Borrowings

3 Months Ended

Mar. 31, 2020

TCF Bank is a member of the FHLB, which provides short- and long-term funding collateralized by mortgage related assets to its members.

Collateralized Deposits include TCF Bank's Repurchase Investment Sweep Agreement product collateralized by mortgage-backed securities, and funds deposited by customers that are collateralized by investment securities owned by TCF Bank, as these deposits are not covered by FDIC insurance.

Short-term borrowings (borrowings with an original maturity of less than one year) were as follows:



	At March 31, 2020				At December 31, 2019
(Dollars in thousands)	Amount		Weighted-average Rate		Amount		Weighted-average Rate
FHLB advances	$	3,200,000	0.61	%	$	2,450,000	1.85	%
Collateralized Deposits	202,535		0.64		219,145		0.64
Line-of-Credit - TCF Financial Corporation	80,000		2.64		—		—
Total short-term borrowings	$	3,482,535	0.66		$	2,669,145	1.75

On March 9, 2020, TCF Financial amended its $50.0 million unsecured 364-day revolving credit facility with an unaffiliated bank to expand borrowing capacity to $150.0 million, which is available to be used, as needed, to fund growth, common stock repurchases or other general corporate purposes. As of March 31, 2020, $80.0 million was outstanding on the revolving credit facility. The revolving credit facility contains covenants related to various capital adequacy levels, asset quality and profitability ratios that must be maintained, and certain restrictions on levels of indebtedness. TCF Financial was in compliance with all covenants at March 31, 2020.

Long-term borrowings were as follows:



(In thousands)	At March 31, 2020		At December 31, 2019
FHLB advances	$	2,071,480	$	1,822,058
Subordinated debt obligations	437,504		428,470
Discounted lease rentals	88,593		100,882
Finance lease obligation	3,017		3,038
Total long-term borrowings	$	2,600,594	$	2,354,448

On May 1, 2020, TCF Bank priced an offering of $150.0 million of fixed-to-floating rate subordinated notes (the “2030 Notes”), which closed on May 6, 2020 at par. The 2030 Notes, due May 6, 2030, bear an initial interest rate of 5.50% per annum, payable semi-annually in arrears on May 6 and November 6, commencing on November 6, 2020. The 2030 Notes are redeemable at TCF Bank's option beginning on May 6, 2025. Effective May 6, 2025, the interest rate will reset quarterly to an annual interest rate equal to the then-current three-month LIBOR rate plus 509 basis points, payable quarterly in arrears on February 6, May 6, August 6 and November 6, commencing on May 6, 2025. TCF Bank incurred issuance costs of approximately $1.6 million that are amortized as interest expense over the full term of the 2030 Notes using the effective interest method.

At March 31, 2020, TCF Bank had pledged loans secured by consumer and commercial real estate with an aggregate carrying value of $11.3 billion to provide borrowing capacity from the FHLB. At March 31, 2020, $1.8 billion of the FHLB advances outstanding were prepayable at the Corporation's option.

At March 31, 2020, TCF Bank had pledged loans and leases with an aggregate carrying value of $4.0 billion to provide borrowing capacity from the Federal Reserve Bank discount window. No borrowings were sourced from this facility at March 31, 2020.

The contractual maturities of long-term borrowings at March 31, 2020 were as follows:



(In thousands)
Remainder of 2020	$	62,726
2021	1,818,472
2022	142,766
2023	23,658
2024	10,424
Thereafter	542,548
Total long-term borrowings	$	2,600,594