Borrowings and Borrowings Availability

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Borrowings and Borrowings Availability

Borrowings and Borrowings Availability

The following tables present information regarding the Company’s outstanding borrowings at December 31, 2021 and 2020 - dollars are in thousands:

Description – 2021	Due date	Call Feature	2021 Amount		Interest Rate
FHLB Principal Reducing Credit	7/24/2023	None	$	79	1.00% fixed
FHLB Principal Reducing Credit	12/22/2023	None	952		1.25% fixed
FHLB Principal Reducing Credit	6/26/2028	None	225		0.25% fixed
FHLB Principal Reducing Credit	7/17/2028	None	44		0.00% fixed
FHLB Principal Reducing Credit	8/18/2028	None	166		1.00% fixed
FHLB Principal Reducing Credit	8/22/2028	None	166		1.00% fixed
FHLB Principal Reducing Credit	12/20/2028	None	342		0.50%fixed
Trust Preferred Securities	1/23/2034	Quarterly by Company beginning 1/23/2009	20,620		2.83% at 12/31/21 adjustable rate 3 month LIBOR + 2.70%
Trust Preferred Securities	6/15/2036	Quarterly by Company beginning 6/15/2011	25,774		1.59% at 12/31/21 adjustable rate 3 month LIBOR + 1.39%
Trust Preferred Securities	1/7/2035	Quarterly by Company beginning 1/7/2010	10,310		2.12% at 12/31/21 adjustable rate 3 month LIBOR +2.00%
Trust Preferred Securities	9/20/2034	Quarterly by Company beginning 9/20/2009	12,372		2.27% at 12/31/21 adjustable rate 3 month LIBOR + 2.15%
Total borrowings / weighted average rate as of December 31, 2021			71,050		2.24%
Unamortized discount on acquired borrowings			(3,664)
Total borrowings			$	67,386

Description – 2020	Due date	Call Feature	2020 Amount		Interest Rate
FHLB Principal Reducing Credit	7/24/2023	None	$	124	1.00% fixed
FHLB Principal Reducing Credit	12/22/2023	None	991		1.25% fixed
FHLB Principal Reducing Credit	1/15/2026	None	5,500		1.98% fixed
FHLB Principal Reducing Credit	6/26/2028	None	235		0.25% fixed
FHLB Principal Reducing Credit	7/17/2028	None	49		0.00% fixed
FHLB Principal Reducing Credit	8/18/2028	None	174		1.00% fixed
FHLB Principal Reducing Credit	8/22/2028	None	174		1.00% fixed
FHLB Principal Reducing Credit	12/20/2028	None	355		0.50% fixed
Other Borrowing	4/7/2022	None	103		1.00% fixed
Trust Preferred Securities	1/23/2034	Quarterly by Company beginning 1/23/2009	20,620		2.91% at 12/31/20 adjustable rate 3 month LIBOR +2.70%
Trust Preferred Securities	6/15/2036	Quarterly by Company beginning 6/15/2011	25,774		1.61% at 12/31/20 adjustable rate 3 month LIBOR + 1.39%
Trust Preferred Securities	1/7/2035	Quarterly by Company beginning 1/7/2010	10,310		2.24% at 12/31/20 adjustable rate 3 month LIBOR + 2.00%
Total borrowings / weighted average rate as of December 31, 2020			64,409		2.22%
Unamortized discount on acquired borrowings			(2,580)
Total borrowings			$	61,829

All outstanding FHLB borrowings may be accelerated immediately by the FHLB in certain circumstances, including material adverse changes in the condition of the Company or if the Company’s qualifying collateral amounts to less than that required under the terms of the FHLB borrowing agreement.

In the above table there were no short-term borrowings (original maturity terms of less than 3 months) at December 31, 2021 or December 31, 2020.

In the above tables, the $20.6 million in borrowings due on January 23, 2034 relate to borrowings structured as trust preferred capital securities that were issued by First Bancorp Capital Trusts II and III ($10.3 million by each trust), which are unconsolidated subsidiaries of the Company, on December 19, 2003 and qualify as capital for regulatory capital adequacy requirements. These unsecured debt securities became callable by the Company at par on any quarterly interest payment date beginning on January 23, 2009. The interest rate on these debt securities adjusts on a quarterly basis at a rate of three-month LIBOR plus 2.70%.

In the above tables, the $25.8 million in borrowings due on June 15, 2036 relate to borrowings structured as trust preferred capital securities that were issued by First Bancorp Capital Trust IV, an unconsolidated subsidiary of the Company, on April 13, 2006 and qualify as capital for regulatory capital adequacy requirements. These unsecured debt securities became callable by the Company at par on any quarterly interest payment date beginning on June 15, 2011. The interest rate on these debt securities adjusts on a quarterly basis at a rate of three-month LIBOR plus 1.39%.

In the above tables, the $10.3 million in borrowings due on January 7, 2035 relate to borrowings structured as trust preferred capital securities that were issued by Carolina Capital Trust, an unconsolidated subsidiary of the Company. The Company acquired Carolina Bank Holdings, Inc. and its subsidiary, Carolina Capital Trust, on March 3, 2017. These unsecured debt securities qualify as capital for regulatory capital adequacy requirements and became callable by the Company at par on any quarterly interest payment date beginning on January 7, 2010. The interest rate on these debt securities adjusts on a quarterly basis at a rate of three-month LIBOR plus 2.00%.

In the above tables, the $12.4 million in borrowings due on September 20, 2034 relate to borrowings structured as trust preferred capital securities that were issued by New Century Statutory Trust I, an unconsolidated subsidiary of the Company. The Company acquired Select Bancorp, Inc. and its subsidiary, New Century Statutory Trust I, on

October 15, 2021. These unsecured debt securities qualify as capital for regulatory capital adequacy requirements and became callable by the Company at par on any quarterly interest payment date beginning on September 20, 2009. The interest rate on these debt securities adjusts on a quarterly basis at a rate of three-month LIBOR plus 2.15%.

At December 31, 2021, the Company had three sources of readily available borrowing capacity – 1) an approximately $866 million line of credit with the FHLB, of which $2 million was outstanding at December 31, 2021 and $8 million was outstanding at December 31, 2020, 2) a $100 million federal funds line of credit with a correspondent bank, of which none was outstanding at December 31, 2021 or 2020, and 3) an approximately $138 million line of credit through the Federal Reserve discount window, of which none was outstanding at December 31, 2021 or 2020.

The Company’s line of credit with the FHLB totaling approximately $866 million can be structured as either short-term or long-term borrowings, depending on the particular funding or liquidity needs and is secured by the Company’s FHLB stock and a blanket lien on most of its real estate loan portfolio.

The Company’s correspondent bank relationship allows the Company to purchase up to $100 million in federal funds on an overnight, unsecured basis (federal funds purchased). The Company had no borrowings outstanding under this line at December 31, 2021 or 2020.

The Company has a line of credit with the Federal Reserve discount window. This line is secured by a blanket lien on a portion of the Company’s commercial and consumer loan portfolio (excluding real estate). Based on the collateral owned by the Company as of December 31, 2021, the available line of credit was approximately $138 million. The Company had no borrowings outstanding under this line of credit at December 31, 2021 or 2020.