BORROWINGS

9 Months Ended

Sep. 30, 2023

BORROWINGS

BORROWINGS

8.BORROWINGS

Borrowed funds at September 30, 2023 and December 31, 2022 consisted of FHLB advances. Short-term advances were $250.0 million and $385.0 million with a weighted average rate of 5.52% and 4.32%, at September 30, 2023 and December 31, 2022, respectively. Long-term advances are summarized by maturity date below.

	September 30, 2023						December 31, 2022
	Amount by				Weighted		Amount by		Weighted
	Scheduled		Amount by		Average		Scheduled		Average
	Maturity*		Call Date (1)		Rate (2)		Maturity*		Rate (2)
	(dollars in thousands)
Year ending December 31:
2023	$	—	$	90,000	—	%	$	180	1.40	%
2024		13,400		33,400	1.39			13,400	1.39
2025		60,987		60,987	4.32			987	—
2026		100,000		40,000	4.28			—	—
2027		—		—	—			—	—
2028 and thereafter		51,083		1,083	3.81			1,108	2.00
	$	225,470	$	225,470	4.01	%	$	15,675	1.35	%
* Includes an amortizing advance requiring monthly principal and interest payments.
(1) Callable FHLB advances are shown in the respective periods assuming that the callable debt is redeemed at the call date, while all other advances are shown in the periods corresponding to their scheduled maturity date. There were eight callable advances at September 30, 2023.
(2) Weighted average rates are based on scheduled maturity dates.

The FHLB advances are secured by a blanket security agreement which requires the Bank to maintain certain qualifying assets as collateral, principally residential mortgage loans and commercial real estate loans held in the Bank’s portfolio. The carrying value of the loans pledged as collateral for these borrowings totaled $2.01 billion at September 30, 2023 and $1.71 billion at December 31, 2022. As of September 30, 2023, the Company had $830.7 million of available borrowing capacity with the FHLB.

The Company also has additional borrowing capacity under a $25.0 million unsecured federal funds line with a correspondent bank and a secured line of credit with the FRBB, secured by 69% of the carrying value of commercial loans with principal balances amounting to $99.1 million and $100.2 million at September 30, 2023 and December 31, 2022, respectively. No amounts were outstanding under either line at September 30, 2023 or December 31, 2022.

On March 12, 2023, the Federal Reserve announced the creation of the BTFP. The BTFP offers loans of up to one year to banks, savings associations, credit unions, and other eligible depository institutions pledging U.S. Treasury securities, agency debt and mortgage-backed securities, and other qualifying assets as collateral. These assets are valued at par for purposes of the collateral pledge under the BTFP. The Company has $360.9 million in borrowing capacity under this program, and no amounts were outstanding at September 30, 2023.

On August 30, 2018, the Company issued $35.0 million in fixed-to-floating-rate subordinated notes due 2028 in a private placement to institutional accredited investors. On October 19, 2023, the Company notified holders of the Notes that the Company had exercised its option to redeem the Notes in full, effective December 1, 2023. The current interest rate on the Notes is 8.45%. The Notes are carried on the Consolidated Balance Sheets net of unamortized issuance costs of $620,000 and $715,000 at September 30, 2023 and December 31, 2022, respectively.