Note 15: Other Borrowings

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


	2018		2017
Notes payable	$	9,665	$	-
Subordinated debentures, net of discount		8,323		4,232
Total	$	17,988	$	4,232

The Company assumed $5.0 million in subordinated debentures as the result of the acquisition of MFB Corp. in 2008. In 2005, MFB Corp. had formed MFBC Statutory Trust I (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, which was 4.49% at December 31, 2018. The Company has the right to redeem the trust preferred securities, in whole or in part, without penalty. These securities mature on September 15, 2035. The net balance of the securities as of December 31, 2018 was $4.3 million due to the fair value adjustment of the securities made at the time of the acquisition.

The Company assumed $5.0 million in subordinated debentures as a result of the acquisition of Universal in 2018. These securities mature 30 years from the date of issuance, or October 7, 2035. The rate resets quarterly at the prevailing three-month LIBOR rate plus 169 basis points, which was 4.13% at December 31, 2018. The Company has the right to redeem the trust preferred securities, in whole or in part, without penalty. These securities mature on October 7, 2035. The net balance of the securities as of December 31, 2018 was $4.0 million due to the fair value adjustment of the securities made at the time of the acquisition.

The Company borrowed $10.0 million in two $5.0 million term notes from First Tennessee Bank, N.A. to use in the acquisition of Universal. These loans had a combined balance of $9.7 million at December 31, 2018. The fixed rate term note had a balance of $4.7 million and matures 5 years from the date of issuance, or February 28, 2023. This term note bears a fixed rate of interest of 4.99% per annum and requires quarterly principal payments, which began March 31, 2018. The variable rate term note matures 5 years from the date of issuance, or February 28, 2023. This term note bears a rate of interest of the prevailing three-month LIBOR rate plus 195 basis points, which was 4.35% at December 31, 2018. The Company has the right to redeem either note at any time, in whole or in part, without penalty.

Contractual maturities of notes payable as of December 31, 2018, are as follows:


Principal Payments Due in Years Ending December 31:
2019	$	515
2020		1,061
2021		1,084
2022		829
2023		6,176
	$	9,665