Debt

3 Months Ended

Mar. 31, 2024

Maturities of Long-Term Debt [Abstract]

Debt

Debt

Short-term FHLB and Correspondent Bank Borrowings

Total short-term borrowings were $271.8 million and $241.5 million as of March 31, 2024 and December 31, 2023, respectively. Short-term borrowings generally consist of federal funds purchased and advances from the FHLB with an original maturity of less than a year. Federal funds purchased from correspondent banks mature in one business day and reprice daily based on the Federal Funds rate. Advances from the FHLB are collateralized by the Bank’s investment in the common stock of the FHLB and by a blanket lien on selected loan receivables comprised principally of real estate secured loans within the Bank’s portfolio totaling $3.0 billion at March 31, 2024. The Bank had a short-term borrowing capacity from the FHLB as of March 31, 2024 up to the Bank’s unused borrowing capacity of $1.7 billion (equal to $2.1 billion of maximum borrowing capacity, less the aggregate amount of FHLB letter of credits securing public funds deposits, and other FHLB advances and obligations outstanding) upon satisfaction of any stock purchase requirements of the FHLB.

The Bank also has unused overnight lines of credit with other correspondent banks amounting to $35.0 million at March 31, 2024. No draws were made on these lines as of March 31, 2024 and December 31, 2023.

Long-term Debt

The following table presents a summary of long-term debt as of March 31, 2024 and December 31, 2023.

(Dollars in thousands)	March 31, 2024		December 31, 2023
FHLB fixed rate instruments:
Due January 2024, 1.10%	$	—	$	10,000
Due March 2024, 5.60%	—		25,000
Due February 2026, 4.51%	20,000		20,000
Due August 2026, 4.80%	746		782
Due February 2027, 6.71%	22		24
Total FHLB fixed rate instruments	20,768		55,806
Lease obligations included in long-term debt	3,173		3,197
Total long-term debt	$	23,941	$	59,003

As a member of the FHLB, the Bank can access a number of credit products which are utilized to provide liquidity. The FHLB fixed rate instruments obtained by the Bank are secured under the terms of a blanket collateral agreement with the FHLB consisting of FHLB stock and qualifying Bank loan receivables, principally real estate secured loans. The Bank also obtains letters of credit from the FHLB to secure certain public fund deposits of municipality and school district customers who agree to use of the FHLB letters of credit as a legally allowable alternative to investment pledging. These FHLB letter of credit commitments totaled $142.9 million and $153.5 million as of March 31, 2024 and December 31, 2023, respectively.