BORROWINGS
The following table details outstanding fixed rate bullet advances with the Federal Home Loan Bank of Indianapolis ("FHLBI") for the years ended December 31, 2025 and 2024:
| | | | | | | | | | | |
| (dollars in thousands) | 2025 | | 2024 |
Short-term fixed rate bullet advance, 3.79%, due January 8, 2026 | $ | 170,000 | | | $ | 0 | |
Long-term fixed rate bullet advance, 0.00%, due March 12, 2035 | 1,200 | | | 0 | |
| Total | $ | 171,200 | | | $ | 0 | |
For the year ended December 31, 2025, the Company had advances outstanding from the FHLBI of $171.2 million. The short-term fixed rate bullet advance advance could not be prepaid by the Company without a penalty. The note required payment at maturity and was secured by residential real estate loans and securities with a carrying value of $925.6 million at December 31, 2025. The long-term fixed rate bullet advance is a rate-subsidized Community Development Financial Institution ("CDFI") Rate Buydown Advance offered by the FHLBI to fund a low cost loan to a qualifying CDFI. There were no borrowings outstanding with the FHLBI at December 31, 2024.
At December 31, 2025 and 2024, the Company owned $18.0 million of FHLB stock, which also secures debts owed to the FHLBI. The Company is authorized by the Board to borrow up to $800.0 million at the FHLBI, but availability is limited to $473.6 million based on collateral and outstanding borrowings. Federal Reserve Discount Window borrowings were secured by commercial loans and investment securities with a carrying value of $1.47 billion and $1.71 billion as of December 31, 2025 and 2024, respectively. The Company had a borrowing capacity of $1.19 billion and $1.36 billion at the Federal Reserve Bank as of December 31, 2025 and 2024, respectively. There were no borrowings outstanding at the Federal Reserve Bank at December 31, 2025 and 2024.
The Company had $395.0 million of availability in federal funds lines with thirteen correspondent banks as of both December 31, 2025 and 2024; no amounts were drawn upon as of either year-end. The Bank is also a member of the American Financial Exchange (AFX) where overnight fed funds purchased can be obtained from other banks on the Exchange that have approved the Bank for an unsecured, overnight line. These funds are only available if the approving banks have an ‘offer’ out to sell that day. The total amount approved for the Bank via AFX banks was $312.0 million and $304.0 million at December 31, 2025 and 2024, respectively. There were no amounts drawn as of December 31, 2025 and 2024.
On October 11, 2023, the Company entered into an unsecured revolving credit agreement with another financial institution allowing the Company to borrow up to $30.0 million. The credit agreement has a one year term which may be amended, extended, modified or renewed. The credit agreement was subsequently amended and renewed in 2024 and most recently on October 10, 2025. Funds provided under the agreement may be used to repurchase shares of the Company's common stock under the share repurchase program, which was reauthorized by the Company's board of directors on April 8, 2025 and expires on April 30, 2027, and for general operations. The credit agreement includes a negative pledge agreement whereby the Company agrees not to pledge or otherwise encumber the stock of the Bank. The credit agreement had an outstanding balance of $13.0 million and zero at December 31, 2025 and 2024, respectively. The outstanding balance of the credit agreement at December 31, 2025 was repaid by the Company on January 14, 2026.