Borrowings

3 Months Ended

Mar. 31, 2025

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), advances from the FHLB, and a revolving unsecured line of credit agreement.

The Company maintains federal funds lines with several correspondent banks to address short-term borrowing needs. As of both March 31, 2025 and December 31, 2024, the remaining credit available from these lines totaled $115.0 million. The Company has a collateral dependent line of credit with the FHLB with remaining credit availability of $433.2 million and $400.5 million as of March 31, 2025 and December 31, 2024, respectively.

On December 23, 2024, the Company entered into a revolving unsecured line of credit agreement with another financial institution for $3.3 million. This line bears interest at the prime lending rate and matures on December 23, 2025. As of both March 31, 2025 and December 31, 2024, the remaining credit available from this line was $1.3 million.

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

(dollars in thousands)	March 31, 2025			December 31, 2024
Overnight repurchase agreements	$	1,323		$	1,962
Federal Home Loan Bank advances		-			-
Other short-term borrowings		2,005			2,005
Total short-term borrowings	$	3,328		$	3,967
Maximum month-end outstanding balance (year-to-date)	$	43,451		$	81,413
Average outstanding balance during the period	$	41,885		$	33,766
Average interest rate (year-to-date)		3.88	%		4.43	%
Average interest rate at end of period		0.02	%		0.03	%

Long-Term Borrowings

The Company had two long-term FHLB advances totaling $40.0 million outstanding at March 31, 2025 and December 31, 2024, with scheduled maturities on July 9, 2027 and July 9, 2029 and rates at 3.69% and 4.33%.

On July 14, 2021, the Company completed a $30.0 million issuance, ($29.4 million, net of issuance costs) of subordinated notes (the Notes) in a private placement transaction. The Notes are due in 2031 and 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.  In the first quarter of 2025, $3.7 million of the Notes were repurchased and retired, resulting in a realized gain of $656 thousand.