Short-Term Borrowings

12 Months Ended

Dec. 31, 2021

(In Thousands)

Short-term borrowings as of December 31 are summarized as follows:


	2021		2020
Securities sold under agreements to repurchase	$	13,947	$	10,947
Federal funds purchased	—		10,393

Total short-term borrowings	$	13,947	$	21,340

Securities sold under agreements to repurchase (“repurchase agreements”) represent funds received from customers, generally on an overnight or continuous basis, which are collateralized by investment securities owned or, at times, borrowed and re-hypothecated by the Company. The securities used as collateral consist primarily of U.S. Government agency mortgage backed securities, U.S. Government agency collateralized mortgage obligations, obligations of U.S. Government agencies, and obligations of states and political subdivisions. All securities are maintained by the Company’s safekeeping agents. These securities are reviewed by the Company on a daily basis, and the Company may be required to provide additional collateral due to changes in the fair market value of these securities. The terms of the Company’s repurchase agreements are continuous but may be canceled at any time by the Company or the customer.

Federal funds are short term borrowings, generally overnight borrowings, between financial institutions that are generally used to maintain reserve requirements at the Federal Reserve Bank or elsewhere.

FHLB short-term advances, of which there were none at December 31, 2021 and 2020, are borrowings with original maturities of less than one year. In connection with the prepayment of $430,000 in short-term advances from the FHLB during 2020, the Company incurred penalty charges of $121 which is included in the line item “Debt prepayment penalty” in the Consolidated Statements of Income. The Company did not prepay any outstanding short-term advances from the FHLB in 2021 and 2019.

The average balances and cost of funds of short-term borrowings for the years ending December 31 are summarized as follows:


	Average Balances						Cost of Funds
	2021		2020		2019		2021		2020		2019
Federal Home Loan Bank short-term advances	$	—	$	345,601	$	114,965	—	%	1.09	%	2.59	%

Federal funds purchased	747		363		—		0.33		—		—
Securities sold under agreements to repurchase	12,662		10,889		8,479		0.29		0.30		0.15
Total short-term borrowings	$	13,409	$	356,853	$	123,444	0.29	%	1.07	%	2.43	%

The Company maintains lines of credit with correspondent banks totaling $180,000 at December 31, 2021. Interest is charged at the market federal funds rate on all advances. There were no amounts outstanding under these lines of credit at December 31, 2021 or 2020.