Borrowed Funds

12 Months Ended

Dec. 31, 2020

Borrowed funds are summarized as follows (in thousands):


	December 31,
	2020				2019
	Amount		Weighted Average Rate		Amount		Weighted Average Rate
FHLB advances	$	—	—	%	$	519,260	1.84	%
Securities sold under agreements to repurchase with retail customers	128,454		0.33		71,739		0.42
Other borrowings	235,471		4.58		96,801		4.64
Total borrowed funds	$	363,925	3.08	%	$	687,800	2.09	%

The Company prepaid all of its FHLB advances, in addition to the advances that matured, in 2020. The total FHLB prepayment fees incurred for the year ended December 31, 2020 was $14.3 million. Information concerning FHLB advances and securities sold under agreements to repurchase with retail customers (“reverse repurchase agreements”) is summarized as follows (in thousands):


	FHLB Advances						Reverse Repurchase Agreements
	2020			2019			2020			2019
Average balance	$	413,290		$	387,925		$	125,500		$	64,525
Maximum amount outstanding at any month end	825,824			519,260			153,810			71,739
Average interest rate for the year	1.70		%	2.18		%	0.45		%	0.43		%
Amortized cost of collateral:
Mortgage-backed securities	$	—		$	—		$	147,445		$	80,436
Estimated fair value of collateral:
Mortgage-backed securities	—			—			152,679			81,365

The securities collateralizing the reverse repurchase agreements are delivered to the lender with whom each transaction is executed or to a third-party custodian. The lender, who may sell, loan or otherwise dispose of such securities to other parties in

the normal course of their operations, agrees to resell to the Company substantially the same securities at the maturity of the reverse repurchase agreements. Refer to Note 4 Securities.

Reverse repurchase agreements have contractual maturities at December 31, 2020 as follows (in thousands):


	Reverse Repurchase Agreements
For the Year Ended December 31,
2021	$	128,454




Total	$	128,454

The other borrowings at December 31, 2020 include the following (in thousands):


Type of Debt	Stated Value		Carrying Value		Interest Rate			Maturity
Subordinated debt	$	35,000	$	34,804	5.125	%	(1)	September 30, 2026
Subordinated debt	125,000		122,446		5.250	%	(2)	May 15, 2030
Subordinated debt	7,500		7,539		7.210	%	(3)	October 1, 2025
Trust preferred	5,000		5,000		3 month LIBOR plus 165 basis points			August 1, 2036
Trust preferred	30,000		22,944		3 month LIBOR plus 135 basis points			March 15, 2036
Trust preferred	7,500		7,500		3 month LIBOR plus 166 basis points			November 1, 2036
Trust preferred	10,000		7,737		3 month LIBOR plus 153 basis points			April 19, 2037
Trust preferred	10,000		10,000		3 month LIBOR plus 175 basis points			September 1, 2037
Trust preferred	10,000		7,601		3 month LIBOR plus 139 basis points			October 1, 2037
Trust preferred	10,000		7,800		3 month LIBOR plus 225 basis points			December 15, 2034
Finance lease	2,100		2,100		5.625	%		June 30, 2029
Total	$	252,100	$	235,471

(1)Adjusts to a floating rate of 392 basis points over 3 month London Inter-bank Offered Rate (“LIBOR”) on September 30, 2021.

(2)Adjusts to a floating rate of 509.5 basis points over 3 month Secured Overnight Financing Rate on May 15, 2025.

(3)In January 2021, the Company prepaid the subordinated debt in its entirety.

All of the trust preferred debt is currently callable.

Interest expense on borrowings for the years ended December 31, 2020, 2019, and 2018 was as follows (in thousands):


	For the Year Ended December 31,
	2020		2019		2018
FHLB advances	$	7,018	$	8,441	$	7,885
Reverse repurchase agreements	562		276		168
Other borrowings	10,787		5,674		5,521
Total interest expense on borrowings	$	18,367	$	14,391	$	13,574

As a member of the FHLB of New York, the Bank is required to maintain a minimum investment in the capital stock of the FHLB, at cost, in an amount equal to 0.125% of the Bank’s mortgage-related assets, plus 4.5% of the specified value of certain transactions between the Bank and the FHLB.