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Deposits and Borrowings

12 Months Ended

Dec. 31, 2023

Note 7— Deposits and Borrowings

The following table shows the components of the Company’s funding sources.

Table 7.1: Composition of Deposits, Short-Term Borrowings and Long-Term Debt


(Dollars in thousands)	December 31, 2023		December 31, 2022
Deposits:
Non-interest bearing demand deposits⁽¹⁾	$	411,374	$	476,697
Interest-bearing demand deposits⁽¹⁾		607,971		691,945
Savings deposits		52,061		95,241
Time deposits⁽²⁾		835,194		803,857
Total Deposits	$	1,906,600	$	2,067,740

(1)	Overdraft demand deposits reclassified to loans totaled $1 thousand at both December 31, 2023 and December 31, 2022.

(2)	The aggregate amount of certificates of deposit with a minimum denomination of $250,000 was $359.3 million and $318.7 million at December 31, 2023 and December 31, 2022, respectively.


						December 31, 2023		December 31, 2022
(Dollars in thousands)	Stated Interest Rate		Weighted-Average Interest Rate			Carrying Value		Carrying Value
Short-term Debt:
Federal Reserve Bank borrowings	4.80	%		4.80	%	$	54,000		—
Total Short-term Debt						$	54,000		—
Long-term Debt:
Subordinated debt	5.25	%		5.25	%	$	24,708	$	24,624
Total Long-term Debt						$	24,708	$	24,624

The Company obtains certain deposits through the efforts of third-party brokers. Brokered deposits totaled $320.6 million and $352.0 million at December 31, 2023 and December 31, 2022, respectively, and were included primarily in time deposits on the Company’s Consolidated Balance Sheets. Reciprocal IntraFi certificates of deposit totaled $45.6 million and $25.7 million at December 31, 2023 and December 31, 2022, respectively. Reciprocal IntraFi demand and money market deposits totaled $234.9 million and $197.3 million at December 31, 2023 and December 31, 2022, respectively.

At December 31, 2023, there were no depositors that represented 5% or more of the Company’s total deposits.

The Company completed a private placement of a $25.0 million fixed-to-floating subordinated note on June 15, 2022 (“2022 note”). Subject to limited exceptions permitting earlier redemption, the note is callable, in whole or in part, commencing July 1, 2027. Unless redeemed earlier, the note will mature on July 1, 2032. The note bears interest at a fixed rate of 5.25% to but excluding July 1, 2027, and will bear interest at a floating rate equal to the three-month Secured Overnight Financing Rate plus 245 basis points thereafter. The note qualifies as Tier 2 capital for regulatory purposes. The note is carried at its principal amount, less unamortized issuance costs. On July 15, 2022, the earliest available call date, the Company utilized the proceeds from the 2022 note issuance to redeem its $25.0 million fixed-to-floating 5.75% subordinated notes that were issued on July 6, 2017.

The Company from time to time uses Federal Home Loan Bank of Atlanta (“FHLB”) advances as a source of funding and interest rate risk management tool. FHLB advances are secured by a blanket floating lien on all real estate mortgage loans secured by 1 to 4 family residential, multi-family and commercial real estate properties. At December 31, 2023, the Company did not have any outstanding FHLB advances. Available borrowing capacity based on collateral value amounted to approximately $436.9 million at December 31, 2023.

The Company also has the capacity to borrow up to $22.8 million at the Federal Reserve discount window of which $0 had been drawn upon at December 31, 2023. The Bank had loans pledged at the Federal Reserve discount window totaling $30.9 million as of December 31, 2023.

On March 12, 2023, the Reserve Bank made available the Bank Term Funding Program (“BTFP”), which enhances the ability of banks to borrow against the par value of certain high-quality, unencumbered investments. On May 15, 2023, the Company obtained a $54.0 million BTFP advance to secure lower funding costs relative to wholesale deposits. The BTFP advance has a term of one year, bears interest at a fixed rate of 4.80% and can be prepaid at any time without penalty prior to maturity. At December 31, 2023, the Company had pledged as collateral for the BTFP advance investment securities with an amortized cost and fair value of $54.6 million and $44.6 million, respectively.

The Company also has unsecured federal funds lines of credit with correspondent banks available for overnight borrowing of $110.0 million of which $10 million had been drawn upon at December 31, 2023.

The following table shows the carrying amount of the Company’s time deposits by contractual maturity as of December 31, 2023.

Table 7.2: Scheduled Maturities of Time Deposits


(Dollars in thousands)	December 31, 2023
2024	$	574,056
2025		181,797
2026		68,629
2027		10,165
2028		547
Thereafter		—
Total	$	835,194