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FHLB Advances, Other Borrowings and Junior Subordinated Notes Payable
 9 Months Ended
Sep. 30, 2023
Debt Disclosure [Abstract]  
FHLB Advances, Other Borrowings and Junior Subordinated Notes Payable FHLB Advances, Other Borrowings and Subordinated Notes and Debentures
The composition of borrowed funds is shown below. Average balances represent year-to-date averages.
 September 30, 2023December 31, 2022
BalanceWeighted Average
Balance		Weighted
Average Rate		BalanceWeighted Average
Balance		Weighted
Average Rate
 (Dollars in Thousands)
Federal funds purchased$— $4 5.35 %$— $14 7.42 %
FHLB advances
314,500 368,913 2.54 416,380 414,191 1.70 
Line of credit— 50 7.24 — 85 2.78 
Other borrowings— 802 8.31 6,088 8,624 5.23 
Subordinated notes and debentures
49,391 34,495 4.84 34,340 35,095 5.06 
Junior subordinated notes(1)
— — — — 2,429 20.75 
 $363,891 $404,264 2.75 $456,808 $460,438 2.12 
(1)Weighted average rate of junior subordinated notes and debentures 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 September 30, 2023 is as follows:
(In Thousands)
Maturities during the year ended December 31, 
2023$103,000 
202435,500 
202548,000 
202660,000 
202728,000 
Thereafter89,391 
$363,891 
The Corporation issued new subordinated debentures as of September 29, 2023. The aggregate principal amount of the newly issued subordinated debentures was $15.0 million which qualified as Tier 2 capital. The subordinated debentures bear a fixed interest rate of 8.0% with a maturity date of September 29, 2033. The Corporation may, at its option, redeem the debentures, in whole or part, at any time after the fifth anniversary of issuance. As of September 30, 2023, $608,000 of debt issuance costs remain in the subordinated note and debenture payable balance, of which $50,000 is related to the recently issued subordinated debentures.
As of December 31, 2022, the Corporation had other borrowings of $6.1 million, which consisted of sold loans accounted for as secured borrowings because they did not qualify for true sale accounting. As of September 30, 2023, the Corporation had no other borrowings. The Corporation has entered into derivative contracts hedging a portion of the borrowings included in the 2023 maturities above. As of September 30, 2023, the notional amount of derivatives designated as cash flow hedges totaled $96.4 million with a weighted average remaining maturity of 2.7 years and a weighted average rate of 1.78%.
As of September 30, 2023 and December 31, 2022, the Corporation was in compliance with its debt covenants under its third-party secured senior line of credit. On February 20, 2023, 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, 2024