BORROWINGS

3 Months Ended

Mar. 31, 2022

BORROWINGS

BORROWINGS

8.BORROWINGS

Borrowed funds at March 31, 2022 and December 31, 2021 consist of Federal Home Loan Bank (“FHLB”) advances. There were no short-term advances at March 31, 2022 and December 31, 2021. Long-term advances are summarized by maturity date below.  

	March 31, 2022						December 31, 2021
	Amount by				Weighted		Amount by				Weighted
	Scheduled		Amount by		Average		Scheduled		Amount by		Average
	Maturity*		Call Date (1)		Rate (2)		Maturity*		Call Date (1)		Rate (2)
	(dollars in thousands)
Year ending December 31:
2022	$	—	$	40,000	—	%	$	—		40,000	—	%
2023		184		184	1.45			185		185	1.46
2024		13,400		13,400	1.39			13,400		13,400	1.39
2025		40,987		987	1.32			40,987		987	1.32
2026		—		—	—			—		—	—
2027 and thereafter		1,131		1,131	2.00			1,139		1,139	2.00
	$	55,702	$	55,702	1.35	%	$	55,711	$	55,711	1.35	%
* Includes an amortizing advance requiring monthly principal and interest payments.
(1) Callable FHLB advances are shown in the respective periods assuming that the callable debt is redeemed at the call date, while all other advances are shown in the periods corresponding to their scheduled maturity date.
(2) Weighted average rates are based on scheduled maturity dates.

The FHLB advances are secured by a blanket security agreement which requires the Bank to maintain certain qualifying assets as collateral, principally residential mortgage loans and certain multi-family and commercial real estate loans held in the Bank’s portfolio. The carrying value of the loans pledged as collateral for these borrowings totaled $1.15 billion at March 31, 2022 and $1.22 billion at December 31, 2021. As of March 31, 2022, the Company had $818.4 million of available borrowing capacity with the FHLB.  

The Company also has additional borrowing capacity under a $25.0 million unsecured federal funds line with a correspondent bank and a secured line of credit with the Federal Reserve Bank of Boston (“FRBB”) secured by 72% of the carrying value of indirect auto and commercial loans with principal balances amounting to $100.1 million and $101.4 million at March 31, 2022 and December 31, 2021, respectively. No amounts were outstanding under either line at March 31, 2022 or December 31, 2021.

On August 30, 2018, the Company issued $35.0 million in fixed-to-floating rate subordinated notes due 2028 (the “Notes”) in a private placement transaction to institutional accredited investors. The Notes bear interest at annual fixed rate of 5.625% until September 1, 2023 at which time the interest rate resets quarterly to an interest rate per annum equal to the three–month LIBOR plus 278 basis points. Interest is payable semi-annually on March 1 and September 1 each year through September 1, 2023 and quarterly thereafter. The Notes can be redeemed partially or in whole, prior to the maturity date beginning September 1, 2023 and on any scheduled interest payment date thereafter, at par. The Notes are carried on the Consolidated Balance Sheets net of unamortized issuance costs of $809,000 and $841,000 at March 31, 2022 and December 31, 2021, respectively.