Borrowings

12 Months Ended

Dec. 31, 2024

Debt Disclosure [Abstract]

Borrowings

Borrowings

Federal Home Loan Bank Advances

Advances payable to the FHLB amounted to $1.1 billion and $1.2 billion, respectively, at December 31, 2024 and 2023. See Note 9 for additional disclosure on derivatives designated as cash flow hedges that were executed to hedge the interest rate risk associated with short-term FHLB advances.

The Bank pledges certain qualified investment securities and loans as collateral to the FHLB. As of December 31, 2024 and 2023, the Bank had available borrowing capacity of $753.0 million and $1.1 billion, respectively, with the FHLB.

In addition, the Bank had access to a $40.0 million unused line of credit with the FHLB at both December 31, 2024 and 2023. Furthermore, the Bank had standby letters of credit with the FHLB of $66.0 million and $65.0 million, respectively, at December 31, 2024 and December 31, 2023, to collateralize institutional deposits.

The following table presents maturities and weighted average interest rates on FHLB advances outstanding as of December 31, 2024:

(Dollars in thousands)	Scheduled Maturity	Weighted Average Rate
2025	$750,000	4.91	%
2026	165,000	4.54
2027	45,000	4.24
2028	85,000	4.35
2029	80,000	3.82
2030 and thereafter	—	—
Total	$1,125,000	4.71	%

Junior Subordinated Debentures

Junior subordinated debentures amounted to $22.7 million at December 31, 2024 and 2023.

The Bancorp sponsored the creation of Trust I and Trust II, Delaware statutory trusts created for the sole purpose of issuing trust preferred securities and investing the proceeds in junior subordinated debentures of the Bancorp.  The Bancorp is the owner of all of the common securities of the trusts.  In accordance with GAAP, the trusts are treated as unconsolidated subsidiaries.

The $8.3 million of junior subordinated debentures associated with Trust I mature on September 15, 2035 and bear interest at a rate equal to the three-month SOFR rate plus 1.71%, or 6.07% and 7.10%, respectively, as of December 31, 2024 and 2023. The $14.4 million of junior subordinated debentures associated with Trust II mature on November 23, 2035 and bear interest at a rate equal to the three-month SOFR rate plus 1.71%, or 6.23% and 7.09%, respectively, as of December 31, 2024 and 2023. The debentures may be redeemed at par at the Bancorp’s option, subject to the approval of the applicable banking regulator to the extent required under applicable guidelines or policies.

See Note 14 for additional discussion of the regulatory capital treatment of trust preferred securities.