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BORROWINGS
 12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
BORROWINGS BORROWINGS
Short-term borrowings and weighted-average interest rates at December 31 are as follows:
 20222021
Dollars in thousandsAmountRateAmountRate
Securities sold under repurchase agreements$41,954 0.12 %$35,202 0.12 %
Under an agreement with the FHLB, the Bank has short-term borrowing capacity included within its maximum borrowing capacity. All FHLB advances are collateralized by a security agreement covering qualifying loans and unpledged U.S. Treasury, agency and mortgage-backed securities. In addition, all FHLB advances are secured by the FHLB capital stock owned by the Bank having a par value of $1,215,100 at December 31, 2022. The Corporation also has lines of credit that total $75,000,000 with correspondent banks for overnight federal funds borrowings. There were no advances on these lines at December 31, 2022 and 2021.

The following table presents the short-term borrowings subject to an enforceable master netting arrangement or repurchase agreement as of December 31, 2022 and 2021:
Gross Amounts Not Offset in the Statements of Condition
Dollars in thousandsGross Amounts of Recognized LiabilitiesGross Amounts Offset in the Statements of ConditionNet Amounts of Liabilities Presented in the Statements of ConditionFinancial InstrumentsCash Collateral PledgedNet Amount
December 31, 2022
Repurchase agreements
Commercial customers and government entities(a)$41,954 $— $41,954 $(41,954)$— $— 
December 31, 2021
Repurchase agreements
Commercial customers and government entities(a)$35,202 $— $35,202 $(35,202)$— $— 
_______________________________
(a) As of December 31, 2022 and 2021, the fair value of securities pledged in connection with repurchase agreements was $52,157,000 and $46,160,000, respectively.

A summary of long-term debt as of December 31 is as follows:
 20222021
Dollars in thousandsAmountRateAmountRate
FHLB fixed-rate advances maturing:    
2022$— — %$11,000 2.69 %
Loan payable variable rate— — %2,700 3.32 %
Trust preferred subordinated debt6,000 3.21 %6,000 1.69 %
Subordinated debt15,000 4.00 %15,000 4.00 %
$21,000 3.78 %$34,700 2.69 %
The FHLB advances are collateralized by the assets defined in the security agreement and FHLB capital stock described previously. The Corporation can borrow a maximum of $821,375,000 from the FHLB, of which $808,275,000 was available at December 31, 2022.
The loan payable variable rate represents a promissory note (note) issued by FCBI in July 2011 and assumed by ACNB Corporation through the acquisition. The note has been amended from time to time through change in terms agreements. Under
the current change in terms agreement, the maturity date of the note is December 30, 2022, with the rate of interest accruing on the principal balance of 3.25% per year. The note is unsecured. The note was paid off on December 30, 2022.
The trust preferred subordinated debt is comprised of debt securities issued by FCBI in December 2006 and assumed by ACNB Corporation through the acquisition. FCBI completed the private placement of an aggregate of $6,000,000 of trust preferred securities. The interest rate on the subordinated debentures is currently adjusted quarterly to 163 basis points over three-month LIBOR. The debenture has a provision for when LIBOR is no longer available. On December 15, 2022 the most recent interest rate reset date, the interest rate was adjusted to 6.39900% for the period ending March 14, 2023. The trust preferred securities mature on December 15, 2036, and may be redeemed at par, at the Corporation’s option, on any interest payment date. The proceeds were transferred to FCBI as trust preferred subordinated debt under the same terms and conditions. The Corporation then contributed the full amount to the Bank in the form of Tier 1 capital. The Corporation has, through various contractual agreements, fully and unconditionally guaranteed all of the trust obligations with respect to the capital securities.
On March 30, 2021, ACNB Corporation (the Company) entered into Subordinated Note Purchase Agreements (Purchase Agreements) with certain institutional accredited investors and qualified institutional buyers (the Purchasers) pursuant to which the Company sold and issued $15.0 million in aggregate principal amount of its 4.00% fixed-to-floating rate subordinated notes due March 31, 2031 (the Notes). The Notes will bear interest at a fixed rate of 4.00% per year, from and including March 30, 2021 to, but excluding, March 31, 2026 or earlier redemption date. From and including March 31, 2026 to, but excluding the maturity date or earlier redemption date, the interest rate will reset quarterly at a variable rate equal to the then current 90-day average Secured Overnight Financing Rate (SOFR) plus 329 basis points. As provided in the Notes, the interest rate on the Notes during the applicable floating rate period may be determined based on a rate other than the 90-day average SOFR. The Notes were issued by the Company to the Purchasers at a price equal to 100% of their face amount. The Company used the net proceeds it received from the sale of the Notes to retire outstanding debt of the Company, repurchase issued and outstanding shares of the Company, support general corporate purposes, underwrite growth opportunities, create an interest reserve for the Notes, and downstream proceeds to ACNB Bank (the Bank), to be used by the Bank to continue to meet regulatory capital requirements, increase the regulatory lending ability of the Bank, and support the Bank’s organic growth initiatives. The Notes have a stated maturity of March 31, 2031, are redeemable by the Company at its option, in whole or in part, on or after March 30, 2026, and at any time upon the occurrences of certain events.