Short-Term Borrowings

12 Months Ended

Dec. 31, 2022

Short-Term Borrowings

Short-Term Borrowings

10. Short-Term Borrowings

As of December 31, 2022 and 2021, short-term borrowings were comprised of the following:

	December 31,
(dollars in thousands)	2022		2021
Federal funds purchased	$	75,000	$	—
Total short-term borrowings	$	75,000	$	—

As of December 31, 2022, the Company’s short-term borrowings consisted of $75.0 million in federal funds purchased with a 4.35% annual interest rate that matured in January 2023.

The Company’s long-term borrowings were terminated in November 2021 and included $200.0 million in FHLB fixed-rate advances with a weighted average interest rate of 2.73% and original maturity dates ranging from 2023 to 2024. The FHLB fixed-rate advances required monthly interest-only payments with the principal amount due on the maturity date. The Company incurred fees of $9.0 million related to the early termination of the FHLB fixed-rate advances. These fees were recorded as a component of other noninterest expense in the Company’s consolidated statements of income.

As of December 31, 2022, the Company had a remaining line of credit of $2.5 billion with the FHLB. As of December 31, 2021, the Company had an undrawn line of credit of $1.8 billion available from the FHLB. The FHLB borrowing capacity as of December 31, 2022 and 2021, were secured by residential real estate loan collateral. As of December 31, 2022 and 2021, the Company had an undrawn line of credit of $1.2 billion and $1.1 billion available from the FRB, respectively. The borrowing capacity with the FRB was secured by consumer, commercial and industrial, commercial real estate and residential mortgage loans as of December 31, 2022 and 2021. See “Note 8. Transfers of Financial Assets” for more information.

The table below provides selected information for short-term borrowings during the years ended December 31, 2022, 2021 and 2020:

	Year Ended December 31,
(dollars in thousands)	2022			2021			2020
Federal funds purchased:
Weighted-average interest rate at December 31,		4.35	%		—	%		—	%
Highest month-end balance	$	75,000		$	—		$	—
Average outstanding balance	$	11,521		$	—		$	1,366
Weighted-average interest rate paid		4.08	%		—	%		0.43	%
Short-term FHLB fixed-rate advance:
Weighted-average interest rate at December 31,		—	%		—	%		—	%
Highest month-end balance	$	—		$	—		$	400,000
Average outstanding balance	$	—		$	—		$	208,197
Weighted-average interest rate paid		—	%		—	%		2.88	%

The Company treats securities sold under agreements to repurchase as collateralized financings. The Company reflects the obligations to repurchase the same or similar securities sold as liabilities, with the dollar amount of securities underlying the agreements remaining in the asset accounts. Generally, for these types of agreements, there is a requirement that collateral be maintained with a market value equal to or in excess of the principal amount borrowed. As such, the collateral pledged may be increased or decreased over time to meet contractual obligations. The securities underlying the agreements to repurchase are held in collateral accounts with a third-party custodian. The Company did not enter into any repurchase agreements in 2022 and 2021.