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BORROWED FUNDS
 12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
BORROWED FUNDS BORROWED FUNDS
Borrowed funds at December 31, 2022 and 2021 are summarized, as follows:
 20222021
(in thousands, except rates)PrincipalWeighted
Average
Rate		PrincipalWeighted
Average
Rate
Short-term borrowings:    
Advances from the FHLBB$— — %$— — %
Total short-term borrowings:— — — — 
Long-term borrowings:    
Advances from the FHLBB4,445 0.71 13,331 1.75 
Subordinated notes98,089 5.50 74,590 7.00 
Junior subordinated borrowing - Trust I15,464 6.54 15,464 2.01 
Junior subordinated borrowing - Trust II7,511 6.47 7,459 1.90 
Total long-term borrowings:125,509 5.52 110,844 5.33 
Total$125,509 5.52 %$110,844 5.33 %
 
Short-term debt includes Federal Home Loan Bank of Boston (“FHLBB”) advances with an original maturity of less than one year. The Bank maintains a $3.0 million secured line of credit with the FHLBB that bears a daily adjustable rate calculated by the FHLBB. There was no outstanding balance on the FHLBB line of credit for the periods ended December 31, 2022 and December 31, 2021. The Bank's available borrowing capacity with the FHLB was $1.5 billion and $1.5 billion for the periods ended December 31, 2022 and December 31, 2021, respectively. The Company was in compliance with all debt covenants as of December 31, 2022.
 
The Bank is approved to borrow on a short-term basis from the Federal Reserve Bank of Boston as a non-member bank. The Bank has pledged certain loans and securities to the Federal Reserve Bank to support this arrangement. No borrowings with the Federal Reserve Bank of Boston took place for the periods ended December 31, 2022 and December 31, 2021. As a participant in the SBA Paycheck Protection Program ("PPP"), the Bank may pledge originated loans as collateral at face value to the Federal Reserve Bank of Boston for term financings. As of December 31, 2022, the Bank had no pledged PPP loans. The Bank's available borrowing capacity with the Federal Reserve Bank was $647.9 million and $511.0 million for the periods ended December 31, 2022 and December 31, 2021, respectively.

Long-term FHLBB advances consist of advances with an original maturity of more than one year and are subject to
prepayment penalties. There were no callable advances outstanding at December 31, 2022. The advances outstanding at December 31, 2022 included amortizing advances totaling $4.4 million. The advances outstanding at December 31, 2021 included callable advances totaling $10 million and amortizing advances totaling $3.3 million. All FHLBB borrowings, including the line of credit, are secured by a blanket security agreement on certain qualified collateral, principally all residential first mortgage loans and certain securities.
A summary of maturities of FHLBB advances at year-end 2022 is as follows:
 2022
(In thousands)AmountWeighted
Average Rate
Fixed rate advances maturing:  
2023$— — %
202425 — 
2025— — 
2026557 2.20 
2027 and beyond3,863 0.50 
Total FHLBB advances$4,445 0.71 %

The Company did not have variable-rate FHLB advances for the period ended December 31, 2022 and December 31, 2021.

In June 2022, the Company issued ten year subordinated notes in the amount of $100.0 million. The interest rate is fixed at 5.50% for the first five years. After five years, the notes become callable and will bear interest at a floating rate per annum equal to a benchmark rate (which is expected to be Three-Month Term SOFR), plus 249 basis points. The subordinated note includes reduction to the note principal balance of $1.9 million for unamortized debt issuance costs as of December 31, 2022.

In September 2022, the Company called the fifteen year subordinated notes that were issued in September 2012 in the amount of $75 million.
 
The Company holds 100% of the common stock of Berkshire Hills Capital Trust I (“Trust I”) which is included in other assets with a cost of $0.5 million. The sole asset of Trust I is $15.5 million of the Company’s junior subordinated debentures due in 2035. These debentures bear interest at a variable rate equal to LIBOR plus 1.85% and had a rate of 6.54% and 2.01% at December 31, 2022 and December 31, 2021, respectively. The Company has the right to defer payments of interest for up to five years on the debentures at any time, or from time to time, with certain limitations, including a restriction on the payment of dividends to shareholders while such interest payments on the debentures have been deferred. The Company has not exercised this right to defer payments. The Company has the right to redeem the debentures at par value on each quarterly payment date. Trust I is considered a variable interest entity for which the Company is not the primary beneficiary. Accordingly, Trust I is not consolidated into the Company’s financial statements.

The Company holds 100% of the common stock of SI Capital Trust II (“Trust II”) which is included in other assets
with a cost of $0.2 million. The sole asset of Trust II is $8.2 million of the Company’s junior subordinated
debentures due in 2036. These debentures bear interest at a variable rate equal to LIBOR plus 1.70% and had a rate
of 6.47% and 1.90% at December 31, 2022 and December 31, 2021. The Company has the right to defer payments of interest for up to five years on the debentures at any time, or from time to time, with certain limitations, including a restriction on the payment of dividends to shareholders while such interest payments on the debentures have been deferred. The Company has not exercised this right to defer payments. The Company has the right to redeem the debentures at par value. Trust II is considered a variable interest entity for which the Company is not the primary beneficiary. Accordingly, Trust II is not consolidated into the Company’s financial statements.