Federal Home Loan Bank advances and letters of credit:

The Bank has a master contract agreement with the Federal Home Loan Bank (FHLB) which provides for borrowing up to the maximum of 76% of the book value of the Bank’s 1-4 family real estate loans, 62% of the book value of the Bank’s revolving home equity lines of credit, 62% of the book value of the Bank’s 1-4 family second mortgages, 62% of the book value of the Bank’s secured farmland loans, 73% of the book value of the multi-family loans and the amount of the Bank’s securities pledged, and 72% of the commercial real estate first-lien loans. The total carrying value of the Bank’s assets pledged for FHLB advances was approximately $889,255 and $906,150 at March 31, 2026 and December 31, 2025, respectively. At March 31, 2026, the Bank’s available and unused portion of this borrowing agreement totaled approximately $500,566, based on collateral pledged. The Bank may, however, have to purchase additional FHLB stock to support future draws.

Federal Home Loan Bank advances and letters of credit (continued):

Variable rate advances are due on demand and interest is payable monthly. Various advances were obtained from the FHLB with total outstanding balances of $0 at March 31, 2026 and December 31, 2025.

Fixed rate advances are due at the maturity date, with a prepayment penalty applying and interest payable monthly. Various advances were obtained from the FHLB with a total outstanding balance of $55,917 and $77,917, and various interest rates from 0.00% to 4.46% at March 31, 2026 and December 31, 2025, respectively.

The Bank had four letters of credit totaling $66,045 at March 31, 2026 with maturity dates through March 2027. The Bank also had four letters of credit totaling $66,045 at December 31, 2025 with maturity dates through May 2026.

Federal Reserve Bank Discount Window:

The Bank maintains an operating line of credit with the Federal Reserve Bank Discount Window that is secured by commercial and agricultural loans. As of March 31, 2026 and December 31, 2025, the balance owed on the line was $0. The Bank was eligible to borrow up to approximately $93,526 and $92,003, based on collateral of approximately $106,024 and $112,294 at March 31, 2026 and December 31, 2025, respectively.

At March 31, 2026, the scheduled maturities of Federal Home Loan Bank advances are as follows:

Schedule of Maturities of Federal Home Loan Bank Advances 

Bankers’ Bank Borrowings:

During October 2024, Tri-County Financial Group entered into an operating line of credit with Bankers’ Bank for $10,000 at a variable interest rate based upon the Wall Street Journal Prime Rate, less 0.250 percentage points (6.75% prime interest rate at March 31, 2026 and December 31, 2025, respectively). The note is secured by 52,200 shares of the common stock of First State Bank, representing 100% of the issued and outstanding capital stock of the Bank and matures October 29, 2026. As of March 31, 2026 and December 31, 2025 the balance owed on the line was $0. There were no draws on the operating line of credit at any point during the period ended March 31, 2026 and year ended December 31, 2025.