Long Term Borrowings and Subordinated Debt

12 Months Ended

Dec. 31, 2024

LONG TERM BORROWINGS AND SUBORDINATED DEBT

Long-term borrowings are for original terms greater than one year and are comprised of FHLB advances and finance leases. Our long-term borrowings were $50.9 million as of December 31, 2024 and $39.3 million as of December 31, 2023. Long-term FHLB advances are secured by the same loans as short-term FHLB advances. Total loans pledged as collateral at the FHLB were $2.8 billion at December 31, 2024. We were eligible to borrow up to an additional $1.7 billion based on qualifying collateral and up to a maximum borrowing capacity of $2.0 billion at December 31, 2024.

The following table represents the balance of long-term borrowings, the weighted average interest rate as of December 31 and interest expense for the years ended December 31:


(dollars in thousand)	2024			2023			2022
Long-term borrowings	$	50,896		$	39,277		$	14,741
Weighted average interest rate	3.75		%	4.52		%	2.61		%
Interest expense	$	1,964		$	1,332		$	411

Scheduled annual maturities and average interest rates for all of our long-term debt for each of the five years subsequent to December 31, 2024 and thereafter are as follows:


(dollars in thousands)	Balance		Average Rate
2025	$	81	5.98	%
2026	50,087		3.71	%
2027	93		6.02	%
2028	94		6.05	%
2029	28		6.08	%
Thereafter	513		5.88	%
Total	$	50,896	3.75	%

Junior Subordinated Debt Securities

The following table represents the composition of junior subordinated debt securities at December 31 and the interest expense for the years ended December 31:


	2024				2023				2022
(dollars in thousands)	Balance		Interest Expense		Balance		Interest Expense		Balance		Interest Expense
Junior subordinated debt	$	25,000	$	1,796	$	25,000	$	1,738	$	25,000	$	850
Junior subordinated debt—trust preferred securities	24,418		2,180		24,358		2,372		29,453		1,545
Total	$	49,418	$	3,976	$	49,358	$	4,110	$	54,453	$	2,395

The following table summarizes the key terms of our junior subordinated debt securities:

(dollars in thousands)

2005 Trust
Preferred Securities

2006 Junior Subordinated Debt

2008 Trust
Preferred Securities

Junior Subordinated Debt

$—

$25,000

$—

Trust Preferred Securities

$4,124

—

$20,619

Stated Maturity Date

5/23/2035

12/15/2036

3/15/2038

Optional redemption date at par

Any time after 5/23/2010

Any time after 9/15/2011

Any time after 3/15/2013

Regulatory Capital

Tier 1

Tier 2

Tier 1

Interest Rate

3 Month CME Term SOFR plus 203 bps

3 month CME Term SOFR plus 186 bps

3 month CME Term SOFR plus 376 bps

Interest Rate at December 31, 2024

6.55%

6.22%

8.12%

We own 100 percent of the common equity of STBA Capital Trust I and DNB Capital Trust II, or the Trusts. The Trusts were formed to issue mandatorily redeemable capital securities to third-party investors. The proceeds from the sale of the securities and the issuance of the common equity by the Trusts were invested in junior subordinated debt securities issued by us. The third-party investors are considered the primary beneficiaries of the Trusts; therefore, the Trusts qualify as VIEs, but are not consolidated into our financial statements. The Trusts pay dividends on the securities at the same rate as the interest paid by us on the junior subordinated debt held by the Trusts. DNB Capital Trust II was acquired with the DNB merger.