Borrowings

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Borrowings

Borrowings

The Company had total borrowings outstanding at March 31, 2023 with carrying values of $6.0 billion compared to $906.2 million at December 31, 2022.

The Bank had outstanding secured advances from the FHLB at March 31, 2023 with carrying values of $5.9 billion, as compared to $906.2 million at December 31, 2022. The FHLB advances have fixed interest rates ranging from 4.97% to 5.38% and mature in 2023. The FHLB requires the Bank to maintain a required level of investment in FHLB and sufficient collateral to qualify for secured advances. The Bank has pledged as collateral for these secured advances all FHLB stock, all funds on deposit with the FHLB, investment and commercial real estate portfolios, accounts, general intangibles, equipment and other property in which a security interest can be granted by the Bank to the FHLB.

The Bank also had available lines of credit with the FHLB totaling $5.5 billion at March 31, 2023, subject to certain collateral requirements. The Bank had available lines of credit with the Federal Reserve totaling $1.3 billion subject to certain collateral requirements, namely the amount of certain pledged loans at March 31, 2023. The Bank had uncommitted federal funds line of credit agreements with additional financial institutions totaling $600.0 million at March 31, 2023. The Bank also has access to the FRB Bank Term Funding Program with an available line of credit of $2.3 billion, subject to certain collateral requirements, namely the amount of pledged investment securities. Availability of the lines is subject to federal funds balances available for loan and continued borrower eligibility and are reviewed and renewed periodically throughout the year. These lines are intended to support short-term liquidity needs, and the agreements may restrict consecutive day usage.

The Company has a $50.0 million short-term credit facility with an unaffiliated bank. This facility, which expires May 25, 2023, provides the Company additional liquidity, if needed, for various corporate activities. As of March 31, 2023, $50.0 million was outstanding at a variable rate of 6.38%. The credit agreement requires the Company to comply with certain covenants, including those related to asset quality and net income levels. The Company was in compliance with all covenants associated with this facility at March 31, 2023.