Borrowings

12 Months Ended

Dec. 31, 2019

TCF Bank is a member of the FHLB, which provides short- and long-term funding collateralized by mortgage related assets to its members.

Collateralized deposits include TCF Bank's Repurchase Investment Sweep Agreement product collateralized by mortgage-backed securities, and funds deposited by customers that are collateralized by investment securities owned by TCF Bank, as these deposits are not covered by FDIC insurance.

Short-term borrowings (borrowings with an original maturity of less than one year) were as follows:



	At December 31, 2019				At December 31, 2018
(Dollars in thousands)	Amount		Weighted-average Rate		Amount		Weighted-average Rate
FHLB advances	$	2,450,000	1.85	%	$	—	—	%
Collateralized deposits	219,145		0.64		—		—
Total short-term borrowings	$	2,669,145	1.75	%	$	—	—	%

On August 5, 2019, TCF Financial entered into a $50.0 million unsecured 364-day revolving credit facility bearing interest at the then applicable Eurocurrency Rate plus 150 basis points, available to be used, as needed, to fund growth, common stock repurchases or other general corporate purposes. The revolving credit facility contains covenants related to certain thresholds that must be maintained related to various capital adequacy levels, asset quality and profitability ratios, and certain restrictions on levels of indebtedness. TCF Financial had no outstanding balance under the revolving credit facility and was in compliance with all covenants at December 31, 2019.

Long-term borrowings were as follows:



		At December 31, 2019		At December 31, 2018
(Dollars in thousands)	Stated Rate	Amount		At Amount
FHLB advancesdue 2020 to 2025⁽¹⁾⁽²⁾	1.30% - 2.72%	$	1,822,058	$	1,100,000
Subordinated debt:
Subordinated debt obligation due 2022	6.25%	109,338		109,095
Subordinated debt obligation due 2025	4.60%	148,681		148,461
Subordinated debt obligation due 2029	4.13%	148,657		—
Subordinated debt securities due 2032-2035 ⁽³⁾⁽⁴⁾	3.54% - 5.34%	19,021		—
Hedge related adjustment		2,773		(4,165		)
Total subordinated debt obligations		428,470		253,391
Discounted lease rentals due 2020 to 2024	2.64% - 6.50%	100,882		92,976
Finance lease obligation due 2038	3.73%	3,038		3,105
Total long-term borrowings		$	2,354,448	$	1,449,472

(1)Includes the current portion of FHLB advances of $110.0 million at December 31, 2019.

(2)The December 31, 2019 balance includes advances payable of $1.81 billion and purchase accounting premiums of $12.1 million.

(3)The December 31, 2019 balance includes advances payable of $20.6 million and purchase accounting discounts of $1.6 million.

(4)Floating-rate based on three-month LIBOR plus 1.45% - 3.25%.

FHLB Advances As a result of the Merger, the Corporation assumed long-term FHLB advances. These long-term FHLB advances have maturity dates ranging from 2020 to 2025 and carried interest rates ranging from 1.30% to 2.72% at December 31, 2019. FHLB advances are collateralized by residential mortgage and commercial real estate loans.

Subordinated Debt Obligations As a result of the Merger, the Corporation assumed subordinated debt securities totaling $19.0 million. Included in the obligations assumed in the Merger were $5.6 million of obligations due in 2032 with a carrying interest rate based on the three-month LIBOR plus 3.25% and $13.4 million of obligations due in 2034 and 2035 with carrying interest rates based on the three-month LIBOR plus 1.45% to 2.85%.

On July 2, 2019, TCF Bank issued $150.0 million of fixed-to-floating rate subordinated notes (the "2029 Notes") at par. The fixed-to-floating rate subordinated notes, due July 2, 2029, bear an initial interest rate of 4.125% per annum, payable semi-annually in arrears on January 2 and July 2, commencing on January 2, 2020. The 2029 Notes are redeemable at TCF Bank's option beginning on July 2, 2024. Effective July 2, 2024, the interest rate will reset quarterly to an annual interest rate equal to the then-current three-month LIBOR rate plus 237.5 basis points, payable quarterly in arrears on January 2, April 2, July 2 and October 2, commencing on October 2, 2024. TCF Bank incurred issuance costs of $1.5 million that are amortized as interest expense to the call date in 2024 using the effective interest method.

At December 31, 2019, TCF Bank had pledged loans secured by consumer and commercial real estate and FHLB stock with an aggregate carrying value of $10.5 billion. At December 31, 2019, $1.5 billion of the FHLB advances outstanding were prepayable at the Corporation's option.

The contractual maturities of long-term borrowings at December 31, 2019 were as follows:



(In thousands)
2020	$	315,100
2021	1,321,934
2022	146,005
2023	26,308
2024	11,003
Thereafter	534,098
Total long-term borrowings	$	2,354,448