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BORROWED FUNDS | 12 Months Ended
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Dec. 31, 2019
Debt Disclosure [Abstract] |
BORROWED FUNDS | BORROWED FUNDS Borrowed funds at December 31, 2019 and December 31, 2018 are summarized, as follows:
|  | December 31, 2019 |  | December 31, 2018
(in thousands, except ratios) |  | Amount |  | Weighted Average Rate |  | Amount |  | Weighted Average Rate
Short-term borrowings |  |  |  |  |  |  |  |  |  |  |  |
Advances from the FHLB |  | $ | 303,286 |  |  | 1.83 | % |  | $ | 611,683 |  |  | 2.47 | %
Other borrowings |  | 44,832 |  |  | 0.99 |  |  | 36,211 |  |  | 1.09 |
Total short-term borrowings |  | 348,118 |  |  | 1.73 |  |  | 647,894 |  |  | 2.39 |
Long-term borrowings |  |  |  |  |  |  |  |
Advances from the FHLB |  | 123,278 |  |  | 1.93 |  |  | 32,929 |  |  | 1.86 |
Subordinated borrowings |  | 59,920 |  |  | 5.53 |  |  | 37,973 |  |  | 5.58 |
Junior subordinated borrowings |  | — |  |  | — |  |  | 5,000 |  |  | 5.96 |
Total long-term borrowings |  | 183,198 |  |  | 2.87 |  |  | 75,902 |  |  | 3.99 |
Total |  | $ | 531,316 |  |  | 2.11 | % |  | $ | 723,796 |  |  | 2.56 | %
Short-term debt includes Federal Home Loan Bank of Boston (“FHLB”) advances with a remaining maturity of less than one year. The Company also maintains a $1.0 million secured line of credit with the FHLB that bears a daily adjustable rate calculated by the FHLB. There was no outstanding balance on the FHLB line of credit for the years ended December 31, 2019 and 2018. The Company also has capacity to borrow funds on a secured basis utilizing the Borrower in Custody program and the Discount Window at the Federal Reserve Bank of Boston (the “FRB”). At December 31, 2019, the Company’s available secured line of credit at the FRB was $144.2 million. The Company has pledged certain loans and securities to the FRB to support this arrangement. There were no borrowings with the FRB for the periods ended December 31, 2019 and December 31, 2018. The Company maintains an unused unsecured federal funds line of credit with a correspondent bank that has an aggregate overnight borrowing capacity of $50 million as of December 31, 2019 and December 31, 2018. There was no outstanding balance on the line of credit as of December 31, 2019 and December 31, 2018. Long-term FHLB advances consist of advances with a remaining maturity of more than one year. The advances outstanding at December 31, 2019 include no callable advances and $316 thousand of amortizing advances. The advances outstanding at December 31, 2018 include no callable advances and $330 thousand of amortizing advances. All FHLB borrowings, including the line of credit, are secured by a blanket security agreement on certain qualified collateral, principally residential first mortgage loans and certain securities. A summary of maturities of FHLB advances as of December 31, 2019 is as follows:
|  | December 31, 2019
(in thousands, except rates) |  | Amount |  | Weighted Average Rate
Fixed rate advances maturing: |  |  |  |  |  |
2020 |  | $ | 303,286 |  |  | 1.83 | %
2021 |  | 10,662 |  |  | 2.21 |
2022 |  | 104,000 |  |  | 1.97 |
2023 |  | 1,000 |  |  | — |
2024 |  | 7,300 |  |  | 1.16 |
2025 and thereafter |  | 316 |  |  | 4.05 |
Total FHLB advances |  | $ | 426,564 |  |  | 1.85 | %
In April 2008, the Bank issued fifteen year junior subordinated notes in the amount of $5.0 million due in 2023. These debt securities qualify as Tier 2 capital for the Company and the Bank. The interest rate was three-month LIBOR plus 3.45%, which was 6.24% at December 31, 2018. On October 29, 2014, the Company executed a Subordinated Note Purchase Agreement with an aggregate of $17.0 million in subordinated notes to accredited investors. The subordinated notes have a maturity date of November 1, 2024, and bear interest at a fixed rate of 6.75% per annum. The Company called both of these notes in the fourth quarter of 2019. On November 26, 2019, the Company executed a new Subordinated Note Purchase Agreement with an aggregate of $40.0 million of subordinated notes (the "Notes") to accredited investors. The Notes have a maturity date of December 1, 2029 and bear a fixed interest rate of 4.63% through December 1, 2024 payable semi-annually in arrears. From December 1, 2024 and thereafter the interest rate shall be reset quarterly to an interest rate per annum equal to the then current three-month Secured Overnight Financing Rate ("SOFR") plus 3.27%. The Company has the option beginning with the interest payment date of December 1, 2024, and on any scheduled payment date thereafter, to redeem the Notes, in whole or in part upon prior approval of the Federal Reserve. The transaction included debt issuance costs of $700 thousand that are netted against the subordinated debt. The Company also has $20.6 million in floating Junior Subordinated Deferrable Interest Debentures (“Debentures”) issued by NHTB Capital Trust II (“Trust II”) and NHTB Capital Trust III (“Trust III”), which are both Connecticut statutory trusts. The Debentures were issued on March 30, 2004, carry a variable interest rate of three-month LIBOR plus 2.79%, and mature in 2034. The debt is callable by the Company at the time when any interest payment is made. Trust II and Trust III are considered variable interest entities for which the Company is not the primary beneficiary. Accordingly, Trust II and Trust III are not consolidated into the Company’s financial statements.

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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 + Details
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