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Borrowings and Borrowing Capacity | 12 Months Ended
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Dec. 31, 2021
Debt Disclosure [Abstract] |
Borrowings And Borrowing Capacity | BORROWINGS AND BORROWING CAPACITY Customer Repurchase Agreements Customer repurchase agreements are overnight customer sweep arrangements. Information concerning customer repurchase agreements is summarized as follows:
(Dollars in thousands) | December 31, 2021 |  | December 31, 2020
Amount outstanding at end of the year | $ | 2,103 |  |  | $ | 3,099 |
Weighted average interest rate at end of the year | 0.03 | % |  | 0.03 | %
Average daily balance during the year | $ | 5,985 |  |  | $ | 6,716 |
Weighted average interest rate during the year | 0.03 | % |  | 0.03 | %
Maximum month-end balance during the year | $ | 12,405 |  |  | $ | 14,192 |
Customer repurchase agreements are secured by pledged securities with carrying amounts as follows:
(Dollars in thousands) | December 31, 2021 |  | December 31, 2020
Asset-backed securities | $ | 4,999 |  |  | $ | 4,987 |
CLO securities | 9,971 |  |  | — |
| $ | 14,970 |  |  | $ | 4,987 |
FHLB Advances FHLB advances are collateralized by assets, including a blanket pledge of certain loans. FHLB advances and weighted average interest rates at end of period by contractual maturity are summarized as follows:
| Fixed Rate |  | Variable Rate
(Dollars in thousands) | Balance Outstanding |  | Weighted Average Interest Rate |  | Balance Outstanding |  | Weighted Average Interest Rate
2022 | $ | 150,000 |  |  | 0.13 | % |  | $ | — |  |  | — |
2027 | — |  |  | — |  |  | 30,000 |  |  | 0.27 | %
| $ | 150,000 |  |  | 0.13 | % |  | $ | 30,000 |  |  | 0.27 | %
Information concerning FHLB advances is summarized as follows:
(Dollars in thousands) | December 31, 2021 |  | December 31, 2020
Amount outstanding at end of the year | $ | 180,000 |  |  | $ | 105,000 |
Weighted average interest rate at end of the year | 0.15 | % |  | 0.17 | %
Average daily balance during the year | $ | 37,671 |  |  | $ | 342,264 |
Weighted average interest rate during the year | 0.24 | % |  | 0.58 | %
Maximum month-end balance during the year | $ | 180,000 |  |  | $ | 850,000 |
The Company’s unused borrowing capacity with the FHLB is as follows:
(Dollars in thousands) | December 31, 2021 |  | December 31, 2020
Borrowing capacity | $ | 978,794 |  |  | $ | 1,351,542 |
Borrowings outstanding | 180,000 |  |  | 105,000 |
Unused borrowing capacity | $ | 798,794 |  |  | $ | 1,246,542 |
Paycheck Protection Program Liquidity Facility (“PPPLF”) The PPPLF is a lending facility offered by the Federal Reserve Banks to facilitate lending to small businesses under the Paycheck Protection Program. Borrowings under the PPPLF are secured by Paycheck Protection Program Loans (“PPP loans”) guaranteed by the Small Business Administration (“SBA”) and mature at the same time as the PPP Loan pledged to secure the extension of credit. The maturity dates of the borrowings will be accelerated if the underlying PPP Loan goes into default and Company sells the PPP Loan to the SBA to realize on the SBA guarantee or if the Company receives any loan forgiveness reimbursement from the SBA for the underlying PPP Loan. Information concerning borrowings under the PPPLF is summarized as follows:
(Dollars in thousands) |  | December 31, 2021 |  | December 31, 2020
Amount outstanding at end of period |  | $ | 27,144 |  |  | $ | 191,860 |
Weighted average interest rate at end of period |  | 0.35 | % |  | 0.35 | %
Average amount outstanding during the period |  | 118,880 |  |  | 143,608 |
Weighted average interest rate during the period |  | 0.35 | % |  | 0.35 | %
Highest month end balance during the period |  | 181,635 |  |  | 223,809 |
At December 31, 2021, scheduled maturities of PPPLF borrowings are as follows:
(Dollars in thousands) |  | December 31, 2021
Within one year |  | $ | 2,872 |
After one but within two years |  | — |
After two but within three years |  | — |
After three but within four years |  | — |
After four but within five years |  | 24,272 |
After five years |  | — |
Total |  | $ | 27,144 |
At December 31, 2021 and 2020, the PPPLF borrowings were secured by PPP Loans totaling $27,144,000 and $191,860,000, respectively, and bear interest at a fixed rate of 0.35% annually. Federal Funds Purchased The Company had no federal funds purchased at December 31, 2021 and 2020. However, as of December 31, 2021, the Company had unsecured federal funds lines of credit with seven unaffiliated banks totaling $227,500,000. Federal Reserve Bank Discount Window The Company has entered into agreements with the Federal Reserve Bank of Dallas to borrow from its discount window. The Company had no Federal Reserve Bank discount window borrowings outstanding at December 31, 2021and 2020. At December 31, 2021, the Company had $501,293,000 of unused borrowing capacity from the Federal Reserve Bank discount window, to which the Company pledged loans with an outstanding balance of $727,261,000. Subordinated Notes The following provides a summary of the Company’s subordinated notes:
(Dollars in thousands) |  | Face Value |  | Carrying Value |  | Maturity Date |  | Current Interest Rate |  | First Repricing Date |  | Variable Interest Rate at Repricing Date |  | Initial Issuance Costs
Subordinated Notes issued November 27, 2019 |  | $ | 39,500 |  |  | $ | 38,552 |  |  | 2029 |  | 4.875% |  | 11/27/2024 |  | Three Month LIBOR plus 3.330% |  | $ | 1,218 |
Subordinated Notes issued August 26, 2021 |  | 70,000 |  |  | 68,405 |  |  | 2031 |  | 3.500% |  | 9/01/2026 |  | Three Month SOFR(1) plus 2.860% |  | $ | 1,776 |
