Borrowings

12 Months Ended

Dec. 31, 2023

Debt Disclosure [Abstract]

Borrowings

Borrowings

Federal Home Loan Bank Advances

Advances payable to the FHLB amounted to $1.2 billion and $980.0 million, respectively, at December 31, 2023 and 2022.

At December 31, 2023, the Corporation has interest rate swaps with a notional amount of $120.0 million that were designated as cash flow hedges to hedge the interest rate risk associated with short-term FHLB advances. See Note 9 for additional disclosure on derivatives.

As of December 31, 2023 and 2022, the Bank had access to a $40.0 million unused line of credit with the FHLB. Additionally, the Bank had a standby letter of credit with the FHLB of $65.0 million and $215.0 million, respectively, at December 31, 2023 and December 31, 2022. This standby letter of credit collateralizes an institutional deposit. The Bank had remaining available borrowing capacity of $1.1 billion and $668.3 million, respectively, with the FHLB at December 31, 2023 and 2022. 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, 2023:

(Dollars in thousands)	Scheduled Maturity	Weighted Average Rate
2024	$550,000	5.30	%
2025	305,000	4.94
2026	165,000	4.54
2027	45,000	4.24
2028	125,000	4.15
2029 and thereafter	—	—
Total	$1,190,000	4.94	%

Junior Subordinated Debentures

Junior subordinated debentures amounted to $22.7 million at December 31, 2023 and 2022.

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 mature on September 15, 2035 and bear interest at a rate equal to the three-month SOFR rate plus 1.71%, or 7.10% as of December 31, 2023. Prior to the cessation of LIBOR on June 30, 2023, the Trust I junior subordinated debentures bore interest at a rate equal to the three-month LIBOR rate plus 1.45%, which was 6.22% at December 31, 2022. The $14.4 million of junior subordinated debentures associated with Trust II mature on November 23, 2035 and bear interest at a rate equal to the three-month SOFR rate plus 1.71%, or 7.09% as of December 31, 2023. Prior to the cessation of LIBOR, the Trust II junior subordinated debentures bore interest at a rate equal to the three-month LIBOR rate plus 1.45%, which was 6.14% at December 31, 2022. 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.