Short-Term Borrowings and Long -Term Debt

3 Months Ended

Mar. 31, 2019

Short-Term Borrowings and Long-Term Debt

Short-Term Borrowings and Long-Term Debt

(7)      Short-Term Borrowings and Long‑Term Debt

The Corporation’s short‑term borrowings generally consist of federal funds purchased and short‑term borrowings extended under agreements with the Federal Home Loan Bank of Pittsburgh (“FHLB”). The Corporation has two unsecured Federal Funds borrowing facilities with correspondent banks: one of $24 million and one of  $15  million. Federal funds purchased generally represent one-day borrowings.  The Corporation had Federal funds purchased of $549 thousand and $0 at March 31, 2019 and December 31, 2018, respectively. The Corporation also has a facility with the Federal Reserve discount window of $10.2  million. This facility is fully secured by investment securities and loans. There were no borrowings under this facility at March 31, 2019 or at December 31, 2018.

Short‑term borrowings as of March 31, 2019 consisted of short‑term advances from the FHLB of Pittsburgh in the amount of $79.9 million with interest at 2.70%,  and $1.8 million with an original term of 4 years with interest at 1.70%.

Short‑term borrowings as of December 31, 2018 consisted of short-term advances from the FHLB of Pittsburgh in the amount of $112.5 million with interest at 2.62%,  and $1.8 million with an original term of 4 years and interest at 1.70%.

Long‑term debt at March 31, 2019 and December 31, 2018 consisted of the following fixed rate notes with the FHLB and the acquisition purchase note issued in connection with HJ Wealth:

				Balance as of
	Maturity	Interest		March 31,		December 31,
(dollars in thousands)	date	rate		2019		2018
Mid-term Repo-fixed	08/10/20	2.76	%		5,000	5,000
Acquisition Purchase Note	04/01/20	3.00	%		1,031	1,238
Total				$	6,031	6,238

The FHLB of Pittsburgh has also issued $112.1 million of letters of credit to the Corporation for the benefit of the Corporation’s public deposit funds and loan customers. These letters of credit expire by June 14, 2019. The Corporation has a maximum borrowing capacity with the FHLB of $454.6 million as of March 31, 2019 and $437.2 million as of December 31, 2018. All advances and letters of credit from the FHLB are secured by a blanket lien on non-pledged, mortgage-related loans and securities as part of the Corporation’s borrowing agreement with the FHLB.