Borrowings |
3 Months Ended |
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Mar. 31, 2023 | |
Advance from Federal Home Loan Bank [Abstract] | |
Borrowings | NOTE 14. Borrowings On March 31, 2022, the Company entered into Subordinated Note Purchase Agreements with certain purchasers pursuant to which the Company issued and sold $30.0 million in aggregate principal amount of its 4.50% Fixed-to-Floating Rate Subordinated Notes due April 1, 2032 (the “Notes”). The Company plans on using the net proceeds of the Notes offering for general corporate purposes, organic growth and to support the Bank’s regulatory capital ratios. The Notes were structured to qualify as Tier 2 capital for regulatory capital purposes at the holding company and bear an initial interest rate of 4.50% until April 1, 2027, with interest during this period payable semi-annually in arrears. From and including April 1, 2027, to but excluding the maturity date or early redemption date, the interest rate will reset quarterly to an annual floating rate equal to three-month SOFR, plus 2.35%, with interest during this period payable quarterly in arrears. The Notes are redeemable by the Company at its option, in whole or in part, on or after April 1, 2027. Initial debt issuance costs were $673 thousand. The debt balance of $30.0 million is presented net of unamortized issuance costs of $606 thousand at March 31, 2023. The Company had $220.0 million in total borrowings with the FHLB at March 31, 2023 with $125.0 million being short-term borrowings and $95.0 million being long-term borrowings. The interest rates on the short-term borrowings with the FHLB ranged from 4.76% to 5.07%, with a weighted average rate of 4.88%. The interest rates on the long-term borrowings with the FHLB ranged from 4.72% to 4.83%, with a weighted average rate of 4.77%. Of the long-term FHLB borrowings, $55.0 million is due in and $40.0 million is due in . The Company had $175.0 million in outstanding borrowings with the FHLB at December 31, 2022. The Company had a $60.0 million irrevocable letter of credit at March 31, 2023 with the FHLB to secure public deposits. |