Borrowings and Borrowings Availability

12 Months Ended

Dec. 31, 2019

The following tables present information regarding the Company’s outstanding borrowings at December 31, 2019 and 2018 - dollars are in thousands:



Description – 2019	Due date	Call Feature	2019 Amount			Interest Rate
FHLB Term Note	1/30/2020	None	$	100,000		1.70% fixed
FHLB Term Note	1/31/2020	None	68,000			1.70% fixed
FHLB Term Note	1/31/2020	None	30,000			1.70% fixed
FHLB Term Note	5/29/2020	None	40,000			1.62% fixed
FHLB Principal Reducing Credit	7/24/2023	None	168			1.00% fixed
FHLB Principal Reducing Credit	12/22/2023	None	1,029			1.25% fixed
FHLB Principal Reducing Credit	1/15/2026	None	6,500			1.98% fixed
FHLB Principal Reducing Credit	6/26/2028	None	245			0.25% fixed
FHLB Principal Reducing Credit	7/17/2028	None	55			0.00% fixed
FHLB Principal Reducing Credit	8/18/2028	None	181			1.00% fixed
FHLB Principal Reducing Credit	8/22/2028	None	181			1.00% fixed
FHLB Principal Reducing Credit	12/20/2028	None	367			0.50% fixed
Trust Preferred Securities	1/23/2034	Quarterly by Company beginning 1/23/2009	20,620			4.64% at 12/31/2019 adjustable rate 3 month LIBOR + 2.70%
Trust Preferred Securities	6/15/2036	Quarterly by Company beginning 6/15/2011	25,774			3.28% at 12/31/2019 adjustable rate 3 month LIBOR + 1.39%
Trust Preferred Securities	1/7/2035	Quarterly by Company beginning 1/7/2010	10,310			3.99% at 12/31/2019 adjustable rate 3 month LIBOR + 2.00%
Total borrowings / weighted average rate as of December 31, 2019			$	303,430		2.12%
Unamortized discount on acquired borrowings			(2,759		)
Total borrowings			$	300,671



Description – 2018	Due date	Call Feature	2018 Amount			Interest Rate
FHLB Term Note	1/10/2019	None	$	68,000		2.47% fixed
FHLB Term Note	1/17/2019	None	135,000			2.49% fixed
FHLB Term Note	1/24/2019	None	20,000			2.54% fixed
FHLB Term Note	1/31/2019	None	20,000			2.53% fixed
FHLB Term Note	1/31/2019	None	10,000			2.53% fixed
FHLB Term Note	4/18/2019	None	50,000			2.36% fixed
FHLB Term Note	5/29/2020	None	40,000			1.62% fixed
FHLB Principal Reducing Credit	7/24/2023	None	210			1.00% fixed
FHLB Principal Reducing Credit	12/22/2023	None	1,065			1.25% fixed
FHLB Principal Reducing Credit	1/15/2026	None	7,500			1.98% fixed
FHLB Principal Reducing Credit	6/26/2028	None	255			0.25% fixed
FHLB Principal Reducing Credit	7/17/2028	None	61			0.00% fixed
FHLB Principal Reducing Credit	8/18/2028	None	188			1.00% fixed
FHLB Principal Reducing Credit	8/22/2028	None	188			1.00% fixed
FHLB Principal Reducing Credit	12/20/2028	None	379			0.50% fixed
Trust Preferred Securities	1/23/2034	Quarterly by Company beginning 1/23/2009	20,620			5.22% at 12/31/2018 adjustable rate 3 month LIBOR + 2.70%
Trust Preferred Securities	6/15/2036	Quarterly by Company beginning 6/15/2011	25,774			4.18% at 12/31/2018 adjustable rate 3 month LIBOR + 1.39%
Trust Preferred Securities	1/7/2035	Quarterly by Company beginning 1/7/2010	10,310			4.44% at 12/31/2018 adjustable rate 3 month LIBOR + 2.00%
Total borrowings / weighted average rate as of December 31, 2018			$	409,550		2.68%
Unamortized discount on acquired borrowings			(2,941		)
Total borrowings			$	406,609

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, borrowings of $198.0 million and $253.0 million at December 31, 2019 and 2018, respectively, were considered short-term as their original maturity terms were for less than 3 months.

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 became 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 became 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 tables, 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 became 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, 2019, the Company had three sources of readily available borrowing capacity – 1) an approximately $1.05 billion line of credit with the FHLB, of which $247 million was outstanding at December 31, 2019 and $353 million was outstanding at December 31, 2018, 2) a $35 million federal funds line of credit with a correspondent bank, of which none was outstanding at December 31, 2019 or 2018, and 3) an approximately $129 million line of credit through the Federal Reserve Bank of Richmond’s (FRB) discount window, of which none was outstanding at December 31, 2019 or 2018.

The Company’s line of credit with the FHLB totaling approximately $1.05 billion 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 $190 million at both December 31, 2019 and 2018, 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 $610 million at December 31, 2019 and $502 million at December 31, 2018.

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, 2019 or 2018.

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, 2019, the available line of credit was approximately $129 million. The Company had no borrowings outstanding under this line of credit at December 31, 2019 or 2018.