Other Borrowings

12 Months Ended

Dec. 31, 2016

Other Borrowings [Abstract]

Other Borrowings

Note 12:Other Borrowings

Other borrowings consisted of the following components as of December 31:

	2016		2015
Note payable	$	-	$	5,312
Subordinated debenture, net of discount		4,189		4,146
Total	$	4,189	$	9,458

The Company borrowed $7,589,000 from First Tennessee Bank, N.A. at a variable rate of LIBOR plus 2.80%, with principal and interest payments made quarterly.  The loan was paid in full in November 2016.

The Company assumed $5,000,000 in debentures as the result of an acquisition of MFB Corp. in 2008.  In 2005, MFB Corp. had formed MFBC Statutory Trust (MFBC), as a wholly owned business trust, to sell trust preferred securities.  The proceeds from the sale of these trust preferred securities were used by the trust to purchase an equivalent amount of subordinated debentures from the acquired company.  The junior subordinated debentures are the sole assets of MFBC and are fully and unconditionally guaranteed by the Company.  The junior subordinated debentures and the trust preferred securities pay interest and dividends, respectively, on a quarterly basis.  The rate resets quarterly at the prevailing three-month LIBOR rate plus 170 basis points.  The Company may redeem the trust preferred securities, in whole or in part, without penalty, on or after September 15, 2010.  These securities mature on September 15, 2035.  The net balance of the note as of December 31, 2016 was $4,189,000 due to the fair value adjustment of the note made at the time of the acquisition.