Borrowings

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Borrowings

BORROWINGS

Short-term Borrowings

Short-term borrowings at December 31, 2021 and 2020 are as follows:

(Dollars in thousands)	2021		2020
Securities sold under customer repurchase agreements	$	589,101	$	641,487

At December 31, 2021, BancShares had unused credit lines allowing contingent access to overnight borrowings of up to $556.0 million on an unsecured basis. Additionally, under borrowing arrangements with the FRB of Richmond and FHLB of Atlanta, BancShares has access to an additional $12.87 billion on a secured basis.

Repurchase Agreements

BancShares utilizes securities sold under agreements to repurchase to facilitate the needs of customers and secure wholesale funding needs. Repurchase agreements are transactions whereby BancShares offers to sell to a counterparty an undivided interest in an eligible security at an agreed upon purchase price, and which obligates BancShares to repurchase the security at an agreed upon date, repurchase price and interest rate. These agreements are recorded at the amount of cash received in connection with the transaction and are reflected as securities sold under customer repurchase agreements.

BancShares monitors collateral levels on a continuous basis and maintains records of each transaction specifically describing the applicable security and the counterparty’s fractional interest in that security, and segregates the security from general assets in accordance with regulations governing custodial holdings of securities. The primary risk with repurchase agreements is market risk associated with the investments securing the transactions, as additional collateral may be required based on fair value changes of the underlying investments. Securities pledged as collateral under repurchase agreements are maintained with safekeeping agents. The carrying value of investment securities pledged as collateral under repurchase agreements was $619.1 million and $689.3 million at December 31, 2021 and December 31, 2020, respectively.

At December 31, 2021, BancShares held $589.1 million of securities sold under agreements to repurchase, with overnight and continuous remaining contractual maturities, made up of $508.4 million collateralized by government agency securities and $80.7 million collateralized by commercial mortgage-backed securities. At December 31, 2020, BancShares held $641.5 million of securities sold under agreements to repurchase, with overnight and continuous remaining contractual maturities, made up of $432.8 million collateralized by government agency securities and $208.7 million collateralized by commercial mortgage-backed securities.

Long-term Borrowings

Long-term borrowings at December 31, 2021 and 2020 include:

(Dollars in thousands)	2021		2020
Fixed-to-Floating subordinated notes at 3.375% maturing March 15, 2030	$	350,000	$	350,000
Junior subordinated debenture at 3-month LIBOR plus 1.75% maturing June 30, 2036(1)	88,145		88,145
Junior subordinated debenture at 3-month LIBOR plus 2.25% maturing June 15, 2034(1)	19,588		19,588
Junior subordinated debenture at 3-month LIBOR plus 2.85% maturing April 7, 2034(1)	10,310		10,310
Junior subordinated debentures at 3-month LIBOR plus 2.80% maturing March 30, 2034(1)	14,433		14,433
Junior subordinated debentures at 7.00% maturing December 31, 2026(2)	—		20,000
Junior subordinated debentures at 6.50% maturing October 1, 2025(3)	—		7,500
Notes payable to FHLBs of Atlanta and Chicago with rates ranging from 0.75% to 2.99% and maturing through March 2032	644,659		655,175
Unsecured term loan at 1-month LIBOR plus 1.10% maturing September 5, 2022	67,825		82,125
Obligations under capitalized leases extending to December 2050	4,311		6,308
Unamortized issuance costs	(2,629)		(3,459)
Unamortized purchase accounting adjustments	(2,283)		(1,999)
Other long-term debt	19		37
Total long-term obligations	$	1,194,378	$	1,248,163
(1) Obligations to capital and grantor trusts for trust preferred securities (2) Assumed in HomeBancorp acquisition. (3) Assumed in Biscayne BancShares acquisition.

On March 4, 2020, BancShares completed its public offering of $350 million aggregate principal amount of its 3.375% Fixed-to-Floating Rate Subordinated Notes due 2030 and redeemable at the option of BancShares starting with the interest payment due March 15, 2025, subject to obtaining the prior approval of the Federal Reserve to the extent such approval is then required under the rules of the Federal Reserve, or earlier upon the occurrence of certain events.

At December 31, 2021 and 2020, BancShares held $132.5 million in junior subordinated debentures representing obligations to FCB/NC Capital Trust III, FCB/SC Capital Trust II, SCB Capital Trust I and Macon Capital Trust I special purpose entities and grantor trusts (the “Trusts”) for trust preferred securities. The Trusts had outstanding trust preferred securities of $128.1 million and $128.5 million at December 31, 2021 and 2020 respectively, which may be redeemed at par in whole or in part at any time, in accordance with the applicable transaction documents. BancShares has guaranteed all obligations of its subsidiaries, FCB Capital Trust III and FCB/SC Capital Trust II. FCB has guaranteed all obligations of its trust subsidiaries, SCB Capital Trust I and Macon Capital Trust I, which was acquired from Entegra during the fourth quarter of 2019 and has a related obligation of $14.4 million.

Long-term borrowings maturing in each of the five years subsequent to December 31, 2021 and thereafter include:

(Dollars in thousands)	Year ended December 31
2022	$	82,735
2023	125,500
2024	5,771
2025	—
2026	2,649
Thereafter	977,723
Total long-term borrowings	$	1,194,378