LONG-TERM OBLIGATIONS

Long-term obligations at December 31 include:



	2012		2011
Junior subordinated debenture at 8.05 percent maturing March 5, 2028 (redeemed July 31, 2012)	$	—	$	154,640
Junior subordinated debenture at 3-month LIBOR plus 1.75 percent maturing June 30, 2036	96,392		96,392
Subordinated notes payable at 5.125 percent maturing June 1, 2015	125,000		125,000
Obligations under capitalized leases extending to June 2026	10,020		5,688
Notes payable to Federal Home Loan Bank of Atlanta with rates ranging from 2.00 percent to 3.88 percent and maturing through September 2018	170,299		225,000
Note payable to the Federal Home Loan Bank of Seattle with a rate of 4.74 percent and a maturity date of July 2017	10,000		10,000
Debt from 2005 asset securitization (redeemed July 15, 2012)	—		35,645
Unamortized acquisition accounting adjustments	3,069		4,420
Other long-term debt	30,141		30,814
Total long-term obligations	$	444,921	$	687,599

On July 31, 2012, BancShares redeemed the 8.05 percent junior subordinated debenture (the 1998 Debenture) issued by FCB/NC Capital Trust I (the Trust). The 1998 Debenture had a face value of $154,640 and was redeemed for $163,569, which represented 102.42 percent of the face value plus accrued interest. Redemption of the 1998 Debenture triggered the redemption of the 8.05 percent trust preferred securities (the 1998 Preferred Securities) by the Trust. The 1998 Preferred Securities had an aggregate liquidation amount of $150,000 and were redeemed for $158,661, which represented 102.42 percent of the face amount plus accrued interest. The redemption resulted in a $154,640 reduction in long-term borrowings, and the 2.42 percent prepayment penalty rate resulted in $3,630 in noninterest expense during 2012. Prior to its redemption in 2012, the 1998 Debenture was held by the Trust. The Trust purchased the 1998 Debenture with the proceeds from the 1998 Preferred Securities. The 1998 Debenture was the sole asset of the trust.

The variable rate junior subordinated debenture issued in 2006 (the 2006 Debenture) is held by FCB/NC Capital Trust III. FCB/NC Capital Trust III purchased the 2006 Debenture with the proceeds from the $115,000 in adjustable rate trust preferred securities issued in 2006 (the 2006 Preferred Securities). The 2006 Debenture is the sole asset of the trust. The 2006 Preferred Securities are redeemable in whole or in part after June 30, 2011. In December 2011, BancShares purchased and redeemed $21,500 of these securities. The proceeds from this redemption resulted in a corresponding reduction in the junior subordinated debenture held by FCB/NC Capital Trust III.

The 2006 Preferred Securities and the 2006 Debenture were issued with a variable rate of 175 basis points above the three-month LIBOR. Through the use of interest rate swaps, BancShares synthetically converted the variable rate coupon on the securities to a fixed rate of 7.125 percent through June 30, 2011, and to a fixed rate of 5.50 percent for the period from July 1, 2011, through June 30, 2016.

FCB/NC Capital Trust I and FCB/NC Capital Trust III are grantor trusts established by BancShares for the purpose of issuing trust preferred capital securities.

The subordinated notes issued during 2005 are unsecured obligations of FCB and are junior to existing and future senior indebtedness and obligations to depositors and general or secured creditors.

Notes payable to the Federal Home Loan Banks of Atlanta and Seattle are secured by investment securities, FHLB stock and loans.

On July 15, 2012, BancShares repaid the outstanding debt obligation that related to a 2005 securitization and sale of revolving mortgage loans. The repayment resulted in a $21,565 reduction in long-term borrowings.

Long-term obligations maturing in each of the five years subsequent to December 31, 2012 include:




2013	$	3,690
2014	3,527
2015	206,306
2016	620
2017	10,504
Thereafter	220,274
Total long-term obligations	$	444,921