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FHLB Advances, Other Borrowings and Junior Subordinated Notes
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
FHLB Advances, Other Borrowings and Junior Subordinated Notes FHLB Advances, Other Borrowings and Junior Subordinated Notes
The composition of borrowed funds is shown below.
 December 31, 2021December 31, 2020
BalanceWeighted
Average
Balance		Weighted
Average
Rate		BalanceWeighted
Average
Balance		Weighted
Average
Rate
 (Dollars in Thousands)
Federal funds purchased$— $— — %$— $71 0.69 %
Federal Reserve PPPLF— — — — 15,207 0.35 
FHLB advances
368,800 376,781 1.30 394,500 379,891 1.45 
Line of credit
500 78 2.90 — — — 
Other borrowings10,363 8,090 4.11 920 676 12.60 
Subordinated notes payable23,788 23,766 5.94 23,747 23,725 5.95 
Junior subordinated notes10,076 10,068 11.05 10,062 10,054 11.09 
 $413,527 $418,783 1.86 $429,229 $429,624 1.91 

A summary of annual maturities of borrowings at December 31, 2021 is as follows:
(In Thousands)
Maturities during the year ended December 31, 
2022$173,500 
202337,300 
202435,500 
202523,363 
2026— 
Thereafter$143,864 
$413,527 
The Corporation has a $695.6 million FHLB line of credit available for advances which is collateralized as noted below. At December 31, 2021, $326.8 million of this line remained unused. There were $368.8 million of term FHLB advances outstanding at December 31, 2021 with stated fixed interest rates ranging from 0.00% to 2.51% compared to $394.5 million of term FHLB advances outstanding at December 31, 2020 with stated fixed interest rates ranging from 0.00% to 2.75%. The term FHLB advances outstanding at December 31, 2021 are due at various dates through February 2030.
The Corporation is required to maintain as collateral mortgage-related securities, unencumbered first mortgage loans and secured small business loans in its portfolio aggregating at least the amount of outstanding advances from the FHLB. Loans totaling approximately $1.305 billion and $1.219 billion were pledged as collateral at December 31, 2021 and 2020, respectively.
The Corporation has a senior line of credit with a third-party financial institution of $10.5 million. As of December 31, 2021, the line of credit carried an interest rate of LIBOR + 2.75% with an interest rate floor of 2.85% that matured on February 19, 2021 and had certain performance debt covenants of which the Corporation was in compliance. The Corporation pays a commitment fee on this senior line of credit. For the years ended December 31, 2021 and 2020 the Corporation incurred $13,000 additional interest expense due to this fee. There was $500,000 outstanding balance on the line of credit as of December 31, 2021. On February 11, 2022, the credit line was renewed for one additional year with pricing terms of 1-month term SOFR + 2.36% and a maturity date of February 19, 2023.
The Corporation has two series of subordinated notes payable, each of which qualifies as Tier II capital. At December 31, 2021, the aggregate principal amount of subordinated notes payable outstanding was $23.8 million, which qualified for Tier 2 capital. At December 31, 2021, $15.0 million bore a fixed interest rate of 5.50% with a maturity date of August 15, 2029 and $9.1 million bore a fixed interest rate of 6.00% with a maturity date of April 15, 2027. The $15.0 million subordinated notes payable have certain performance debt covenants of which the Corporation was in compliance. The Corporation may, at its option, redeem the 5.50% notes, in whole or part, at any time after August 15, 2024, and may redeem the 6.00% notes any time after June 15, 2022. As of December 31, 2021, $302,000 of debt issuance costs remain in the subordinated notes payable balance.
In September 2008, Trust II completed the sale of $10.0 million of 10.50% fixed rate trust preferred securities (“Preferred Securities”). Trust II also issued common securities of $315,000. Trust II used the proceeds from the offering to purchase $10.3 million of 10.50% junior subordinated notes (“Notes”) of the Corporation. The Preferred Securities are mandatorily redeemable upon the maturity of the Notes on September 26, 2038. The Preferred Securities qualify under the risk-based capital guidelines as Tier 1 capital for regulatory purposes. Per the provisions of the Dodd-Frank Act, bank holding companies with total assets of less than $15 billion are not required to phase out trust preferred securities as an element of Tier 1 capital as other, larger institutions must. The Corporation used the proceeds from the sale of the Notes for general corporate purposes including providing additional capital to its subsidiaries. As of December 31, 2021, $239,000 of debt issuance costs remain reflected in junior subordinated notes on the Consolidated Balance Sheets.
The Corporation has the right to redeem the Notes at each interest payment date on or after September 26, 2013. The Corporation also has the right to redeem the Notes, in whole but not in part, after the occurrence of certain special events. Special events are limited to: (1) a change in capital treatment resulting in the inability of the Corporation to include the Notes in Tier 1 capital, (2) a change in laws or regulations that could require Trust II to register as an investment company under the Investment Company Act of 1940, as amended; and (3) a change in laws or regulations that would require Trust II to pay income tax with respect to interest received on the Notes or, prohibit the Corporation from deducting the interest payable by the Corporation on the Notes or result in greater than a de minimis amount of taxes for Trust II.
During the second quarter of 2020, the Corporation tested its ability to borrow from the Federal Reserve Paycheck Protection Program Liquidity Facility (“PPPLF”) in the event funding was required to support the Banks PPP lending efforts. On April 28, 2020, the Corporation borrowed $29.6 million from the PPPLF at a rate of 0.35%. As of November 2, 2020, the borrowing was paid in full.
As of December 31, 2021, the Corporation had other borrowings of $10.4 million, which consisted of $10.4 million of sold loans accounted for as secured borrowings because they did not qualify for true sale accounting. During 2021, the Corporation paid in full the borrowings associated with our investment in a community development entity.