v3.26.1
Borrowed Funds
 6 Months Ended
Jun. 30, 2026
Borrowed Funds [Abstract]  
BORROWED FUNDS

5. BORROWED FUNDS

 

Short-Term Borrowings

 

Short-term borrowings include repurchase agreements with customers and advances from the FHLB. As of June 30, 2026, the Bank was approved by the FHLB for borrowings of up to $581,244,000 of which $17,800,000 was outstanding in the form of advances, the FHLB had issued letters of credit on the Bank’s behalf totaling $4,000,000 against its borrowing capacity and the Bank had accrued interest and other reductions in its borrowing capacity totaling $2,071,000. Advances from the FHLB are secured by qualifying assets of the Bank. In addition to the outstanding balances noted below, the Bank also has additional unused lines of credit totaling $19,598,000 available from correspondent banks other than the FHLB. The outstanding balances and related information for short-term borrowings are summarized as follows as of June 30, 2026 and December 31, 2025:

 

    June 30, 2026  
          Maximum     Weighted  
    Ending     Month End     Average Rate  
(In Thousands)   Balance     Balance     At Period End  
Securities sold under agreements to repurchase   $ 6,496     $ 14,979       3.60%  
Other short-term borrowings     17,800       17,800       3.93%  
Total   $ 24,296     $ 32,779       3.78%  

 

    December 31, 2025  
          Maximum     Weighted  
    Ending     Month End     Average Rate  
(In Thousands)   Balance     Balance     At Period End  
                   
Securities sold under agreements to repurchase   $ 12,455     $ 39,810       2.97%  
Other short-term borrowings     —       22,210       N/A  
Total   $ 12,455     $ 62,020       2.97%  

 

The Corporation utilizes 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 remaining contractual maturity of repurchase agreements in the Consolidated Balance Sheets as of June 30, 2026 and December 31, 2025 is presented in the following tables:

 

    Remaining Contractual Maturity of the Agreements  
    Overnight and                 Greater than 90        
(In Thousands)   Continuous     Up to 30 Days     30-90 Days     Days     Total  
June 30, 2026                                        
Securities sold under agreements to repurchase:                                        
Obligations of U.S. Government agencies or corporations   $ —     $ —     $ —     $ 4,592       4,592  
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or corporations:                                        
Residential mortgage-backed securities     1,479       —       —       425       1,904  
Total borrowings   $ 1,479     $ —     $ —     $ 5,017     $ 6,496  
                                         
Gross amount of recognized liabilities for repurchase agreements                                   $ 6,496  
Amounts related to agreements not included in offsetting disclosure above                                   $ —  

 

    Remaining Contractual Maturity of the Agreements  
    Overnight and                 Greater than 90        
(In Thousands)   Continuous     Up to 30 Days     30-90 Days     Days     Total  
December 31, 2025                                        
Securities sold under agreements to repurchase:                                        
Obligations of U.S. Government agencies or corporations   $ —     $ 600     $ —     $ 3,346       3,946  
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or corporations:                                        
Residential mortgage-backed securities     8,509       —       —       —       8,509  
Total borrowings   $ 8,509     $ 600     $ —     $ 3,346     $ 12,455  
                                         
Gross amount of recognized liabilities for repurchase agreements                                   $ 12,455  
Amounts related to agreements not included in offsetting disclosure above                                   $ —  

 

The fair value of securities pledged to secure repurchase agreements may decline. The Corporation manages this risk by having a policy to pledge securities valued at 110% of the gross outstanding balance of repurchase agreements. Securities sold under agreements to repurchase are secured by securities with a carrying amount of $10,110,000 and $20,317,000 at June 30, 2026 and December 31, 2025, respectively.

 

Long-Term Borrowings

 

Long-term FHLB borrowings consisted of the following at June 30, 2026 and December 31, 2025:

 

(In Thousands)   June 30,
2026		     December 31,
2025		  
Loans maturing in 2026 with a weighted-average rate of 4.05%   $ —     $ 15,359  
Loans maturing in 2027 with a weighted-average rate of 3.93%     —       15,417  
Loans maturing in 2028 with a weighted-average rate of 3.85%     —       10,208  
Total long-term FHLB borrowings; weighted-average rate of 3.96%     —       40,984  
Unamortized fair value adjustments     —       (400 )
Total long-term borrowings   $ —     $ 40,584  

 

The Corporation prepaid, in full, its outstanding long-term FHLB borrowings of $40,984,000 during the three months ended June 30, 2026. This resulted in an aggregate prepayment penalty of approximately $49,000, as well as the immediate recognition of approximately $313,000 of remaining unamortized fair value adjustments related to these borrowings during the three months ended June 30, 2026, on a pretax basis.