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Borrowings | 12 Months Ended
--- | ---
Dec. 31, 2021
Debt Disclosure [Abstract] |
Borrowings | Note 11 - Borrowings Borrowed funds are summarized as follows:
| December 31,
(Dollars in thousands) | 2021 |  | 2020
Overnight repurchase agreements with depositors | $ | 9,447 |  |  | $ | 8,408 |
Short-term FHLB advances | — |  |  | 650,000 |
GNMA repurchase liability | 43,355 |  |  | 55,485 |
Long-term FHLB advances | 256,999 |  |  | 270,715 |
Total FHLB advances and other borrowings | $ | 309,801 |  |  | $ | 984,608 |
Subordinated indebtedness, net | $ | 157,417 |  |  | $ | 157,181 |
Additional details of certain FHLB advances are as follows:
(Dollars in thousands) | Amount |  | Interest Rate |  | Maturity Date
At December 31, 2021: |  |  |  |  |
Long-term FHLB advance, callable quarterly, fixed rate | $ | 250,000 |  |  | 1.65 | % |  | 8/23/2033
At December 31, 2020: |  |  |  |  |
Short-term FHLB advance, fixed rate | 650,000 |  |  | 0.10 |  |  | 1/4/2021
Long-term FHLB advance, callable quarterly, fixed rate | 250,000 |  |  | 1.65 |  |  | 8/23/2033
Short-Term Borrowings The Company had unsecured lines of credit for the purchase of federal funds in the amount of $140.0 million and $190.0 million at December 31, 2021 and 2020, respectively. The Company also had a $75.0 million secured repurchase line of credit at December 31, 2021 and 2020. There were no amounts outstanding on these lines at either date. It is customary for the financial institutions granting the unsecured lines of credit to require a minimum amount of cash be held on deposit at that institution. Amounts required to be held on deposit are typically $250,000 or less, and the Company has complied with all compensating balance requirements to allow utilization of these lines of credit. Securities sold under agreements to repurchase consist of the Company's obligations to other parties and mature on a daily basis. These obligations to other parties carried a daily average interest rate of 0.08% and 0.22% for the years ended December 31, 2021 and 2020, respectively. Long-Term Borrowings Interest rates for FHLB long-term advances outstanding at December 31, 2021, ranged from 1.65% to 4.57%. Interest rates for FHLB long-term advances outstanding at December 31, 2020, ranged from 1.65% to 5.72%. These advances are all fixed rate and are subject to restrictions or penalties in the event of prepayment. Scheduled maturities of long-term advances from the FHLB at December 31, 2021, are as follows:
(Dollars in thousands) |  |
Years Ended December 31, |  |
2022 | $ | 258 |  |
2023 | 267 |  |
2024 | 276 |  |
2025 | 285 |  |
2026 | 703 |  |
Thereafter (1) | 255,210 |  |
Total | $ | 256,999 |  |
__________________________ (1)Includes a FHLB advances totaling $250.0 million callable quarterly with a final maturity in 2033, carrying a rate of 1.65%. Security for all indebtedness and outstanding commitments to the FHLB consists of a blanket floating lien on all of the Company's first mortgage loans, commercial real estate and other real estate loans, as well as the Company's investment in capital stock of the FHLB and deposit accounts at the FHLB. The net amounts available under the blanket floating lien at December 31, 2021 and 2020, were $982.2 million and $456.9 million, respectively. Additionally, at December 31, 2021 and December 31, 2020, the Company had the availability to borrow $856.8 million and $793.2 million, respectively, from the discount window at the Federal Reserve Bank of Dallas, with $1.09 billion and $999.7 million in commercial and industrial loans pledged as collateral, respectively. There were no borrowings against this line at December 31, 2021 or 2020. Holding Company Line of Credit On October 5, 2018, the Company entered into a Loan Agreement (the "Loan Agreement"), along with certain ancillary instruments, with NexBank SSB ("Lender") pursuant to which the Lender would make one or more revolving credit loans of up to $50 million to the Company, maturing October 5, 2021, which the Company could use for working capital and general corporate purposes. On October 5, 2021, the Company entered into a first amendment to the Loan Agreement extending the maturity to November 5, 2021. On October 29, 2021, the Company entered into a second amendment (the "Amendment") to the Loan Agreement. Pursuant to the Amendment, the loan may not exceed an aggregate principal amount of $100 million, consisting of the $50 million existing loan amount and any one or more potential incremental revolving loan commitments that the Lender may make in its sole discretion, up to an aggregate principal of $50 million, upon the request of the Company. The Lender has no obligation to agree to extend any incremental revolving loan or to increase the loan amount. The principal amounts borrowed under the Loan Agreement bears interest at a variable rate equal to the applicable Term SOFR for the then-current SOFR Interest Period plus 3.35% (as such terms are defined in the Loan Agreement). Pursuant to the Amendment, the line of credit available to the Company expires on October 28, 2022, or such date of the acceleration of the obligation pursuant to the Loan