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Borrowings and Borrowings Availability

12 Months Ended

Dec. 31, 2017

Note 10. Borrowings and Borrowings Availability

The following tables present information regarding the Company’s outstanding borrowings at December 31, 2017 and 2016:

Description – 2017	Due date	Call Feature	2017 Amount			Interest Rate

FHLB Term Note	1/05/2018	None	$	135,000,000		1.36% fixed
FHLB Term Note	1/29/2018	None		68,000,000		1.41% fixed
FHLB Term Note	4/18/2018	None		50,000,000		1.25% fixed
FHLB Term Note	6/26/2018	None		20,000,000		1.67% fixed
FHLB Term Note	9/28/2018	None		10,000,000		1.52% fixed
FHLB Term Note	12/24/2018	None		20,000,000		1.57% fixed
FHLB Term Note	5/29/2020	None		40,000,000		1.62% fixed
FHLB Principal Reducing Credit	7/24/2023	None		250,000		1.00% fixed
FHLB Principal Reducing Credit	12/22/2023	None		1,100,000		1.25% fixed
FHLB Principal Reducing Credit	1/15/2026	None		8,500,000		1.98% fixed
FHLB Principal Reducing Credit	6/26/2028	None		264,000		0.25% fixed
FHLB Principal Reducing Credit	7/17/2028	None		66,000		0.00% fixed
FHLB Principal Reducing Credit	8/18/2028	None		195,000		1.00% fixed
FHLB Principal Reducing Credit	8/22/2028	None		195,000		1.00% fixed
FHLB Principal Reducing Credit	12/20/2028	None		391,000		1.50% fixed
Trust Preferred Securities	1/23/2034	Quarterly by Company beginning 1/23/2009		20,620,000		4.08% at 12/31/2017 adjustable rate 3 month LIBOR + 2.70%
Trust Preferred Securities	6/15/2036	Quarterly by Company beginning 6/15/2011		25,774,000		2.98% at 12/31/2017 adjustable rate 3 month LIBOR + 1.39%
Trust Preferred Securities	1/07/2035	Quarterly by Company beginning 1/7/2010		10,310,000		3.36% at 12/31/2017 adjustable rate 3 month LIBOR + 2.00%
Total borrowings / weighted average rate as of December 31, 2017			$	410,665,000		1.72%
Unamortized discount on acquired borrowings				(3,122,000	)
Total borrowings			$	407,543,000

Description - 2016	Due date	Call Feature	2016 Amount		Interest Rate

FHLB Term Note	1/27/2017	None	$	20,000,000	0.61% fixed
FHLB Term Note	1/30/2017	None		80,000,000	0.63% fixed
FHLB Term Note	4/18/2017	None		50,000,000	0.70% fixed
FHLB Term Note	12/26/2017	None		20,000,000	1.19% fixed
FHLB Term Note	12/29/2017	None		35,000,000	0.80% fixed
FHLB Term Note	12/24/2018	None		20,000,000	1.57% fixed
Trust Preferred Securities	1/23/2034	Quarterly by Company beginning 1/23/2009		20,620,000	3.59% at 12/31/2016 adjustable rate 3 month LIBOR + 2.70%

Trust Preferred Securities	6/15/2036	Quarterly by Company beginning 6/15/2011		25,774,000	2.35% at 12/31/2016 adjustable rate 3 month LIBOR + 1.39%

Total borrowings / weighted average rate as of December 31, 2016			$	271,394,000	1.16%

All outstanding FHLB borrowings may be accelerated immediately by the FHLB in certain circumstances, including material adverse changes in the condition of the Company or if the Company’s qualifying collateral amounts to less than that required under the terms of the FHLB borrowing agreement.

In the above tables, the $20.6 million in borrowings due on January 23, 2034 relate to borrowings structured as trust preferred capital securities that were issued by First Bancorp Capital Trusts II and III ($10.3 million by each trust), which are unconsolidated subsidiaries of the Company, on December 19, 2003 and qualify as capital for regulatory capital adequacy requirements. These unsecured debt securities are callable by the Company at par on any quarterly interest payment date beginning on January 23, 2009. The interest rate on these debt securities adjusts on a quarterly basis at a rate of three-month LIBOR plus 2.70%.

In the above tables, the $25.8 million in borrowings due on June 15, 2036 relate to borrowings structured as trust preferred capital securities that were issued by First Bancorp Capital Trust IV, an unconsolidated subsidiary of the Company, on April 13, 2006 and qualify as capital for regulatory capital adequacy requirements. These unsecured debt securities are callable by the Company at par on any quarterly interest payment date beginning on June 15, 2011. The interest rate on these debt securities adjusts on a quarterly basis at a rate of three-month LIBOR plus 1.39%.

In the above table for 2017, the $10.3 million in borrowings due on January 7, 2035 relate to borrowings structured as trust preferred capital securities that were issued by Carolina Capital Trust, an unconsolidated subsidiary of the Company. The Company acquired Carolina Bank Holdings, Inc. and its subsidiary, Carolina Capital Trust, on March 3, 2017. These unsecured debt securities qualify as capital for regulatory capital adequacy requirements and are callable by the Company at par on any quarterly interest payment date beginning on January 7, 2010. The interest rate on these debt securities adjusts on a quarterly basis at a rate of three-month LIBOR plus 2.00%.

At December 31, 2017, the Company had three sources of readily available borrowing capacity – 1) an approximately $936 million line of credit with the FHLB, of which $354 million was outstanding at December 31, 2017 and $225 million was outstanding at December 31, 2016, 2) a $35 million federal funds line of credit with a correspondent bank, of which none was outstanding at December 31, 2017 or 2016, and 3) an approximately $109 million line of credit through the Federal Reserve Bank of Richmond’s (FRB) discount window, of which none was outstanding at December 31, 2017 or 2016.

The Company’s line of credit with the FHLB totaling approximately $936 million can be structured as either short-term or long-term borrowings, depending on the particular funding or liquidity needs and is secured by the Company’s FHLB stock and a blanket lien on most of its real estate loan portfolio. The borrowing capacity was reduced by $198 million at December 31, 2017 and $193 million at December 31, 2016, as a result of the Company pledging letters of credit for public deposits at each of those dates. Accordingly, the Company’s unused FHLB line of credit was $384 million at December 31, 2017.

The Company’s correspondent bank relationship allows the Company to purchase up to $35 million in federal funds on an overnight, unsecured basis (federal funds purchased). The Company had no borrowings outstanding under this line at December 31, 2017 or 2016.

The Company has a line of credit with the FRB discount window. This line is secured by a blanket lien on a portion of the Company’s commercial and consumer loan portfolio (excluding real estate). Based on the collateral owned by the Company as of December 31, 2017, the available line of credit was approximately $109 million. The Company had no borrowings outstanding under this line of credit at December 31, 2017 or 2016.