Borrowings

12 Months Ended

Dec. 31, 2020

BORROWINGS

Short-term Borrowings

Short-term borrowings at December 31, 2020 and 2019 are as follows:


(Dollars in thousands)	2020		2019
Securities sold under customer repurchase agreements	$	641,487	$	442,956
Notes payable to FHLB of Atlanta	—		255,000
Other short-term debt	—		40,277

Total short-term borrowings	$	641,487	$	738,233

At December 31, 2020, BancShares had unused credit lines allowing contingent access to overnight borrowings of up to $598.0 million on an unsecured basis. Additionally, under borrowing arrangements with the FRB of Richmond and FHLB of Atlanta, BancShares has access to an additional $11.31 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 $689.3 million and $477.6 million at December 31, 2020 and December 31, 2019, respectively.

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. At December 31, 2019, BancShares held securities sold under agreements to repurchase of $443.0 million, with overnight and continuous remaining contractual maturities collateralized by government agency securities.

Long-term Borrowings

Long-term borrowings at December 31, 2020 and 2019 include:


(Dollars in thousands)	2020		2019
Fixed-to-Floating subordinated notes at 3.375% maturing March 15, 2030	$	350,000	$	—
Junior subordinated debenture at 3-month LIBOR plus 1.75% maturing June 30, 2036	88,145		88,145
Junior subordinated debenture at 3-month LIBOR plus 2.25% maturing June 15, 2034	19,588		19,588
Junior subordinated debenture at 3-month LIBOR plus 2.85% maturing April 7, 2034	10,310		10,310
Junior subordinated debentures at 3-month LIBOR plus 2.80% maturing March 30, 2034	14,433		14,433
Junior subordinated debentures at 7.00% maturing December 31, 2026(1)	20,000		20,000
Junior subordinated debentures at 6.50% maturing October 1, 2025(2)	7,500		7,500
Junior subordinated debentures at 7.13% called February 25, 2020(2)	—		5,000
Notes payable to FHLBs of Atlanta and Chicago with rates ranging from 0.75% to 2.99% and maturing through March 2032	655,175		317,191
Unsecured term loan at 1-month LIBOR plus 1.10% maturing September 5, 2022	82,125		96,425
Obligations under capitalized leases extending to December 2050	6,308		8,230
Unamortized issuance costs	(3,459)		—
Unamortized purchase accounting adjustments(3)	(1,999)		(1,569)
Other long-term debt	37		3,385
Total long-term obligations	$	1,248,163	$	588,638
(1) Assumed in HomeBancorp acquisition. (2) Assumed in Biscayne BancShares acquisition. (3) At December 31, 2020, unamortized purchase accounting adjustments were $2.0 million for subordinated debentures. At December 31, 2019, unamortized purchase accounting adjustments were $1.6 million for subordinated debentures and $6 thousand for FHLB advances.

Issuance of Subordinated Debt

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, 2020 and 2019, 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 $128.5 million at December 31, 2020 and 2019, which mature in 2036, 2034, 2034 and 2034, respectively, and may be redeemed at par in whole or in part at any time. 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, 2020 and thereafter include:


(Dollars in thousands)	Year ended December 31
2021	$	10,000
2022	98,709
2023	125,500
2024	6,144
2025	7,500
Thereafter	1,000,310
Total long-term borrowings	$	1,248,163