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FHLB Advances and Other Borrowings
 12 Months Ended
Dec. 31, 2021
Advances from Federal Home Loan Banks [Abstract]  
FHLB Advances and Other Borrowings FHLB Advances and Other Borrowings
The Company’s funding sources include Federal Home Loan Bank advances, borrowings from other third party correspondent financial institutions, issuance and sale of subordinated debt and other capital securities, and repurchase agreements. Information regarding each of these types of borrowings or other indebtedness is as follows:
 December 31,
 20212020
Long-term Advances from Federal Home Loan Bank collateralized by qualifying mortgages, investment securities, and mortgage-backed securities$25,000 $83,000 
Junior Subordinated Debentures assumed from American Community Bancorp, Inc.6,225 6,075 
Junior Subordinated Debentures assumed from River Valley Bancorp, Inc.6,029 5,923 
Junior Subordinated Debentures assumed from Citizens First Corporation4,171 4,105 
Subordinated Debentures39,379 39,297 
Finance Lease Obligation3,051 3,224 
Long-term Borrowings83,855 141,624 
Overnight Variable Rate Advances from Federal Home Loan Bank collateralized by qualifying mortgages, investment securities, and mortgage-backed securities$— $— 
Federal Funds Purchased— — 
Repurchase Agreements68,328 52,905 
Short-term Borrowings68,328 52,905 
Total Borrowings$152,183 $194,529 

Repurchase agreements, which are classified as secured borrowings, generally mature within one day of the transaction date. Repurchase agreements are reflected at the amount of cash received in connection with the transaction. The Company may be required to provide additional collateral based on the value of the underlying securities. 
 20212020
Average Daily Balance During the Year$52,824 $58,000 
Average Interest Rate During the Year0.10 %0.30 %
Maximum Month-end Balance During the Year$71,764 $73,580 
Weighted Average Interest Rate at Year-end0.10 %0.10 %
 
At December 31, 2021, the Company held one long-term FHLB advance with an interest rate of 1.54%. At December 31, 2020 interest rates on the fixed rate long-term FHLB advances ranged from 1.54% to 2.23% with a weighted average rate of 1.87%. At December 31, 2021 and 2020, the Company had no advances containing options whereby the FHLB may convert a fixed rate advance to an adjustable rate advance.

On June 25, 2019, the Company sold and issued $40.0 million in aggregate principal amount of its 4.50% Fixed-to-Floating Rate Subordinated Notes due 2029 (the “Notes”). The Company used the proceeds from the offering to pay $15.0 million of the approximately $15.5 million of cash consideration upon closing of the Citizens First Corporation merger and the remaining balance to repay the Company’s $25.0 million term loan from U.S. Bank National Association (“U.S. Bank”) dated October 11, 2018.

The Notes have a ten-year term, from and including the date of issuance to but excluding June 30, 2024, and will bear interest at a fixed annual rate of 4.50%, payable semi-annually in arrears. From and including June 30, 2024 to but excluding the maturity date or early redemption date, the interest rate shall reset quarterly to an interest rate per annum equal to the then-current three-
month LIBOR (provided, however, that in the event three-month LIBOR is less than zero, three-month LIBOR shall be deemed to be zero) plus 268 basis points, payable quarterly in arrears. The Notes are redeemable, in whole or in part, on June 30, 2024, on any scheduled interest payment date thereafter and at any time upon the occurrence of certain events. The Purchase Agreement contains certain customary representations, warranties and covenants made by the Company, on the one hand, and the Purchasers, severally and not jointly, on the other hand.

The Notes were issued under an Indenture, dated June 25, 2019, by and between the Company and U.S. Bank National Association, as trustee. The Notes are not subject to any sinking fund and are not convertible into or exchangeable for any other securities or assets of the Company or any of its subsidiaries. The Notes are not subject to redemption at the option of the holder. The Notes are unsecured, subordinated obligations of the Company only and are not obligations of, and are not guaranteed by, any subsidiary of the Company. The Notes rank junior in right to payment to the Company’s current and future senior indebtedness. The Notes are intended to qualify as Tier 2 capital for regulatory capital purposes for the Company.

At December 31, 2021, the parent company had a $15 million line of credit with U.S. Bank, which had no outstanding balance. The line of credit matures September 26, 2022. Interest on the line of credit is based upon one-month LIBOR plus 1.75% and includes an unused commitment fee of 0.30%.

At December 31, 2021, scheduled principal payments on long-term borrowings, excluding the capitalized lease obligation and acquired subordinated debentures (which are discussed below) are as follows:
2022$— 
2023— 
202424,834 
2025— 
2026— 
Thereafter39,545 
Total$64,379 
 
The Company assumed the obligations of junior subordinated debentures through the acquisitions of American Community Bancorp, Inc., River Valley Bancorp and Citizens First Corporation. The junior subordinated debentures were issued to ACB Capital Trust I, ACB Capital Trust II, RIVR Statutory Trust I, and Citizens First Statutory Trust I. The trusts are wholly owned by the Company. In accordance with accounting guidelines, the trusts are not consolidated with the Company's financials, but rather the subordinated debentures are shown as borrowings. The Company guarantees payment of distributions on the trust preferred securities issued by ACB Trust I, ACB Trust II, RIVR Statutory Trust I, and Citizens First Statutory Trust I. Interest is payable on a quarterly basis. These securities qualify as Tier 1 capital (with certain limitations) for regulatory purposes. $16,081 of the junior subordinated debentures were treated as Tier 1 capital for regulatory capital purposes as of December 31, 2021. $15,764 of the junior subordinated debentures were treated as Tier 1 capital for regulatory capital purposes as of December 31, 2020. As a result of the acquisitions of American Community, River Valley, and Citizens First these liabilities were recorded at fair value at the acquisition date with the discount amortizing into interest expense over the life of the liability, ultimately accreting to the issuance amount disclosed below. 

The following table summarizes the terms of each issuance:
Date of
Issuance		Issuance
Amount		Carrying
Amount at
December 31, 2021		Variable RateRate as of
December 31, 2021		Rate as of
December 31, 2020		Maturity
Date
ACB Trust I5/6/2005$5,155 $3,921 
90 day LIBOR + 2.15%
2.37 %2.40 %May 2035
ACB Trust II7/15/20053,093 2,304 
90 day LIBOR + 1.85%
2.01 %2.06 %July 2035
RIVR Statutory Trust I3/26/20037,217 6,029 
3-Month LIBOR + 3.15%
3.37 %3.40 %March 2033
Citizens First Statutory Trust I10/16/20065,155 4,171 
3-Month LIBOR +1.65%
1.78 %1.88 %January 2037