Borrowings

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Borrowings

Note 8. Borrowings

FHLBNY Advances: As a member of the FHLBNY, the Bank has the ability to borrow from the FHLBNY based on a certain percentage of the value of the Bank's qualified collateral, as defined in the FHLBNY Statement of Credit Policy, at the time of the borrowing. In accordance with an agreement with the FHLBNY, the qualified collateral must be free and clear of liens, pledges and encumbrances.

The Bank had $93.4 million and $106.3 million of outstanding term advances from the FHLBNY at March 31, 2022 and December 31, 2021, respectively. The Bank repaid $12.9 million in advances from FHLBNY during the three months ended March 31, 2022. Additionally, the Bank had an unsecured line of credit in the amount of $25.0 million with a correspondent bank at both March 31, 2022 and December 31, 2021, none of which was outstanding as of such dates. The Bank also had a guarantee from the FHLBNY through letters of credit of up to $21.5 million each at March 31, 2022 and December 31, 2021.       

Borrowed funds at March 31, 2022 and December 31, 2021 consist of the following and are summarized by maturity and call date below:

	March 31,							December 31,
	2022							2021
	Scheduled Maturity		Redeemable at Call Date		Weighted Average Rate			Scheduled Maturity		Redeemable at Call Date		Weighted Average Rate
	(Dollars in thousands)
FHLBNY Term advances ending:
2022		65,000		65,000		1.89	%		77,880		77,880		1.73	%
2023		28,375		28,375		2.82			28,375		28,375		2.82
	$	93,375	$	93,375		2.17	%	$	106,255	$	106,255		2.02	%

Interest expense on FHLBNY term advances totaled $524,000 and $544,000 for the three months ended March 31, 2022 and 2021, respectively. There were no interest expense on FHLBNY overnight advances for the three months ended March 31, 2022 and 2021.    

As of March 31, 2022 and December 31, 2021, the Bank had eligible collateral of approximately $377.2 million and $362.3 million, respectively, in residential 1-4 family and multifamily mortgage loans available to secure advances from the FHLBNY.         

Warehouse Lines of Credit:  Mortgage World maintained two warehouse lines of credit with financial institutions for the purpose of funding the originations and sale of residential mortgages. The lines of credit were repaid with proceeds from the sale of the mortgage loans. The lines were secured by the assets collateralizing underlying mortgages. The agreements with the warehouse lenders provide for certain restrictive covenants such as minimum net worth and liquidity ratios for Mortgage World. As of December 31, 2021, Mortgage World was in full compliance with all financial covenants.

Note 8.Borrowings (Continued)

Warehouse Line of Credit #1

The interest rate is based on the 30-day LIBOR rate plus 3.25%. The effective rate as of March 31, 2022 was 3.70% and the effective rate as of December 31, 2021 was 3.35%. The line of credit is an evergreen agreement that terminates upon request by either the financial institution or the borrower.

Warehouse Line of Credit #2

The interest rate is based on the 30-day LIBOR rate plus 3.00% for loans funded. The effective rate as of December 31, 2020 was 3.10%. The warehouse line of credit was terminated on March 31, 2022.

Total interest expense on warehouse lines of credit totaled $68,000 and $140,000 for the three months ended March 31, 2022 and 2021, respectively.

	March 31, 2022
	Credit Line		Unused Line
	Maximum		of Credit		Balance
	(in thousands)
Warehouse Line of Credit #1	$	10,000	$	9,247	$	753
Total long-term debt	$	10,000	$	9,247	$	753

	December 31, 2021
	Credit Line		Unused Line
	Maximum		of Credit		Balance
	(in thousands)
Warehouse Line of Credit #1	$	15,000	$	8,636	$	6,364
Warehouse Line of Credit #2		15,000	$	6,274	$	8,726
Total long-term debt	$	30,000	$	14,910	$	15,090

Mortgage Loan Funding Payable:  Mortgage loan funding payable consists of liabilities to borrowers in connection with the origination of residential loans originated and intended for sale in the secondary market, that remain unfunded by the Company because there is typically a three day period from when the loans close to when they are funded by the warehouse line of credit. This liability is presented at cost and fully offsets the principal balance of the related loans included in mortgage loans held for sale, at fair value on the consolidated statement of financial condition. At March 31, 2022 and December 31, 2021, there were no mortgage loan funding payable for both periods.