|  | $ | 109,500 |  |  | $ | 106,957 |  |  |  |  |  |  |  |  |  |  |
(1) Secured Overnight Financing Rate The Subordinated Notes bear interest payable semi-annually in arrears to, but excluding the first repricing date, and thereafter payable quarterly in arrears at an annual floating rate. The Company may, at its option, beginning on the respective first repricing date and on any scheduled interest payment date thereafter, redeem the Subordinated Notes, in whole or in part, at a redemption price equal to the outstanding principal amount of the Subordinated Notes to be redeemed plus accrued and unpaid interest to, but excluding, the date of redemption. The Subordinated Notes are included on the consolidated balance sheets as liabilities at their carrying values; however, for regulatory purposes, the $106,957,000 and $87,509,000 carrying value of these obligations at December 31, 2021 and 2020, respectively, were eligible for inclusion in Tier 2 regulatory capital. Issuance costs related to the Subordinated Notes have been netted against the subordinated notes liability on the balance sheet. The debt issuance costs are being amortized using the effective interest method through maturity and recognized as a component of interest expense. The Subordinated Notes are subordinated in right of payment to the Company’s existing and future senior indebtedness and are structurally subordinated to the Company’s subsidiaries’ existing and future indebtedness and other obligations. On September 30, 2016, the Company issued $50,000,000 of Fixed-to-Floating Rate Subordinated Notes due 2026 (the “2016 Notes”). The 2016 Notes initially bear interest at 6.50% per annum, payable semi-annually in arrears, to, but excluding, September 30, 2021, and, thereafter and to, but excluding, the maturity date or earlier redemption, interest shall be payable quarterly in arrears, at an annual floating rate equal to three-month LIBOR as determined for the applicable quarterly period, plus 5.345%. The Company redeemed the 2016 Notes in whole on September 30, 2021 at which time $755,000 in remaining deferred costs were recognized through interest expense. Junior Subordinated Debentures The following provides a summary of the Company’s junior subordinated debentures:
(Dollars in thousands) |  | Face Value |  | Carrying Value |  | Maturity Date |  | Variable Interest Rate |  | Interest Rate At December 31, 2021
National Bancshares Capital Trust II |  | $ | 15,464 |  |  | $ | 13,350 |  |  | September 2033 |  | LIBOR + 3.00% |  | 3.20%
National Bancshares Capital Trust III |  | 17,526 |  |  | 13,188 |  |  | July 2036 |  | LIBOR + 1.64% |  | 1.76%
ColoEast Capital Trust I |  | 5,155 |  |  | 3,683 |  |  | September 2035 |  | LIBOR + 1.60% |  | 1.82%
ColoEast Capital Trust II |  | 6,700 |  |  | 4,784 |  |  | March 2037 |  | LIBOR + 1.79% |  | 2.01%
Valley Bancorp Statutory Trust I |  | 3,093 |  |  | 2,892 |  |  | September 2032 |  | LIBOR + 3.40% |  | 3.62%
Valley Bancorp Statutory Trust II |  | 3,093 |  |  | 2,705 |  |  | July 2034 |  | LIBOR + 2.75% |  | 2.87%
|  | $ | 51,031 |  |  | $ | 40,602 |  |  |  |  |  |  |
These debentures are unsecured obligations due to trusts that are unconsolidated subsidiaries. The debentures were issued in conjunction with the trusts’ issuances of obligated capital securities. The trusts used the proceeds from the issuances of their capital securities to buy floating rate junior subordinated deferrable interest debentures that bear the same interest rate and terms as the capital securities. These debentures are the trusts’ only assets and the interest payments from the debentures finance the distributions paid on the capital securities. These debentures rank junior and are subordinate in the right of payment to all other debt of the Company. As part of the purchase accounting adjustments made with the National Bancshares, Inc. acquisition on October 15, 2013, the ColoEast acquisition on August 1, 2016, and the Valley acquisition on December 9, 2017, the Company adjusted the carrying value of the junior subordinated debentures to fair value as of the respective acquisition dates. The discount on the debentures will continue to be amortized through maturity and recognized as a component of interest expense. The debentures may be called by the Company at par plus any accrued but unpaid interest. Interest on the debentures is calculated quarterly. The distribution rate payable on the capital securities is cumulative and payable quarterly in arrears. The Company has the right to defer payments on interest on the debentures at any time by extending the interest payment period for a period not exceeding 20 consecutive quarters with respect to each deferral period, provided that no extension period may extend beyond the redemption or maturity date of the debentures. The debentures are included on the consolidated balance sheet as liabilities; however, for regulatory purposes, the carrying value of these obligations are eligible for inclusion in Tier I regulatory capital, subject to certain limitations. All of the carrying value of $40,602,000 and $40,072,000 was allowed in the calculation of Tier I regulatory capital as of December 31, 2021 and 2020, respectively.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (h) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (g) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1E -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (i) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 + Details
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