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Short-term borrowings

12 Months Ended

Dec. 31, 2024

12. Short-term borrowings:

Short-term borrowings consisted of FHLB overnight advances or advances with stated original terms of less than twelve months, Bank Term Funding Program (“BTFP”) advances and other borrowings related to collateral held from derivative counterparties:


		At and for the year ended December 31, 2024
							Weighted		Weighted
					Maximum		Average		Average
	Ending		Average		Month-End		Rate for		Rate at End
(Dollars in thousands, except percents)	Balance		Balance		Balance		the Year		of the Period
FHLB advances - Overnight	$		$	6,733	$	83,900	5.53	%		%
Federal Reserve Bank - BTFP				12,352		24,968	5.73
Other borrowings		15,900		18,035		25,050	5.27		4.34
Total short-term borrowings	$	15,900	$	37,120	$	133,918	5.48	%	4.34	%


	At and for the year ended December 31, 2023
							Weighted		Weighted
					Maximum		Average		Average
	Ending		Average		Month-End		Rate for		Rate at End
(Dollars in thousands, except percents)	Balance		Balance		Balance		the Year		of the Year
FHLB advances - Overnight	$		$	19,171	$	158,000	4.48	%		%
Other borrowings		17,590		19,160		28,470	5.54		5.35
Total short-term borrowings	$	17,590	$	38,331	$	186,470	5.01	%	5.35	%


	At and for the year ended December 31, 2022
							Weighted		Weighted
					Maximum		Average		Average
	Ending		Average		Month-End		Rate for		Rate at End
(Dollars in thousands, except percents)	Balance		Balance		Balance		the Year		of the Year
FHLB advances - Overnight	$	100,400	$	32,647	$	125,975	2.73	%	4.45	%
Other borrowings		14,530		10,033		16,100	2.10		4.33
Total short-term borrowings	$	114,930	$	42,680	$	142,075	2.58	%	4.43	%

In 2024, the Company assumed short-term borrowings in the aggregate of $139.7 million as a result of the merger with FNCB which included $25.0 million in Bank Term Funding Program advances and FHLB overnight borrowings.

The Company has an agreement with the FHLB which allows for borrowings up to its maximum borrowing capacity based on a percentage of qualifying collateral assets. At December 31, 2024, the maximum borrowing capacity was $1.7 billion of which $99.1 million was outstanding in long-term debt and $487.8 million was used to issue standby letters of credit to collateralize public fund deposits. Advances with the FHLB are secured under terms of a blanket collateral agreement by a pledge of FHLB stock and certain other qualifying collateral, such as investments and mortgage-backed securities and mortgage loans. Interest accrues daily on the FHLB advances based on rates of the FHLB discount notes. This rate resets each day.

The Company also has unsecured line of credit agreements with two correspondent banks, where the total line amount was $18.0 million at December 31, 2024 and 2023. There were no amounts outstanding on either line of credit at December 31, 2024 or 2023. Interest on these borrowings accrues daily based on the daily federal funds rate.

In addition to borrowings from FHLB and correspondent bank lines of credit, the Company has availability through the Federal Reserve Bank’s Discount Window of $621.5 million at December 31, 2024 The FRB’s Borrower-in-custody (“BIC”) program allows depository institutions to pledge loans as collateral for Discount Window advances while retaining possession of the loan documentation. At December 31, 2024, $145.5 million in securities were pledged to the Discount Window. At December 31, 2023, $365.8 million in loans were pledged as collateral for the BIC program and provided $246.1 million in borrowing capacity.

In 2024, short-term borrowings included $24.9 million in Bank Term Funding Program (“BTFP”) funding, which was acquired at fair value in the FNCB merger. During the fourth quarter 2024, the BTFP funding was repaid. At December 31, 2023, $191.0 million in securities were pledged to the BTFP and $11 thousand was pledged to the Discount Window. The BTFP allowed depository institutions to borrow up to the par value of eligible securities pledged at the FRB. The BTFP expired on March 11, 2024 and the Company transferred the eligible securities pledged to the Federal Reserve Discount Window.