Agreement, as amended, at which time all amounts borrowed, together with applicable interest, fees and other amounts owed by the Company shall be due and payable. The Company may extend the maturity date to a date that is three hundred and sixty-four (364) days after the then-effective maturity date, no more than two times upon (i) delivery of a written request therefor to Lender at least thirty (30) days, but no more than (60) days, prior to the maturity date then in effect; and (ii) receipt by the Lender of a certificate of the Company dated the date of such request. There were no outstanding revolving credit loans under the Loan Agreement at December 31, 2021 or 2020. Subordinated Indebtedness In February 2020, Origin Bank completed an offering of $70.0 million in aggregate principal amount of 4.25% fixed-to-floating rate subordinated notes due 2030 (the “Notes”) to certain investors in a transaction exempt from registration under Section 3(a)(2) of the Securities Act of 1933, as amended. The Notes initially bear interest at a fixed annual rate of 4.25%, payable semi-annually in arrears, to but excluding February 15, 2025. From and including February 15, 2025, to but excluding the maturity date or early redemption date, the interest rate will equal the three-month LIBOR rate (provided, that in the event the three-month LIBOR is less than zero, the three-month LIBOR will be deemed to be zero) plus 282 basis points, payable quarterly in arrears, subject to customary fallback provision upon the discontinuation of LIBOR. Origin Bank is entitled to redeem the Notes, in whole or in part, on or after February 15, 2025, and to redeem the Notes at any time in whole upon certain other specified events. The Notes qualify as Tier 2 capital for regulatory capital purposes for Origin Bank. In October 2020, the Company completed of an offering of $80.0 million in aggregate principal amount of 4.50% fixed-to-floating rate subordinated notes due 2030 (the “4.50% Notes”). The 4.50% Notes bear a fixed interest rate of 4.50% payable semi-annually in arrears, to but excluding November 1, 2025. From and including November 1, 2025, to but excluding the maturity date or earlier redemption date, the 4.50% Notes bear a floating interest rate expected to equal the three-month term Secured Overnight Financing Rate plus 432 basis points, payable quarterly in arrears. The Company may redeem the 4.50% Notes at any time upon certain specified events or in whole or in part on or after November 1, 2025. The 4.50% Notes qualify as Tier 2 capital for regulatory capital purposes for the Company and $51.0 million was transferred to Origin Bank during the fourth quarter of 2020, which qualifies as Tier 1 capital for regulatory capital purposes for the Bank. The 4.50% Notes provided net proceeds to the Company of approximately $78.6 million. The Company has two wholly-owned, unconsolidated subsidiary grantor trusts that were established for the purpose of issuing trust preferred securities. The trust preferred securities accrue and pay distributions periodically at specified annual rates as provided in each trust agreement. The trusts used the net proceeds from each of the offerings to purchase a like amount of junior subordinated debentures (the "debentures") of the Company. The debentures are the sole assets of the trusts. The Company's obligations under the debentures and related documents, taken together, constitute a full and unconditional guarantee by the Company of the obligations of the trusts. The trust preferred securities are mandatorily redeemable upon maturity of the debentures and can be currently redeemed by the Company in whole or in part, at a redemption price specified in the indentures plus any accrued but unpaid interest to the redemption date. Due to the extended maturity date of the trust preferred securities, they are included in Tier 1 capital for regulatory purposes, subject to certain limitations. The following table is a summary of the terms of the current junior subordinated debentures at December 31, 2021:
(Dollars in thousands) Issuance Trust | Issuance Date |  | Maturity Date |  | Amount Outstanding |  | Rate Type |  | Current Rate |  | Maximum Rate
CTB Statutory Trust I | 07/2001 |  | 07/2031 |  | $ | 6,702 |  |  | Variable (1) |  | 3.43 | % |  | 12.50 | %
First Louisiana Statutory Trust I | 09/2006 |  | 12/2036 |  | 4,124 |  |  | Variable (2) |  | 2.00 |  |  | 16.00 |
|  |  |  |  | $ | 10,826 |  |  |  |  |  |  |
____________________________ (1)The trust preferred securities reprice quarterly based on the three-month LIBOR plus 3.30%, with the last reprice date on October 28, 2021. (2)The trust preferred securities reprice quarterly based on the three-month LIBOR plus 1.80%, with the last reprice date on December 13, 2021. The balance of the subordinated indebtedness varies from the amounts carried on the consolidated balance sheets due to the remaining purchase discount of $3.4 million and $3.6 million, at December 31, 2021, and December 31, 2020, respectively, which was established at the time of issuance and is being amortized over the remaining life of the securities using the interest method.

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