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BORROWED FUNDS

12 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

NOTE 8. BORROWED FUNDS

Borrowed funds at December 31, 2020 and December 31, 2019 are summarized, as follows:


		December 31, 2020						December 31, 2019
					Weighted						Weighted
(dollars in thousands)		Carrying Value			Average Rate			Carrying Value			Average Rate
Short-term borrowings
Advances from the FHLB		$	65,676		1.19	%		$	303,286		1.83	%
Other borrowings			27,779		0.15				44,832		0.99
Total short-term borrowings			93,455		0.44				348,118		1.73
Long-term borrowings
Advances from the FHLB			182,607		1.73				123,278		1.93
Subordinated borrowings			59,961		4.34				59,920		5.53
Total long-term borrowings			242,568		2.37				183,198		2.87
Total		$	336,023		1.41	%		$	531,316		2.11	%

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, 2020 and 2019.

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, 2020, the Company’s available secured line of credit at the FRB was $71.9 million. The Company has pledged certain loans and securities to the FRB to support this arrangement. There were no borrowings with the FRB as of December 31, 2020 and December 31, 2019.

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, 2020 and December 31, 2019. There was no outstanding balance on the line of credit as of December 31, 2020 and December 31, 2019.

Long-term FHLB advances consist of advances with a remaining maturity of more than one year. The advances outstanding at December 31, 2020 include $20.0 million of callable advances and $307 thousand of amortizing advances. The advances outstanding at December 31, 2019 include no callable advances and $316 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, 2020 is as follows:


		December 31, 2020
					Weighted Average
(in thousands, except rates)		Amount			Rate
2021		$	65,676		1.19	%
2022			75,000		1.87
2023			80,000		1.77
2024			7,300		1.16
2025			20,000		1.21
2026 and thereafter			307		4.12
Total FHLB advances		$	248,283		1.59	%

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 $659 thousand and $700 thousand net of amortization as of December 31, 2020 and 2019 respectively, 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.