NOTE 12: BORROWED FUNDS

The composition of borrowings (excluding subordinated debt) at December 31 is as follows:


(In thousands)	2024		2023
Short-term:
FHLB advances	$	61,000	$	125,680
Total short-term borrowings	$	61,000	$	125,680
Long-term:
FHLB advances	$	27,068	$	49,919
Total long-term borrowings	$	27,068	$	49,919

The principal balances, interest rates and maturities of the outstanding long-term borrowings, all of which are at a fixed rate, at December 31, 2024 are as follows:


Term	Principal		Rates
(Dollars in thousands)
Advances with FHLB
Due within 1 year	$	23,883	0.52 - 4.92%
Due within 2 years		3,185	0.67 - 4.96%
Total advances with FHLB	$	27,068
Total long-term fixed rate borrowings	$	27,068

At December 31, 2024, scheduled repayments of long-term debt are as follows:


(In thousands)
2025	$	23,883
2026		3,185
Total	$	27,068

The Company has access to FHLBNY advances, under which it can borrow at various terms and interest rates. Residential mortgage loans with a carrying value of $113.8 million, securities with a carrying value of $82.1 million and FHLB stock with a carrying value of $4.6 million have been pledged by the Company under a blanket collateral agreement to secure the Company’s borrowings at December 31, 2024. The total outstanding indebtedness under borrowing facilities with the FHLB cannot exceed the total value of the assets pledged under the blanket collateral agreement. The Company has a $34.3 million line of credit available at December 31, 2024 with the Federal Reserve Bank of New York through its Discount Window and has pledged various corporate and municipal securities against the line. The Company has $15.0 million in lines of credit available with two other correspondent banks. $10.0 million of that line of credit is available on an unsecured basis and the remaining $5.0 million must be collateralized with investment securities. Interest on the lines is determined at the time of borrowing.

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.

Pathfinder Bancorp, Inc. Debt Disclosure

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