Borrowings

6 Months Ended

Dec. 31, 2023

Borrowings

Borrowings

Note 10 – Borrowings

The Bank is a member of the Federal Home Loan Bank (“FHLB”) system, which consists of 11 regional Federal Home Loan Banks. The FHLB provides a central credit facility primarily for member institutions. The Bank had a maximum borrowing capacity with the FHLB of Pittsburgh of approximately $284.1 million and $295.0 million at December 31, 2023 and June 30, 2023, respectively. FHLB advances are secured by qualifying assets of the Bank, which include Federal Home Loan Bank stock and loans. The Bank had $411.4 million and $427.2 million of loans pledged as collateral as of December 31, 2023 and June 30, 2023, respectively. The Bank, as a member of the FHLB of Pittsburgh, is required to acquire and hold shares of capital stock in the FHLB of Pittsburgh. The Bank was in compliance with the requirements for the FHLB of Pittsburgh with an investment of $3.0 million and $2.3 million at December 31, 2023 and June 30, 2023, respectively.

Advances from the FHLB of Pittsburgh consisted of $54.0 million and $34.0 million of fixed rate short-term borrowings as of December 31, 2023 and June 30, 2023, respectively.

As of December 31, 2023 and June 30, 2023, the Bank had $10.0 million and $10.2 million of loans pledged as collateral to secure a $3.5 million and $3.7 million overnight line of credit with the Federal Reserve Bank, respectively.  There was no outstanding balance for the overnight line of credit with the Federal Reserve Bank as of December 31, 2023 and June 30, 2023. In addition, as of December 31, 2023 and June 30, 2023, the Bank had $10.0 million of available credit from Atlantic Community Bankers Bank to purchase federal funds.