FHLB Advances, Other Borrowings and Junior Subordinated Notes Payable

6 Months Ended

Jun. 30, 2020

FHLB Advances, Other Borrowings and Junior Subordinated Notes Payable

FHLB Advances, Other Borrowings and Junior Subordinated Notes

The composition of borrowed funds is shown below. Average balances represent year to date averages.



	June 30, 2020						December 31, 2019
	Balance		Weighted Average Balance		Weighted Average Rate		Balance		Weighted Average Balance		Weighted Average Rate
	(Dollars in Thousands)
Federal funds purchased	$	—	$	143	0.69	%	$	—	$	59	2.45	%
Federal Reserve PPPLF	29,605		10,410		0.35		—		—		—
FHLB advances	411,000		367,604		1.55		295,000		286,464		2.17
Other borrowings	675		675		8.09		675		675		8.11
Subordinated notes payable⁽¹⁾	23,727		23,715		5.95		23,707		24,502		7.45
Junior subordinated notes	10,054		10,050		11.04		10,047		10,040		11.08
	$	475,061	$	412,597	2.01		$	329,429	$	321,740	2.87

Short-term borrowings	$	202,500					$	118,500
Long-term borrowings	272,561						210,929
	$	475,061					$	329,429


(1)	Weighted average rate of subordinated notes payable reflects the accelerated amortization of subordinated debt issuance costs as a result of the early redemption of a subordinated note during the third quarter of 2019.

During the three months ended June 30, 2020, the Corporation prepaid $59.5 million of short-term FHLB advances that had a weighted average interest rate of 2.34%. The transaction was accounted for as an early debt extinguishment resulting in a pre-tax loss of $744,000 during the three months ended June 30, 2020.

As of June 30, 2020 and December 31, 2019, the Corporation was in compliance with its debt covenants under its third-party secured senior line of credit. Per the promissory note dated February 19, 2020, the Corporation pays a fee on this line of credit. During the six months ended June 30, 2020 and 2019, the Corporation incurred interest expense due to this fee of $7,000 and $6,000, respectively.