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FHLB Advances, Other Borrowings and Junior Subordinated Notes Payable
 3 Months Ended
Mar. 31, 2022
Debt Disclosure [Abstract]  
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.
 March 31, 2022December 31, 2021
BalanceWeighted Average
Balance		Weighted
Average Rate		BalanceWeighted Average
Balance		Weighted
Average Rate
 (Dollars in Thousands)
FHLB advances
$361,400 $385,080 1.08 %$368,800 $376,781 1.30 %
Line of credit— 345 2.74 500 78 2.90 
Other borrowings9,763 10,063 3.64 10,363 8,090 4.11 
Subordinated notes payable43,324 29,903 5.42 23,788 23,766 5.94 
Junior subordinated notes(1)
— 9,850 20.46 10,076 10,068 11.05 
 $414,487 $435,241 1.88 $413,527 $418,783 1.86 
(1)Weighted average rate of junior subordinated notes reflects the accelerated amortization of subordinated debt issuance costs as a result of the early redemption of the junior subordinated notes during the first quarter of 2022.
A summary of annual maturities of borrowings at March 31, 2022 is as follows:
(In Thousands)
Maturities during the year ended December 31, 
2022$165,600 
202337,300 
202435,500 
202522,763 
2026— 
Thereafter153,324 
$414,487 
In September 2008, Trust II completed the sale of $10.0 million of 10.50% fixed rate trust preferred securities (“Trust 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 of the Corporation. The Trust Preferred Securities are mandatorily redeemable upon the maturity of the junior subordinated notes on September 26, 2038. As of March 30, 2022 the junior subordinated notes were redeemed and the remaining unamortized debt issuance cost was accelerated due to the early redemption. As of December 31, 2021 the unamortized debt issuance cost included in junior subordinated notes on the Consolidated Balance Sheets was $239,000.
The Corporation issued a new subordinated note payable as of March 4, 2022. The principal amount of the newly issued subordinated note payable was $20.0 million which qualified as Tier 2 capital. The subordinated note bears a fixed interest rate of 3.50% with a maturity date of March 15, 2032. The subordinated note payable has certain performance debt covenants of which the Corporation was in compliance. The Corporation may, at its option, redeem the note, in whole or part, at any time after the fifth anniversary of issuance. As of March 31, 2022, $771,000 of debt issuance costs remain in the subordinated note payable balance, of which $480,000 is related to the recently issued subordinated note.
As of March 31, 2022, the Corporation had other borrowings of $9.7 million, which consisted 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.
As of March 31, 2022 and December 31, 2021, 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, 2022, the Corporation pays a fee on this line of credit. During both the three months ended March 31, 2022 and 2021, the Corporation incurred interest expense of $3,000 due to this fee.