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,
	2020				2019
(Dollars in thousands)	Amount		Weighted-average Rate		Amount		Weighted-average Rate
FHLB advances	$	400,000	0.33	%	$	2,450,000	1.85	%

Collateralized deposits	217,363		0.11		219,145		0.64


Total short-term borrowings	$	617,363	0.25	%	$	2,669,145	1.75	%

On June 29, 2020, TCF Financial voluntarily prepaid the outstanding $80.0 million on its $150.0 million unsecured 364-day revolving credit facility with an unaffiliated bank and subsequently closed the credit facility.

Long-term borrowings were as follows:


		At December 31,
		2020		2019
(Dollars in thousands)	Stated Rate	Amount		Amount
FHLB advances due 2021 to 2025 (1)(2)	0.39% - 2.72%	$	709,848	$	1,822,058
Subordinated debt:
Subordinated debt obligation due 2022	6.25%	109,597		109,338
Subordinated debt obligation due 2025	4.60%	148,913		148,681
Subordinated debt obligation due 2029	4.13%	148,933		148,657
Subordinated debt obligation due 2030	5.50%	148,637		—
Subordinated debt securities due 2032-2035 (3)(4)	1.67% - 3.50%	19,090		19,021
Hedge related adjustment(5)		10,975		2,773
Total subordinated debt obligations		586,145		428,470
Discounted lease rentals due 2021 to 2025	2.03% - 6.07%	75,770		100,882
Finance lease obligation due 2038	3.73%	2,969		3,038
Total long-term borrowings		$	1,374,732	$	2,354,448

(1)Includes the current portion of FHLB advances of $150.0 million and $110.0 million at December 31, 2020 and 2019, respectively.

(2)The December 31, 2020 and 2019 balances include amounts payable of $0.7 billion and $1.8 billion, respectively, and purchase accounting premiums of $9.8 million and $12.1 million, respectively.

(3)The December 31, 2020 and 2019 balances include amounts payable of $20.6 million for both periods and purchase accounting discounts of $1.5 million and $1.6 million, respectively.

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

(5)Related to subordinated bank notes with a stated maturity of 2025.

FHLB advances are collateralized by residential mortgage and commercial real estate loans.

On May 6, 2020, TCF Bank issued $150.0 million of fixed-to-floating rate subordinated notes (the “2030 Notes”) at par. The fixed-to-floating rate subordinated notes, due May 6, 2030, bear an initial fixed interest rate of 5.50% per annum, payable semi-annually in arrears on May 6 and November 6, commencing on November 6, 2020. The 2030 Notes are redeemable at TCF Bank's option beginning on May 6, 2025. Commencing May 6, 2025, the interest rate will reset quarterly to an annual interest rate equal to the then-current three-month LIBOR rate plus 509 basis points, payable quarterly in arrears on February 6, May 6, August 6 and November 6. TCF Bank incurred issuance costs of $1.5 million that are amortized as interest expense over the full term of the 2030 Notes using the effective interest method.

At December 31, 2020 and 2019, TCF Bank had pledged $12.5 billion and $10.5 billion, respectively, of loans secured by consumer and commercial real estate to provide borrowing capacity from the FHLB.

At December 31, 2020 and 2019, TCF Bank had pledged $3.2 billion and $903.1 million, respectively, of loans secured by assets to provide borrowing capacity from the Federal Reserve Bank discount window. No borrowings were sourced from this facility at December 31, 2020 and 2019.

The contractual maturities of long-term borrowings at December 31, 2020 were as follows:


(In thousands)
2021	$	157,618
2022	483,452
2023	25,739
2024	14,484
2025	373,810
Thereafter	319,629
Total long-term borrowings	$	1,374,732