Short-Term Borrowings and Long-Term Debt

12 Months Ended

Dec. 31, 2019

Short-Term Borrowings and Long-Term Debt [Abstract]

Short-Term Borrowings and Long-Term Debt

NOTE 9 – SHORT-TERM BORROWINGS AND LONG-TERM DEBT 

Short-term borrowings as of December 31, 2019, 2018 and 2017 and the related maximum amounts outstanding at the end of any month in each of the three years then ended are presented below. The securities underlying the repurchase agreements remain in available for sale investment securities.

	December 31,						Maximum Outstanding
	2019		2018		2017		2019		2018		2017
	(in thousands)
Federal funds purchased	$	—	$	—	$	220,000	$	274,998	$	525,000	$	387,110
Short-term FHLB advances (1)	500,000		385,000		—		825,000		385,000		250,000
Customer repurchase agreements	56,707		43,500		172,017		64,745		181,989		233,274
Customer short-term promissory notes	326,534		326,277		225,507		339,461		365,689		237,298
Total Short-term borrowings	$	883,241	$	754,777	$	617,524

(1) Represents FHLB advances with an original maturity term of less than one year.

As of December 31, 2019, the Corporation had aggregate availability under federal funds lines of $1.7 billion. A combination of commercial real estate loans, commercial loans and securities were pledged to the FRB to provide access to FRB Discount Window borrowings. As of December 31, 2019 and 2018, the Corporation had $334.3 million and $505.2 million, respectively, of collateralized borrowing availability at the FRB Discount Window, and no outstanding borrowings.

The following table presents information related to customer repurchase agreements:

	2019			2018			2017
	(dollars in thousands)
Amount outstanding as of December 31	$	56,707		$	43,500		$	172,017
Weighted average interest rate as of December 31	0.69		%	0.25		%	0.13		%
Average amount outstanding during the year	$	58,383		$	138,198		$	188,974
Weighted average interest rate during the year	0.67		%	0.21		%	0.12		%

FHLB advances with an original maturity of one year or more and long-term debt included the following as of December 31:

	2019			2018
	(in thousands)
FHLB advances	$	491,024		$	601,978
Subordinated debt	250,000			250,000
Senior notes	125,000			125,000
Junior subordinated deferrable interest debentures	16,496			16,496
Unamortized discounts and issuance costs	(751		)	(1,195		)
	$	881,769		$	992,279

Excluded from the preceding table is the Parent Company’s revolving line of credit with Fulton Bank. As of December 31, 2019 and 2018, there were no amounts outstanding under this line of credit. This line of credit, with a total commitment of $75.0 million, is secured by insurance investments and bears interest at the London Interbank Offered Rate ("LIBOR") for maturities of one month plus 2.00%. The amount that the Corporation is permitted to borrow under this commitment at any given time is subject to a formula based on a percentage of the value of the collateral pledged. Although balances drawn on the line of credit and related interest income and expense are eliminated in the consolidated financial statements, this borrowing arrangement is senior to the subordinated debt and the junior subordinated deferrable interest debentures.

FHLB advances mature through March 2027 and carry a weighted average interest rate of 1.94%. As of December 31, 2019, the Corporation had additional borrowing capacity of approximately $3.7 billion with the FHLB. Advances from the FHLB are secured by FHLB stock, qualifying residential mortgages, investments and other assets.

The following table summarizes the scheduled maturities of FHLB advances with an original maturity of one year or more and long-term debt as of December 31, 2019 (in thousands):

Year
2020	$	—
2021	48,441
2022	210,195
2023	214,536
2024	389,694
Thereafter	18,903
	$	881,769

In March 2017, the Corporation issued $125.0 million of senior notes, with a fixed rate of 3.60% and an effective rate of 3.95%, as a result of discounts and issuance costs, which mature on March 16, 2022. Interest is paid semi-annually in September and March. In June 2015, the Corporation issued $150.0 million of subordinated notes, which mature on November 15, 2024 and carry a fixed rate of 4.50% and an effective rate of 4.69% as a result of discounts and issuance costs. Interest is paid semi-annually in May and November. In November 2014, the Corporation issued $100.0 million of subordinated notes, which mature on November 15, 2024 and carry a fixed rate of 4.50% and an effective rate of 4.87% as a result of discounts and issuance costs. Interest is paid semi-annually in May and November.

As of December 31, 2019, the Parent Company owned all of the common stock of three subsidiary trusts, which have issued TruPS in conjunction with the Parent Company issuing junior subordinated deferrable interest debentures to the trusts. The TruPS are redeemable on specified dates, or earlier if certain events arise.

The following table provides details of the debentures as of December 31, 2019 (dollars in thousands):

Debentures Issued to	Fixed/ Variable	Interest Rate		Amount		Maturity	Callable	Call Price
Columbia Bancorp Statutory Trust	Variable	4.59	%	$	6,186	06/30/34	03/31/20	100.0
Columbia Bancorp Statutory Trust II	Variable	3.78	%	4,124		03/15/35	03/15/20	100.0
Columbia Bancorp Statutory Trust III	Variable	3.66	%	6,186		06/15/35	03/15/20	100.0
				$	16,496