowings

Short-Term Borrowings

The Company classifies all borrowings that will mature within a year from the date on which the Company enters into them as short-term borrowings. Short-term borrowings sources consist of federal funds purchased, overnight repurchase agreements (which are secured transactions with customers that generally mature within one to four days), and advances from the FHLB.

The Company maintains federal funds lines with several correspondent banks to address short-term borrowing needs. At December 31, 2022 and 2021 the credit available from these lines totaled $115.0 million, respectively. The Company has a collateral dependent line of credit with the FHLB with remaining credit availability of $346.5 million and $391.3 million as of December 31, 2022 and December 31, 2021, respectively.

The following table presents total short-term borrowings as of the dates indicated:

(dollars in thousands)	December 31, 2022			December 31, 2021
Federal funds purchased	$	11,378		$	-
Overnight repurchase agreements		4,987			4,536
Federal Home Loan Bank advances		46,100			-
Total short-term borrowings	$	62,465		$	4,536
Maximum month-end outstanding balance	$	62,465		$	12,239
Average outstanding balance during the period	$	11,776		$	7,293
Average interest rate (year-to-date)		2.34	%		0.10	%
Average interest rate at end of period		4.58	%		0.10	%

Long-Term Borrowings

At December 31, 2022 the Company had fully repaid the borrowings under the FRB’s PPPLF. At December 31, 2021 the Company had $480 thousand outstanding in long-term borrowings under the PPPLF.

On July 14, 2021, the Company completed the issuance of $29.4 million, net of issuance costs, or $30.0 million in aggregate principal amount of subordinated notes (the Notes) due in 2031 in a private placement transaction.  The Notes bear interest at a fixed rate of 3.5% for five years and at the three-month SOFR plus 286 basis points, resetting quarterly, thereafter.