Borrowings

3 Months Ended

Mar. 31, 2023

Borrowings [Abstract]

Borrowings

Note 6. 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 March 31, 2023 and December 31, 2022, the remaining credit available from these lines totaled $100.0 million and $103.6 million, respectively. The Company has a collateral dependent line of credit with the FHLB with remaining credit availability of $331.6 million and $346.5 as of March 31, 2023 and December 31, 2022, respectively.

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

(dollars in thousands)	March 31, 2023			December 31, 2022
Federal funds purchased	$	-		$	11,378
Overnight repurchase agreements		4,517			4,987
Federal Home Loan Bank advances		72,500			46,100
Total short-term borrowings	$	77,017		$	62,465
Maximum month-end outstanding balance	$	84,360		$	62,465
Average outstanding balance during the period	$	60,585		$	11,776
Average interest rate (year-to-date)		4.38	%		2.34	%
Average interest rate at end of period		4.58	%		4.58	%

Long-Term Borrowings

At December 31, 2022 the Company had fully repaid the borrowings under the FRB’s 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.