BORROWINGS

12 Months Ended

Dec. 31, 2023

Debt Disclosure [Abstract]

BORROWINGS

BORROWINGS

Subordinated Debt

On March 15, 2022, the Company completed an offering of $200.0 million aggregate principal amount Fixed to Floating Rate Subordinated Notes due in 2032. The notes bear a fixed interest rate of 3.875% per year through March 29, 2027. Commencing on March 30, 2027, the notes will bear interest at a floating rate per annum equal to the benchmark rate (which is expected to be the three-month SOFR rate) plus a spread of 196.5 basis points, payable quarterly in arrears. The total amount of debt issuance costs incurred was $3.1 million, which are being amortized through the contractual life of the debt. The entire amount of the subordinated debt is considered Tier 2 capital under current regulatory guidelines.

On November 5, 2019, the Company completed an offering of $175.0 million aggregate principal amount Fixed to Floating Rate Subordinated Notes due in 2029. The notes bear a fixed interest rate of 4.25% per year through November 14, 2024. Beginning November 15, 2024, the interest rate will become a floating rate equal to three-month SOFR, plus 288 basis points (including a benchmark adjustment of 26 basis points) through the remaining maturity or early redemption date of the notes. The interest will be paid in arrears semi-annually during the fixed rate period and quarterly during the floating rate period. The Company incurred $2.9 million of debt issuance costs, which are being amortized through the contractual life of the debt. The entire amount of subordinated debt is considered Tier 2 capital under current regulatory guidelines.

The following table provides information on subordinated debentures for the period indicated:

(In thousands)	2023		2022
Fixed to floating rate sub debt, 3.875%	$	200,000	$	200,000
Fixed to floating rate sub debt, 4.25%	175,000		175,000
Total subordinated debt	375,000		375,000
Less: Debt issuance costs	(4,197)		(4,795)
Long-term borrowings	$	370,803	$	370,205

Other Borrowings

Information relating to retail repurchase agreements and federal funds purchased is presented in the following table at and for the years ending December 31:

	2023				2022
(Dollars in thousands)	Amount		Rate		Amount		Rate
End of period:
Retail repurchase agreements	$	75,032	2.00	%	$	61,967	0.11	%
Federal funds purchased	—		—		260,000		4.18
Federal Reserve Bank borrowings	300,000		4.92		—		—
Average for the year:
Retail repurchase agreements	$	63,259	1.45	%	$	108,273	0.11	%
Federal funds purchased	69,672		5.15		107,785		2.60
Federal Reserve Bank borrowings	201,370		4.94		—		—
Maximum month-end balance:
Retail repurchase agreements	$	78,239			$	139,416
Federal funds purchased	330,000				260,000
Federal Reserve Bank borrowings	300,000				—

The Company pledges U.S. Agencies securities, based upon their market values, as collateral for greater than 102.5% of the principal of its retail repurchase agreements.

At December 31, 2023, the Company had the ability to pledge collateral at prevailing market rates under a line of credit with the FHLB of $3.6 billion. FHLB availability based on pledged collateral at December 31, 2023, amounted to $3.1 billion, with $550.0 million outstanding. At December 31, 2022, the Company possessed the ability to extend its lines of credit with the FHLB totaling $3.2 billion based on collateral that was available to be pledged. The availability of FHLB borrowings based on the collateral pledged at December 31, 2022 was $2.6 billion with $550.0 million outstanding borrowings.

Under a blanket lien, the Company has pledged qualifying residential mortgage loans amounting to $1.4 billion, commercial real estate loans amounting to $4.0 billion, home equity lines of credit (“HELOC”) amounting to $209.2 million and multifamily loans amounting to $538.6 million at December 31, 2023 as collateral under the borrowing agreement with the FHLB. At December 31, 2022, the Company had pledged collateral of qualifying mortgage loans of $1.2 billion, commercial real estate loans of $3.6 billion, HELOC loans of $214.3 million and multifamily loans of $514.8 million under the FHLB borrowing agreement.

The Company also had secured lines of credit available from the Federal Reserve and correspondent banks of $651.3 million and $718.6 million at December 31, 2023 and 2022, respectively, collateralized by loans, with no borrowings outstanding at the end of either period. In addition, the Company had unsecured lines of credit with correspondent banks of $1.2 billion and $1.6 billion at December 31, 2023 and 2022. Of the unsecured lines of credit available there were no outstanding borrowings at December 31, 2023 and $260.0 million outstanding borrowings at December 31, 2022.

Advances from the FHLB and the respective maturity schedule at December 31 for the years indicated consisted of the following:

	2023				2022
(Dollars in thousands)	Amounts		Weighted Average Rate		Amounts		Weighted Average Rate
Maturity:
One year	$	250,000	4.60	%	$	350,000	4.28	%
Two years	150,000		4.16		50,000		4.66
Three years	100,000		4.03		50,000		4.28
Four years	50,000		4.08		50,000		4.16
Five years	—		—		50,000		4.08
After five years	—		—		—		—
Total advances from FHLB	$	550,000	4.33		$	550,000	4.29