NOTE 7 – BORROWINGS

Short-term borrowings at December 31 consist of the following:

2025

2024

(In Thousands)

Securities sold under agreements to repurchase

$

$

36,337

Federal Home Loan Bank short-term borrowings

14,714

76,732

$

14,714

$

113,069

The outstanding balances and related information of short-term borrowings are summarized as follows:

Years Ended December 31,

2025

2024

(Dollars In Thousands)

Average balance during the year

$

18,173

$

54,867

Average interest rate during the year

4.39

%

2.48

%

Maximum month-end balance during the year

$

99,513

$

113,069

Total short-term borrowings at end of the year

$

14,714

$

113,069

Weighted average interest rate at the end of the year

3.93

%

3.79

%

Securities sold under agreements to repurchase generally mature within one day to one year from the transaction date. Securities with an amortized cost and fair value of $0 and $0 at December 31, 2025 and $44,021,000 and $36,561,000 at December 31, 2024, respectively, were pledged as collateral for these agreements. The securities underlying the agreements were under the Company’s control.

The Company did not have any repurchase agreements at December 31, 2025. The collateral pledged for repurchase agreements that are classified as secured borrowings at December 31, 2024 is summarized as follows (in thousands):

As of December 31, 2024

Remaining Contractual Maturity of the Agreements

Overnight and continuous

Up to 30 days

30-90 days

Greater than 90 days

Total

Repurchase Agreements:

U.S. Government agencies

$

1,997

$

$

$

$

1,997

Mortgage-backed securities - government sponsored entities

34,564

34,564

$

36,561

$

$

$

$

36,561

Total liability recognized for repurchase agreements

$

36,337

The Company has a line of credit commitment available from the FHLB of Pittsburgh for borrowings of up to $150,000,000, which renews annually in June. At December 31, 2025, there was $14,714,000 of borrowings outstanding on this line. There was $26,732,000 of borrowings outstanding on this line of credit at December 31, 2024. The Company has a line of credit commitment available from Atlantic Community Bankers Bank for $7,000,000, which expires on June 30, 2026. There were no borrowings under this line of credit at December 31, 2025 and 2024. The Company has a line of credit commitment available from PNC Bank for $10,000,000 at December 31, 2025. There were no borrowings under this line of credit at December 31, 2025 and December 31, 2024.

Other borrowings consisted of the following at December 31, 2025 and 2024:

2025

2024

(In Thousands)

Notes with the FHLB:

Fixed rate borrowing due April 2025 at 4.26%

$

$

20,000

Amortizing fixed rate borrowing due September 2025 at 5.67%

1,941

Fixed rate borrowing due March 2026 at 4.31%

10,000

Fixed rate borrowing due April 2026 at 4.04%

20,000

20,000

Amortizing fixed rate borrowing due May 2027 at 4.37%

11,231

18,751

Amortizing fixed rate borrowing due July 2028 at 4.70%

8,188

11,101

Fixed rate borrowing due July 2028 at 4.49%

10,000

10,000

$

59,419

$

81,793

Notes with the Federal Reserve Bank:

Fixed rate borrowing due January 2025 at 4.76%

-

20,000

$

-

$

20,000

Contractual maturities and scheduled cash flows of other borrowings at December 31, 2025 are as follows (in thousands):

2026

$

41,414

2027

6,068

2028

11,937

2029

2030

$

59,419

The Bank’s maximum borrowing capacity with the FHLB was $677,590,000 of which $74,133,000 was outstanding in the form of advances and $155,525,000 was outstanding in the form of letters of credit at December 31, 2025. Advances from the FHLB are secured by qualifying assets of the Bank. The total available credit from the Federal Reserve Bank was $1,762,000, of which $0 was outstanding at December 31, 2025.

 
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Historical Timeline

Fiscal YearFiled
2025Mar 13, 2026Showing above
2024Mar 14, 2025
2022Mar 17, 2023
2020Mar 9, 2021

About Debt Disclosures

Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.

Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.