BORROWINGS

A summary of short-term borrowings and long-term debt is presented below.



	December 31, 2013		December 31, 2012
Short-term borrowings:
FHLB advances maturing within one year	$	126,500	$	7,500

Long-term debt:
FHLB advances maturing beyond one year	$	19,299	$	7,500
Subordinated term loan due 2018	6,961		6,867
Subordinated notes due 2023	38,050		—
Junior subordinated debt to unconsolidated trust due 2033	5,560		5,497
Capital lease obligation and other debt	3,051		—
Total long-term debt	$	72,921	$	19,864

The Company may purchase federal funds through unsecured federal funds lines of credit with various correspondent banks, which totaled $128,500 as of December 31, 2013. These lines are intended for short-term borrowings and are subject to restrictions limiting the frequency and terms of advances. These lines of credit are payable on demand and bear interest based upon the daily federal funds rate. The Company had no outstanding balances on the lines of credit as of December 31, 2013 or 2012.

The Company may borrow funds through the Federal Reserve Bank’s discount window. These borrowings are secured by a blanket floating lien on qualifying construction, land acquisition and development loans, commercial and industrial loans, and consumer loans with a total collateral value of $8,298. Depending on the type of loan collateral, the Company may borrow between 60 and 65 percent of the collateral value pledged. The Company had no outstanding borrowings at the discount window as of December 31, 2013 or 2012.

FHLB Advances

The Company had an $87,106 credit line available with the FHLB for advances as of December 31, 2013. These advances are secured by a blanket floating lien on qualifying commercial real estate, first mortgage loans and pledged investment securities with a total book value of $415,187 as of December 31, 2013.

Below is a summary of the contractual balances outstanding on FHLB advances.



Maturity Date	Contractual Rate	Rate Type	December 31, 2013		December 31, 2012

March 14, 2013	0.78%	Fixed	$	—	$	1,500
October 11, 2013	0.33%	Fixed	—		3,000
October 15, 2013	0.89%	Fixed	—		2,000
November 4, 2013	0.83%	Fixed	—		1,000
January 7, 2014	0.20%	Fixed	20,000		—
January 22, 2014	0.18%	Fixed	18,000		—
February 5, 2014	0.21%	Fixed	25,000		—
March 5, 2014	0.25%	Fixed	25,000		—
April 4, 2014	0.23%	Fixed	25,000		—
August 4, 2014	1.11%	Fixed	1,500		1,500
August 18, 2014	1.49%	Fixed	3,000		—
August 20, 2014	1.48%	Fixed	3,000		—
October 28, 2014	0.91%	Fixed	2,000		2,000
December 16, 2014	0.87%	Fixed	4,000		4,000
February 26, 2015	0.43%	Fixed	3,000		—
August 17, 2015	1.85%	Fixed	4,500		—
August 20, 2015	1.83%	Fixed	3,000		—
February 26, 2016	0.61%	Fixed	3,000		—
August 17, 2016	2.21%	Fixed	2,500		—
February 27, 2017	0.82%	Fixed	3,000		—
Totals			$	145,500	$	15,000

Subordinated Term Loan Due 2018

In September 2008, the Bank entered into an unsecured subordinated term loan agreement in the amount of $7,500. The agreement requires the Bank to make quarterly payments of interest at an annual contract rate, reset quarterly, equal to three-month LIBOR plus 4.00 percent. The subordinated term loan qualifies as Tier 2 capital for regulatory capital purposes, subject to a phase out of the capital qualification five years prior to maturity. The subordinated term loan was adjusted to fair value in connection with Piedmont's acquisition of Crescent, and as of December 31, 2013 and 2012, the carrying value was $6,961 and $6,867, respectively.

The subordinated term loan agreement matures on October 18, 2018 and is currently redeemable, subject to regulatory approval.

Subordinated Notes Due 2023

In August 2013, the Company issued an aggregate of $38,050 of subordinated notes in a private placement to accredited investors. The notes bear interest, payable on the 1st of January and July of each year, at a fixed annual interest rate of 7.625 percent. The notes mature in August 2023 and qualify as Tier 2 capital for regulatory purposes, subject to a phase out of the capital qualification five years prior to maturity.

Junior Subordinated Debt to Unconsolidated Trust Due 2033

In August 2003, $8,000 in trust preferred securities ("TRUPs") were issued through the Trust. The Trust invested the proceeds from the sale of its TRUPs in junior subordinated deferrable interest debentures issued by the Company, which fully and unconditionally guarantees the TRUPs. These TRUPs qualify as Tier 1 capital for regulatory capital purposes, subject to certain limitations. The TRUPs mature on October 7, 2033 and are currently redeemable, subject to regulatory approval. These TRUPs were adjusted to fair value in connection with Piedmont's acquisition of Crescent, and as of December 31, 2013 and 2012, their carrying value was $5,560 and $5,497, respectively. The TRUPs pay cash distributions quarterly at an annual contract rate, reset quarterly, equal to three-month LIBOR plus 3.10 percent.