Borrowings and Line of Credit

12 Months Ended

Dec. 31, 2023

Borrowings and Line of Credit [Abstract]

Borrowings and Line of Credit

Note 9. Borrowings and Line of Credit

Securities Sold Under Agreements to Repurchase:

Securities sold under repurchase agreements, which are secured borrowings, generally mature within one to four days from the transaction date. Securities sold under repurchase agreements are reflected at the amount of cash received in connection with the transaction. The Company may be required to provide additional collateral based on the fair value of the underlying securities. The Company monitors the fair value of the underlying securities on a daily basis.

At December 31, 2023 and 2022, the Company had securities sold under agreements to repurchase of $5.1 million and $4.8 million, respectively, with commercial checking customers which were secured by government agency securities. The average balance for 2023 and 2022 was $5.1 million and $5.4 million, respectively. The maximum month-end outstanding balance for 2023 and 2022 was $6.1 million and $5.9 million, respectively. The carrying value of investment securities pledged as collateral under repurchase agreements was $7.6 million and $9.2 million at December 31, 2023 and December 31, 2022, respectively.

Federal Reserve Bank:

The Bank has agreements with the Federal Reserve Bank’s discount window to provide additional funding to the Bank. The Federal Reserve discount window line is collateralized by a pool of commercial real estate loans and commercial and industrial loans.

At December 31, 2023 and 2022, the funding capacity and loans secured for borrowings was as follows (in thousands):

	2023		2022
Maximum funding capacity	$	283,048	$	74,054
Borrowings		—		—
Additional funding capacity	$	283,048	$	74,054
Loans pledged for borrowings	$	379,827	$	99,728

Federal Home Loan Bank Advances:

The Bank has agreements with the Federal Home Loan Bank of Cincinnati ("FHLB") that can provide advances to the Bank. All of the advances are secured by a blanket lien on qualifying first mortgages on 1-4 family residential and commercial properties and are pledged as collateral for these advances. There were no securities pledged to FHLB at December 31, 2023 and 2022.

At December 31, 2023 and 2022, the borrowing capacity and loans secured for advances was as follows (in thousands):

	2023		2022
Maximum borrowing capacity	$	573,888	$	593,759
FHLB advances		—		—
Standby letters of credit		(103,982)		(3,981)
Additional borrowing capacity	$	469,906	$	589,778
Loans pledged for advances	$	809,707	$	777,480

The Company had no FHLB advances as of December 31, 2023, and 2022, respectively.

Federal Funds Purchased:

There were no federal funds purchased as of December 31, 2023, and 2022 respectively.

Line of Credit:

The Company has a revolving line of credit for an aggregate amount of $35.0 million at December 31, 2023.  During 2023 the revolving line of credit was increased by $10 million from $25 million at December 31, 2022, and the maturity was extended to February 1, 2025.  At December 31, 2023, and 2022, $8.0 million and $12.5 million, respectively, was outstanding under the line of credit.

Secured Borrowings:

The Bank occasionally enters into loan participation agreements with other banks in the ordinary course of business to diversify credit risk. For certain sold participation loans, the Bank has retained effective control of the loans, typically by restricting the participating institutions from pledging or selling their share of the loan without permission from the Bank. GAAP requires the participated portion of these loans to be recorded as secured borrowings. The participated portions of these loans are included in the Commercial Real Estate totals above with a corresponding liability reflected in other borrowings. At December 31, 2023 and 2022, the balance of such loans totaled $0 and $24.6 million, respectively.