SHORT-TERM BORROWINGS AND LONG-TERM DEBT |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Debt Disclosure [Abstract] | |
| SHORT-TERM BORROWINGS AND LONG-TERM DEBT | 8. SHORT-TERM BORROWINGS AND LONG-TERM DEBT
On a long-term basis, the Company intends to continue to increase its core deposits to fund loan growth. The Company utilizes FHLB borrowings as part of the Company's overall strategy to manage interest rate risk and liquidity risk. FHLB advances are secured by a blanket security agreement which requires the Company to maintain certain qualifying assets as collateral, principally certain residential real estate loans, commercial real estate loans, and securities, not otherwise pledged. The maximum amount that the FHLB will advance to member institutions, including the Company, fluctuates from time to time in accordance with the policies of the FHLB. As an FHLB member, the Company is required to own capital stock of the FHLB, calculated periodically based primarily on its level of borrowings from the FHLB. Advances are made under several different credit programs with different lending standards, interest rates, and range of maturities. The Company’s relationship with the FHLB is an integral component of the Company’s asset-liability management program. At June 30, 2026, the Company pledged $958.7 million of eligible collateral to support its borrowing capacity at the FHLB.
Short-term FHLB advances totaled $13.5 million at June 30, 2026, with a weighted average rate of 3.82%, and $10.0 million at December 31, 2025, with a weighted average rate of 3.99%.
The Company also has a standing available Overnight Ideal Way Line of Credit (“Ideal Way Line of Credit”) with the FHLB of $9.5 million. Interest on the Ideal Way Line of Credit is payable at a rate determined and reset by the FHLB on a daily basis. The outstanding principal is due daily but the portion not repaid will be automatically renewed. At June 30, 2026, the Company had an immediate availability to borrow an additional $547.5 million from the FHLB, including the Ideal Way Line of Credit, based on qualified collateral pledged. At June 30, 2026 and December 31, 2025, the Company did not have an outstanding balance under the Ideal Way Line of Credit.
Other borrowings, held as collateral for customer swap arrangements, totaled $4.2 million at June 30, 2026, with a weighted average rate of 3.63%, and $3.3 million at December 31, 2025, with a weighted average rate of 3.64%.
As a member of the FRB, the Company may also borrow from the Federal Reserve Bank Discount Window (the “FRB Discount Window”). At June 30, 2026 and December 31, 2025, the Company had an available line of credit of $392.7 million and $349.0 million, respectively, with the FRB Discount Window at an interest rate determined and reset on a daily basis. Borrowings from the FRB Discount Window are secured by eligible loan collateral and certain securities from the Company’s investment portfolio, not otherwise pledged. At June 30, 2026 and December 31, 2025, the Company did not have an outstanding balance under the FRB Discount Window.
The Company also has pre-established, non-collateralized overnight borrowing arrangements with large national and regional correspondent banks to provide additional overnight and short-term borrowing capacity for the Company. The Company has a $15.0 million line of credit with a correspondent bank and a $10.0 million line of credit with another correspondent bank, both at an interest rate determined and reset on a daily basis. As of June 30, 2026 and December 31, 2025, there were no advances outstanding under these lines.
Long-term debt consists of FHLB and FRB advances with an original maturity of one year or more. Long-term FHLB advances totaled $25.0 million at June 30, 2026, with a weighted average fixed rate of 4.83%, and $73.0 million at December 31, 2025, with a weighted average fixed rate of 4.94%. There were no long-term FRB advances outstanding at June 30, 2026 or December 31, 2025.
|