Borrowings

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Borrowings

Borrowings

Overnight and Short-Term Borrowings

At September 30, 2023, the Company had $625.0 million overnight and short-term borrowings from the FHLB and $700.0 million at December 31, 2022. At September 30, 2023, Lakeland had overnight and short-term federal funds lines available to borrow up to $175.6 million from correspondent banks. Lakeland had $74.4 million in overnight borrowings from correspondent banks at September 30, 2023 and no overnight or short-term borrowings from correspondent banks at December 31, 2022. 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 September 30, 2023 or December 31, 2022.

Also included in the balances at September 30, 2023 and December 31, 2022 were short-term securities sold under agreements to repurchase of $29.4 million and $28.8 million, respectively. The securities sold under agreements to repurchase are overnight sweep arrangement accounts with our customers. As of September 30, 2023, the Company had $20.9 million of mortgage-backed securities and $14.4 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

At September 30, 2023, the Company had advances from the FHLB, which totaled $325.0 million, with a weighted average rate of 4.71%.. These advances are collateralized by first mortgage loans and have prepayment penalties. At December 31, 2022, The Company had advances from the FHLB, which totaled $25.0 million and had a weighted average rate of 0.77%. The schedule of maturities of advances at September 30, 2023 is as follows:

(in thousands)
Within one year	$	—
After one but within two years	25,000
After two years but within three years	—
After three years but within four years	300,000
	$	325,000