Borrowed Funds

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Borrowed Funds

Borrowed Funds

Borrowed funds are summarized as follows (dollars in thousands):

	December 31,
	2022				2021
	Amount		Weighted Average Rate		Amount		Weighted Average Rate
FHLB advances	$	1,211,166	4.59	%	$	—	—	%
Securities sold under agreements to repurchase with customers	69,097		0.16		118,769		0.16
Other borrowings	195,403		5.87		229,141		4.47
Total borrowed funds	$	1,475,666	4.55	%	$	347,910	3.00	%

In March 2022, the Company redeemed $35.0 million of subordinated debt due September 30, 2026, which was reported in Other borrowings. The debt carried an interest rate of 4.14% based on a floating rate of three months LIBOR plus 392 basis points.

The Company pledges certain securities and loans to secure various borrowings or borrowing capacity. The estimated fair value of securities pledged for the ability to draw on FHLB advances, access to the Federal Reserve discount window, and other borrowings and for other purposes required by law amounted to $935.4 million and $1.14 billion at December 31, 2022 and 2021, respectively, which included $105.3 million and $142.9 million at December 31, 2022 and 2021, respectively, pledged as collateral for securities sold under agreements to repurchase with customers. The securities pledged, which collateralize the repurchase agreements are delivered to the lender, with whom each transaction is executed, or to a third-party custodian. The lender, who may sell, loan or otherwise dispose of such securities to other parties in the normal course of their operations, agrees to resell to the Company substantially the same securities at the maturity of the repurchase agreements.

The Company also pledges eligible mortgage loans to secure FHLB and Federal Reserve System (“FRB”) advances. At December 31, 2022, the Bank pledged $6.49 billion of eligible mortgage loans to secure FHLB and FRB advances.

FHLB advances and repurchase agreements had contractual maturities at December 31, 2022 as follows (in thousands):

	FHLB Advances		Repurchase Agreements
For the Year Ended December 31,
2023	$	1,209,500	$	69,097
2025	1,666		—
Total	$	1,211,166	$	69,097

The other borrowings at December 31, 2022 included the following (in thousands):

Type of Debt	Stated Value		Carrying Value		Interest Rate			Maturity
Subordinated debt	$	125,000	$	123,537	5.701	%	(1)	May 15, 2030
Trust preferred	10,000		8,123		3 month LIBOR plus 225 basis points		(2)	December 15, 2034
Trust preferred	30,000		23,589		3 month LIBOR plus 135 basis points		(2)	March 15, 2036
Trust preferred	5,000		5,000		3 month LIBOR plus 165 basis points		(2)	August 1, 2036
Trust preferred	7,500		7,500		3 month LIBOR plus 166 basis points		(2)	November 1, 2036
Trust preferred	10,000		7,922		3 month LIBOR plus 153 basis points		(2)	June 30, 2037
Trust preferred	10,000		10,000		3 month LIBOR plus 175 basis points		(2)	September 1, 2037
Trust preferred	10,000		7,798		3 month LIBOR plus 139 basis points		(2)	October 1, 2037
Finance lease	1,934		1,934		5.625	%		July 31, 2029
Total	$	209,434	$	195,403

(1)Adjusts to a floating rate of 509.5 basis points over 3 month Secured Overnight Financing Rate (“SOFR”) on May 15, 2025.

(2)All trust preferred debt carry interest rates which adjust to a spread over LIBOR on a quarterly basis and are expected to convert to a spread over the SOFR upon LIBOR cessation.

All of the trust preferred debt is currently callable.

Interest expense on borrowings for the years ended December 31, 2022, 2021, and 2020 was as follows (in thousands):

	For the Year Ended December 31,
	2022		2021		2020
FHLB advances	$	10,365	$	—	$	7,018
Reverse repurchase agreements	159		253		562
Other borrowings	12,153		11,291		10,787
Total interest expense on borrowings	$	22,677	$	11,544	$	18,367