Borrowings

12 Months Ended

Dec. 31, 2020

Borrowings [Abstract]

Borrowings

11. BORROWINGS

Short term borrowings, and the related maximum amounts outstanding at the end of any month in both of the years ended December 31, 2020 and 2019, are presented below.

(Dollars in thousands)					Maximum Outstanding at
	Years Ended December 31,				Any Month End
	2020		2019		2020		2019
Repurchase agreements	$	4,750	$	3,429	$	4,889	$	3,891
Short-term borrowings with FHLB:
Overnight advances		—		9,700		—		9,700
3-month advances		20,000		—		20,000
	$	24,750	$	13,129	$	24,889	$	13,591

The following table presents supplemental information related to short-term borrowings.

(Dollars in thousands)	Securities sold under
	agreements to repurchase						Short-term borrowings
	2020			2019			2020			2019
Amount outstanding as of December 31	$	4,750		$	3,429		$	20,000		$	9,700
Weighted average interest rate as of December 31		0.14	%		1.09	%		0.31	%		1.81	%
Average amount outstanding during the year		4,033			3,246			14,521			1,022
Weighted average interest rate during the year		0.17	%		1.15	%		0.42	%		2.32	%

The Bank has repurchase agreements with some of its depositors, under which customers’ funds are invested daily into an interest bearing account. These funds are carried by the Company as short-term debt. It is the Company’s policy to completely collateralize repurchase agreements with U.S. Government securities. As of December 31, 2020, the securities that serve as collateral for securities sold under agreements to repurchase had a fair value of $8,870,000. The interest rate paid on these funds is variable and subject to change daily.

The Company began participating in the Federal Reserve Bank’s Paycheck Protection Program Liquidity Facility (“PPPLF”) in 2020 and received $31,298,000 in advances. As of December 31, 2020, $27,955,000 PPPLF advances were outstanding. The advances are collateralized by 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, which is two years. 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 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 more efficient balance sheet. A prepayment penalty of $524,000 was incurred. Outstanding balances were $35,000,000 as of December 31, 2020 and $45,000,000 as of December 31, 2019.

The following table summarizes the scheduled maturities of long-term debt as of December 31, 2020.

(Dollars in thousands)	Scheduled		Weighted Average
Year	Maturities		Interest Rate
2021	$	—	—	%
2022		—	—
2023		—	—
2024		20,000	2.42
2025		15,000	2.41
Thereafter		—	—
	$	35,000	2.42	%

The Bank must maintain sufficient qualifying collateral with the FHLB to secure borrowings. Therefore, a Master Collateral Agreement has been entered into which pledges all mortgage related assets as collateral for future borrowings. Mortgage related assets could include loans or investment securities. As of December 31, 2020, the amount of loans included in qualifying collateral was $229,357,000. As of December 31, 2019, the amount of loans included in qualifying collateral was $255,566,000. No investment securities were included in qualifying collateral as of December 31, 2020 or 2019.

The Bank’s maximum borrowing capacity with the FHLB was $166,178,000, with a balance of $55,830,000 outstanding as of December 31, 2020. The Bank’s maximum borrowing capacity with the FHLB was $183,790,000, with a balance of $55,604,000 outstanding as of December 31, 2019. To borrow additional amounts, the FHLB would require the Bank to purchase additional FHLB Stock. The FHLB is a source of both short-term and long-term funding. The Bank must maintain sufficient qualifying collateral to secure all outstanding advances. Qualifying collateral is defined by the FHLB and includes outstanding balances of the Company’s real estate loans, excluding loans with certain risk mitigants, including delinquencies and loans made to insiders, borrowers with low credit scores or loans with high loan-to-value ratios.