FHLBP Advances And Short-Term Borrowed Funds

12 Months Ended

Dec. 31, 2014

FHLBP Advances And Short-Term Borrowed Funds [Abstract]

FHLBP Advances And Short-Term Borrowed Funds

(7)  FHLBP ADVANCES AND SHORT-TERM BORROWED FUNDS

The schedule below provides a summary of short-term borrowings that consist of securities sold under agreements to repurchase, federal funds purchased and other borrowings. Securities sold under agreements to repurchase are overnight borrowings between DNB and its commercial depositors and are subject to daily repricing. Federal Funds purchased from correspondent banks mature in one business day and reprice daily based on the Federal Funds rate. As of December 31, 2014, DNB’s total availability under Federal Funds lines was $33 million. Other short-term borrowings consist of credit available through the Federal Home Loan Bank of Pittsburgh (FHLBP) and the Federal Reserve Discount Window. DNB maintains a line-of-credit (Open Repo Plus) with the FHLBP which is a revolving term commitment used on an overnight basis. The term of this commitment may not exceed 364 days and it reprices daily at market rates. Under terms of a blanket collateral agreement with the FHLBP, the line-of-credit and long term advances are secured by FHLBP stock and qualifying loan receivables, principally real estate secured loans. As of December 31, 2014 DNB’s total availability was $227.7 million with the FHLBP and availability at the Federal Reserve Discount Window is dependent upon the market value of the collateral delivered to the Federal Reserve at the time funds are borrowed.

The following table presents a summary of aggregate short-term borrowings as of and for the years ended December 31, 2014 and 2013.

	2014						2013
					Other						Other
		Repurchase			Short-term			Repurchase			Short-term
(Dollars in thousands)		Agreements			Borrowings			Agreements			Borrowings
Amount outstanding at end of year	$	19,221		$	-		$	19,854		$	1
Weighted average interest rate at end of year		0.16	%		-	%		0.20	%		0.35	%
Maximum amount outstanding at any month-end	$	35,555		$	600		$	25,325		$	1
Daily average amount outstanding	$	19,531		$	276		$	20,590		$	17
Weighted average interest rate for the year		0.20	%		0.64	%		0.22	%		0.47	%

In addition to short-term borrowings, DNB maintains borrowing arrangements with the FHLBP to meet borrowing needs exceeding 30 days. The advances are collateralized by loans and investment securities, and a lien on the Bank’s FHLBP stock. In the table below, the advance maturing in 2015 is a convertible term advance and is callable, at the FHLBP’s option, at various dates. If an advance is called by the FHLBP, DNB has the option of repaying the borrowing, or continuing to borrow at three month Libor plus 14 basis points. In addition to the $20.0 million of borrowings from the FHLBP at December 31, 2014, the FHLBP had issued letters of credit, on DNB’s behalf, totaling $20.0 million against DNB’s available credit lines. These letters of credit were used to secure public deposits as required by law.

	December 31, 2014				December 31, 2013
	Weighted				Weighted
(Dollars in thousands)	Average Rate			Amount	Average Rate			Amount
Due by December 31, 2015	5.86	%	$	10,000	5.86	%	$	10,000
Due by December 31, 2019	1.91			10,000
Total	3.89	%	$	20,000	5.86	%	$	10,000