Short-Term Borrowings

12 Months Ended

Dec. 31, 2022

Short-term borrowings are for terms under or equal to one year and at December 31, 2022 are comprised of FHLB advances. FHLB advances are for various terms and are secured by a blanket lien on residential mortgages and other real estate secured loans. During 2022, we discontinued our REPO product. All REPOs were overnight short-term investments not insured by the Federal Deposit Insurance Corporation, or FDIC. During 2021, securities pledged as collateral under these REPO financing arrangements could not be sold or repledged by the secured party and, therefore, the REPOs were accounted for as secured borrowings. Mortgage-backed securities with amortized cost of $86.3 million and carrying value of $88.4 million at December 31, 2021 were pledged as collateral for these secured transactions. The pledged securities were held in safekeeping at the Federal Reserve. Due to the overnight short-term nature of REPOs, potential risk due to a decline in the value of the pledged collateral was low. Collateral pledging requirements with REPOs were monitored daily.

The following table presents the composition of short-term borrowings, the weighted average interest rate as of December 31 and interest expense for the years ended December 31:


	2022						2021						2020
(dollars in thousands)	Balance		Weighted Average Interest Rate		Interest Expense		Balance		Weighted Average Interest Rate		Interest Expense		Balance		Weighted Average Interest Rate	Interest Expense
REPOs	$	—	—	%	$	36	$	84,491	0.10	%	$	79	$	65,163	0.25 %	$	169
FHLB advances	370,000		4.49	%	1,649		—		—	%	12		75,000		0.19 %	1,434
Total Short-term Borrowings	$	370,000	4.49	%	$	1,685	$	84,491	0.10	%	$	91	$	140,163	0.22 %	$	1,603