Borrowed Funds

9 Months Ended

Sep. 30, 2024

Borrowed Funds

Borrowed Funds

Note 12 – Borrowed Funds

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

(in thousands)	September 30, 2024		December 31, 2023
Short-term borrowings:
Securities sold under agreements to repurchase:
Outstanding at end of period	$	21,206	$	45,418
Weighted average interest rate at end of period		0.24%		0.27%
Maximum amount outstanding as of any month end	$	44,415	$	59,777
Average amount outstanding	$	33,290	$	50,498
Approximate weighted average rate during the period		0.26%		0.24%
Overnight borrowings, weighted average interest rate of 5.00% at September 30, 2024	$	29,000	$	—
Long-term borrowings:
FHLB advances, bearing fixed interest rate ranging from 3.84% to 4.04% at September 30, 2024 and rates ranging from 4.53% to 4.69% at December 31, 2023.	$	90,000	$	80,000
Junior subordinated debt, bearing variable interest rate of 7.95% at September 30, 2024 and 8.39% at December 31, 2023		30,929		30,929
Total borrowings outstanding	$	171,135	$	156,347

Short-term borrowings increased  by $4.8 million when compared to December 31, 2023, which were comprised of $29.0 million in overnight borrowings from the Federal Reserve offset by a shift of approximately $22.0 million in overnight investment sweep balances into FDIC insured accounts due to management’s strategy to release pledging of investment securities for municipalities to provide additional liquidity.  Overnight borrowings outstanding at September 30, 2024 are secured by AFS and HTM investment securities.

At September 30, 2024, the repurchase agreements were secured by $32.5 million in investment securities issued by government related agencies.  A minimum of 102% of fair value is pledged against account balances.

Long-term borrowings increased by $10.0 million when compared to December 31, 2023.  Maturities of Federal Home Loan Bank (“FHLB”) advances of $40.0 million in March and $40.0 million in September were fully repaid.  During the third quarter and after the Federal Reserve announced that it would reduce rates by 50 basis points, the Bank borrowed $90.0 million in three new FHLB advances with maturities of 12- and 18-months and a weighted average rate of 3.89%.  All outstanding FHLB advances at September 30, 2024 and December 31, 2023 are secured by certain eligible residential real estate and commercial real estate loans as permitted by FHLB.

The following table presents contractual maturities of long-term borrowings outstanding at September 30, 2024 and December 31 2023:

	September 30, 2024						December 31, 2023
(in thousands)	Fixed Rate		Floating Rate		Total		Fixed Rate		Floating Rate		Total
Due in 2024	$	—	$	—	$	—	$	80,000	$	—	$	80,000
Due in 2025		25,000		—		25,000		—		—		—
Due in 2026		65,000		—		65,000		—		—		—
Thereafter		—		30,929		30,929		—		30,929		30,929
Total long-term debt	$	90,000	$	30,929	$	120,929	$	80,000	$	30,929	$	110,929