Borrowings

9 Months Ended

Sep. 30, 2020

Note 6. Borrowings

The Company classifies all borrowings that will mature within a year from the date on which the Company enters into them as short-term borrowings. Short-term borrowings sources consist of federal funds purchased, overnight repurchase agreements (which are secured transactions with customers that generally mature within one to four days), and advances from the FHLB.

The Company maintains federal funds lines with several correspondent banks to address short-term borrowing needs. At September 30, 2020 and December 31, 2019, the remaining credit available from these lines totaled $100.0 million and $55.0 million, respectively. The Company has a collateral dependent line of credit with the FHLB with remaining credit availability of $325.8 million and $276.3 as of September 30, 2020 and December 31, 2019, respectively.

SHORT-TERM BORROWINGS

The following table presents total short-term borrowings as of the dates indicated:

(dollar in thousands)	September 30, 2020			December 31, 2019
Overnight repurchase agreements	$	6,281		$	11,452
Federal Home Loan Bank advances		-			-
Total short-term borrowings	$	6,281		$	11,452

Maximum month-end outstanding balance	$	9,080		$	38,138
Average outstanding balance during the period	$	7,601		$	27,382
Average interest rate (year-to-date)		0.06	%		0.71	%
Average interest rate at end of period		0.10	%		0.10	%

LONG-TERM BORROWINGS

The Company had long-term FHLB advances totaling $38.5 million outstanding at September 30, 2020 and $37.0 million outstanding at December 31, 2019. Scheduled maturity dates of the advances at September 30, 2020 range from February 26, 2021 to March 5, 2025, and the interest rates range from 0.88% to 2.89%. At September 30, 2020 the Company also had borrowings under the FRB’s Paycheck Protection Program Liquidity Facility (PPPLF) of $37.3 million. These borrowings are fully collateralized by PPP loans and will mature in concert with the underlying collateral, all of which will mature within 24 months of origination.

The Company also obtained a loan maturing on April 1, 2023 from a correspondent bank during the second quarter of 2018 to provide partial funding for the Citizens National Bank acquisition. The terms of the loan include a LIBOR based interest rate that adjusts monthly and quarterly principal curtailments. At September 30, 2020 the outstanding balance was $1.5 million as compared to $2.0 million at December 31, 2019, and the then-current interest rate was 2.66%.

The loan agreement with the lender contains financial covenants including minimum return on average asset ratio, maintenance of a well-capitalized position as defined by regulatory guidance and a maximum level of non-performing assets as a percentage of capital plus the allowance for loan losses. The Company was in compliance with each covenant at September 30, 2020.