Borrowings
Borrowings consisted of FHLB advances, borrowings under the Federal Reserve's Bank Term Funding Program (“BTFP”), securities sold under agreements to repurchase (repurchase agreements), floating rate advances and other interest-bearing liabilities and are summarized as follows (in thousands):
| | | | | | | | | | | | | | |
| | | December 31, |
| | | 2024 | | 2023 |
| Repurchase agreements | | $ | — | | | $ | 25,000 | |
| Other borrowings: | | | | |
| FHLB advances | | 658,472 | | | 733,553 | |
| BTFP borrowings | | — | | | 94,500 | |
| Floating rate advances and other interest-bearing liabilities | | 7,930 | | | 6,219 | |
| | | $ | 666,402 | | | $ | 859,272 | |
| | | | |
At December 31, 2024 and 2023, FHLB advances, BTFP borrowings and repurchase agreements had contractual maturities as follows (in thousands):
| | | | | | | | | |
| | December 31, 2024 |
| | FHLB | | | | |
| | Advances | | | | |
| 2025 | $ | 183,184 | | | | | |
| 2026 | 148,000 | | | | | |
| 2027 | 173,000 | | | | | |
| 2028 | 154,288 | | | | | |
| | | | | |
| | $ | 658,472 | | | | | |
| | | | | | | | | | | | | | |
| | December 31, 2023 |
| | FHLB | | Repurchase | BTFP |
| | Advances | | Agreements | Borrowings |
| 2024 | $ | 75,765 | | | $ | 25,000 | | $ | 94,500 | |
| 2025 | 182,500 | | | — | | — | |
| 2026 | 148,000 | | | — | | — | |
| 2027 | 173,000 | | | — | | — | |
| 2028 | 154,288 | | | — | | — | |
| | | | |
| | $ | 733,553 | | | $ | 25,000 | | $ | 94,500 | |
Further information regarding FHLB advances, repurchase agreements and BTFP borrowings is summarized as follows (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| December 31, |
| 2024 | | 2023 | | 2024 | | 2023 | | 2024 | | 2023 |
| FHLB Advances | | Repurchase Agreements | | BTFP Borrowings |
| Average balance during year | $ | 706,473 | | | $ | 766,268 | | | $ | 9,699 | | | $ | 25,000 | | | $ | 259,031 | | | $ | 97,593 | |
| Maximum outstanding at any month end | $ | 783,553 | | | $ | 976,788 | | | $ | 25,000 | | | $ | 25,000 | | | $ | 374,500 | | | $ | 134,500 | |
| Weighted average interest rate at end of year | 3.47 | % | | 3.52 | % | | — | % | | 2.42 | % | | — | % | | 4.37 | % |
| Weighted average interest rate during year | 3.55 | % | | 3.55 | % | | 2.46 | % | | 2.45 | % | | 4.83 | % | | 4.38 | % |
FHLB advances are secured by a blanket lien on unencumbered securities and the Company’s FHLB capital stock.
The Company had no repurchase agreements as of December 31, 2024. At December 31, 2023, the repurchase agreements were secured primarily by mortgage-backed securities with an amortized cost of $27.1 million and a fair value of $25.7 million.
The BTFP was established by the Board of Governors of the Federal Reserve System. The BTFP was created in March 2023 in response to industry events to provide banks with additional liquidity via a secured line of credit collateralized by eligible pledged securities. In January 2024, the Company borrowed $300 million from the Federal Reserve Bank through the BTFP program at favorable terms and conditions and invested the proceeds at higher rates. These borrowings were repaid in full as of December 31, 2024. The BTFP ceased providing borrowings in March 2024.
The Company has the ability to obtain additional funding from the FHLB and Federal Reserve Bank discount window of approximately $1.62 billion, utilizing unencumbered and unpledged securities of $683.4 million and multifamily loans of $934.8 million at December 31, 2024. The Company expects to have sufficient funds available to meet current commitments in the normal course of business.
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.