Short-Term Borrowings and Long-Term Debt

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Short-Term Borrowings and Long-Term Debt

SHORT-TERM BORROWINGS AND LONG-TERM DEBT

The Bank’s long-term debt and short-term borrowings consist of advances from the FHLB of Atlanta. The Bank classifies debt based upon original maturity and does not reclassify debt to short-term status during its life. Long-term debt and short-term borrowings include fixed-rate long-term advances, short-term advances, daily advances and fixed-rate convertible advances.

Rates and maturities on long-term advances and short-term borrowings were as follows:

	Fixed-Rate		Fixed-Rate Convertible
December 31, 2022
Highest rate	4.57	%	n/a
Lowest rate	4.57	%	n/a
Weighted average rate	4.57	%	n/a
Matures through	2023		n/a
December 31, 2021
Highest rate	2.75	%	0.79%
Lowest rate	1.00	%	0.79%
Weighted average rate	2.26	%	0.79%
Matures through	2036		2030

Average rates of long-term debt and short-term borrowings were as follows:

(dollars in thousands)	At or for the Year Ended December 31,
	2022			2021
Long-term debt
Long-term debt outstanding at end of period	$	—		$	12,231
Weighted average rate on outstanding long-term debt	—		%	0.82		%
Maximum outstanding long-term debt of any month end	12,225			27,296
Average outstanding long-term debt	3,848			23,072
Approximate average rate paid on long-term debt	1.25		%	0.95		%
Short-term borrowings
Short-term borrowings outstanding at end of period	$	79,000		$	—
Weighted average rate on short-term borrowings	4.57		%	—		%
Maximum outstanding short-term borrowings at any month end	79,000			—
Average outstanding short-term borrowings	12,696			—
Approximate average rate paid on short-term borrowings	3.36		%	—		%

The Bank’s fixed-rate debt generally consists of advances with monthly interest payments and principal due at maturity.

The Bank’s fixed-rate convertible long-term debt is callable by the issuer, after an initial period ranging from 3 months to 10 years. The instruments are callable at the end of the initial period. As of December 31, 2021, all fixed-rate convertible debt has passed its call date. All advances have a prepayment penalty, determined based upon prevailing interest rates.

During the year ended December 31, 2022, the Bank paid off $12.0 million of maturing long-term debt and made prepayments of $0.2 million on long-term debt resulting in prepayment fees of $15,000. The Bank made prepayments of $15.0 million on long-term debt resulting in prepayment fees of $0.1 million, during the year ended December 31, 2021.

At December 31, 2022 the Bank had no outstanding long-term debt. At December 31, 2021, $0.2 million or 1.89% of the Bank’s long-term debt was fixed for rate and term, as the conversion optionality of the advances have either been exercised or expired.

The Bank has lines available for short-term borrowings of less than a year. There were $79.0 million and no daily or short-term advances as of December 31, 2022 and December 31, 2021, respectively.

Under the terms of an Agreement for Advances and Security Agreement with Blanket Floating Lien (the “Agreement”), the Bank maintains collateral with the FHLB consisting of 1-4 family residential first mortgage loans, second mortgage loans, commercial real estate and investment securities. The Agreement limits total advances to 30% of assets, which were $722.5 million and $697.8 million at December 31, 2022 and 2021, respectively.

At December 31, 2022, $822.9 million of loans and securities were pledged or in safekeeping at the FHLB. Loans and securities are subject to collateral eligibility rules and are adjusted for market value and collateral value factors to arrive at lendable collateral values. At December 31, 2022, FHLB lendable collateral was valued at $632.5 million. At December 31, 2022, the Bank had total lendable pledged loans collateral at the FHLB of $239.7 million of which $97.7 million was available to borrow in addition to outstanding advances of $79.0 million and letter of credit of $63.0 million. Unpledged lendable securities collateral was $392.8 million, bringing total available borrowing capacity to $490.5 million at December 31, 2022.

At December 31, 2021, $723.1 million of loans and securities were pledged or in safekeeping at the FHLB. Loans and securities are subject to collateral eligibility rules and are adjusted for market value and collateral value factors to arrive at lendable collateral values. At December 31, 2021, FHLB lendable collateral was valued at $605.7 million. At December 31, 2021, the Bank had total lendable pledged loans collateral at the FHLB of $192.0 million of which $116.8 million was available to borrow in addition to outstanding advances of $12.2 million and letter of credit of $63.0 million. Unpledged lendable securities collateral was $413.7 million, bringing total available borrowing capacity to $530.5 million at December 31, 2021.

The Bank has established a short-term credit facility with the Federal Reserve Bank of Richmond under its Borrower in Custody program. The Bank had segregated collateral sufficient to draw $7.2 million and $3.3 million under this agreement at December 31, 2022 and 2021, respectively. In addition, the Bank has established unsecured short-term credit facilities with other commercial banks totaling $82.0 million and $32.0 million at December 31, 2022 and 2021. The repurchase facility requires the pledging of securities as collateral. $9.1 million and $6.0 million were outstanding loans under the Borrower in Custody or the unsecured and secured commercial lines at December 31, 2022 and 2021.