FHLB and other borrowings

9 Months Ended

Sep. 30, 2016

Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures [Abstract]

Note 11. FHLB and other borrowings

The Company’s FHLB and other borrowings and weighted average interest rates are summarized below:

	September 30, 2016				December 31, 2015
	Amount		Rate		Amount		Rate
	(in thousands)
By type of borrowing:
FHLB borrowings and other borrowings	$	466,337	1.52	%	$	656,587	1.26	%
Repurchase agreements (“REPOs”)		15,000	5.95			15,000	5.95
Total borrowings	$	481,337	1.66		$	671,587	1.37

By remaining period to maturity:
One year or less	$	251,337	1.27	%	$	270,587	0.64	%
One to two years		60,000	1.96			171,000	1.56
Two to three years		105,000	1.69			130,000	1.84
Three to four years		25,000	1.85			35,000	1.60
Four to five years		40,000	3.43			65,000	2.82
Total borrowings	$	481,337	1.66		$	671,587	1.37

The FHLB borrowings are secured by pledges of certain collateral including, but not limited to, U.S. government and agency mortgage-backed securities and a blanket assignment of qualifying first lien mortgage loans, consisting of both residential mortgages and commercial real estate loans.

The Company has entered into agreements under which it has sold securities subject to an obligation to repurchase the same or similar securities. Under these arrangements, the Company may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Company to repurchase the assets. The obligation to repurchase the securities is reflected as a liability in the Company’s consolidated statement of condition, while the securities underlying the securities sold under agreements to repurchase remain in the respective asset accounts and are delivered to and held as collateral by third party trustees.

Three of the FHLB notes ($2,500,000 and $7,500,000 each due April 2, 2018, and $5,000,000 due July 16, 2018) contain a convertible option which allows the FHLB, at quarterly intervals, to convert the fixed convertible advance into replacement funding for the same or lesser principal based on any advance then offered by the FHLB at its current market rate. The Company has the option to repay these advances, if converted, without penalty. The remaining advances are payable at stated maturity, with a prepayment penalty for fixed rate advances. All FHLB advances are fixed rate while the REPOs are variable rate advances. The advances at September 30, 2016 were collateralized by approximately $1.2 billion of commercial mortgage loans, net of required over-collateralization amounts, under a blanket lien arrangement. At September 30, 2016 the Company had remaining borrowing capacity of approximately at FHLB of approximately $752 million