Quarterly report pursuant to Section 13 or 15(d)

BORROWINGS (Tables)

v3.23.3
BORROWINGS (Tables)
9 Months Ended
Sep. 30, 2023
Borrowings [Abstract]  
Short-Term Borrowings

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

​

​

​

​

​

​

​

​

​

    

September 30, 

​

December 31, 

 

​

​

2023

​

2022

 

Securities sold under agreements to repurchase

​

$

134,936

​

$

142,837

​

Federal Funds Purchased

​

​

—

​

​

160,000

​

FHLB Advances

​

 

495,000

​

 

1,016,000

​

Total short-term borrowings

​

$

629,936

​

$

1,318,837

​

​

​

​

​

​

​

​

​

Average outstanding balance during the period

​

$

633,896

​

$

302,060

​

Average interest rate during the period

​

 

4.66

%  

 

1.79

%

Average interest rate at end of period

​

 

5.12

%  

 

3.89

%

Long-Term Borrowings

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Spread to

​

​

​

​

​

​

​

​

​

Principal

​

3-Month SOFR (1)

​

Rate (2)

​

Maturity

​

Investment (3)

Trust Preferred Capital Securities

​

​

​

​

​

​

​

​

​

​

​

​

Trust Preferred Capital Note - Statutory Trust I

​

$

22,500

 

2.75

%  

8.41

%  

6/17/2034

​

$

696

Trust Preferred Capital Note - Statutory Trust II

​

 

36,000

 

1.40

%  

7.06

%  

6/15/2036

​

 

1,114

VFG Limited Liability Trust I Indenture

​

 

20,000

 

2.73

%  

8.39

%  

3/18/2034

​

 

619

FNB Statutory Trust II Indenture

​

 

12,000

 

3.10

%  

8.76

%  

6/26/2033

​

 

372

Gateway Capital Statutory Trust I

​

 

8,000

 

3.10

%  

8.76

%  

9/17/2033

​

 

248

Gateway Capital Statutory Trust II

​

 

7,000

 

2.65

%  

8.31

%  

6/17/2034

​

 

217

Gateway Capital Statutory Trust III

​

 

15,000

 

1.50

%  

7.16

%  

5/30/2036

​

 

464

Gateway Capital Statutory Trust IV

​

 

25,000

 

1.55

%  

7.21

%  

7/30/2037

​

 

774

MFC Capital Trust II

​

 

5,000

 

2.85

%  

8.51

%  

1/23/2034

​

 

155

Total Trust Preferred Capital Securities

​

$

150,500

 

  

 

  

 

  

​

$

4,659

Subordinated Debt (4)

​

​

​

​

​

​

​

​

​

​

​

​

2031 Subordinated Debt

​

​

250,000

​

—

%

2.875

%

12/15/2031

​

​

​

Total Subordinated Debt (5)

​

$

250,000

​

​

​

​

​

​

​

​

​

Fair Value Discount (6)

​

​

(14,426)

​

​

​

​

​

​

​

​

​

Investment in Trust Preferred Capital Securities

​

​

4,659

​

​

​

​

​

​

​

​

​

Total Long-term Borrowings

​

$

390,733

​

​

​

​

​

​

​

​

​

(1) As part of the adoption of ASC 848, the index changed from Three-Month LIBOR to Three-Month CME SOFR + 0.262% in the third quarter of 2023. For more information on ASC 848, refer to Note 1 “Summary of Significant Accounting Policies” in Part 1, Item 1 of this Quarterly Report.

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

​

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

(5) 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.

​

(6) Remaining discounts of $11.9 million and $2.6 million on Trust Preferred Capital Securities and Subordinated Debt, respectively.

​

​

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Spread to

​

​

​

​

​

​

​

​

​

Principal

​

3-Month LIBOR (1)

​

Rate (2)

​

Maturity

​

Investment (3)

Trust Preferred Capital Securities

​

​

​

​

​

​

​

​

​

​

​

​

Trust Preferred Capital Note - Statutory Trust I

​

$

22,500

 

2.75

%  

7.52

%  

6/17/2034

​

$

696

Trust Preferred Capital Note - Statutory Trust II

​

 

36,000

 

1.40

%  

6.17

%  

6/15/2036

​

 

1,114

VFG Limited Liability Trust I Indenture

​

 

20,000

 

2.73

%  

7.50

%  

3/18/2034

​

 

619

FNB Statutory Trust II Indenture

​

 

12,000

 

3.10

%  

7.87

%  

6/26/2033

​

 

372

Gateway Capital Statutory Trust I

​

 

8,000

 

3.10

%  

7.87

%  

9/17/2033

​

 

248

Gateway Capital Statutory Trust II

​

 

7,000

 

2.65

%  

7.42

%  

6/17/2034

​

 

217

Gateway Capital Statutory Trust III

​

 

15,000

 

1.50

%  

6.27

%  

5/30/2036

​

 

464

Gateway Capital Statutory Trust IV

​

 

25,000

 

1.55

%  

6.32

%  

7/30/2037

​

 

774

MFC Capital Trust II

​

 

5,000

 

2.85

%  

7.62

%  

1/23/2034

​

 

155

Total Trust Preferred Capital Securities

​

$

150,500

 

  

 

  

 

  

​

$

4,659

Subordinated Debt (4)

​

​

​

​

​

​

​

​

​

​

​

​

2031 Subordinated Debt

​

​

250,000

​

—

%

2.875

%

12/15/2031

​

​

​

Total Subordinated Debt (5)

​

$

250,000

​

​

​

​

​

​

​

​

​

Fair Value Discount (6)

​

​

(15,296)

​

​

​

​

​

​

​

​

​

Investment in Trust Preferred Capital Securities

​

​

4,659

​

​

​

​

​

​

​

​

​

Total Long-term Borrowings

​

$

389,863

​

​

​

​

​

​

​

​

​

(1)The index rate changed from Three-Month LIBOR to Three-Month CME SOFR +0.262% in the third quarter of 2023 due to LIBOR cessation.

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

​

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

(5) 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.

​

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

Contractual Maturities of Long-Term Debt

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

  

Trust

  

​

  

​

  

​

​

  

Preferred

  

​

  

​

  

Total

​

  

Capital

  

Subordinated

  

Fair Value

  

 Long-term

​

  

Notes

  

Debt

  

Discount (1)

  

Borrowings

For the remaining three months of 2023

​

$

—

​

$

—

​

$

(292)

​

$

(292)

2024

​

 

—

​

 

—

​

 

(1,187)

​

 

(1,187)

2025

​

 

—

​

 

—

​

 

(1,211)

​

 

(1,211)

2026

​

 

—

​

 

—

​

 

(1,236)

​

 

(1,236)

2027

​

 

—

​

 

—

​

 

(1,263)

​

 

(1,263)

Thereafter

​

 

155,159

​

 

250,000

​

 

(9,237)

​

 

395,922

Total long-term borrowings

​

$

155,159

​

$

250,000

​

$

(14,426)

​

$

390,733

​

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