Borrowed Funds

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Borrowed Funds

Borrowed Funds

Short-Term Borrowings

Short-term borrowings at March 31, 2020 and December 31, 2019 consisted of the following: 

	March 31, 2020		December 31, 2019
	(in thousands)
FHLB advances	$	1,510,000	$	940,000
Federal funds purchased	457,000		—
Securities sold under agreements to repurchase	128,655		153,280
Total short-term borrowings	$	2,095,655	$	1,093,280

The contractual weighted average interest rate for short-term borrowings was 0.53 percent and 1.68 percent at March 31, 2020 and December 31, 2019, respectively. At March 31, 2020, short-term FHLB advances totaling $600 million were hedged with cash flow interest rate swaps during the first quarter 2020. See Note 12 for additional details.

Long-Term Borrowings

Long-term borrowings at March 31, 2020 and December 31, 2019 consisted of the following: 

	March 31, 2020		December 31, 2019
	(in thousands)
FHLB advances, net (1)	$	2,163,754	$	1,480,012
Securities sold under agreements to repurchase	350,000		350,000
Subordinated debt, net (2)	291,857		292,414
Other	28		—
Total long-term borrowings	$	2,805,639	$	2,122,426

(1)	FHLB advances are presented net of unamortized prepayment penalties and other purchase accounting adjustments totaling $2.0 million and $2.8 million at March 31, 2020 and December 31, 2019, respectively.
(2)	Subordinated debt is presented net of unamortized debt issuance costs totaling $1.1 million and $1.2 million at March 31, 2020 and December 31, 2019, respectively.

During the three months ended March 31, 2020, Valley obtained $723 million of new long-term FHLB advances with maturities between three and five years at a combined weighted average rate of approximately 1.89 percent.

The long-term FHLB advances had a weighted average interest rate of 2.13 percent and 2.23 percent at March 31, 2020 and December 31, 2019, respectively.

FHLB advances are secured by pledges of certain eligible collateral, including but not limited to, U.S. government and agency mortgage-backed securities and a blanket assignment of qualifying first lien mortgage loans, consisting of both residential mortgage and commercial real estate loans.

The long-term FHLB advances at March 31, 2020 are scheduled for contractual balance repayments as follows: 

Year	Amount
	(in thousands)
2020	$	41,290
2021	994,769
2022	121,420
2023	428,164
2024	300,000
Thereafter	280,078
Total long-term FHLB advances	$	2,165,721

There are no FHLB advances with scheduled repayments in years 2020 and thereafter, reported in the table above, which are callable for early redemption by the FHLB during 2020.