Borrowings

3 Months Ended

Mar. 31, 2021

Debt Disclosure [Abstract]

Borrowings

Borrowings

Overnight and Short-Term Borrowings

At March 31, 2021 and December 31, 2020, the Company had overnight and short-term borrowings from the FHLB totaling $50.0 million and $100.0 million, respectively. In addition, there were no overnight and short-term borrowings from correspondent banks at either March 31, 2021 or December 31, 2020. At March 31, 2021, Lakeland had overnight and short-term federal funds lines available to borrow up to $215.0 million from correspondent banks. Lakeland may also borrow from the discount window of the Federal Reserve Bank of New York based on the market value of collateral pledged. Lakeland had no borrowings with the Federal Reserve Bank of New York as of March 31, 2021 or December 31, 2020.

Other short-term borrowings at March 31, 2021 and December 31, 2020 consisted of short-term securities sold under agreements to repurchase of $62.0 million and $69.6 million, respectively. The securities sold under agreements to repurchase are overnight sweep arrangement accounts with our customers. As of March 31, 2021, the Company had $72.7 million in agency and 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.

FHLB Advances

Advances from the FHLB totaled $25.0 million at both March 31, 2021 and December 31, 2020, with a weighted average interest rate of 0.77% and maturity in 2025. These advances 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.