Short-Term Borrowings and Long-Term FHLB Advances

3 Months Ended

Mar. 31, 2019

Long-term Federal Home Loan Bank Advances [Abstract]

Short-Term Borrowings and Long-Term FHLB Advances

A. Short-term borrowings

The Corporation’s short-term borrowings (original maturity of one year or less), which consist of funds obtained from overnight repurchase agreements with commercial customers, FHLB advances with original maturities of one year or less and overnight fed funds, are detailed below.

A summary of short-term borrowings is as follows:



(dollars in thousands)	March 31, 2019		December 31, 2018
Repurchase agreements⁽¹⁾ – commercial customers	$	11,304	$	22,717
Short-term FHLB advances	104,910		229,650
Overnight federal funds	8,000		—
Total short-term borrowings	$	124,214	$	252,367

(1) Overnight repurchase agreements with no expiration date

The following table sets forth information concerning short-term borrowings:



	Three Months Ended March 31,
(dollars in thousands)	2019			2018
Balance at period-end	$	124,214		$	173,704
Maximum amount outstanding at any month end	$	184,257		$	173,704
Average balance outstanding during the period	$	179,754		$	172,532

Weighted-average interest rate:
As of the period-end	2.47		%	1.76		%
Paid during the period	2.43		%	1.48		%

Average balances outstanding during the year represent daily average balances and average interest rates represent interest expense divided by the related average balance.

B. Long-term FHLB Advances

As of March 31, 2019 and December 31, 2018, the Corporation had $55.4 million and $55.4 million, respectively, of long-term FHLB advances (original maturities exceeding one year).

The following table presents the remaining periods until maturity of long-term FHLB advances:



(dollars in thousands)	March 31, 2019		December 31, 2018
Within one year	$	33,105	$	28,105
Over one year through five years	22,302		27,269
Total	$	55,407	$	55,374

The following table presents rate and maturity information on FHLB advances and other borrowings:



	Maturity Range⁽¹⁾		Weighted Average Rate⁽¹⁾		Coupon Rate⁽¹⁾				Balance at
Description	From	To	Weighted Average Rate⁽¹⁾		From		To		March 31, 2019		December 31, 2018
Bullet maturity – fixed rate	5/20/2019	8/24/2021	1.76	%	1.40	%	2.13	%	$	55,407	$	55,374

(1) Maturity range, weighted average rate and coupon rate range refers to March 31, 2019 balances.

C. Other Borrowings Information

In connection with its FHLB borrowings, the Corporation is required to hold the capital stock of the FHLB. The amount of capital stock held was $10.5 million at March 31, 2019, and $14.5 million at December 31, 2018. The carrying amount of the FHLB stock approximates its redemption value.

The level of required investment in FHLB stock is based on the balance of outstanding borrowings the Corporation has from the FHLB. Although FHLB stock is a financial instrument that represents an equity interest in the FHLB, it does not have a readily determinable fair value. FHLB stock is generally viewed as a long-term investment. Accordingly, when evaluating FHLB stock for impairment, its value should be determined based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value.

The Corporation had a maximum borrowing capacity with the FHLB of $1.56 billion as of March 31, 2019 of which the unused capacity was $1.40 billion. In addition, there were $71.0 million in the overnight federal funds line available and $145.5 million of Federal Reserve Discount Window capacity.