Borrowings

12 Months Ended

Dec. 31, 2023

Debt Disclosure [Abstract]

Borrowings

Borrowings

A significant portion of the Company's short-term borrowings were comprised of securities sold under agreements to repurchase with overnight maturities:

	For the Year Ended December 31,
(In thousands)	2023			2022
Maximum amount outstanding at any month end	$	374,573		$	172,029
Weighted average interest rate at end of year	3.48		%	1.89		%
Average amount outstanding	$	270,999		$	121,318
Weighted average interest rate during the year	3.07		%	0.81		%

Securities sold under agreements to repurchase are accounted for as secured borrowings. For securities sold under agreements to repurchase, the Company would be obligated to provide additional collateral in the event of a significant decline in fair value of collateral pledged. Company securities pledged were as follows by collateral type and maturity as of:

	December 31,
(In thousands)	2023		2022
Fair value of pledged securities - overnight and continuous:
Mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities	$	396,378	$	184,967

At December 31, 2023, the Company had available secured lines of credit totaling $4.5 billion, inclusive of lendable collateral of $2.8 billion and $1.7 billion at the Federal Reserve and the Federal Home Loan Bank ("FHLB"), respectively.

Of the $1.7 billion at the FHLB, $50.0 million was outstanding at December 31, 2023. During 2023, the average interest rate on FHLB borrowings was 3.64% and the weighted average interest rate on balances outstanding at December 31, 2023 was 3.23%.

The following table summarizes the Company's junior subordinated trust preferred debentures and related common equity securities as of December 31, 2023:

(In thousands)
Description	Issuance Date	Acquisition Date1	Maturity Date	Junior Subordinated Debt		Trust Preferred Securities		Common Equity Securities		Contractual Interest Rate	Interest Rate at December 31, 2023
SBCF Capital Trust I	3/31/2005	n/a	3/31/2035	$	20,619	$	20,000	$	619	3 month SOFR +533bps	7.34%
SBCF Statutory Trust II	12/16/2005	n/a	12/16/2035	20,619		20,000		619		3 month SOFR +538bps	6.98%
SBCF Statutory Trust III	6/29/2007	n/a	6/15/2037	12,372		12,000		372		3 month SOFR +538bps	7.00%
The BANKshares, Inc. Statutory Trust I	12/19/2002	10/1/2014	12/26/2032	5,155		5,000		155		3 month SOFR +325bps	8.87%
The BANKshares, Inc. Statutory Trust II	3/17/2004	10/1/2014	3/17/2034	4,124		4,000		124		3 month SOFR +279bps	8.43%
The BANKshares, Inc. Capital Trust I	12/15/2005	10/1/2014	12/15/2035	5,155		5,000		155		3 month SOFR +538bps	7.03%
Grand Bank Capital Trust I	10/29/2004	7/17/2015	10/29/2034	7,217		7,000		217		3 month SOFR +198bps	7.57%
				$	75,261	$	73,000	$	2,261
1Acquired junior subordinated debentures were recorded at their acquisition date fair values, which collectively was $5.6 million lower than face value; this amount is being amortized into interest expense over the remaining term to maturity.

Interest on the trust preferred securities is calculated on the basis of 3-month SOFR plus spread and is re-set quarterly. The trust preferred securities may be redeemed without penalty, upon approval of the FRB or upon occurrence of certain events affecting their tax or regulatory capital treatment. The proceeds of the offering of trust preferred securities and common equity securities were used by SBCF Capital Trust I and SBCF Statutory Trust II to purchase the $41.2 million junior subordinated deferrable interest notes issued by the Company, and by SBCF Statutory Trust III to purchase the $12.4 million junior subordinated deferrable interest notes issued by the Company, all of which have terms substantially similar to the trust preferred securities.

The Company has the right to defer payments of interest on the notes at any time or from time to time at the Company's election. Interest can be deferred for a period not longer than five years. If the Company elects to defer interest, it may not, with certain exceptions, declare or pay any dividends or distributions on its capital stock or purchase or acquire any of its capital stock. As of December 31, 2023, 2022 and 2021, all interest payments on trust preferred securities were current.

Distributions on the trust preferred securities are payable quarterly. The Company has entered into agreements to guarantee the payments of distributions on the trust preferred securities and payments of redemption of the trust preferred securities. Under these agreements, the Company also agrees, on a subordinated basis, to pay expenses and liabilities of the Trusts other than those arising under the trust preferred securities. The obligations of the Company under the junior subordinated notes, the trust agreement establishing the Trusts, the guarantees and agreements as to expenses and liabilities, in aggregate, constitute a full and conditional guarantee by the Company of the Trusts' obligations under the trust preferred securities.

In 2022, the Company obtained $12.3 million in senior notes through the acquisition of Apollo. Contractual interest is paid on a semiannual basis at a fixed rate of 5.50% until April 30, 2025, at which point the rate converts to a floating rate of 3-month SOFR plus 533 basis points. The debt was recorded at fair value, resulting in a $0.4 million premium that is being amortized into interest expense over the remaining term to maturity.

In 2023, the Company acquired $25.0 million in subordinated debt through the acquisition of Professional. Contractual interest is paid on a semiannual basis at a fixed interest rate of 3.375% until January 30, 2027, at which point the rate converts to a 3-month SOFR rate plus 203 basis points paid quarterly. The debt was recorded at fair value, resulting in a $3.9 million discount that is being accreted into interest expense over the remaining term to maturity.