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Long-Term Borrowings and Subordinated Debt | 12 Months Ended
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Dec. 31, 2023
Debt Disclosure [Abstract] |
LONG TERM BORROWINGS AND SUBORDINATED DEBT | LONG TERM BORROWINGS AND SUBORDINATED DEBT Long-term borrowings are for original terms greater than one year and are comprised of FHLB advances, finance leases and junior subordinated debt securities. Our long-term borrowings were $39.3 million as of December 31, 2023 and $14.7 million as of December 31, 2022. Long-term FHLB advances are secured by the same loans as short-term FHLB advances. Total loans pledged as collateral at the FHLB were $4.6 billion at December 31, 2023. We were eligible to borrow up to an additional $2.7 billion based on qualifying collateral and up to a maximum borrowing capacity of $3.2 billion at December 31, 2023. The following table represents the balance of long-term borrowings, the weighted average interest rate as of December 31 and interest expense for the years ended December 31:
(dollars in thousand) | 2023 |  | 2022 |  | 2021
Long-term borrowings | $ | 39,277 |  |  | $ | 14,741 |  |  | $ | 22,430 |
Weighted average interest rate | 4.52 | % |  | 2.61 | % |  | 1.94 | %
Interest expense | $ | 1,332 |  |  | $ | 411 |  |  | $ | 458 |
Scheduled annual maturities and average interest rates for all of our long-term debt for each of the five years subsequent to December 31, 2023 and thereafter are as follows:
(dollars in thousands) | Balance |  | Average Rate
2024 | $ | 38,381 |  |  | 4.49 | %
2025 | 81 |  |  | 5.98 | %
2026 | 86 |  |  | 6.00 | %
2027 | 93 |  |  | 6.02 | %
2028 | 94 |  |  | 6.05 | %
Thereafter | 542 |  |  | 5.89 | %
Total | $ | 39,277 |  |  | 4.52 | %
Junior Subordinated Debt Securities The following table represents the composition of junior subordinated debt securities at December 31 and the interest expense for the years ended December 31:
| 2023 |  | 2022 |  | 2021
(dollars in thousands) | Balance |  | Interest Expense |  | Balance |  | Interest Expense |  | Balance |  | Interest Expense
Junior subordinated debt | $ | 25,000 |  |  | $ | 1,738 |  |  | $ | 25,000 |  |  | $ | 850 |  |  | $ | 25,000 |  |  | $ | 756 |
Junior subordinated debt—trust preferred securities | 24,358 |  |  | 2,372 |  |  | 29,453 |  |  | 1,545 |  |  | 29,393 |  |  | 1,087 |
Total | $ | 49,358 |  |  | $ | 4,110 |  |  | $ | 54,453 |  |  | $ | 2,395 |  |  | $ | 54,393 |  |  | $ | 1,843 |
The following table summarizes the key terms of our junior subordinated debt securities:
(dollars in thousands) |  |  |  |  | 2006 Junior Subordinated Debt |  |
Junior Subordinated Debt |  |  |  |  | $25,000 |  |
Trust Preferred Securities |  |  |  |  | — |  |
Stated Maturity Date |  |  |  |  | 12/15/2036 |  |
Optional redemption date at par |  |  |  |  | Any time after 9/15/2011 |  |
Regulatory Capital |  |  |  |  | Tier 2 |  |
Interest Rate |  |  |  |  | 3 month CME Term SOFR plus 186 bps |  |
Interest Rate at December 31, 2023 |  |  |  |  | 7.25% |  |
We have completed three private placements of trust preferred securities to financial institutions. In 2023, we redeemed $5.0 million of junior subordinated debt securities, along with $0.2 million in common equity issued by DNB Capital Trust I and held by us. As a result, DNB Capital Trust I has been paid off in its entirety, and we own 100 percent of the common equity of STBA Capital Trust I and DNB Capital Trust II, or the Trusts. The Trusts were formed to issue mandatorily redeemable capital securities to third-party investors. The proceeds from the sale of the securities and the issuance of the common equity by the Trusts were invested in junior subordinated debt securities issued by us. The third-party investors are considered the primary beneficiaries of the Trusts; therefore, the Trusts qualify as VIEs, but are not consolidated into our financial statements. The Trusts pay dividends on the securities at the same rate as the interest paid by us on the junior subordinated debt held by the Trusts. DNB Capital Trust II was acquired with the DNB merger.

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