XML 18 R14.htm IDEA: XBRL DOCUMENT v2.3.0.15
Borrowings
9 Months Ended
Sep. 30, 2011
Borrowings [Abstract] 
Borrowings

Note 7. Borrowings

The following schedule details the Company’s indebtedness at September 30, 2011, and December 31, 2010.

 

                 
    September 30,     December 31,  
(In Thousands)   2011     2010  

Securities sold under agreements to repurchase

   $ 139,510     $ 140,894  

FHLB borrowings

     150,000       175,000  

Subordinated debt

     15,464       15,464  

Other long-term debt

     477       729  
   

 

 

    

 

 

  

Total

   $ 305,451     $ 332,087  
   

 

 

    

 

 

  

Securities sold under agreements to repurchase consist of $89.51 million and $90.89 million of retail overnight and term repurchase agreements at September 30, 2011, and December 31, 2010, respectively, and $50.00 million of wholesale repurchase agreements at both September 30, 2011, and December 31, 2010.

The Company had a derivative interest rate swap instrument where it received LIBOR-based variable interest payments and paid fixed interest payments which expired in January 2011. The instrument effectively fixed $50.00 million of FHLB borrowings at 4.34% for a period of five years. For a more detailed discussion of activities regarding derivatives, please see Note 13 to the Consolidated Financial Statements.

FHLB borrowings included $150.00 million in convertible and callable advances at September 30, 2011, and $175.00 million at December 31, 2010. During the first quarter of 2011, the Company prepaid a $25.00 million FHLB advance. The weighted average interest rate of all the advances was 4.12% at September 30, 2011, and 2.39% at December 31, 2010.

 

At September 30, 2011, the FHLB advances have approximate contractual maturities between five and ten years. The scheduled maturities of the advances are as follows:

 

         
(In Thousands)   Amount  

2011

   $ —    

2012

     —    

2013

     —    

2014

     —    

2015

     —    

2016 and thereafter

     150,000  
   

 

 

  

Total

   $ 150,000  
   

 

 

  

The callable advances may be redeemed at quarterly intervals after various lockout periods. These call options may substantially shorten the lives of these instruments. If these advances are called, the debt may be paid in full or converted to another FHLB credit product. Prepayment of the advances may result in substantial penalties based upon the differential between contractual note rates and current advance rates for similar maturities. At September 30, 2011, advances from the FHLB were secured by qualifying loans of $337.29 million.

Also included in other indebtedness is $15.46 million of junior subordinated debentures (the “Debentures”) issued by the Company in October 2003 to an unconsolidated trust subsidiary, FCBI Capital Trust (the “Trust”), with an interest rate of three-month LIBOR plus 2.95%. The Trust was able to purchase the Debentures through the issuance of trust preferred securities which had substantially identical terms as the Debentures. The Debentures mature on October 8, 2033, and are currently callable. The Company’s obligations under the Debentures and other relevant Trust agreements, in aggregate, constitute a full and unconditional guarantee by the Company of the Trust’s obligations.