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Borrowings
12 Months Ended
Dec. 31, 2022
Advance from Federal Home Loan Bank [Abstract]  
Borrowings

NOTE 8. Borrowings

The Company, through its subsidiary bank, borrows funds in the form of federal funds purchased and Federal Home Loan Bank of Atlanta ("FHLB") advances.

Federal fund lines of credit are extended to the Bank by nonaffiliated banks with which a correspondent banking relationship exists. The line of credit amount is determined by the creditworthiness of the Bank and, in particular, its regulatory capital ratios, which are discussed in Note 15. Federal funds purchased generally mature each business day. The following table summarizes information related to federal funds purchased for the years ended December 31, 2022 and 2021:

 

 

 

December 31,

 

 

 

2022

 

 

2021

 

 

 

(dollars in thousands)

 

Balance at year-end

 

$

32,980

 

 

$

 

Average balance during the year

 

 

7,881

 

 

 

1

 

Average interest rate during the year

 

 

2.16

%

 

 

0.66

%

Maximum month-end balance during the year

 

$

32,980

 

 

$

 

Gross lines of credit at year-end

 

 

78,000

 

 

 

78,000

 

Unused lines of credit at year-end

 

 

78,000

 

 

 

78,000

 

 

As of December 31, 2022, Company had remaining credit availability in the amount of $105.7 million with the FHLB. This line may be utilized for short and/or long-term borrowing. Advances on the line are secured by all of the Company’s eligible first lien residential real estate loans on one-to-four-unit, single-family dwellings; multi-family dwellings; home equity lines of credit; and commercial real estate loans. The amount of the available credit is limited to a percentage of the estimated market value of the loans as determined periodically by the FHLB. The amount of the available credit is also limited to 20% of total Bank assets.

The Company had $175.0 million in short-term borrowings with the FHLB at December 31, 2022. The interest rates on the four short-term borrowings with the FHLB ranged from 3.79% to 4.57%, with a weighted average rate of 4.17%. The Company had no long-term borrowings with the FHLB at December 31, 2022. The Company had no outstanding borrowings with the FHLB at December 31, 2021. The Company had a $60.0 million irrevocable letter of credit at December 31, 2022 with the FHLB to secure public deposits.