Short-term borrowings generally consist of federal funds purchased and advances from the FHLB with an original maturity of less than a year. Federal funds purchased from correspondent banks mature in one business day and reprice daily based on the Federal Funds rate. Advances from the FHLB are collateralized by Mid Penn’s investment in the common stock of the FHLB and by a blanket lien on selected loan receivables comprised principally of real estate secured loans within the Bank’s portfolio totaling $1,332,405,000 at June 30, 2021. The Bank had short-term borrowing capacity from the FHLB as of June 30, 2021 up to the Bank’s unused borrowing capacity of $590,981,000 (equal to $929,518,000 of maximum borrowing capacity, less the aggregate amount of FHLB letter of credits securing public funds deposits, and other FHLB advances and obligations outstanding) upon satisfaction of any stock purchase requirements of the FHLB. No draws were outstanding on short-term FHLB or correspondent bank borrowings as of June 30, 2021 and December 31, 2020.

The Bank also has unused overnight lines of credit with other correspondent banks amounting to $35,000,000 at June 30, 2021. No draws have been made on these lines of credit and accordingly the balance was zero on both June 30, 2021 and December 31, 2020.

The entire balance of short-term borrowings of $196,889,000 and $125,617,000 at June 30, 2021 and December 31, 2020, respectively, consisted of funding obtained from the Federal Reserve through the Paycheck Protection Program Liquidity Facility (“PPPLF”). The PPPLF allows banks to pledge PPP loans as collateral to borrow funds for up to a term of five years (to match the term of the respective PPP loans) at an interest rate of 0.35%. PPPLF draws must be repaid to the Federal Reserve immediately after the specific PPP loans collateralizing the related draws are repaid to the Bank.

As of June 30, 2021, and December 31, 2020, the Bank had long-term debt outstanding in the amount of $74,944,000 and $75,115,000, respectively, consisting primarily of FHLB fixed rate instruments, as well as one finance lease obligation.

As a member of the FHLB, the Bank can access a number of credit products which are utilized to provide liquidity. The FHLB fixed rate instruments obtained by the Bank are secured under the terms of a blanket collateral agreement with the FHLB consisting of FHLB stock and qualifying Mid Penn loan receivables, principally real estate secured loans. Mid Penn also obtains letters of credit from the FHLB to secure certain public fund deposits of municipality and school district customers who agree to use of the FHLB letters of credit as a legally allowable alternative to investment pledging. These FHLB letter of credit commitments totaled $265,320,000 as of June 30, 2021 and $288,950,000 as of December 31, 2020.

The following table presents a summary of long-term debt as of June 30, 2021 and December 31, 2020.


(Dollars in thousands)	June 30, 2021		December 31, 2020
FHLB fixed rate instruments:
Due April 2022, 0.86343%	$	70,000	$	70,000
Due August 2026, 4.80%		1,481		1,606
Due February 2027, 6.71%		39		42
Total FHLB fixed rate instruments		71,520		71,648
Lease obligations included in long-term debt		3,424		3,467
Total long-term debt	$	74,944	$	75,115

Mid Penn did not prepay any long-term debt instruments during the six months ended June 30, 2021. As part of asset/liability and interest rate risk management strategies, during the six months ended June 30, 2020, Mid Penn prepaid $17,500,000 of FHLB fixed rate instruments originally due at various times in 2020, and recognized prepayment penalties of $76,000 for the three months ended June 30, 2020, and $139,000 for the six months ended June 30, 2020. Prepayment penalties are included in other expenses for the three and six months ended June 30, 2020 on the Consolidated Statement of Income.