(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 with Atlantic Community Bankers Bank 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, 2018, DNB’s total availability under Federal Funds lines was $60.0 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, 2018 DNB’s total availability was $508.6 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, 2018 and 2017.



	2018						2017
					Federal						Federal
		Repurchase			Funds			Repurchase			Funds
(Dollars in thousands)		Agreements			Purchased			Agreements			Purchased
Amount outstanding at end of year	$	-		$	-		$	12,023		$	2,372
Weighted average interest rate at end of year		-	%		-	%		0.20	%		1.75	%
Maximum amount outstanding at any month-end	$	14,160		$	5,233		$	17,028		$	2,372
Daily average amount outstanding	$	7,516		$	1,106		$	14,229		$	143
Weighted average interest rate for the year		0.20	%		1.92	%		0.20	%		1.22	%

Total other borrowings at December 31, 2018 and 2017 consist of amounts described above and the capital lease obligation in Note 8. At December 31, 2018, total other borrowings also included $3.0 million representing purchased loans not yet funded.

Repurchase agreements accounted for as secured borrowings are shown in the following table.


(Dollars in thousands)	Overnight and Continuous		Up to 30 days		30 - 90 days		Greater than 90 days		Total
December 31, 2018
Repurchase agreements and repurchase-to-maturity transactions	$	-	$	-	$	-	$	-	$	-
Gross amount of recognized liabilities for repurchase agreements
in statement of condition	$	-							$	-
December 31, 2017
Repurchase agreements and repurchase-to-maturity transactions	$	12,023	$	-	$	-	$	-	$	12,023
Gross amount of recognized liabilities for repurchase agreements
in statement of condition	$	12,023							$	12,023

As of December 31, 2017, DNB had $12.0 million of repurchase agreements. In conjunction with these repurchase agreements, a fair value of $12.1 million of state and municipal securities were sold on an overnight basis as of December 31, 2017, which represents 102% of the repurchase agreement amount.

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 a lien on the Bank’s FHLBP stock. There were $719.4 million in loans used as collateral for FHLBP borrowings. After a collateral weighting of 70.70%, DNB’s maximum borrowing capacity totaled $508.6 million. In addition to the $32.9 million of borrowings from the FHLBP at December 31, 2018, the FHLBP had issued letters of credit, on DNB’s behalf, totaling $30.0 million against DNB’s available credit lines. These letters of credit were used to secure public deposits as required by law.



	December 31, 2018				December 31, 2017
	Weighted				Weighted
(Dollars in thousands)	Average Rate		Amount		Average Rate		Amount
Due by December 31, 2018	-	%	$	-	1.30	%	$	46,078
Due by December 31, 2019	1.43			14,592	1.43			14,592
Due by December 31, 2020	1.64			11,343	1.64			11,343
Due by December 31, 2021	-			-	-			-
Due by December 31, 2022	2.04			7,000	2.04			7,000
Total	1.63	%	$	32,935	1.44	%	$	79,013