Short-Term Borrowings and Long-Term Debt

12 Months Ended

Dec. 31, 2020

Short-Term Borrowings and Long-Term Debt [Abstract]

Short-Term Borrowings and Long-Term Debt

NOTE 9 – SHORT-TERM AND LONG-TERM BORROWINGS

Short-term borrowings as of December 31, 2020, 2019 and 2018 and the related maximum amounts outstanding at the end of any month in each of the three years then ended are presented below. The securities underlying the repurchase agreements remain in AFS investment securities.

	December 31						Maximum Outstanding
	2020		2019		2018		2020		2019		2018
	(in thousands)
Federal funds purchased	$	—	$	—	$	—	$	200,000	$	274,998	$	525,000
Short-term FHLB advances (1)	—		500,000		385,000		980,000		825,000		385,000
Customer funding (2)	630,066		383,241		369,777		630,066		404,207		547,678
Total short-term borrowings	$	630,066	$	883,241	$	754,777

(1) Represents FHLB advances with an original maturity term of less than one year.

(2) Includes repurchase agreements and short-term promissory notes.

As of December 31, 2020, the Corporation had aggregate availability under federal funds lines of $1.8 billion. A combination of commercial real estate loans, commercial loans and investment securities were pledged to the FRB to provide access to FRB Discount Window borrowings. As of December 31, 2020 and 2019, the Corporation had $324.3 million and $334.3 million, respectively, of collateralized borrowing availability at the FRB Discount Window, and no outstanding borrowings.

FHLB advances with an original maturity of one year or more and long-term borrowings included the following as of December 31:

	2020		2019
	(in thousands)
FHLB advances	$	535,973	$	491,024
Subordinated debt	625,000		250,000
Senior notes	125,000		125,000
Junior subordinated deferrable interest debentures	16,496		16,496
Unamortized discounts and issuance costs	(6,206)		(751)
Total long-term borrowings	$	1,296,263	$	881,769

Excluded from the preceding table is the Parent Company’s revolving line of credit with Fulton Bank. As of December 31, 2020 and 2019, there were no amounts outstanding under this line of credit. This line of credit, with a total commitment of $75.0 million, is secured by insurance investments and bears interest at the LIBOR for maturities of one month plus 2.00%. The amount that the Corporation is permitted to borrow under this commitment at any given time is subject to a formula based on a percentage of the value of the collateral pledged. Although balances drawn on the line of credit and related interest income and expense are eliminated in the consolidated financial statements, this borrowing arrangement is senior to the subordinated debt and the junior subordinated deferrable interest debentures.

FHLB advances mature through 2027 and carry a weighted average interest rate of 1.78%. As of December 31, 2020, the Corporation had additional borrowing capacity of approximately $3.9 billion with the FHLB. Advances from the FHLB are secured by FHLB stock, qualifying residential mortgages, investment securities and other assets.

The following table summarizes the scheduled maturities of FHLB advances with an original maturity of one year or more and long-term borrowings as of December 31, 2020 (in thousands):

Year
2021	$	—
2022	178,857
2023	214,241
2024	489,190
2025	24,675
Thereafter	389,300
	$	1,296,263

In March 2020, the Corporation issued $200.0 million and $175.0 million of subordinated notes due in 2030 and 2035, respectively. The subordinated notes maturing in 2030 were issued with a fixed-to-floating rate of 3.25% and an effective rate of 3.35%, due to issuance costs, and the subordinated notes maturing in 2035 were issued with a fixed-to-floating rate of 3.75% and an effective rate of 3.85%, due to issuance costs.

In March 2017, the Corporation issued $125.0 million of senior notes, with a fixed rate of 3.60% and an effective rate of 3.95%, as a result of discounts and issuance costs, which mature on March 16, 2022. Interest is paid semi-annually in September and March. In June 2015, the Corporation issued $150.0 million of subordinated notes, which mature on November 15, 2024 and carry a fixed rate of 4.50% and an effective rate of 4.69% as a result of discounts and issuance costs. Interest is paid semi-annually in May and November. In November 2014, the Corporation issued $100.0 million of subordinated notes, which mature on November 15, 2024 and carry a fixed rate of 4.50% and an effective rate of 4.87% as a result of discounts and issuance costs. Interest is paid semi-annually in May and November.

As of December 31, 2020, the Parent Company owned all of the common stock of three subsidiary trusts, which have issued TruPS in conjunction with the Parent Company issuing junior subordinated deferrable interest debentures to the trusts. The TruPS are redeemable on specified dates, or earlier if certain events arise.

The following table provides details of the debentures as of December 31, 2020 (dollars in thousands):

Debentures Issued to	Fixed/ Variable	Interest Rate		Amount		Maturity	Callable	Call Price
Columbia Bancorp Statutory Trust	Variable	2.96	%	$	6,186	06/30/34	03/31/21	100.0
Columbia Bancorp Statutory Trust II	Variable	2.14	%	4,124		03/15/35	03/15/21	100.0
Columbia Bancorp Statutory Trust III	Variable	2.02	%	6,186		06/15/35	03/15/21	100.0
				$	16,496