v3.26.1
Borrowings
6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Borrowings
6.
Borrowings

Federal Home Loan Bank (“FHLB”)

All borrowings from the FHLB are secured by a blanket security agreement on qualified collateral, principally residential mortgage loans and commercial real estate loans, discounted by a certain percentage, in an aggregate amount greater than or equal to outstanding advances. The Bank’s unused remaining available borrowing capacity at the FHLB was approximately $98.2 million and $96.6 million at June 30, 2026 and December 31, 2025, respectively. At June 30, 2026 and December 31, 2025, the Bank had sufficient collateral at the FHLB to support its obligations and was in compliance with the FHLB’s collateral pledging program.

A summary of borrowings from the FHLB is as follows:

 

 

 

June 30, 2026

 

 

 

Principal Amounts

 

 

Maturity Dates

 

 

Interest Rates

 

 

 

(Dollars in thousands)

 

 

 

$

42,060

 

 

 

2026

 

 

3.92% to 4.38% – fixed

 

718

 

 

 

2028

 

 

0.00% – fixed

 

400

 

 

 

2029

 

 

0.00% – fixed

 

200

 

 

 

2030

 

 

0.00% – fixed

 

906

 

 

 

2031

 

 

0.00% – fixed

 

560

 

 

 

2032

 

 

0.00% – fixed

$

44,844

 

 

 

 

 

 

 

 

 

 

December 31, 2025

 

 

 

Principal Amounts

 

 

Maturity Dates

 

 

Interest Rates

 

 

 

(Dollars in thousands)

 

 

 

$

50,000

 

 

 

2026

 

 

4.38% to 4.75% – fixed

 

718

 

 

 

2028

 

 

0.00% – fixed

 

400

 

 

 

2029

 

 

0.00% – fixed

 

200

 

 

 

2030

 

 

0.00% – fixed

 

430

 

 

 

2031

 

 

0.00% – fixed

 

560

 

 

 

2032

 

 

0.00% – fixed

$

52,308

 

 

 

 

 

 

Included in the above borrowings from the FHLB at June 30, 2026 and December 31, 2025 is a $25.0 million long-term advance, with an interest rate of 4.38%, which is callable by the FHLB on September 8, 2026 and quarterly thereafter. As of June 30, 2026 and December 31, 2025 borrowings from the FHLB also include $2.8 million and $2.3 million, respectively, of advances through the FHLB’s Jobs for New England program where certain qualifying small business loans that create or preserve jobs, expand woman-, minority- or veteran-owned businesses, or otherwise stimulate the economy in New England communities are offered at an interest rate of 0%. At June 30, 2026 and December 31, 2025, the Bank had an overnight line of credit with the FHLB that may be drawn up to $3.0 million. The entire balance of this credit facility was available at June 30, 2026 and December 31, 2025.

Federal Reserve Bank of Boston (“FRB”)

The Bank has a secured credit facility with the FRB – Borrower-In-Custody of Collateral Program (“BIC”). Advances under the BIC would be collateralized by eligible collateral - principally commercial real estate loans. The Bank’s unused available borrowing capacity at the FRB was $36.7 million and $34.1 million at June 30, 2026 and December 31, 2025, respectively. On January 7, 2025, the Bank completed the collateral eligibility process with the FRB whereby the FHLB agreed to subordinate their interest in our commercial real estate loans up to a maximum of $65 million allowing these loans to be pledged to the BIC. The Bank subsequently pledged $65.0 million of its commercial real estate loans to the BIC resulting in $38.5 million of borrowing capacity under this credit facility as of January 16, 2025. On September 9, 2025, the FHLB agreed to increase the subordination of their interest in our commercial real estate loans up to a maximum of $71.7 million allowing these loans to be pledged to the BIC. At June 30, 2026, the Bank was in compliance with the FRB’s collateral pledging program.

Correspondent Banks

At June 30, 2026 and December 31, 2025, the Bank had a $2.0 million unsecured Fed Funds borrowing line of credit with a correspondent bank. The entire balance of this credit facility was available at June 30, 2026 and December 31, 2025.