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OTHER BORROWINGS
 12 Months Ended
Dec. 31, 2020
Debt Disclosure [Abstract]  
OTHER BORROWINGS
OTHER BORROWINGS

Other borrowings, which Heartland defines as borrowings with an original maturity date of more than one year, outstanding at December 31, 2020 and 2019, are shown in the table below, net of discount and issuance costs amortization, in thousands:
 20202019
Advances from the FHLB; weighted average interest rates were 3.03% and 4.08% at December 31, 2020 and 2019, respectively
$1,018 $2,835 
Paycheck Protection Program Liquidity Fund188,872 — 
Trust preferred securities146,323 145,343 
Note payable to unaffiliated bank44,417 51,417 
Contracts payable for purchase of real estate and other assets1,983 1,892 
Subordinated notes74,429 74,286 
Total$457,042 $275,773 

Each of Heartland's subsidiary banks has been approved by their respective Federal Reserve Bank for the Paycheck Protection Program Liquidity Fund ("PPPLF"), and as of December 31, 2020, $188.9 million was outstanding. Heartland anticipates limited additional utilization of the PPPLF through 2021. Heartland had $788.2 million of remaining PPPLF borrowing capacity at December 31, 2020.

The Heartland banks are members of the FHLB of Des Moines, Chicago, Dallas, San Francisco and Topeka. At December 31, 2020, none of Heartland's FHLB advances had call features. The advances from the FHLB are collateralized by a portion of the Heartland banks' investments in FHLB stock of $13.6 million and $11.3 million at December 31, 2020 and 2019, respectively. In addition, the FHLB advances are collateralized with pledges of one- to four-family residential mortgages, commercial and agricultural mortgages and securities totaling $4.96 billion at December 31, 2020, and $4.11 billion at December 31, 2019. At December 31, 2020, Heartland had $1.56 billion of remaining FHLB borrowing capacity.

At December 31, 2020, Heartland had fifteen wholly-owned trust subsidiaries that were formed to issue trust preferred securities, which includes trust subsidiaries acquired in acquisitions since 2013. The proceeds from the offerings were used to purchase junior subordinated debentures from Heartland and were in turn used by Heartland for general corporate purposes. Heartland has the option to shorten the maturity date to a date not earlier than the callable date. Heartland may not shorten the maturity date without prior approval of the Board of Governors of the Federal Reserve System, if required. Early redemption is permitted under certain circumstances, such as changes in tax or regulatory capital rules. Heartland repurchased and retired $2.6 million of Heartland Statutory Trust VII in 2019. In connection with these offerings of trust preferred securities, the balance of deferred issuance costs included in other borrowings was $74,000 as of December 31, 2020. These deferred costs are amortized on a straight-line basis over the life of the debentures. The majority of the interest payments are due quarterly.
A schedule of Heartland’s trust preferred offerings outstanding, as of December 31, 2020, were as follows, in thousands:
Amount
Issued
Interest
Rate
Interest Rate as
of 12/31/20(1)
Maturity
Date
Callable
Date
Heartland Financial Statutory Trust IV$10,310 
2.75% over LIBOR
2.98%
(2)
03/17/203403/17/2021
Heartland Financial Statutory Trust V20,619 
1.33% over LIBOR
1.57%04/07/203604/07/2021
Heartland Financial Statutory Trust VI20,619 
1.48% over LIBOR
1.70%
(3)
09/15/203703/15/2021
Heartland Financial Statutory Trust VII18,042 
1.48% over LIBOR
1.71%
(4)
09/01/203703/01/2021
Morrill Statutory Trust I9,182 
3.25% over LIBOR
3.50%12/26/203203/26/2021
Morrill Statutory Trust II8,865 
2.85% over LIBOR
3.08%12/17/203303/17/2021
Sheboygan Statutory Trust I 6,615 
2.95% over LIBOR
3.18%09/17/203303/17/2021
CBNM Capital Trust I4,458 
3.25% over LIBOR
3.47%12/15/203403/15/2021
Citywide Capital Trust III6,494 
2.80% over LIBOR
3.01%12/19/203304/23/2021
Citywide Capital Trust IV4,353 
2.20% over LIBOR
2.41%09/30/203405/23/2021
Citywide Capital Trust V11,973 
1.54% over LIBOR
1.76%07/25/203603/15/2021
OCGI Statutory Trust III3,004 
3.65% over LIBOR
3.89%
(5)
09/30/203203/30/2021
OCGI Capital Trust IV5,399 
2.50% over LIBOR
2.72%
(6)
12/15/203403/15/2021
BVBC Capital Trust II7,238 
3.25% over LIBOR
3.46%04/24/203304/24/2021
BVBC Capital Trust III9,226 
1.60% over LIBOR
1.85%09/30/203503/30/2021
Total trust preferred offerings146,397 
Less: deferred issuance costs(74)
 $146,323     
(1) Effective weighted average interest rate as of December 31, 2020, was 3.40% due to interest rate swap transactions as discussed in Note 12 to Heartland's consolidated financial statements.
(2) Effective interest rate as of December 31, 2020, was 5.01% due to an interest rate swap transaction as discussed in Note 12 to Heartland's consolidated financial statements.
(3) Effective interest rate as of December 31, 2020, was 3.87% due to an interest rate swap transaction as discussed in Note 12 to Heartland's consolidated financial statements.
(4) Effective interest rate as of December 31, 2020, was 3.83% due to an interest rate swap transaction as discussed in Note 12 to Heartland's consolidated financial statements.
(5) Effective interest rate as of December 31, 2020, was 5.53% due to an interest rate swap transaction as discussed in Note 12 to Heartland's consolidated financial statements.
(6) Effective interest rate as of December 31, 2020, was 4.37% due to an interest rate swap transaction as discussed in Note 12 to Heartland's consolidated financial statements.

For regulatory purposes, $146.3 million of the trust preferred securities qualified as Tier 2 capital as of December 31, 2020 and $145.2 million of the trust preferred securities qualified as Tier 1 capital as of December 31, 2019.

In addition to the credit line described in Note 10, "Short-Term Borrowings," Heartland entered into another non-revolving credit facility with the same unaffiliated bank, which provided a borrowing capacity not to exceed $55.0 million when combined with the outstanding balance on its then existing amortizing term loan with the same unaffiliated bank. On May 10, 2016, $40.0 million of this variable rate non-revolving credit facility was swapped to a fixed rate of 2.50% over LIBOR with an amortizing term of five years, which is due in April 2021, and was reclassified as long-term debt. At December 31, 2020, a balance of $44.4 million was outstanding on this term debt compared to $51.4 million at December 31, 2019. At December 31, 2020, $6.5 million was available on the non-revolving credit facility, of which no balance was outstanding.

On December 17, 2014, Heartland issued $75.0 million of subordinated notes with a maturity date of December 30, 2024. The notes were issued at par with an underwriting discount of $1.1 million. The interest rate on the notes is fixed at 5.75% per annum, payable semi-annually. For regulatory purposes, $44.7 million of the subordinated notes qualified as Tier 2 capital as of December 31, 2020. In connection with the sale of the notes, the balance of deferred issuance costs included in other borrowings was $151,000 at December 31, 2020, and $189,000 at December 31, 2019. These deferred costs are amortized on a straight-line basis over the life of the notes.
Future payments at December 31, 2020, for other borrowings at their maturity date follow in the table below, in thousands.
2021$24,656 
2022191,830 
20233,037 
202477,542 
20253,002 
Thereafter156,975 
Total$457,042