Note 11— Other Borrowings

The Company’s other borrowings were as follows:


				2017						2016
						Weighted						Weighted
		Interest				Average		Interest				Average
		Rate at				Interest		Rate at				Interest
(Dollars in thousands)	Maturity	12/31/2017		Balance		Rate		12/31/2016		Balance		Rate
Short-term borrowings:
Federal Home Loan Bank Fixed Rate Credit	1/16/2018	1.40	%	$	50,000			—		$	—
Federal Home Loan Bank Fixed Rate Credit	4/27/2018	1.57	%		50,000			—			—
Total short-term borrowings					100,000	1.48	%				—	—

Long-term borrowings
SCBT Capital Trust I junior subordinated debt(1)	6/15/2035	3.38	%		12,372			2.75	%		12,372
SCBT Capital Trust II junior subordinated debt(1)	6/15/2035	3.38	%		8,248			2.75	%		8,248
SCBT Capital Trust III junior subordinated debt(1)	7/18/2035	3.18	%		20,619			2.55	%		20,619
SAVB Capital Trust I junior subordinated debt(1)	10/7/2033	4.21	%		6,186			3.73	%		6,186
SAVB Capital Trust II junior subordinated debt(1)	12/15/2034	3.79	%		4,124			3.16	%		4,124
TSB Statutory Trust I junior subordinated debt(1)	3/14/2037	3.31	%		3,093			2.68	%		3,093
Southeastern Bank Financial Statutory Trust I junior subordinated debt(1)	12/15/2035	2.99	%		10,310			—			—
Southeastern Bank Financial Statutory Trust II junior subordinated debt(1)	6/15/2036	2.99	%		10,310			—			—
CSBC Statutory Trust I junior subordinated debt(1)	12/15/2035	3.16	%		15,464			—			—
Community Capital Statutory Trust I junior subordinated debt(1)	6/15/2036	3.14	%		10,310			—			—
FCRV Statutory Trust I junior subordinated debt(1)	12/15/2036	3.29	%		5,155			—			—
Provident Community Bancshares Capital Trust I junior subordinated debt(1)	3/1/2037	3.08	%		4,124			—			—
Provident Community Bancshares Capital Trust II junior subordinated debt(1)	10/1/2036	3.22	%		8,248			—			—
Fair Market Value Discount Trust Preferred Debt Acquired					(4,063)						(213)
Other	Various	4.09	%		1,885			4.07	%		929
Total long-term borrowings					116,385	3.26	%				55,358	2.84	%
Total borrowings				$	216,385					$	55,358

⁽¹⁾

All of the junior subordinated debt above is adjustable rate based on three-month LIBOR plus a spread ranging from 140 basis points to 285 basis points.

Short-Term FHLB Advances

The Company has from time‑to‑time entered into borrowing agreements with the FHLB. Advances under these agreements are collateralized by stock in the FHLB, qualifying first and second mortgage residential loans, and commercial real estate loans under a blanket‑floating lien.

As of December 31, 2017, and 2016, there was $100.0 million and $0 in outstanding Short-Term FHLB advances, respectively. The weighted average cost of the FHLB advances at period end December 31, 2017 was 1.48% and the weighted average cost year to date for the year ended December 31, 2017 was 0.97%. Net eligible loans of the Company pledged via a blanket lien to the FHLB for advances and letters of credit at December 31, 2017, were approximately $2.6 billion which allows the Company a total borrowing capacity at FHLB of approximately $1.9 billion. After accounting for letters of credit totaling $6.3 million, the Company had unused net credit available with the FHLB in the amount of approximately $1.9 billion at December 31, 2017.

Junior Subordinated Debt

The obligations of the Company with respect to the issuance of the capital securities constitute a full and unconditional guarantee by the Company of the trusts’ obligations with respect to the capital securities. Subject to certain exceptions and limitations, the Company may elect from time to time to defer interest payments on the junior subordinated debt securities, which would result in a deferral of distribution payments on the related capital securities.

All of the Company’s junior subordinated debt is callable after five years from issuance. Therefore, all of the junior subordinated debt is callable at December 31, 2017.

As of December 31, 2017, the sole assets of the trusts were an aggregate of $114.5 million of the Company’s junior subordinated debt securities with like maturities and like interest rates to the trust preferred securities.

As of December 31, 2017, the Company recorded a $114.5 million liability for the junior subordinated debt securities, net of a $4.1 million discount recorded on Southeastern Bank Financial Statutory Trust I and II, Citizens South Banking Corporation Statutory Trust I, Community Capital Statutory Trust I, FCRV Statutory Trust I, Provident Community Bancshares Capital Trust I and II. The Company, as issuer, can call any of these subordinated debt securities without penalty. If the Company were to call the securities, the amount paid to the holders would be $118.6 million and the Company would fully amortize any remaining discount into interest expense. The remaining discount is being amortized over either a two and one-half year period or five year period.

As of December 31, 2017, and 2016, there was $114.5 million (net of discount of $4.1 million) and $54.4 million (net of discount of $213,000), respectively, in junior subordinated debt. The weighted average cost of the junior subordinated debt at period end December 31, 2017 was 3.26% and the weighted average cost year to date for the year ended December 31, 2017 of 2.99%. This does not take into account the discount. If the discount were taken into account the weighted average cost year to date would be 3.94%. This compares to a weighted average cost of the junior subordinated debt at period end December 31, 2016 of 2.82% and the weighted average cost year to date for the year ended December 31, 2016 of 2.59%. If the discount were taken into account the weighted average cost year to date would be 2.99% in 2016.

For regulatory purposes, the junior subordinated debt securities may be classified as Tier 1 Capital. The trust preferred securities represent a minority investment in an unconsolidated subsidiary, which is currently included in Tier 1 Capital so long as it does not exceed 25% of total Tier 1 Capital.

Line of Credit

On November 15, 2017, the Company entered into a Credit Agreement (the “Agreement”) with U.S. Bank National Association (the “Lender”). The Agreement provides for a $10 million unsecured line of credit by the Lender to the Company. The maturity date of the Agreement is November 15, 2018, provided that the Agreement may be extended subject to the approval of the Lender. Borrowings by the Company under the Agreement will bear interest at a rate per annum equal to one-month LIBOR plus 1.75%. As of December 31, 2017 and 2016, and there was no outstanding balance associated with the line of credit.

Principal maturities of other borrowings are summarized below:


	Junior
	Subordinated		FHLB
(Dollars in thousands)	Debt		Advances		Other		Total
Year Ended December 31,
2018	$	—	$	100,000	$	7	$	100,007
2019		—		—		7		7
2020		—		—		7		7
2021		—		—		8		8
2022		—		—		8		8
Thereafter		114,500		—		1,848		116,348
	$	114,500	$	100,000	$	1,885	$	216,385