ConnectOne Bancorp, Inc. Debt Disclosure
Note 8 – FHLB Borrowings
The Company’s FHLB borrowings and weighted average interest rates are summarized below:
|
December 31, 2021 |
December 31, 2020 | |||||||||||||||
|
Amount |
Rate |
Amount |
Rate | |||||||||||||
|
(dollars in thousands) | ||||||||||||||||
|
By remaining period to maturity: | ||||||||||||||||
|
Less than 1 year |
$ |
390,549 |
0.56 |
% |
$ |
297,570 |
0.84 | |||||||||
|
1 year through less than 2 years |
50,000 |
1.84 |
% |
75,644 |
1.42 | |||||||||||
|
2 years through less than 3 years |
- |
n/a |
50,000 |
1.84 | ||||||||||||
|
3 years through less than 4 years |
25,000 |
1.00 |
- |
n/a | ||||||||||||
|
4 years through 5 years |
|
2,050 |
2.23 |
|
- |
n/a | ||||||||||
|
After 5 Years |
|
714 |
2.91 |
% |
|
2,824 |
2.42 | |||||||||
|
FHLB borrowings - gross |
468,313 |
0.73 |
% |
426,038 |
1.07 |
% | ||||||||||
|
Fair value (discount) premium |
(120 |
) |
(84 |
) | ||||||||||||
|
Total FHLB borrowings |
$ |
468,193 |
$ |
425,954 | ||||||||||||
The FHLB borrowings are secured by pledges of certain collateral including, but not limited to, U.S. government and agency mortgage-backed securities and a blanket assignment of qualifying first lien mortgage loans, consisting of both residential mortgages and commercial real estate loans.
Advances are payable at stated maturity, with a prepayment penalty for fixed rate advances. All FHLB advances have fixed rates. The advances as of December 31, 2021 were primarily collateralized by approximately $1.9 billion of commercial mortgage and residential loans, net of required over collateralization amounts, under a blanket lien arrangement. As of December 31, 2021, the Company had remaining borrowing capacity of approximately $867.3 million at the FHLB.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2021 | Feb 25, 2022 | Showing above |
| 2020 | Mar 1, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Mar 6, 2018 | |
| 2016 | Mar 10, 2017 | |
| 2015 | Mar 4, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.