Note 6 - Borrowings

The Company had no outstanding borrowings as of March 31, 2025 and March 31, 2024.

The following table shows certain information regarding our borrowings at or for the dates indicated:

 

 

At or For the Year Ended March 31,

 

 

 

2025

 

 

2024

 

FHLB of Topeka advances and other borrowings:

 

(Dollars in thousands)

 

Average balance oustanding

 

$

1,752

 

 

$

1,951

 

Maximum amount outstanding an any month-end during the period

 

 

8,459

 

 

 

8,000

 

Average interest rate during the period

 

 

5.65

%

 

 

5.38

%


 

 

 

At or For the Year Ended March 31,

 

 

 

2025

 

 

2024

 

 

 

(Dollars in thousands)

 

Outstanding advances

 

$

 

 

$

 

Additional borrowing capacity

 

 

45,534

 

 

 

45,099

 

Total borrowing capacity

 

$

45,534

 

 

$

45,099

 

The Association had remaining availability for FHLB borrowings of approximately $40.5 million and $40.1 million at March 31, 2025 and March 31, 2024, respectively. The FHLB has sole discretion to deny additional advances. $38,000 of investment securities and $54.0 million of loans were pledged as collateral for FHLB advances at March 31, 2025.

Additionally, the Association had the capacity to borrow $5.0 million from a private bankers’ bank at March 31, 2025 and March 31, 2024.

About Debt Disclosures

Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.

Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.