BORROWINGS

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



	December 31, 2016		December 31, 2015
Short-term borrowings:
FHLB advances maturing within one year	$	764,600	$	375,500

Long-term debt:
FHLB advances maturing beyond one year	$	51,356	$	118,942
Subordinated term loan due 2018	7,279		7,166
Subordinated notes due 2023	38,050		38,050
Subordinated notes due 2024	16,061		—
Junior subordinated debt to unconsolidated trusts:
Maturing October 7, 2033	5,885		5,701
Maturing December 15, 2033	6,997		6,853
Maturing September 30, 2035	15,371		—
Maturing December 15, 2037	12,904		12,503
Capital lease obligations and other debt	5,521		5,752
Total long-term debt	$	159,424	$	194,967

The Company may purchase federal funds through unsecured federal funds lines of credit with various correspondent banks, which totaled $210,000 as of December 31, 2016. 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, 2016 or 2015.

The Company may borrow funds through the Federal Reserve Bank’s discount window. These borrowings are secured by investment securities with a total collateral value of $4,903. Depending on the type of 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, 2016 or 2015.

The Company maintains a loan agreement with a correspondent bank providing for a revolving loan of up to $15,000 for the holding company. Borrowings under the holding company loan agreement accrue interest at LIBOR plus 4.00 percent. The holding company loan agreement will expire on July 1, 2017. However, the Company may extend the maturity date by twelve months so long as it is not in default under the holding company loan agreement. The obligations of the holding company loan agreement are secured by, among other things, a pledge of all of the capital stock of Yadkin Bank. The Company had no outstanding balance on the holding company loan agreement as of December 31, 2016.

FHLB Advances

The Company had $348,429 of remaining availability on its credit line with the FHLB for advances as of December 31, 2016. These advances are secured by a blanket floating lien on qualifying commercial real estate loans, multifamily loans, residential mortgage loans, and home equity lines of credit with a total lendable collateral value of $1,195,326 as of December 31, 2016.

Maturities of FHLB advances for the next five years and thereafter are as follows:



Maturity Date	Range of Contractual Rates	Rate Type	December 31, 2016		December 31, 2015

2016	0.28 - 2.21%	Fixed rate credit	$	—	$	375,500
2017	0.49 - 1.14%	Fixed rate credit	764,600		113,000
2018	0.25 - 1.01%	Fixed rate credit	46,129		648
2019	1.83%	Principal reducing credit	5,000		5,000
2020	—%		—		—
2021	—%		—		—
Thereafter	2.00%	Principal reducing credit	168		188
Totals			$	815,897	$	494,336

Merger-related fair value adjustments included in FHLB borrowings were $59 and $106, as of December 31, 2016 and 2015, respectively.

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, 2016 and 2015, the carrying value was $7,279 and $7,060, 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.

Subordinated Notes Due 2024

In March 2014, NewBridge enteraead into a Subordinated Note Purchase Agreement with 14 accredited investors under which NewBridge issued an aggregate of $15.5 million of subordinated notes to the accredited investors, including members of the NewBridge’s Board of Directors. The subordinated notes have a maturity date of March 14, 2024 and bear interest, payable on the 1st of January and July of each year, commencing July 1, 2014, at a fixed interest rate of 7.25% per year. The subordinated notes are intended to qualify as Tier II capital for regulatory purposes. The subordinated term loan was adjusted to fair value in connection with the NewBridge acquisition, and as of December 31, 2016 , the carrying value was $16,061.

Junior Subordinated Debt to Unconsolidated Trusts

In August 2003, $8,000 in trust preferred securities ("TRUPs") were issued through the Crescent Financial Capital Trust I (the "Crescent Trust"). The Crescent Trust invested the proceeds from the sale of its TRUPs in junior subordinated deferrable interest debentures issued by Crescent (assumed by VantageSouth in its acquisition of Crescent and subsequently assumed by the Company in its merger with VantageSouth). 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, 2016 and 2015, their carrying value was $25,786 and $25,056, respectively. The TRUPs pay cash distributions quarterly at an annual contract rate, reset quarterly, equal to three-month LIBOR plus 3.10 percent.

In 2003, $10,000 in TRUPs were issued through the American Community Bank Capital Trust ("ACB Trust"). The ACB Trust invested the proceeds from the sale of its TRUPs in junior subordinated deferrable interest debentures issued by ACB (and assumed by the Company in its acquisition of ACB). These TRUPs qualify as Tier 1 capital for regulatory capital purposes, subject to certain limitations. The TRUPs mature on December 15, 2033 and are currently redeemable, subject to regulatory approval. These TRUPs were adjusted to fair value in connection with the 2014 Mergers, and as of December 31, 2016, their carrying value was $6,997. The TRUPs pay cash distributions quarterly at an annual contract rate, reset quarterly, equal to three-month LIBOR plus 2.80 percent.

In November 2007, $25,000 in TRUPs were issued through Yadkin Valley Statutory Trust I (the "Yadkin Trust"). The Yadkin Trust invested the proceeds from the sale of its TRUPs in junior subordinated deferrable interest debentures issued by Yadkin. These TRUPs qualify as Tier 1 capital for regulatory capital purposes, subject to certain limitations. The TRUPs mature on December 15, 2037 and are currently redeemable, subject to regulatory approval. These TRUPs were adjusted to fair value in connection with the 2014 Mergers, and as of December 31, 2016, their carrying value was $12,904. The TRUPs pay cash distributions quarterly at an annual contract rate, reset quarterly, equal to three-month LIBOR plus 1.32 percent.

In August 2005, $25,000 in TRUPs were issued through FNB Financial Services Capital Trust I, (the “FNB Trust,”). The FNB Trust invested the proceeds from the sale of its TRUPs in junior subordinated deferrable interest debentures issued by NewBridge (and assumed by the Company in its acquisition of NewBridge). These TRUPs qualify as Tier 1 capital for regulatory capital purposes, subject to certain limitations. The TRUPs mature on September 30, 2035 and are currently redeemable, subject to regulatory approval. These TRUPs were adjusted to fair value in connection with the NewBridge Merger, and as of December 31, 2016, their carrying value was $15,371. The TRUPs pay cash distributions quarterly at an annual contract rate, reset quarterly, equal to three-month LIBOR plus 1.46 percent.

Yadkin unconditionally guarantees the trust preferred securities that were previously issued by the Crescent Trust, the ACB Trust , Yadkin Trust and the FNB Trust.