FEDERAL HOME LOAN BANK BORROWINGS AND FEDERAL FUNDS PURCHASED |
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| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FEDERAL HOME LOAN BANK BORROWINGS AND FEDERAL FUNDS PURCHASED | FEDERAL HOME LOAN BANK BORROWINGS AND FEDERAL FUNDS PURCHASED Borrowings serve as an additional source of liquidity for the Company. At June 30, 2026, the Company had no outstanding Federal Home Loan Bank (“FHLB”) borrowings, compared to $178.5 million at December 31, 2025. The $178.5 million decrease from December 31, 2025, reflects the repayment of borrowings utilizing proceeds from the Loan Sale Transaction. FHLB borrowings consist of fixed and variable rate advances with contractual maturities and are secured by a blanket lien on select residential mortgage loans, select multifamily loans, and select commercial real estate loans. At June 30, 2026, the Company had no variable rate FHLB borrowings compared to 52.0% of total borrowings at December 31, 2025. The FHLB assesses prepayment fees on fixed rate advances that are repaid prior to maturity. These fees are generally calculated as the net present value of the difference between current market rates and the contractual fixed rate on the applicable borrowing. During the six months ended June 30, 2026, FHLB early prepayment credits totaled $0.1 million. Loans pledged as collateral to the FHLB totaled $1.4 billion at both June 30, 2026 and December 31, 2025. No available-for-sale securities were pledged as collateral at June 30, 2026 or December 31, 2025. At June 30, 2026, funding sources accessible to the Company included borrowing availability at the FHLB equal to 30.0% of total assets, or $1.4 billion, subject to eligible collateral pledged. Based on eligible collateral at June 30, 2026, the Company had the capacity to borrow an additional $879.5 million from the FHLB, compared to additional borrowing capacity of $609.4 million at December 31, 2025. During the six months ended June 30, 2026, the Company decreased its $45.0 million secured line of credit with a correspondent financial institution to $25.0 million, and during the second quarter of 2026, this line of credit was converted to an unsecured facility. In addition, a $50.0 million unsecured line of credit with an unrelated correspondent financial institution was fully reinstated. Reflecting the Company’s improved earnings performance and enhanced credit risk profile following the Loan Sale Transaction during the first quarter of 2026, the Company now maintains unsecured borrowing lines of credit totaling $105.0 million with four correspondent financial institutions, inclusive of the converted unsecured facility noted previously. The Company also continues to have access to the institutional CD market. At December 31, 2025, the Company maintained unsecured borrowing facilities with three correspondent financial institutions totaling $30.0 million, as well as a fully secured borrowing facility with one correspondent financial institution totaling $45.0 million. No amounts were outstanding under these facilities as of June 30, 2026 or December 31, 2025. The following table represents the balance of FHLB borrowings, the weighted average interest rate and the borrowing availability at the dates presented:
The following table represents the balance of federal funds purchased, the weighted average interest rate and the borrowing availability at the dates presented:
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