Short-Term Borrowings

12 Months Ended

Dec. 31, 2022

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 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, 2022 or 2021. The Company maintained assets having an amortized value of $92.4 million (fair value of $82.5 million) on deposit with the lender at December 31, 2022.

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 has a specified borrowing capacity based upon the amount of collateral it establishes. At December 31, 2022, cash and securities in the amount of $196.9 million (fair value of $187.7 million) were pledged to FHLB.