XML 26 R15.htm IDEA: XBRL DOCUMENT v3.24.3
Note 6 - Borrowings
 9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Debt Disclosure [Text Block]

Note 6 — Borrowings

 

Borrowings consist of the following:

 

September 30, 2024

                          

Category

Term

 

Amount

  

Maturity

  

Rate

 

Rate Type

 

Callable/Putable

  

Start Date

  

Frequency

 
 

(Dollars in Millions)

 

FHLB advances

                          
 

Long-term

 $10,000  

August 2, 2027

   3.61%

Fixed

 

Putable

  

August 1, 2024

  

Monthly

 
 

Long-term

  10,000  

August 5, 2027

   3.36%

Fixed

 

Putable

  

August 5, 2024

  

Quarterly

 
 

Long-term

  50,000  

December 14, 2027

   1.73%

Fixed

 

N/A

  

December 14, 2017

  

N/A

 
 

Long-term

  10,000  

May 15, 2029

   3.54%

Fixed

 

Putable

  

May 15, 2024

  

Monthly

 
 

Long-term

  10,000  

June 4, 2029

   3.55%

Fixed

 

Putable

  

June 4, 2024

  

Monthly

 
 

Long-term

  10,000  

June 5, 2029

   3.48%

Fixed

 

Putable

  

June 5, 2024

  

Monthly

 
 

Long-term

  10,000  June 14, 2029   3.43%

Fixed

  Putable   June 14, 2024   Monthly 
 

Long-term

  10,000  June 18, 2029   3.47%

Fixed

  Putable   June 18, 2024   Monthly 
 

Long-term

  10,000  July 9, 2029   3.40%

Fixed

  Putable   July 8, 2024   Monthly 
 

Long-term

  10,000  July 12, 2029   3.35%

Fixed

  Putable   July 12, 2024   Monthly 
 

Long-term

  10,000  August 2, 2029   2.89%

Fixed

  Putable   August 2, 2024   Monthly 
 

Long-term

  10,000  September 6, 2034   2.32%

Fixed

  Putable   September 6, 2024   Monthly 

Total FHLB long-term advances

  160,000       2.82%             
 

Short-Term

  40,000  

October 1, 2024

   4.92%

Fixed

  N/A   N/A   N/A 
 

Short-Term

  15,000  

October 3, 2024

   5.30%

Fixed

  N/A   N/A   N/A 
 

Short-Term

  12,900  

October 3, 2024

   5.30%

Fixed

  N/A   N/A   N/A 
 

Short-Term

  4,400  

October 3, 2024

   5.30%

Fixed

  N/A   N/A   N/A 
 

Short-Term

  29,000  

October 7, 2024

   5.25%

Fixed

  N/A   N/A   N/A 
 

Short-Term

  22,000  

October 15, 2024

   5.13%

Fixed

  N/A   N/A   N/A 
 

Short-Term

  14,500  

October 15, 2024

   5.13%

Fixed

  N/A   N/A   N/A 
 

Short-Term

  4,400  

October 15, 2024

   5.13%

Fixed

  N/A   N/A   N/A 
 

Short-Term

  23,700  

October 15, 2024

   5.13%

Fixed

  N/A   N/A   N/A 
 

Short-Term

  10,800  

October 15, 2024

   5.12%

Fixed

 

N/A

  

N/A

  

N/A

 
 

Short-Term

  14,800  

October 21, 2024

   4.84%

Fixed

  N/A   N/A   N/A 
 

Short-Term

  2,700  

October 21, 2024

   4.84%

Fixed

  N/A   N/A   N/A 
 

Short-Term

  11,400  October 21, 2024   4.84%

Fixed

  N/A   N/A   N/A 
 

Short-Term

  6,800  October 28, 2024   4.83%

Fixed

  N/A   N/A   N/A 
 

Short-Term

  7,100  October 28, 2024   4.83%

Fixed

  N/A   N/A   N/A 
 

Short-Term

  23,500  December 27, 2024   4.79%

Fixed

  N/A   N/A   N/A 
 

Short-Term

  20,000  January 29, 2025   4.74%

Fixed

  N/A   N/A   N/A 

Total FHLB short-term advances

  263,000       5.02%             

Total FHLB advances

  423,000       4.19%             
                           

Short-Term Borrowings

                          

Federal reserve bank

Short-term

 $136,300  

January 16, 2025

   4.76%

Fixed

  N/A   N/A   N/A 

Total federal reserve bank

 $136,300       4.76%             

Repurchase agreements

Revolving

 $827   N/A   7.85%

Variable

  N/A   N/A   N/A 

Total short-term borrowings

 $137,127       4.78%             

Total borrowings

 $560,127       4.33%             
                           
                           

December 31, 2023

                          

Category

Term

 

Amount

  

Maturity

  

Rate

 

Rate Type

 

Callable/Putable

  

Start Date

  

Frequency

 
 

(Dollars in Thousands)

 

FHLB advances

                          
 

Long-term

 $50,000  December 14, 2027   1.73%

Fixed

  Putable   December 14, 2019   Single 
 

Long-term

  10,000  August 7, 2028   3.51%

Fixed

  Putable   December 7, 2023   Quarterly 
 

Long-term

  10,000  August 8, 2028   3.52%

Fixed

  Putable   December 8, 2023   Quarterly 
 

Long-term

  10,000  

October 10, 2028

   3.49%

Fixed

 

Putable

  

November 10, 2023

  

Quarterly

 
 

Long-term

  10,000  

October 10, 2028

   3.49%

Fixed

 

