Long-term Debt

12 Months Ended

Dec. 31, 2019

Long-term debt consisted of the following (in thousands):



	December 31,						Issue Date	Stated Maturity Date	Earliest Call Date
	2019			2018			Issue Date	Stated Maturity Date	Earliest Call Date	Interest Rate
Obligations of the Bank and its Subsidiaries:
NER 16-1 Class A-2 notes	$	—		$	19,975		2016	2021	n/a	2.20%
NER 16-1 Class B notes	—			25,489			2016	2021	n/a	3.22%
NER 16-1 Class C notes	—			6,319			2016	2021	n/a	5.05%
NER 16-1 Class D notes	—			3,213			2016	2023	n/a	7.87%
Total securitized notes payable	—			54,996

Obligations of the Holding Company:
2022 senior debentures	50,000			50,000			2015	2022	2020	5.000% through August 13, 2020, 3-month LIBOR plus 3.814% thereafter
2027 senior debentures	35,000			35,000			2015	2027	2025	5.500% through August 13, 2025, 3-month LIBOR plus 3.71% thereafter
Total senior debentures	85,000			85,000

2028 subordinated debentures	100,000			100,000			2018	2028	2023	4.500% through January 30, 2023, 3-month LIBOR plus 2.12% thereafter
2025 subordinated debentures	11,250			11,500			2015	2025	2020	6.250%
Total subordinated debentures	111,250			111,500

Southern Bancorp Capital Trust I	4,382			4,382			2004	2034	2009	Prime + 1.00%
Tidelands Statutory Trust I	8,248			8,248			2006	2036	2011	3-month LIBOR plus 1.38%
Four Oaks Statutory Trust I	12,372			12,372			2006	2036	2011	3-month LIBOR plus 1.35%
Total trust preferred securities	25,002			25,002
Less discount	(8,588		)	(9,309		)
Total long-term debt	$	212,664		$	267,189

Interest is currently paid at least semiannually for all senior and subordinated debentures, securitized notes payable and trust preferred securities.

Senior Debentures

The 2022 senior debentures are redeemable, in whole or in part, on or after August 14, 2020 at a redemption price equal to 100% of the principal amount to be redeemed plus any accrued and unpaid interest, and will mature on February 14, 2022 if not redeemed prior to that date. The 2027 senior debentures are redeemable, in whole or in part, on or after August 14, 2025 at a redemption price equal to 100% of the principal amount to be redeemed plus any accrued and unpaid interest, and will mature on February 14, 2027 if not redeemed prior to that date.

Subordinated Debentures

United acquired, as part of the FOFN acquisition, $11.5 million aggregate principal amount of subordinated debentures. The notes are due on November 30, 2025. United may prepay the notes at any time after November 30, 2020, subject to compliance with applicable laws. In January 2018, United issued $100 million fixed to floating rate subordinated notes due January 30, 2028. The subordinated debentures qualify as Tier 2 regulatory capital.

Securitized Notes Payable

United acquired, as part of the Navitas acquisition, NER 16-1, which is a bankruptcy-remote securitization entity whose sole purpose is to receive loans to secure financings. NER 16-1 provided financing by issuing notes to investors through a private offering of Receivable-Backed Notes under Rule 144A of the Securities and Exchange Act of 1934. These notes are collateralized by specific

qualifying loans and by cash placed in restricted cash accounts. These notes will continue amortizing sequentially based on collections on the underlying loans available to pay the note holders at each monthly payment date after payment of certain amounts as specified in the securitization documents including fees to various parties to the securitizations, interest due to the note holders and certain other payments. Sequentially, each subsequent class of note holders receive principal payments until paid down in full prior to the remaining subsequent class of note holders receiving principal payments. In addition to the pay-downs on these notes, they also have legal final maturity dates as reflected in the table above. During 2019, NER 16-1 executed a payoff and termination of the remaining notes outstanding in accordance with the terms of the related securitization documents.

Trust Preferred Securities

Trust preferred securities qualify as Tier 1 capital under risk based capital guidelines subject to certain limitations. The trust preferred securities are mandatorily redeemable upon maturity, or upon earlier redemption as provided in the indentures.