Short-term Borrowings

9 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Short-Term Borrowings

8. SHORT-TERM BORROWINGS

Short-term borrowings consist of federal funds purchased, securities sold under repurchase agreements, and short-term FHLB advances with original maturities of one year or less. Short-term borrowings totaled $0.2 million and $0.5 million as of September 30, 2019 and December 31, 2018, respectively.

Federal funds purchased, which represent unsecured lines of credit that generally mature within one to four days, are available to the Bank through arrangements with correspondent banks and the Federal Reserve. As of both September 30, 2019 and December 31, 2018, there were no federal funds purchased outstanding. The Bank had $61.8 million and $72.2 million in available unused lines of credit with correspondent banks and the Federal Reserve as of September 30, 2019 and December 31, 2018, respectively.

Securities sold under repurchase agreements, which are secured borrowings, generally are reflected at the amount of cash received in connection with the transaction. The Bank may be required to provide additional collateral based on the fair value of the underlying securities. The Bank monitors the fair value of the underlying securities on a daily basis. Securities sold under repurchase agreements as of September 30, 2019 and December 31, 2018 totaled $0.2 million and $0.5 million, respectively.

Short-term FHLB advances are secured borrowings available to the Bank as an alternative funding source. As of both September 30, 2019 and December 31, 2018, the Bank did not have any outstanding FHLB advances with original maturities of less than one year.