NOTE 9 - LONG-TERM DEBT

In March 2016, the Company issued $50 million of 6.5% fixed to floating rate subordinated debentures, due March 31, 2026. The interest rate is fixed through March 31, 2021 and floats at 3 month LIBOR plus 516 basis points thereafter. The subordinated debentures are considered Tier-two capital at the Company. The Company allocated $35 million to the Bank as Tier-one capital.

At September 30, 2018 and December 31, 2017, long-term debt was as follows:

	September 30,		December 31,
(dollars in thousands)	2018		2017
Principal	$	50,000	$	50,000
Unamortized debt issuance costs	$	363	$	472