Putable

  

November 10, 2023

  

Quarterly

 
 

Long-term

  10,000  

November 3, 2028

   3.46%

Fixed

 

Putable

  

December 4, 2023

  

Quarterly

 
 

Long-term

  10,000  

November 6, 2028

   3.47%

Fixed

 

Putable

  

December 6, 2023

  

Quarterly

 
 

Long-term

  15,000  

November 14, 2028

   3.39%

Fixed

 

Putable

  

December 14, 2023

  

Quarterly

 
 

Long-term

  10,000  November 29, 2028   3.38%

Fixed

  Putable   December 29, 2023   Quarterly 
 

Long-term

  10,000  November 29, 2028   3.43%

Fixed

  Putable   January 29, 2024   Quarterly 
 

Long-term

  10,000  

December 4, 2028

   3.31%

Fixed

 

Putable

  

January 4, 2023

  

Quarterly

 

Total FHLB long-term advances

  155,000       2.89%             
 

Short-term

  60,000  January 2, 2024   5.44%

Fixed

  N/A   N/A   N/A 
 

Short-term

  20,000  January 2, 2024   5.45%

Fixed

  N/A   N/A   N/A 
 

Short-term

  20,000  January 5, 2024   5.48%

Fixed

  N/A   N/A   N/A 
 

Short-term

  20,500  

January 8, 2024

   5.38%

Fixed

  N/A   N/A   N/A 
 

Short-term

  18,000  

January 8, 2024

   5.38%

Fixed

  N/A   N/A   N/A 
 

Short-term

  14,000  

January 16, 2024

   5.49%

Fixed

  N/A   N/A   N/A 
 

Short-term

  21,000  

January 22, 2024

   5.36%

Fixed

  N/A   N/A   N/A 
 

Short-term

  33,000  

January 29, 2024

   5.36%

Fixed

  N/A   N/A   N/A 
 

Short-term

  27,500  

February 20, 2024

   5.41%

Fixed

  N/A   N/A   N/A 
 

Short-term

  27,000  February 27, 2024   5.42%

Fixed

  N/A   N/A   N/A 
 

Short-term

  24,500  March 13, 2024   5.39%

Fixed

  N/A   N/A   N/A 
 

Short-term

  23,500  

December 29, 2024

   4.79%

Fixed

  N/A   N/A   N/A 

Total FHLB short-term advances

  309,000       5.37%             

Total FHLB advances

  464,000       4.54%             
                           

Short-Term Borrowings

                          

Federal reserve bank

Short-term

 $145,000   December 31, 2024   4.83%

Fixed

  N/A   N/A   N/A 

Total Federal reserve bank

 $145,000       4.83%             

Repurchase agreements

Revolving

 $2,054   N/A   8.20%

Variable

  N/A   N/A   N/A 

Total short-term borrowings

 $147,054       4.88%             

Total borrowings

 $611,054       4.62%             

 

The short-term repurchase agreement represents the outstanding portion of a total $50.0 million commitment with one unrelated banks as of September 30, 2024.  The short-term repurchase agreement is utilized by Waterstone Mortgage Corporation to finance loans originated for sale. This agreement is secured by the underlying loans being financed.  Related interest rates are based upon the note rate associated with the loans being financed. The short-term repurchase agreement had a $827,000 balance at September 30, 2024 and a $2.1 million balance at December 31, 2023.

 

The Company enters into agreements under which it sells securities subject to an obligation to repurchase the same or similar securities. In addition, the Company enters into agreements under which it sells loans held for sale subject to an obligation to repurchase the same loans. Under these arrangements, the Company may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Company to repurchase the assets. As a result, these repurchase agreements are accounted for as collateralized financing arrangements (i.e., secured borrowings) and not as a sale and subsequent repurchase of assets. The obligation to repurchase the assets is reflected as a liability in the Company's consolidated statements of financial condition, while the securities and loans held for sale underlying the repurchase agreements remain in the respective investment securities and loans held for sale asset accounts. In other words, there is no offsetting or netting of the investment securities or loans held for sale assets with the repurchase agreement liabilities. The Company's repurchase agreement is subject to master netting agreements, which sets forth the rights and obligations for repurchase and offset. Under the master netting agreement, the Company is entitled to set off the collateral placed with a single counterparty against obligations owed to that counterparty.

 

The Federal Reserve Bank (“FRB”) created a new borrowing facility called the Bank Term Funding Program.  This program allows a bank to borrow against its investment portfolio, at par value, with no reduction for unrealized losses.  The term is for one year and interest rate is fixed at the time the advance is taken and there is no prepayment penalty.  Allowable investments for pledge are those the FRB can own.  This would include all of the Company’s investment securities except municipal securities, private label bonds, and corporate bonds.  At September 30, 2024, the Company had fully utilized its borrowing capacity under this program.  The program does not allow for additional funding capacity after  March 11, 2024.

 

At September 30, 2024, the Company had approximately $362.5 million in unused borrowing capacity at the FHLB.

 

The Company selects loans that meet underwriting criteria established by the FHLB as collateral for outstanding advances. The Company’s borrowings from the FHLB are limited to 76% of the carrying value of unencumbered one- to four-family mortgage loans, 73% of the carrying value of multi-family loans and 62% of the carrying value of home equity loans. In addition, these advances were collateralized by FHLB stock of $21.7 million at September 30, 2024 and $20.9 million at  December 31, 2023, respectively. In the event of prepayment, the Company is obligated to pay all remaining contractual interest on the advance.