Note 8 - Borrowings

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Federal Home Loan Bank Advances, Disclosure [Text Block]

Note 8 - Borrowings

First Fed is a member of the FHLB. As a member, First Fed has a committed line of credit of up to 40% of total assets, subject to the amount of FHLB stock ownership and certain collateral requirements.

First Fed has entered into borrowing arrangements with the FHLB to borrow funds primarily under long-term, fixed-rate advance agreements. First Fed also has overnight borrowings through FHLB which renew daily until paid. First Fed periodically uses fixed-rate advances maturing in less than one year as an alternative source of funds. All borrowings are secured by collateral consisting of single-family, home equity, commercial real estate, and multi-family loans receivable in the amounts of $699.5 million and $641.7 million at  December 31, 2021 and 2020, respectively. Investment securities with a carrying value of $152,000 were also pledged as collateral at  December 31, 2020. No investment securities were pledged as collateral at December 31, 2021.

First Fed also has an established borrowing arrangement with the Federal Reserve Board of San Francisco ("FRB") to utilize the discount window for short-term borrowing. No funds have been borrowed to date. Investment securities with a carrying value of $17.2 million were pledged to the FRB at  December 31, 2021.

On March 25, 2021, the Company completed a private placement of $40.0 million of 3.75% fixed-to-floating rate subordinated notes due 2031 (the “Notes”) to certain qualified institutional buyers and institutional accredited investors. The net proceeds to the Company from the sale of the Notes were approximately $39.3 million after deducting placement agent fees and other offering expenses. The Notes have been structured to qualify as Tier 2 capital for the Company for regulatory capital purposes. The Company intends to use the net proceeds of the offering for general corporate purposes and has provided $20.0 million to the Bank as Tier 1 capital.

FHLB advances and subordinated debt outstanding by type of advance were as follows:

	December 31, 2021		December 31, 2020
	(In thousands)
Long-term advances	$	80,000	$	50,000
Overnight variable-rate advances		—		59,977
Subordinated debt		40,000		—

The maximum and average outstanding balances and average interest rates on overnight variable-rate advances were as follows:

	For the Year Ended December 31,
	2021			2020
	(Dollars in thousands)
Maximum outstanding at any month-end	$	40,000		$	100,021
Monthly average outstanding		5,207			54,548
Weighted-average daily interest rates
Annual		0.30	%		0.60	%
Period End		0.31	%		0.32	%
Interest expense during the period		6			132

The amounts by year of maturity and weighted-average interest rate of FHLB long-term, fixed-rate advances are as follows:

	December 31, 2021					December 31, 2020
	Weighted- Average Interest Rate			Amount		Weighted- Average Interest Rate			Amount
	(Dollars in thousands)
Within one year or less		—	%	$	—		—	%	$	—
After one year through two years		1.54			15,000		1.79			10,000
After two years through three years		1.47			15,000		1.54			15,000
After three years through four years		1.42			25,000		1.47			15,000
After four years through five years		1.55			15,000		1.36			10,000
After five years		1.76			10,000		—			—
		1.52		$	80,000		1.53		$	50,000

The maximum and average outstanding balances and average interest rates on FHLB long-term, fixed-rate advances were as follows:

	For the Year Ended December 31,
	2021			2020
	(Dollars in thousands)
Maximum outstanding at any month-end	$	80,000		$	55,000
Monthly average outstanding		52,500			50,000
Weighted-average interest rates
Annual		1.46	%		1.75	%
Period End		1.52	%		1.53	%
Interest expense during the period		768			920

The maximum and average outstanding balances and average interest rates on subordinated debt were as follows:

	For the Year Ended December 31,
	2021			2020
	(Dollars in thousands)
Maximum outstanding at any month-end	$	40,000		$	—
Monthly average outstanding		30,370			—
Weighted-average interest rates
Annual		3.96	%		—	%
Period End		3.01	%		—	%
Interest expense during the period		1,203			—