BORROWING ARRANGEMENTS

12 Months Ended

Dec. 31, 2020

BORROWING ARRANGEMENTS

Information related to borrowings is provided in the table below (dollars in thousands):


	December 31, 2020			December 31, 2019
Other borrowings:
Balance at end of period	$	23,172		$	28,358
Average amount outstanding during the period (1)	91,940			15,645
Maximum amount outstanding during the period (2)	219,259			28,358
Weighted average interest rate during the period (3)	0.4		%	1.7		%
Interest rate at end of period (4)	0.1		%	1.7		%

FHLB borrowings:
Balance at end of period	$	832,527		$	972,744
Average amount outstanding during the period (1)	1,032,269			868,859
Maximum amount outstanding during the period (2)	1,274,370			1,077,883
Weighted average interest rate during the period (3)	1.1		%	2.0		%
Interest rate at end of period (4)	1.0		%	1.8		%

(1)The average amount outstanding during the period was computed by dividing the total daily outstanding principal balances by the number of days in the period.

(2)The maximum amount outstanding at any month-end during the period.

(3)The weighted average interest rate during the period was computed by dividing the actual interest expense by the average amount outstanding during the period. The weighted average interest rate on the FHLB borrowings includes the effect of interest rate swaps.

(4)Stated rate.

Maturities of the obligations associated with our borrowing arrangements based on scheduled repayments at December 31, 2020 are as follows (in thousands):


	Payments Due by Period
	Less than 1 Year		1-2 Years		2-3 Years		3-4 Years		4-5 Years		Thereafter		Total
Other borrowings	$	23,172	$	—	$	—	$	—	$	—	$	—	$	23,172
FHLB borrowings	828,489		680		710		740		772		1,136		832,527
Total obligations	$	851,661	$	680	$	710	$	740	$	772	$	1,136	$	855,699

Other borrowings include federal funds purchased, repurchase agreements and borrowings from the FRDW. Southside Bank has three unsecured lines of credit for the purchase of overnight federal funds at prevailing rates with Frost Bank, TIB – The Independent Bankers Bank and Comerica Bank for $40.0 million, $15.0 million and $7.5 million, respectively. There were no federal funds purchased at December 31, 2020 or 2019. To provide more liquidity in response to the COVID-19 pandemic, the Federal Reserve took steps to encourage broader use of the discount window. At December 31, 2020, the amount of additional funding the Bank could obtain from the FRDW, collateralized by securities and PPP loans, was approximately $722.3 million. There were no borrowings from the FRDW at December 31, 2020. Southside Bank has a $5.0 million line of credit with Frost Bank to be used to issue letters of credit, and at December 31, 2020, the line had one outstanding letter of credit for $1.0 million. Southside Bank currently has no outstanding letters of credit from FHLB held as collateral for its public fund deposits.

Southside Bank enters into sales of securities under repurchase agreements. These repurchase agreements totaled $23.2 million and $28.4 million at December 31, 2020 and 2019, respectively, and had maturities of less than one year. Repurchase agreements are secured by investment and MBS securities and are stated at the amount of cash received in connection with the transaction.

FHLB borrowings represent borrowings with fixed interest rates ranging from 0.10% to 4.799% and with remaining maturities of four days to 7.5 years at December 31, 2020. FHLB borrowings may be collateralized by FHLB stock, nonspecified loans and/or securities. At December 31, 2020, the amount of additional funding Southside Bank could obtain from FHLB, collateralized by securities, FHLB stock and nonspecified loans and securities, was approximately $1.15 billion, net of FHLB stock purchases required.

Southside Bank has entered into various variable rate agreements and fixed rate short-term pay agreements with third-party financial institutions with rates tied to LIBOR. These agreements totaled $670.0 million at December 31, 2020 and $310.0 million at December 31, 2019. Six of the agreements have an interest rate tied to three-month LIBOR and the remaining agreements have interest rates tied to one-month LIBOR. In connection with all agreements outstanding on December 31, 2020, Southside Bank also entered into various interest rate swap contracts that are treated as cash flow hedges under ASC Topic 815, “Derivatives and Hedging” that are expected to be effective in hedging the variability in future cash flows attributable to fluctuations in the underlying LIBOR interest rate. The interest rate swap contracts had a weighted average rate of 1.12% with a weighted average maturity of 3.8 years at December 31, 2020. Refer to “Note 11 – Derivative Financial Instruments and Hedging Activities” in our consolidated financial statements included in this report for a detailed description of our hedging policy and methodology related to derivative instruments.