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Note 12 - Borrowed Funds and Subordinated Debt
 12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Debt Disclosure [Text Block]
1
2
.
BORROWED FUNDS AND SUBORDINATED DEBT
 
Short-term borrowings (initial maturity within
one
year) include the following:
 
(In Thousands)
  
Dec. 31,
    
Dec. 31,
  
   
201
9
    
201
8
  
FHLB-Pittsburgh borrowings
   $
84,292
     $
7,000
  
Customer repurchase agreements
    
1,928
      
5,853
  
Total short-term borrowings
   $
86,220
     $
12,853
  
 
Short-term borrowings from FHLB-Pittsburgh are as follows:
 
(In Thousands)
  
Dec. 31,
    
Dec. 31
  
   
201
9
    
201
8
  
Overnight borrowing
   $
64,000
     $
7,000
  
Other short-term advances
    
20,292
      
0
  
Total short-term FHLB-Pittsburgh borrowings
   $
84,292
     $
7,000
  
 
Overnight borrowings from FHLB-Pittsburgh had an interest rate of
1.81%
at
December 31, 2019
and
2.62%
at
December 31, 2018.
At
December 31, 2019,
other short-term advances included
seven
advances totaling
$20,297,000
which are presented in the table net of the unamortized purchase accounting adjustment, with a weighted-average effective rate of
2.28%.
 
The weighted average interest rate on total short-term borrowings outstanding was
1.88%
at
December 31, 2019
and
1.47%
at
December 31, 2018.
The maximum amount of total short-term borrowings outstanding at any month-end was
$86,220,000
in
2019
and
$74,646,000
in
2018.
 
The Corporation had available credit with other correspondent banks totaling
$45,000,000
at
December 31, 2019
and
2018.
These lines of credit are primarily unsecured.
No
amounts were outstanding at
December 31, 2019
or
2018.
 
The Corporation has a line of credit with the Federal Reserve Bank of Philadelphia’s Discount Window. At
December 31, 2019,
the Corporation had available credit in the amount of
$14,244,000
on this line with
no
outstanding advances. At
December 31, 2018,
the Corporation had available credit in the amount of
$15,262,000
on this line with
no
outstanding advances. As collateral for this line, the Corporation has pledged available-for-sale securities with a carrying value of
$14,728,000
at
December 31, 2019
and
$15,710,000
at
December 31, 2018.
 
The FHLB-Pittsburgh loan facility is collateralized by qualifying loans secured by real estate with a book value totaling
$778,877,000
at
December 31, 2019
and
$495,143,000
at
December 31, 2018.
Also, the FHLB-Pittsburgh loan facility requires the Corporation to invest in established amounts of FHLB-Pittsburgh stock. The carrying values of the Corporation’s holdings of FHLB-Pittsburgh stock (included in Other Assets) were
$10,131,000
at
December 31, 2019
and
$5,582,000
at
December 31, 2018. 
The Corporation’s total credit facility with FHLB-Pittsburgh was
$552,546,000
at
December 31, 2019,
including an unused (available) amount of
$416,127,000.
 At
December 31, 2018,
the Corporation’s total credit facility with FHLB-Pittsburgh was
$361,614,000,
including an unused (available) amount of
$318,699,000.
 
The Corporation engages in repurchase agreements with certain commercial customers. These agreements provide that the Corporation sells specified investment securities to the customers on an overnight basis and repurchases them on the following business day. The weighted average rate paid by the Corporation on customer repurchase agreements was
0.10%
at
December 31, 2019
and
December 31, 2017.
The carrying value of the underlying securities was
$1,951,000
at
December 31, 2019
and
$5,890,000
at
December 31, 2018.
 
LONG-TERM BORROWINGS
 
Long-term borrowings from FHLB-Pittsburgh are as follows:
 
(In Thousands)
  
Dec. 31,
    
Dec. 31,
  
   
2019
    
2018
  
Loans matured in 2019 with a weighted-average rate of 2.36%
   $
0
     $
32,000
  
Loans maturing in 2020 with a weighted-average rate of 2.73%
    
5,069
      
3,271
  
Loans maturing in 2021 with a weighted-average rate of 1.54%
    
6,000
      
0
  
Loans maturing in 2022 with a weighted-average rate of 2.03%
    
20,000
      
0
  
Loans maturing in 2023 with a weighted-average rate of 1.70%
    
20,500
      
0
  
Loan maturing in 2025 with a rate of 4.91%
    
558
      
644
  
Total long-term FHLB-Pittsburgh borrowings
   $
52,127
     $
35,915
  
 
In connection with the Monument acquisition, the Corporation assumed subordinated debt agreements with par values totaling
$7,000,000,
maturing
April 1, 2027,
which
may
be redeemed at par beginning
April 1, 2022.
The agreements have fixed annual interest rates of
6.50%.
The subordinated debt was recorded at fair value, which was deemed to be equal to par value. In the
fourth
quarter
2019,
the Corporation redeemed subordinated debt with a par value of
$500,000,
resulting in a loss of
$10,000
(included in other noninterest expense in the consolidated statements of income). At
December 31, 2019,
the carrying value of the subordinated debt on the consolidated balance sheet is
$6,500,000.