Borrowings

12 Months Ended

Dec. 31, 2020

At December 31, 2020 and December 31, 2019, the Corporation had available one $10 million unsecured line of credit with an unaffiliated institution, at a variable interest rate with a floor as defined in the agreement. There were no borrowings on the line of credit at December 31, 2020 and December 31, 2019.

FHLB Borrowings

At December 31, 2020, the Bank had a borrowing capacity with the FHLB of $797,367 secured by a pledge of certain loans with a balance of $1,182,510. At December 31, 2020 and December 31, 2019, advances from the FHLB are as follows:


	2020		2019
Maturities range from 6/29/2020 through 2/11/2033; rates fixed at a range of 1.27% to 5.24%; weighted average rate is 2.13% as of December 31, 2019.	$	0	$	227,907
Open Repo borrowing at an interest rate of 0.41% at December 31, 2020. The maximum amount of the Open Repo borrowing available is $150,000.	0		0
Total	$	0	$	227,907

During 2020 CNB prepaid the entire balance of its borrowings from the FHLB, totaling $190,401. The pre-payment penalty associated with these prepayments totaled approximately $7,851.

At December 31, 2020 and 2019, municipal deposit letters of credit issued by the FHLB on behalf of the Bank naming applicable municipalities as beneficiaries were $57,250 and zero, respectively. The letters of credit were utilized in place of securities pledged to the municipalities for their deposits maintained at the Bank.

Other Borrowings

At December 31, 2020 and December 31, 2019, the Bank had no outstanding borrowings from unaffiliated institutions under overnight borrowing agreements.

Subordinated Debentures

In 2007, the Corporation issued two $10,000 floating rate trust preferred securities as part of a pooled offering of such securities. The interest rate on each offering is determined quarterly and floats based on the 3 month LIBOR plus 1.55%. The all-in rate was 1.80% at December 31, 2020 and 3.44% at December 31, 2019. The Corporation issued subordinated debentures to the trusts in exchange for the proceeds of the offerings, which debentures represent the sole assets of the trusts. The subordinated debentures must be redeemed no later than 2037. The Corporation may redeem the debentures, in whole or in part, at face value at any time. The Corporation has the option to defer interest payments from time to time for a period not to exceed five consecutive years. Although the trusts are variable interest entities, the Corporation is not the primary beneficiary. As a result, because the trusts are not consolidated with the Corporation, the Corporation does not report the securities issued by the trusts as liabilities. Instead, the Corporation reports as liabilities the subordinated debentures issued by the Corporation and held by the trusts, since the liabilities are not eliminated in consolidation. The trust preferred securities were designated to qualify as Tier 1 capital under the Federal Reserve’s capital guidelines.

In September 2016, the Corporation completed a private placement of $50,000 in aggregate principal amount of fixed-to-floating rate subordinated notes. The notes will mature in October 2026, and will initially bear interest at a fixed rate of 5.75% per annum, payable semi-annually in arrears, to, but excluding, October 15, 2021, and thereafter to, but excluding, the maturity date or earlier redemption, the interest rate shall reset quarterly to an interest rate per annum equal to the then current three-month LIBOR rate plus 4.55%. These subordinated notes were designed to qualify as Tier 2 capital under the Federal Reserve’s capital guidelines and were given an investment grade rating of BBB- by Kroll Bond Rating Agency. The amount of the subordinated notes that qualify for Tier 2 capital will be reduced by $10,000, or 20%, beginning in the third quarter of 2021.

Maturity Schedule of All Borrowed Funds

The following is a schedule of maturities of all borrowed funds as of December 31, 2020:


2021	$	0
2022	0
2023	0
2024	0
2025	0
Thereafter	70,620
Total borrowed funds	$	70,620