FHLB Borrowings

3 Months Ended

Mar. 31, 2022

FHLB Borrowings

FHLB Borrowings

Note 7—FHLB Borrowings

FHLB Advances

FHLB borrowings at March 31, 2022 and December 31, 2021 consist of the following:

	March 31,				December 31,
	2022		Interest Rates		2021		Interest Rates
Long-term fixed rate advances	$	150,000	0.43% - 1.96	%	$	150,000	0.43% - 1.96	%

At March 31, 2022, the Company has long-term fixed-rate advances of $150,000 with maturity dates ranging from May 2029 to February 2030.The advances require monthly interest-only payments with the principal amount due on the maturity date and may contain a prepayment penalty if paid before maturity. At March 31, 2022, the advances may be callable by the FHLB as follows: $100,000 in May 2022 and quarterly thereafter until February 2030; and $50,000 in May 2024. At March 31, 2022, the Bank had additional borrowing capacity of $323,547 from the FHLB.

FHLB Overdraft Line of Credit and Letters of Credit

The Bank has established a short-term overdraft line of credit agreement with the FHLB, which provides for maximum borrowings of $20,000. The overdraft line of credit was not used during the three months ended March 31, 2022. The average amount outstanding during the three months ended March 31, 2021 was $13. At March 31, 2022 and December 31, 2021, there were no outstanding borrowings under this agreement. Borrowings accrue interest based on a variable rate based on the FHLB’s overnight cost of funds rate, which was 0.67% and 0.43% at March 31, 2022 and December 31, 2021, respectively. The agreement has a one-year term and terminates in October 2022.

In 2021, the Bank entered into irrevocable standby letters of credit arrangements with the FHLB totaling $11,500 to provide credit support for certain of its obligations related to its commitment to repurchase certain pools of Advantage Loan Program loans. An irrevocable standby letter of credit of $7,500 has a 16-month term and expires in July 2022. An irrevocable standby letter of credit of $4,000 has a 36-month term and expires in July 2024. There were no borrowings outstanding on these standby letters of credit during the three months ended March 31, 2022 and 2021.

The long-term fixed-rate advances and the overdraft line of credit are collateralized by certain investment securities and loans. Refer to Note 3—Investment Securities for further information on securities pledged as collateral and Note 4—Loans for further information on loans pledged as collateral.

Other Borrowings

The Bank had available unsecured credit lines with other banks totaling $80,000 at March 31, 2022 and December 31, 2021, respectively. There were no borrowings under these unsecured credit lines during the three months ended March 31, 2022 and 2021.