10. BORROWED FUNDS AND REPURCHASE AGREEMENTS

The following table shows the breakdown of borrowed funds as of December 31, 2019 and 2018 (dollars in thousands):

	Securities
	Sold Under																		Total
	Agreements to			FHLB			Federal Funds			FRB			Notes			Term			Borrowed
	Repurchase(a)			Advances(b)			Lines (c)			BIC Line (d)			Payable(e)			Loans(f)			Funds
2019
Balance at December 31	$	11,298		$	24,794		$	-		$	-		$	7,500		$	41,525		$	85,117
Highest balance at any month-end		16,161			82,779			-			-			7,500			41,525			147,965
Average balance		13,644			69,477			3			7			7,500			18,410			109,041
Weighted average interest rate:
Paid during the year		1.98	%		2.46	%		2.67	%		2.49	%		5.32	%		2.40	%		2.59	%
As of year-end		1.45	%		1.81	%		0.00	%		0.00	%		4.70	%		2.08	%		2.15	%
2018
Balance at December 31	$	17,983		$	52,186		$	-		$	-		$	7,500		$	13,525		$	91,194
Highest balance at any month-end		17,983			114,817			-			-			7,500			14,525			154,825
Average balance		15,226			81,123			-			12			7,500			14,051			117,912
Weighted average interest rate:
Paid during the year		1.77	%		2.06	%		2.38	%		2.47	%		5.03	%		2.44	%		2.26	%
As of year-end		2.19	%		2.62	%		0.00	%		0.00	%		5.56	%		2.40	%		2.74	%

(a) We utilize securities sold under agreements to repurchase to facilitate the needs of our customers and to facilitate secured short-term funding needs. Securities sold under agreements to repurchase are stated at the amount of cash received in connection with the transaction. We monitor collateral levels on a continuous basis. We may be required to provide additional collateral based on the fair value of the underlying securities. Securities pledged as collateral under repurchase agreements are maintained with our safekeeping agents. The collateral pledged on the repurchase agreements by the remaining contractual maturity of the repurchase agreements in the Consolidated Balance Sheets as of December 31, 2019 and December 31, 2018 is presented in the following tables (in thousands).

	Remaining Contractual Maturity of the Agreements
	Overnight and		Up to				Greater than
2019	Continuous		30 Days		30 - 90 Days		90 days		Total
Repurchase Agreements:
U.S. agency securities	$	15,964	$	-	$	-	$	-	$	15,964
Total carrying value of collateral pledged	$	15,964	$	-	$	-	$	-	$	15,964

Total liability recognized for repurchase agreements									$	11,298

	Remaining Contractual Maturity of the Agreements
	Overnight and		Up to				Greater than
2018	Continuous		30 Days		30 - 90 Days		90 days		Total
Repurchase Agreements:
U.S. agency securities	$	18,970	$	-	$	-	$	2,008	$	20,978
Total carrying value of collateral pledged	$	18,970	$	-	$	-	$	2,008	$	20,978

Total liability recognized for repurchase agreements									$	17,983

(b) FHLB Advances consist of an “Open RepoPlus” agreement with the FHLB of Pittsburgh. FHLB “Open RepoPlus” advances are short-term borrowings that bear interest based on the FHLB discount rate or Federal Funds rate, whichever is higher. The Company has a borrowing limit of $547,184,000, inclusive of any outstanding advances and letters of credit. FHLB advances are secured by a blanket security agreement that includes the Company’s FHLB stock, as well as certain investment and mortgage-backed securities held in safekeeping at the FHLB and certain residential and commercial mortgage loans.

(c) The federal funds lines consist of unsecured lines from two third party banks at market rates. The Company has a borrowing limit totaling $34,000,000, inclusive of any outstanding balances. No specific collateral is required to be pledged for these borrowings.

(d) The Federal Reserve Bank Borrower in Custody (FRB BIC) Line consists of a borrower in custody in agreement open in January 2010 with the Federal Reserve Bank of Philadelphia secured by municipal loans maintained in the Company's possession. As of December 31, 2019 and 2018, the Company has a borrowing limit of $10,902,000 and $9,797,000, respectively, inclusive of any outstanding advances. The approximate carrying value of the municipal loan collateral was $26,895,000 and $28,784,000 as of December 31, 2019 and 2018, respectively.

(e) In December 2003, the Company formed a special purpose entity (“Entity”) to issue $7,500,000 of floating rate obligated mandatory redeemable trust preferred securities as part of a pooled offering. The rate was determined quarterly and floated based on the 3 month LIBOR plus 2.80 percent. The Entity may redeem them, in whole or in part, at face value after December 17, 2008, and on a quarterly basis thereafter. The Company borrowed the proceeds of the issuance from the Entity in December 2003 in the form of a $7,500,000 note payable. Debt issue costs of $75,000 have been capitalized and fully amortized as of December 31, 2008. Under current accounting rules, the Company’s minority interest in the Entity was recorded at the initial investment amount and is included in the other assets section of the balance sheet. The Entity is not consolidated as part of the Company’s consolidated financial statements.

(f) Term Loans consist of separate loans with the FHLB of Pittsburgh as follows (dollars in thousands):

				December 31,		December 31,
Interest Rate			Maturity	2019		2018
Fixed:
	1.87	%	February 4, 2019		-		2,000
	1.84	%	January 13, 2020		20,000		-
	2.61	%	February 3, 2021		2,000		2,000
	3.52	%	July 12, 2021		2,000		2,000
	2.37	%	August 20, 2021		2,800		2,800
	2.08	%	January 6, 2022		4,725		4,725
	2.46	%	March 28, 2024		5,000		-
	1.69	%	August 20, 2024		5,000		-
Total term loans				$	41,525	$	13,525

Following are maturities of borrowed funds as of December 31, 2019 (in thousands):

2020	$	63,592
2021		6,800
2022		4,725
2023		-
2024		10,000
Thereafter		-
Total borrowed funds	$	85,117