Other Borrowings

3 Months Ended

Mar. 31, 2019

Note 11: Other Borrowings

Other borrowings consisted of the following components:


	March 31,		December 31,
	2019		2018
Notes payable	$	9,462	$	9,665
Subordinated debentures, net of discount		8,348		8,323
Total	$	17,810	$	17,988

The Company acquired $5.0 million of subordinated debentures in the 2008 acquisition of MFB Corp, which had a net balance of $4.3 million at March 31, 2019 due to the purchase accounting adjustment in that acquisition. These securities mature 30 years from the date of issuance, or September 15, 2035. The securities bear a rate of interest of the prevailing three-month LIBOR rate plus 170 basis points, which was 4.31% at March 31, 2019 and 4.49% at December 31, 2018. The Company has the right to redeem the trust preferred securities, in whole or in part, without penalty.

The Company acquired $5.0 million of subordinated debentures in the acquisition of Universal, which had a net balance of $4.0 million at March 31, 2019 due to the purchase accounting adjustment in the acquisition. These securities mature 30 years from the date of issuance, or October 7, 2035. The securities bear a rate of interest of the prevailing three-month LIBOR rate plus 169 basis points, which was 4.48% at March 31, 2019 and 4.13% at December 31, 2018. The Company has the right to redeem the trust preferred securities, in whole or in part, without penalty.

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 $9.5 million at March 31, 2019. The fixed rate term note had a balance of $4.5 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 4.75% at March 31, 2019 and 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.