Borrowing Arrangements

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Borrowing Arrangements

Borrowing Arrangements

Information related to borrowings is provided in the table below (dollars in thousands):

	September 30, 2022			December 31, 2021
Other borrowings:
Balance at end of period	$	74,721		$	23,219
Average amount outstanding during the period (1)	62,814			22,257
Maximum amount outstanding during the period (2)	248,592			24,549
Weighted average interest rate during the period (3)	1.7		%	0.2		%
Interest rate at end of period (4)	2.1		%	0.2		%
FHLB borrowings:
Balance at end of period	$	243,531		$	344,038
Average amount outstanding during the period (1)	117,724			665,384
Maximum amount outstanding during the period (2)	423,645			723,584
Weighted average interest rate during the period (3)	1.9		%	1.1		%
Interest rate at end of period (5)	3.1		%	1.3		%

(1)The average amount outstanding during the period was computed by dividing the total daily outstanding principal balances by the number of days in the period.

(2)The maximum amount outstanding at any month-end during the period.

(3)The weighted average interest rate during the period was computed by dividing the actual interest expense (annualized for interim periods) by the average amount outstanding during the period. The weighted average interest rate on the FHLB borrowings includes the effect of interest rate swaps.

(4)Stated rate.

(5)As of December 31, 2021, the interest rate on the FHLB borrowings includes the effect of interest rate swaps.

Maturities of the obligations associated with our borrowing arrangements based on scheduled repayments at September 30, 2022 are as follows (in thousands):

	Payments Due by Period
	Less than 1 Year		1-2 Years		2-3 Years		3-4 Years		4-5 Years		Thereafter		Total
Other borrowings	$	72,021	$	2,700	$	—	$	—	$	—	$	—	$	74,721
FHLB borrowings	240,702		733		764		582		401		349		243,531
Total obligations	$	312,723	$	3,433	$	764	$	582	$	401	$	349	$	318,252

Other borrowings may include federal funds purchased, repurchase agreements and borrowings from the FRDW. Southside Bank has three unsecured lines of credit for the purchase of overnight federal funds at prevailing rates with Frost Bank, TIB – The Independent Bankers Bank and Comerica Bank for $40.0 million, $15.0 million and $7.5 million, respectively. There were no federal funds purchased at September 30, 2022 or December 31, 2021.  To provide more liquidity in response to the economic impact of the COVID-19 pandemic, the Federal Reserve took steps to encourage broader use of the discount window. At September 30, 2022, the amount of additional funding the Bank could obtain from the FRDW, collateralized by securities, was approximately $505.8 million. There were $34.0 million in borrowings from the FRDW at September 30, 2022. There were no borrowings from the FRDW at December 31, 2021. Southside Bank has a $5.0 million line of credit with Frost Bank to be used to issue letters of credit, and at September 30, 2022, the line had one outstanding letter of credit for $155,000. Southside Bank currently has no outstanding letters of credit from FHLB held as collateral for its public fund deposits.

Southside Bank enters into sales of securities under repurchase agreements. These repurchase agreements totaled $40.7 million at September 30, 2022 and $23.2 million at December 31, 2021, and had maturities of less than 1.4 years.  Repurchase agreements are secured by investment and MBS securities and are stated at the amount of cash received in connection with the transaction.

FHLB borrowings represent borrowings with fixed interest rates ranging from 2.73% to 4.799% and with remaining maturities of 6 days to 5.8 years at September 30, 2022.  FHLB borrowings may be collateralized by FHLB stock, nonspecified loans and/or securities. At September 30, 2022, the amount of additional funding Southside Bank could obtain from FHLB, collateralized by securities, FHLB stock and nonspecified loans and securities, was approximately $1.62 billion, net of FHLB stock purchases required.