Note 10 - Other Borrowings and Subordinated Debentures

9 Months Ended

Sep. 30, 2015

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

NOTE 10: OTHER BORROWINGS AND SUBORDINATED DEBENTURES

Debt at September 30, 2015 and December 31, 2014 consisted of the following components:

(In thousands)	September 30, 2015		December 31, 2014
Other Borrowings
FHLB advances, net of discount, due 2015 to 2033, 0.35% to 7.38% secured by residential real estate loans	$	131,960	$	71,582
Notes payable, due 10/31/2015 to 12/31/2016, 3.25%, floating rate, unsecured		41,466		43,100
Total other borrowings		173,426		114,682
Subordinated Debentures
Trust preferred securities, due 12/30/2033, floating rate of 2.80% above the three month LIBOR rate, reset quarterly, callable without penalty		20,620		20,620
Trust preferred securities, net of discount, due 6/30/2035, floating rate of 1.75% above the three month LIBOR rate, reset quarterly, callable without penalty		11,141		-
Trust preferred securities, net of discount, due 9/15/2037, floating rate of 1.37% above the three month LIBOR rate, reset quarterly		9,936		-
Trust preferred securities, net of discount, due 12/3/2033, floating rate of 2.88% above the three month LIBOR rate, reset quarterly, callable without penalty		5,168		-
Trust preferred securities, net of discount, due 12/13/2034, floating rate of 2.00% above the three month LIBOR rate, reset quarterly, callable without penalty		5,052		-
Trust preferred securities, net of discount, due 6/6/2037, floating rate of 1.57% above the three month LIBOR rate, reset quarterly, callable without penalty		9,989		-
Total subordinated debentures		61,906		20,620
Total other borrowings and subordinated debentures	$	235,332	$	135,302

During the fourth quarter of 2013, the Company borrowed $46.0 million from correspondent banks to partially fund the acquisition of Metropolitan National Bank. This debt is unsecured and is scheduled to be repaid in three years or less, by December 31, 2016.

During October 2015, the Company borrowed $52.3 million from correspondent banks at a rate of 3.58% with quarterly principal and interest payments. The debt has a 10 year amortization with a 5 year balloon payment due in October 2020. The Company used approximately $36 million of this borrowing to refinance the debt issued during the fourth quarter of 2013.

At September 30, 2015, the Company had $60.0 million of Federal Home Loan Bank (“FHLB”) advances with original maturities of one year or less. During the third quarter of 2015 the Company early extinguished FHLB advances with principal balances of $22 million. The consideration paid for the early extinguishment was $23.2 million representing the net settlement of the advance balances and prepayment penalties of $1.3 million. These penalties were partially offset by the remaining acquisition market adjustment balances on these borrowings. The resulting net loss of $782,000 was recorded in interest expense for the period.

The Company had total FHLB advances of $132.0 million at September 30, 2015, with approximately $1.1 billion of additional advances available from the FHLB.  The FHLB advances are secured by mortgage loans and investment securities totaling approximately $1.2 billion at September 30, 2015.

The trust preferred securities are tax-advantaged issues that qualify for Tier 1 capital treatment. Distributions on these securities are included in interest expense on long-term debt. Each of the trusts is a statutory business trust organized for the sole purpose of issuing trust securities and investing the proceeds thereof in junior subordinated debentures of the Company, the sole asset of each trust. The preferred securities of each trust represent preferred beneficial interests in the assets of the respective trusts and are subject to mandatory redemption upon payment of the junior subordinated debentures held by the trust. The common securities of each trust are wholly-owned by the Company. Each trust’s ability to pay amounts due on the trust preferred securities is solely dependent upon the Company making payment on the related junior subordinated debentures. The Company’s obligations under the junior subordinated securities and other relevant trust agreements, in aggregate, constitute a full and unconditional guarantee by the Company of each respective trust’s obligations under the trust securities issued by each respective trust.

Aggregate annual maturities of debt at September 30, 2015, are:

(In thousands)	Year	Annual Maturities
	2015	$	61,728
	2016		24,866
	2017		48,944
	2018		21,437
	2019		2,707
	Thereafter		75,650
	Total	$	235,332