Long-Term Borrowings

6 Months Ended

Jun. 30, 2021

Long-term Debt, Unclassified [Abstract]

Long-Term Borrowings

Long-Term Borrowings

The following table presents information related to the Company’s long-term borrowings as of June 30, 2021 and December 31, 2020.

(dollars in thousands)	June 30, 2021		December 31, 2020
Subordinated Notes, 5.75%	$	70,000	$	70,000
Subordinated Notes, 5.0%	150,000		150,000
FHLB Advance, 1.81%	—		50,000
Less: unamortized debt issuance costs	(1,727)		(1,923)
Long-term borrowings	$	218,273	$	268,077

On August 5, 2014, the Company completed the sale of $70.0 million of its 5.75% subordinated notes, due September 1, 2024 (the “2024 Notes”). The 2024 Notes were offered to the public at par and qualify as Tier 2 capital for regulatory purposes to the fullest extent permitted under the Basel III Rule capital requirements. The net proceeds were approximately $68.8 million, which includes $1.2 million in deferred financing costs which are being amortized over the life of the 2024 Notes.

On July 26, 2016, the Company completed the sale of $150.0 million of its 5.00% Fixed-to-Floating Rate Subordinated Notes, due August 1, 2026 (the “2026 Notes”). The 2026 Notes were offered to the public at par and qualify as Tier 2 capital for regulatory purposes to the fullest extent permitted under the Basel III Rule capital requirements. The net proceeds were approximately $147.4 million, which includes $2.6 million in deferred financing costs which are being amortized over the life of the 2026 Notes. The Company paid the 2026 Notes in full on August 2, 2021 and accelerated deferred financing costs of $1.3 million on that date.

On February 26, 2020, the Bank borrowed $50 million dollars under its borrowing arrangement with the FHLB at a fixed rate of 1.81% with a maturity date of February 26, 2030 as part of the overall asset liability strategy and to support loan growth. In the first quarter of 2021, we realized a net gain of $911 thousand on the cancellation of this debt.