Borrowings

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Borrowings

Borrowings

Overnight and Short-Term Borrowings

At March 31, 2023, the Company had $775.0 million overnight and short-term borrowings from the FHLB and $700.0 million at December 31, 2022. In addition, Lakeland had $10.0 million overnight and short-term borrowings from correspondent banks at March 31, 2023 and and no overnight and short-term borrowings at December 31, 2022. At March 31, 2023, Lakeland had overnight and short-term federal funds lines available to borrow up to $240.0 million from correspondent banks. Lakeland may also borrow from the discount window or under the Bank Term Funding Program ("BTFP") of the Federal Reserve Bank of New York based on the fair value of collateral pledged. Lakeland had no borrowings with the Federal Reserve Bank of New York as of March 31, 2023 or December 31, 2022.

Also included in the balances at March 31, 2023 and December 31, 2022 were short-term securities sold under agreements to repurchase of $28.3 million and $28.8 million, respectively. The securities sold under agreements to repurchase are overnight sweep arrangement accounts with our customers. As of March 31, 2023, the Company had $22.9 million of mortgage-backed securities and $16.0 million of collateralized mortgage obligations pledged for its securities sold under agreements to repurchase.

At times, the fair values of securities collateralizing our securities sold under agreements to repurchase may decline due to changes in interest rates and may necessitate our lenders to issue a “margin call” which requires Lakeland to pledge additional collateral to meet that margin call.

FHLB Advances

The Company had one advance from the FHLB, which totaled $25.0 million at both March 31, 2023 and December 31, 2022, with a weighted average interest rate of 0.77% and a maturity date in 2025. The advance was collateralized by first mortgage loans and has prepayment penalties.