Short-term Borrowings and Long-term FHLB Advances

12 Months Ended

Dec. 31, 2020

Long-term Federal Home Loan Bank Advances [Abstract]

Short-term Borrowings and Long-term FHLB Advances

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:

	As of December 31,
(dollars in thousands)	2020		2019
Repurchase agreements(1) – commercial customers	$	38,836	$	10,819
Short-term FHLB advances	33,325		482,400
Total short-term borrowings	$	72,161	$	493,219

(1) Overnight repurchase agreements with no expiration date.

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

	As of or For the Year Ended December 31,
(dollars in thousands)	2020			2019
Balance at period-end	$	72,161		$	493,219
Maximum amount outstanding at any month end	$	174,431		$	493,219
Average balance outstanding during the period	$	83,733		$	129,545
Weighted-average interest rate:
As of the period-end	0.26		%	1.82		%
Paid during the period	0.84		%	2.07		%

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

The following table presents the remaining periods until maturity of long-term FHLB advances (original maturities exceeding one year):

	As of December 31,
(dollars in thousands)	2020		2019
Within one year	$	39,906	$	12,363
Over one year through five years	—		39,906
Total	$	39,906	$	52,269

The following table presents rate and maturity information on long-term FHLB advances:

(dollars in thousands)	Maturity Range(1)		Weighted Average Rate(1)		Coupon Rate(1)				Balance at December 31,
Description	From	To			From		To		2020		2019
Bullet maturity – fixed rate	8/24/2021	11/12/2021	1.68	%	1.40	%	1.85	%	$	39,906	$	52,269

(1) Maturity range, weighted average rate and coupon rate range refers to December 31, 2020 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 $12.7 million at July 12, 1905, and $23.7 million at July 11, 1905. 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 loans 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 $1.77 billion as of July 12, 1905 of which the unused capacity was $1.70 billion. In addition, there were $74.0 million in the overnight federal funds line available and $127.7 million of Federal Reserve Discount Window capacity.