v3.26.1
Note 9 - Borrowings and Subordinated Debt
 12 Months Ended
Dec. 31, 2025
Notes to Financial Statements  
Debt Disclosure [Text Block]

9.    BORROWINGS AND SUBORDINATED DEBT

 

FHLB Borrowings

 

The Company maintains a borrowing agreement with the FHLB of Pittsburgh with an available funding capacity of approximately $432.94 million as of December 31, 2025. This agreement is subject to annual renewal, incurs no service charges, and is secured by FHLB stock and a blanket security agreement on outstanding residential mortgage loans.

 

Federal Home Loan Bank advances consist of separate loans with the FHLB of Pittsburgh as of   December 31, 2025 and December 31, 2024 as follows (dollars in thousands):

 

  

2025

  

2024

 
      

Weighted

      

Weighted

 
  

Amount

  Average Rate  

Amount

  Average Rate 
                 

FHLB fixed-rate advances maturing:

                

2025

 $-   -% $37,550   4.40%

2026

  4,500   4.02   4,500   4.02 

2027

  500   1.19   500   1.19 

2028

  500   1.22   500   1.22 
                 

Total

 $5,500      $43,050     

 

 

Subordinated Debt

 

As part of the acquisition of NUBC, the Company acquired previously issued $10 million of subordinated debt, as of December 31, 2025 the balance was $9.89 million.  The subordinated debt has a term of 10 years, maturing in June 2031, and a contractual fixed interest rate of 4.50% through June 30, 2026. The effective rate is 4.70%, which includes the amortization of issuance costs. Subsequent to June 30, 2026, the interest rate will be floating, based on the 90-day average Secured Overnight Financing Rate (“SOFR”) plus 382 basis points. Interest is paid semi-annually in June and December.

 

The Company may redeem or prepay any or all of the subordinated debt, in whole or in part, without premium or penalty, at any time on or after June 30, 2026, and prior to the maturity date at a price of 100% of the principal amount, plus interest accrued and unpaid to the date of redemption or prepayment.