Borrowings

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Borrowings

Borrowings

Federal Home Loan Bank Advances

Advances payable to the FHLB amounted to $980.0 million and $145.0 million, respectively, at December 31, 2022 and 2021.

As of December 31, 2022 and 2021, the Bank had access to a $40.0 million unused line of credit with the FHLB. Additionally, the Bank had a $215.0 million standby letter of credit with the FHLB at December 31, 2022. This standby letter of credit was executed in 2022 to collateralize an institutional deposit. The Bank had remaining available borrowing capacity of $668.3 million and $1.6 billion, respectively with the FHLB at December 31, 2022 and 2021. The Bank pledges certain qualified investment securities and loans as collateral to the FHLB.

The following table presents maturities and weighted average interest rates on FHLB advances outstanding as of December 31, 2022:

(Dollars in thousands)	Scheduled Maturity	Weighted Average Rate
2023	$895,000	4.29	%
2024	20,000	4.48
2025	45,000	4.21
2026	20,000	4.13
2027	—	—
2028 and thereafter	—	—
Total	$980,000	4.29	%

Junior Subordinated Debentures

Junior subordinated debentures amounted to $22.7 million at December 31, 2022 and 2021.

The Bancorp sponsored the creation of Trust I and Trust II, Delaware statutory trusts created for the sole purpose of issuing trust preferred securities and investing the proceeds in junior subordinated debentures of the Bancorp.  The Bancorp is the owner of all of the common securities of the trusts.  In accordance with GAAP, the trusts are treated as unconsolidated subsidiaries.

The $8.3 million of junior subordinated debentures associated with Trust I bear interest at a rate equal to the three-month LIBOR rate plus 1.45% and mature on September 15, 2035. The $14.4 million of junior subordinated debentures associated with Trust II bear interest at a rate equal to the three-month LIBOR rate plus 1.45% and mature on November 23, 2035. The debentures may be redeemed at par at the Bancorp’s option, subject to the approval of the applicable banking regulator to the extent required under applicable guidelines or policies.

See Note 14 for additional discussion of the regulatory capital treatment of trust preferred securities.