Borrowings

6 Months Ended

Jun. 30, 2020

Borrowings [Abstract]

Borrowings

8. BORROWINGS

Borrowings consisted of the following as of June 30, 2020 and December 31, 2019.

(Dollars in thousands)	June 30,		December 31,
	2020		2019
Securities sold under agreements to repurchase	$	4,107	$	3,429
Overnight advances with FHLB		—		9,700
Short-term debt with FHLB		20,000		—
Federal Reserve Bank advances		31,298		—
Long-term debt with FHLB		35,000		45,000
	$	90,405	$	58,129

Borrowings increased $32,276,000, or 55.5%, at June 30, 2020 compared to December 31, 2019. The Company executed a three-year cash flow hedge on $20,000,000 in three-month advances from the FHLB in the second quarter of 2020. The Company also began participating in the Federal Reserve Bank’s Paycheck Protection Program Liquidity Facility (“PPPLF”) during the quarter and received $31,298,000 in advances as of June 30, 2020. The advances are collateralized by the PPP loans granted by the Company. The maturity date of the PPPLF advance equals the maturity date of the underlying PPP loans pledged to secure the extension of credit. The maturity date of the PPPLF’s extension of credit will be accelerated if an underlying PPP loan goes into default if the Company sells the PPP loan to the SBA to realize on the

SBA guarantee. The maturity date of the PPPLF’s extension of credit also will be accelerated to the extent of any loan forgiveness reimbursement received by the Company from the SBA. The interest rate on the advances is fixed at 0.35%.

Long-term debt is comprised only of FHLB advances with an original maturity of one year or more. In April 2020, Juniata executed a balance sheet strategy by repaying $10,000,000 in FHLB long-term advances, at a weighted average rate of 2.75%, to create a smaller, more efficient balance sheet. A prepayment penalty of $524,000 was incurred. The following table summarizes the scheduled maturities of the remaining long-term debt as of June 30, 2020.

(Dollars in thousands)	Scheduled		Weighted Average
Year	Maturities		Interest Rate
2024	$	20,000	2.42	%
2025		15,000	2.41
	$	35,000	2.42	%