Borrowed Funds

12 Months Ended

Dec. 31, 2023

Borrowed funds were comprised of the following:


	As of December 31,
	2023		2022
	(In thousands)
Short-term FHLB advances	$	95	$	691,297
Escrow deposits of borrowers	21,978		22,314
Interest rate swap collateral funds	8,500		14,430
Long-term FHLB advances	17,643		12,787
Total borrowed funds	$	48,216	$	740,828

At December 31, 2023 and 2022, the Company had available and unused borrowing capacity of approximately $775.9 million and $538.9 million, respectively, at the Federal Reserve Discount Window. At December 31, 2023 and 2022, loans with collateral value of $636.8 million and $538.9 million, respectively, and securities with a collateral value of $139.1 million at December 31, 2023 were pledged to the Discount Window. No securities were pledged as collateral to the Federal Reserve Discount Window at December 31, 2022.

At December 31, 2023, the Company had a $2.4 billion collateralized line of credit from the Federal Reserve Bank of Boston through the Bank Term Funding Program. Securities with a collateral value of $2.4 billion at December 31, 2023 were pledged to the Federal Reserve Bank of Boston under the Bank Term Funding Program. The Bank Term Funding Program was created by the Federal Reserve in March 2023.

Interest expense on borrowed funds was as follows:


	For the Year Ended December 31,
	2023		2022		2021
	(In thousands)
Federal funds purchased	$	—	$	24	$	—
Federal Home Loan Bank advances	19,247		8,263		163
Escrow deposits of borrowers	6		3		2
Interest rate swap collateral funds	722		216		—
Total interest expense on borrowed funds	$	19,975	$	8,506	$	165

A summary of FHLBB advances by maturities were as follows:


	As of December 31,
	2023				2022
	Amount		Weighted Average Interest Rate		Amount		Weighted Average Interest Rate
	(Dollars in thousands)
Within one year	$	95	1.50	%	$	691,297	4.36	%
Over one year to three years	3,409		0.73	%	2,835		0.86	%
Over three years to five years	2,685		1.59	%	2,534		1.89	%
Over five years	11,549		1.31	%	7,418		0.94	%
Total Federal Home Loan Bank advances (1)	$	17,738	1.25	%	$	704,084	4.30	%

(1)The weighted average interest rate of long-term FHLB advances as of December 31, 2023 and December 31, 2022 was 1.24% and 1.11%, respectively.

At December 31, 2023 and 2022, advances from the FHLBB were secured by stock in the FHLBB, residential real estate loans and commercial real estate loans. The collateral value of residential real estate and commercial real estate loans securing these advances was $1.4 billion and $1.5 billion, respectively, at December 31, 2023, and $1.5 billion and $1.2 billion, respectively, at December 31, 2022. At December 31, 2023 and 2022, the Bank had available and unused borrowing capacity with the FHLBB of approximately $2.9 billion and $2.0 billion, respectively.

As a member of the FHLBB, the Company is required to hold FHLBB stock. At December 31, 2023 and 2022, the Company had investments in the FHLBB of $5.9 million and $41.4 million, respectively. At its discretion, the FHLBB may declare dividends on the stock. Included in other noninterest income in the Consolidated Statements of Income are dividends received of $2.0 million, $0.3 million, and $0.2 million during the years ended December 31, 2023, 2022, and 2021, respectively.