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BORROWED FUNDS AND REPURCHASE AGREEMENTS
 12 Months Ended
Dec. 31, 2020
BORROWED FUNDS AND REPURCHASE AGREEMENTS [Abstract]  
BORROWED FUNDS AND REPURCHASE AGREEMENTS
10. BORROWED FUNDS AND REPURCHASE AGREEMENTS


The following table shows the breakdown of borrowed funds as of December 31, 2020 and 2019 (dollars in thousands)

  
Securities
Sold Under
Agreements to
Repurchase(a)
    
FHLB
Advances(b)
    
Federal Funds
Lines (c)
    
FRB
BIC Line (d)
    
Notes
Payable(e)
    
Term
Loans(f)
    
Total
Borrowed
Funds
  
2020
                                          
Balance at December 31
  
$
14,813
    
$
-
    
$
-
    
$
-
    
$
7,500
    
$
66,525
    
$
88,838
  
Highest balance at any month-end
    
14,813
      
67,106
      
-
      
-
      
7,500
      
79,022
      
168,441
  
Average balance
    
12,903
      
12,371
      
-
      
109
      
7,500
      
60,355
      
93,238
  
Weighted average interest rate:
                                                        
Paid during the year
    
0.36
%
    
1.63
%
    
0.51
%
    
0.34
%
    
3.83
%
    
1.19
%
    
1.34
%
As of year-end
    
0.11
%
    
0.00
%
    
0.00
%
    
0.00
%
    
3.57
%
    
1.12
%
    
1.16
%
2019
                                                        
Balance at December 31
  
$
11,298
    
$
24,794
    
$
-
    
$
-
    
$
7,500
    
$
41,525
    
$
85,117
  
Highest balance at any month-end
    
16,161
      
82,779
      
-
      
-
      
7,500
      
41,525
      
147,965
  
Average balance
    
13,644
      
69,477
      
3
      
7
      
7,500
      
18,410
      
109,041
  
Weighted average interest rate:
                                                        
Paid during the year
    
1.98
%
    
2.46
%
    
2.67
%
    
2.49
%
    
5.32
%
    
2.40
%
    
2.59
%
As of year-end
    
1.45
%
    
1.81
%
    
0.00
%
    
0.00
%
    
4.70
%
    
2.08
%
    
2.15
%

(a)    We utilize securities sold under agreements to repurchase to facilitate the needs of our customers and to facilitate secured short-term funding needs. Securities sold under agreements to repurchase are stated at the amount of cash received in connection with the transaction. We monitor collateral levels on a continuous basis. We may be required to provide additional collateral based on the fair value of the underlying securities. Securities pledged as collateral under repurchase agreements are maintained with our safekeeping agents. The collateral pledged on the repurchase agreements by the remaining contractual maturity of the repurchase agreements in the Consolidated Balance Sheets as of December 31, 2020 and December 31, 2019 is presented in the following tables (in thousands).

  
Remaining Contractual Maturity of the Agreements
  
2020
  
Overnight and
Continuous
    
Up to
30 Days
    
30 - 90 Days
    
Greater than
90 days
    
Total
  
Repurchase Agreements:
                              
U.S. agency securities
  
$
16,735
    
$
-
    
$
-
    
$
-
    
$
16,735
  
Total carrying value of collateral pledged
  
$
16,735
    
$
-
    
$
-
    
$
-
    
$
16,735
  
Total liability recognized for repurchase agreements
                                  
$
14,813
  

 
Remaining Contractual Maturity of the Agreements
  
2019
  
Overnight and
Continuous
    
Up to
30 Days
    
30 - 90 Days
    
Greater than
90 days
    
Total
  
Repurchase Agreements:
                              
U.S. agency securities
  
$
15,964
    
$
-
    
$
-
    
$
-
    
$
15,964
  
Total carrying value of collateral pledged
  
$
15,964
    
$
-
    
$
-
    
$
-
    
$
15,964
  
Total liability recognized for repurchase agreements
                                  
$
11,298
  

(b)    FHLB Advances consist of an “Open RepoPlus” agreement with the FHLB of Pittsburgh. FHLB “Open RepoPlus” advances are short-term borrowings that bear interest based on the FHLB discount rate or Federal Funds rate, whichever is higher.  The Company has a borrowing limit of $690,544,000, inclusive of any outstanding advances and letters of credit. FHLB advances are secured by a blanket security agreement that includes the Company’s FHLB stock, as well as certain investment and mortgage-backed securities held in safekeeping at the FHLB and certain residential and commercial mortgage loans.  A portion of these advances, $25.0 million, are subject to interest rate swap arrangements. See Note 17 for additional information.

(c)    The federal funds lines consist of unsecured lines from two third party banks at market rates.  The Company has a borrowing limit totaling $34,000,000, inclusive of any outstanding balances.  No specific collateral is required to be pledged for these borrowings.

(d)    The Federal Reserve Bank Borrower in Custody (FRB BIC) Line consists of a borrower in custody in agreement opened in January 2010 with the Federal Reserve Bank of Philadelphia secured by municipal loans maintained in the Company's possession.  As of December 31, 2020 and 2019, the Company has a borrowing limit of $4,379,000 and $10,902,000, respectively, inclusive of any outstanding advances. The approximate carrying value of the municipal loan collateral was $12,932,000 and $26,895,000 as of December 31, 2020 and 2019, respectively.

(e)    In December 2003, the Company formed a special purpose entity (“Entity”) to issue $7,500,000 of floating rate obligated mandatory redeemable trust preferred securities as part of a pooled offering.  The rate was determined quarterly and floated based on the 3 month LIBOR plus 2.80 percent.   The Entity may redeem them, in whole or in part, at face value after December 17, 2008, and on a quarterly basis thereafter.  The Company borrowed the proceeds of the issuance from the Entity in December 2003 in the form of a $7,500,000 note payable.  Debt issue costs of $75,000 have been capitalized and fully amortized as of December 31, 2008.  Under current accounting rules, the Company’s minority interest in the Entity was recorded at the initial investment amount and is included in the other assets section of the balance sheet.  The Entity is not consolidated as part of the Company’s consolidated financial statements.  The $7,500,000 note payable is subject to an interest rate swap  arrangement. See  Note 17 for additional information.
(f)    Term Loans consist of separate loans with the FHLB of Pittsburgh as follows (dollars in thousands):

Interest Rate
  
Maturity
  
December 31,
2020
    
December 31,
2019
  
Fixed:
                
 
1.84
%
January 13, 2020
    
-
      
20,000
  
 
0.38
%
January 4, 2021
    
25,000
      
-
  
 
2.61
%
February 3, 2021
    
2,000
      
2,000
  
 
3.52
%
July 12, 2021
    
2,000
      
2,000
  
 
2.37
%
August 20, 2021
    
2,800
      
2,800
  
 
0.25
%
July 9, 2021
    
15,000
      
-
  
 
2.08
%
January 6, 2022
    
4,725
      
4,725
  
 
2.46
%
March 28, 2024
    
5,000
      
5,000
  
 
1.69
%
August 20, 2024
    
5,000
      
5,000
  
 
1.24
%
March 3, 2025
    
5,000
      
-
  
Total term loans
      
$
66,525
    
$
41,525
  


Following are maturities of borrowed funds as of December 31, 2020 (in thousands):

2021
  
$
61,613
  
2022
    
4,725
  
2023
    
-
  
2024
    
10,000
  
2025
    
5,000
  
Thereafter
    
7,500
  
Total borrowed funds
  
$
88,838