Borrowings |
9 Months Ended |
|---|---|
Sep. 30, 2026 | |
| Disclosure Text Block [Abstract] | |
| Borrowings | 8. BORROWINGS
Customer Repurchase Agreements
The Bank offers a repurchase agreement product to its customers, known as Citizens Sweep Manager. Under this program, the Bank sells investment securities overnight to customers under an agreement to repurchase (“repurchase agreement”) the securities the next business day at a price reflecting the market value of the use of funds for the period. These repurchase agreements are entered into with customers whose demand deposit account balances exceed a pre-determined threshold. Excess funds above this threshold are invested in overnight repurchase agreements, which earn interest for the customer. As of September 30, 2026, total funds borrowed under these agreements were $571.9 million, with a weighted average interest rate of 2.12%, compared to $490.6 million at December 31, 2025, with a weighted average interest rate of 1.72%.
Federal Home Loan Bank Advances and Other Borrowings As of September 30, 2026, FHLB advances and other borrowings totaled $540 million, consisting of two $150 million three-month FHLB advances bearing a weighted average fixed interest rate of 4.22%, a $200 million FHLB advance bearing a fixed interest rate of 4.27% and maturing in May 2027, and a $40.0 million overnight advance bearing interest at 4.36%, which matured on October 1, 2026. As of December 31, 2025, FHLB advances totaled $500 million at an average rate of 4.55%, consisting of a $300 million advance bearing an average fixed rate of 4.73% and maturing in May 2026, and a $200 million advance bearing a fixed rate of 4.27% and maturing in May 2027.
As of September 30, 2026, $7.60 billion of loans and $5.30 billion of investment securities, at carrying value, were pledged to secure public deposits, repurchase agreements, borrowing lines, and for other purposes as required or permitted by law. At December 31, 2025, $6.47 billion of loans and $3.35 billion of investment securities, at carrying value, were pledged to secure public deposits, repurchase agreements, borrowing lines, and for other purposes as required or permitted by law. At September 30, 2026, the Bank's secured borrowing capacity with the FHLB and FRB totaled $6.77 billion, of which $6.23 billion was available as of September 30, 2026. The Bank also had $305.0 million of unsecured federal funds lines of credit with other major U.S. banks. These lines of credit are available for overnight borrowings. At December 31, 2025, the Bank's secured borrowing capacity with the FHLB and FRB totaled $5.78 billion, of which $5.28 billion was available as of December 31, 2025. The Bank also had $305.0 million in unsecured federal funds lines of credit with other major U.S. banks. These lines of credit are available for overnight borrowings.
Subordinated Debt
In connection with the acquisition of Heritage, the Company assumed $40.0 million of fixed-to-floating rate subordinated notes due May 15, 2032. The notes bear interest at a fixed rate of 5.0% per year until May 15, 2027. From and including May 15, 2027, interest will accrue at a variable rate of three-month SOFR plus 227 basis points. The Company may redeem the subordinated notes, in whole or in part, on or after May 15, 2027. At September 30, 2026, the carrying value of the subordinated notes was $39.3 million, net of the purchase accounting fair value adjustments, and qualified as Tier 2 capital for the Company. |