6. BORROWINGS

Short-term Borrowings

The Company classifies all borrowings that will mature within a year from the date on which the Company enters into them as short-term borrowings. Total short-term borrowings consist primarily of securities sold under agreements to repurchase, which are secured transactions with customers and generally mature the day following the date sold, advances from the FHLB, federal funds purchased (which are secured overnight borrowings from other financial institutions), and other lines of credit.

Total short-term borrowings consist of the following as of June 30, 2023 and December 31, 2022 (dollars in thousands):

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The Bank maintains federal funds lines with several correspondent banks; the available balance was $907.0 million and $1.0 billion at June 30, 2023 and December 31, 2022, respectively. The Company maintains an alternate line of credit at a correspondent bank; the available balance was $25.0 million at both June 30, 2023 and December 31, 2022. The Company has certain restrictive covenants related to certain asset quality, capital, and profitability metrics associated with these lines and is in compliance with these covenants as of June 30, 2023 and December 31, 2022. Additionally, the Company has a collateral dependent line of credit with the FHLB of up to $6.0 billion at both June 30, 2023 and December 31, 2022. The remaining credit availability on the collateral dependent line of credit with the FHLB was $5.2 billion and $4.9 billion at June 30, 2023

and December 31, 2022, respectively. Refer to Note 7 “Commitments and Contingencies” for additional information on the Company’s pledged collateral.

Starting in the first quarter of 2023, the Company was eligible to borrow from the Federal Reserve's BTFP, which provides additional contingent liquidity through the pledging of certain qualifying securities. The BTFP is a one-year program ending March 11, 2024, and the Company can borrow any time during the term and can repay the obligation at any time without penalty. As of June 30, 2023, liquidity of $539.4 million was available based on the par-value of qualifying securities from BTFP. The Company had not utilized the BTFP facility as of June 30, 2023.

Long-term Borrowings

In connection with several previous bank acquisitions, the Company issued $58.5 million and acquired $92.0 million of trust preferred capital notes. The remaining fair value discount on all acquired trust preferred capital notes was $12.1 million and $12.5 million at June 30, 2023 and December 31, 2022, respectively.

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Total long-term borrowings consist of the following as of June 30, 2023 (dollars in thousands):

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⁽¹⁾ The index rates will change to SOFR in the third quarter of 2023 due to LIBOR cessation. See note 1 for the Company’s adoption of ASC 848.

⁽²⁾ Rate as of June 30, 2023. Calculated using non-rounded numbers.

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⁽³⁾ Represents the junior subordinated debentures owned by the Company in trust and is reported in "Other assets" on the Company’s Consolidated Balance Sheets.

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⁽⁴⁾ The remaining issuance discount as of June 30, 2023 is $2.6 million.

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⁽⁵⁾ Subordinated notes qualify as Tier 2 capital for the Company for regulatory purposes.

⁽⁶⁾ Fixed-to-floating rate notes. On December 15, 2026, the interest rate changes to a floating rate of the then current Three-Month Term SOFR plus a spread of 186 bps through its maturity date or earlier redemption. The notes may be redeemed before maturity on any interest payment date occurring on or after December 15, 2026.

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⁽⁷⁾ Remaining discounts of $12.1 million and $2.6 million on Trust Preferred Capital Securities and Subordinated Debt, respectively.

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Total long-term borrowings consist of the following as of December 31, 2022 (dollars in thousands):

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⁽¹⁾ The index rates will change to SOFR in the third quarter of 2023 due to LIBOR cessation. See note 1 for the Company’s adoption of ASC 848.

⁽²⁾ Rate as of December 31, 2022. Calculated using non-rounded numbers.

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⁽³⁾ Represents the junior subordinated debentures owned by the Company in trust and is reported in "Other assets" on the Company’s Consolidated Balance Sheets.

⁽⁴⁾ The remaining issuance discount as of December 31, 2022 is $2.8 million.

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⁽⁵⁾ Subordinated notes qualify as Tier 2 capital for the Company for regulatory purposes.

⁽⁶⁾ Fixed-to-floating rate notes. On December 15, 2026, the interest changes to a floating rate of the then current Three-Month Term SOFR plus a spread of 186 bps through its maturity date or earlier redemption. The notes may be redeemed before maturity on any interest payment date occurring on or after December 15, 2026.

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⁽⁷⁾ Remaining discounts of $12.5 million and $2.8 million on Trust Preferred Capital Securities and Subordinated Debt, respectively.

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As of June 30, 2023, the contractual maturities of long-term debt are as follows for the years ending (dollars in thousands):

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⁽¹⁾ Includes discount on Trust Preferred Capital Securities and Subordinated Debt.