Borrowings

6 Months Ended

Jun. 30, 2020

Debt Disclosure [Abstract]

Borrowings

BORROWINGS

At June 30, 2020 and December 31, 2019, the Company had overnight and short-term borrowings from the Federal Home Loan Bank ("FHLB") totaling $125.0 million and $200.0 million, respectively. In addition, overnight and short-term borrowings from correspondent banks totaled $15.0 million and $85.0 million at June 30, 2020 and December 31, 2019, respectively.

Other short-term borrowings at June 30, 2020 and December 31, 2019 consisted of short-term securities sold under agreements to repurchase of $43.1 million and $43.7 million, respectively. The securities sold under agreements to repurchase are overnight sweep arrangement accounts with our customers. As of June 30, 2020, the Company had $43.7 million in mortgage backed securities pledged for its securities sold under agreements to repurchase.

At times the market values of securities collateralizing our securities sold under agreements to repurchase may decline due to changes in interest rates and may necessitate our lenders to issue a “margin call” which requires Lakeland to pledge additional collateral to meet that margin call.

Advances from the FHLB totaled $155.7 million at June 30, 2020 compared to $165.8 million at December 31, 2019 and were collateralized by first mortgage loans. The advances have prepayment penalties. In the first quarter of 2020, the Company repaid two advances totaling $10.0 million and recorded $356,000 in long-term debt prepayment fees.