Borrowed Funds

6 Months Ended

Jun. 30, 2024

Borrowed Funds

Borrowed Funds

Note 12 – Borrowed Funds

The following is a summary of borrowings at June 30, 2024 and December 31, 2023:

(in thousands)	June 30, 2024		December 31, 2023
Short-term borrowings:
Securities sold under agreements to repurchase:
Outstanding at end of period	$	22,564	$	45,418
Weighted average interest rate at end of period		0.23%		0.27%
Maximum amount outstanding as of any month end	$	44,415	$	59,777
Average amount outstanding	$	39,625	$	50,498
Approximate weighted average rate during the period		0.27%		0.24%
Bank Term Funding Program, fixed rate of 4.87% at June 30, 2024	$	40,000	$	—
Long-term borrowings:
FHLB advances, bearing fixed interest rate of 4.53% at June 30, 2024 and rates ranging from 4.53% to 4.69% at December 31, 2023.	$	40,000	$	80,000
Junior subordinated debt, bearing variable interest rate of 8.35% at June 30, 2024 and 8.39% at December 31, 2023		30,929		30,929
Total borrowings outstanding	$	133,493	$	156,347

Short-term borrowings increased by $17.1 million, as the Bank borrowed $40.0 million from the Bank Term Funding Program of the Board of Governors of the Federal Reserve System in January 2024, which was partially offset by a decrease of approximately $22.0 million in other short-term borrowings to the ICS deposit product as a result of management’s strategy to release pledging of investment securities for municipalities to increase available liquidity.

At June 30, 2024, the repurchase agreements were secured by $34.2 million in investment securities issued by government related agencies.  A minimum of 102% of fair value is pledged against account balances.

Long-term borrowings decreased by $40.0 million as a $40.0 million advance from the Federal Home Loan Bank matured in March 2024 and was fully repaid.