Note 10 - Other Borrowings and Unused Lines of Credit

12 Months Ended

Dec. 31, 2014

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

Note 10.          Other Borrowings and Unused Lines of Credit

Other borrowings as of December 31, 2014 and 2013 are summarized as follows:

	2014		2013
Wholesale structured repurchase agreements	$	130,000,000	$	130,000,000
Term note		17,625,000		9,800,000
Series A subordinated notes		2,657,492		2,648,362
	$	150,282,492	$	142,448,362

Maturity and interest rate information concerning wholesale structured repurchase agreements is summarized as follows:

	December 31, 2014					December 31, 2013
			Weighted					Weighted
			Average					Average
			Interest Rate					Interest Rate
	Amount Due		at Year-End			Amount Due		at Year-End
Maturity:
Year ending December 31:
2015	$	5,000,000		2.77	%	$	5,000,000		2.77	%
2016		-		-			-		-
2017		10,000,000		3.00			10,000,000		3.00
2018		10,000,000		3.97			10,000,000		3.97
2019		60,000,000		3.57			60,000,000		3.57
Thereafter		45,000,000		2.66			45,000,000		2.66
Total Wholesale Structured Repurchase Agreements	$	130,000,000		3.21	%	$	130,000,000		3.21	%

Each wholesale structured repurchase agreement has a one-time put option, at the discretion of the counterparty, to terminate the agreement and require the subsidiary bank to repay at predetermined dates prior to the stated maturity date of the agreement. Of the $130.0 million in wholesale structured repurchase agreements outstanding at December 31, 2014, $55.0 million no longer have put options, $5.0 million are putable in 2015, $50.0 million are putable in 2016 and $20.0 million are putable in 2017.

As of December 31, 2013 and 2012, interest rate caps were embedded within certain wholesale structured repurchase agreements. All of the caps expired in 2014.

During 2013, the Company modified $50,000,000 of fixed rate wholesale structured repurchase agreements with a weighted average interest rate of 3.21% and a weighted average maturity of February 2016 into new fixed rate wholesale structured repurchase agreements with a weighted average interest rate of 2.65% and a weighted average maturity of May 2020. During 2012, the Company modified $25,000,000 of fixed rate wholesale structured repurchase agreements with a weighted average interest rate of 3.77% and a weighted average maturity of December 2015 into new fixed rate wholesale structured repurchase agreements with a weighted average interest rate of 3.21% and a weighted average maturity of April 2019. Of this $25,000,000, $15,000,000 had interest rate cap options embedded that were set to expire in 2013 in conjunction with the one-time put option. Upon modification, the interest rate cap options were cancelled.

The wholesale structured repurchase agreements are collateralized by securities with a carrying value of $153,757,514 and $151,592,944 as of December 31, 2014 and 2013, respectively.

At December 31, 2013, the Company had a secured 3-year term note with principal due quarterly and interest due monthly where the interest is calculated at the effective LIBOR rate plus 3.00% per annum (3.17% at December 31, 2013). The note, which originated in conjunction with the CNB acquisition, carried a balance of $9,800,000 at December 31, 2013. In June 2014, the Company restructured its existing term debt and borrowed an additional $10.0 million to help assist with the final redemption of the Senior Non-Cumulative Perpetual Preferred Stock, Series F (“Series F Preferred Stock”). The term debt is secured by common stock of the Company’s subsidiary banks and has a 4-year term with principal and interest due quarterly. Interest is calculated at the effective LIBOR rate plus 3.00% per annum (3.23% at December 31, 2014) and the balance totaled $17,625,000 at December 31, 2014. Maturity information for term debt is summarized as follows:

	2014		2013
2014	$	-	$	3,600,000
2015		4,700,000		3,600,000
2016		4,700,000		3,600,000
2017		4,700,000		-
2018		3,525,000		-
	$	17,625,000	$	10,800,000

Additionally, as of December 31, 2014 and 2013, the Company maintained a $10.0 million revolving line of credit note where the interest is calculated at the effective LIBOR rate plus 2.50% per annum. At December 31, 2014 and 2013, the Company had not borrowed on this revolving credit note and had the full amount available.

The current revolving note agreement contains certain covenants that place restrictions on additional debt and stipulate minimum capital and various operating ratios.

The Series A Subordinated Notes have a maturity date of September 1, 2018 and bear interest payable semi-annually, in arrears, on June 30 and December 30 of each year, at a fixed interest rate of 6.00% per year. The Company may, at its option, subject to regulatory approvals, redeem some or all of the Subordinated Notes at a redemption price equal to 100% of the principal amount of the redeemed notes, plus any accrued but unpaid interest.

Unused lines of credit of the subsidiary banks as of December 31, 2014 and 2013 are summarized as follows:

	2014		2013
Secured	$	17,050,159	$	26,791,107
Unsecured		329,500,000		324,500,000
	$	346,550,159	$	351,291,107

The Company pledges the eligible portion of its municipal securities portfolio and select commercial and industrial and commercial real estate loans to the Federal Reserve Bank of Chicago for borrowing at the Discount Window.