Short-Term Borrowings

12 Months Ended

Dec. 31, 2020

Short-term Debt [Abstract]

Short-Term Borrowings

SHORT-TERM BORROWINGS

National Western has available a $75 million bank line of credit (with Moody National Bank, its custodian bank and a related party) primarily for cash management purposes. The line of credit facility was increased from $40 million effective October 1, 2018. The Company is required to maintain a collateral security deposit in trust with the sponsoring bank having a fair value equal to 110% of the line of credit. The Company had no outstanding borrowings under the line of credit at December 31, 2020 or 2019. The Company maintained assets having an amortized value of $95.1 million (fair value of $98.8 million) on deposit with the lender at December 31, 2020.

During 2020, National Western became a member of the Federal Home Loan Bank of Dallas (FHLB) through an initial minimum required stock investment of $4.3 million. Through this membership, National Western will have a specified borrowing capacity based upon the amount of collateral it establishes. At December 31, 2020, no collateral had been established.