Borrowings

12 Months Ended

Dec. 31, 2019

Borrowings at December 31, 2019 and 2018 are summarized as follows:



	December 31,
	2019		2018		2019		2018
	Balance				Weighted Average Interest Rate
	(In thousands)

Overnight lines of credit	$	107,800	$	159,600	1.81	%	2.60	%
Federal Home Loan Bank advances	1,275,391		1,029,580		2.09		2.40
Subordinated notes	16,899		—		6.75		—
Junior subordinated debentures	6,932		—		5.09		—
	$	1,407,022	$	1,189,180	2.14	%	2.43	%

At December 31, 2019 and 2018, the Company had outstanding overnight lines of credit with the FHLB of $107.8 million and $159.6 million, respectively. Interest expense on the overnight advances for the years ended December 31, 2019 and 2018, September 30, 2017, and the three months ended December 31, 2017, were $1.8 million, $2.2 million, $233,000, and $70,000 respectively.

At December 31, 2019, the Bank could borrow funds from the FHLB under an overnight advance program up to the Bank's maximum borrowing capacity based on its ability to collateralize such borrowings. Members in good standing can borrow up to 50% of their asset size as long as they have qualifying collateral to support the advance and purchase of FHLB capital. Additionally, at both December 31, 2019 and 2018, the Bank had unused correspondent bank lines of credit with an aggregate overnight borrowing capacity of $250.0 million and $225.0 million, respectively.

At December 31, 2019 FHLB advances were at fixed rates with maturities between January 2020 and August 2024, and at December 31, 2018, FHLB advances were at fixed rates with maturities between January 2019 and December 2022. At December 31, 2019 and 2018, FHLB advances were collateralized by FHLB capital stock owned by the Bank, loans with carrying values totaling $1.9 billion and $1.7 billion, respectively. Loans securing advances consists of one-to-four family, multifamily, commercial and home equity real estate loans. At December 31, 2019, FHLB advances were also collateralized by securities with carrying values totaling $246.2 million. Interest expense on fixed rate FHLB advances for the years ended December 31, 2019 and 2018, September 30, 2017, and the three months ended December 31, 2017 were $25.2 million, $17.1 million, $12.8 million, and $3.3 million respectively.

At December 31, 2019 and 2018, short-term FHLB advances totaling $410.0 million and $320.0 million, respectively, were designated as hedged items as part of a cash flow hedging program. See note 21 for information regarding these transactions.

Scheduled maturities of FHLB advances including lines of credit at December 31, 2019 are summarized as follows:



	Year Ended December 31,
	2019
	(In thousands)

One year or less	$	1,004,139
After one year to two years	178,723
After two years to three years	169,800
After three years to four years	20,529
After four years	10,000
Total FHLB advances	$	1,383,191

(11) Borrowings (continued)

At December 31, 2019 and 2018, the carrying value of junior subordinated debt balances were $6.9 million and $0, respectively. The balance outstanding at December 31, 2019 represents debentures issued in 2003 by Stewardship Statutory Trust (the "Trust"), a statutory business trust that was acquired in the Stewardship merger. These floating rate debentures mature on September 17, 2033 and adjust quarterly at a rate of three month LIBOR plus 2.95%. At December 31, 2019 the rate was 5.09%. In August 2018, the Company redeemed all other junior subordinated debt securities that were previously outstanding. Interest expense for the years ended December 31, 2019 and 2018, September 31, 2017, and the three months ended December 31, 2017 were $113,000, $3.5 million, $4.2 million and $1.0 million, respectively.

At December 31, 2019 and 2018, the balance of subordinated notes were $16.9 million and $0, respectively. The Company acquired these subordinated notes in the Stewardship merger. These notes mature on August 25, 2025 and bear interest at a fixed rate of 6.75%. The subordinated notes include a right of prepayment, without penalty, on or after August 28, 2020. Interest expense for the year ended December 31, 2019 was $65,000. There were no subordinated notes outstanding at or during the years ended December 31, 2018, September 30, 2017 or the three months ended December 31, 2017.

Interest expense on securities sold under agreements to repurchase for the years ended December 31, 2019 and 2018, September 30, 2017, and the three months ended December 31, 2017 were $0, $3,000, $1.6 million, and $203,000, respectively.