Note

11.

Other Borrowings and Unused Lines of Credit

Other borrowings as of

December

31,

2016

and

2015

are summarized as follows:

	2016		2015

Wholesale structured repurchase agreements	$	45,000,000	$	110,000,000
Term note		30,000,000		-
Revolving line of credit		5,000,000		-
	$	80,000,000	$	110,000,000

The Company’s wholesale structured repurchase agreements are collateralized by investment securities with carrying values as follows:

	2016		2015
U.S. govt. sponsored agency securities	$	20,798,703	$	129,824,128
Residential mortgage-backed and related securities		31,321,028		-
Total securities pledged to wholesale customer repurchase agreements	$	52,119,731	$	129,824,128
Less: overcollateralized position		7,119,731		19,824,128
	$	45,000,000	$	110,000,000

Inherent in the wholesale structured repurchase agreements is a risk that the fair value of the collateral pledged on the agreements could decline below the amount obligated under the agreements. The Company considers this risk minimal. The Company maintains an overcollateralized position that is sufficient to cover any minor interest rate movements.

Throughout

2015

and

2016,

the Company has executed several balance sheet restructuring strategies in an effort to reduce reliance on wholesale funding. These strategies will continue to be evaluated in the future. A summary of prepayments of wholesale structured repurchase agreements related to those restructurings is summarized in the following table for the years ended

December

31,

2016

and

2015,

respectively:

2016
Date of Restructuring	Amount		Weighted Average Interest Rate			Range of Maturity Dates	Prepayment Fees

First Quarter of 2016	$	10,000,000		3.97	%	July 2018	$	759,000
Third Quarter 2016		55,000,000		3.27	%	February 2019 to September 2020		4,010,000
Total for 2016	$	65,000,000		3.38	%		$	4,769,000

2015
Date of Restructuring	Amount		Weighted Average Interest Rate			Range of Maturity Dates	Prepayment Fees

Second Quarter of 2015	$	10,000,000		4.40	%	May 2019	$	1,202,000
Fourth Quarter of 2015		5,000,000		3.46	%	May 2019		382,000
Total for 2015	$	15,000,000		4.09	%		$	1,584,000

All prepayment fees shown in the table above are included in losses on debt extinguishment in the statements of income. There were no material modifications of borrowings during

2016,

2015

2014.

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

	December 31, 2016				December 31, 2015
			Weighted				Weighted
			Average				Average
			Interest Rate				Interest Rate
	Amount Due		at Year-End		Amount Due		at Year-End
Maturity:
Year ending December 31:
2017	$	10,000,000	3.00	%	$	10,000,000	3.00	%
2018		-	0.00			10,000,000	3.97
2019		10,000,000	3.44			45,000,000	3.40
2020		25,000,000	2.48			45,000,000	2.66
Total Wholesale Structured Repurchase Agreements	$	45,000,000	2.81	%	$	110,000,000	3.11	%

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

$45.0

million in wholesale structured repurchase agreements outstanding at

December

31,

2016,

$25.0

million no longer have put options and

$20.0

million are putable in

2017.

December

31,

2014,

the Company had a

-year term note with principal and interest due quarterly. Interest was calculated at the effective LIBOR rate plus

3.00%

per annum

(3.23%

December

31,

2014)

and the balance totaled

$17,625,000

December

31,

2014.

After

two

quarterly principal payments totaling

$2,350,000

were made in

January

and

April

2015,

the resulting balance of the term debt was

$15,275,000.

May

2015,

the Company repaid this term note in its entirety without prepayment penalty and using proceeds from a common stock offering. Additional information regarding the common stock offering is described in Note

to the Consolidated Financial Statements.

As of

December

31,

2015,

the Company maintained a

$40.0

million revolving line of credit note, with interest calculated at the effective LIBOR rate plus

2.50%

per annum

(3.10%

December

31,

2015).

December

31,

2015,

the Company had not borrowed on this revolving credit note and had the full amount available. At the renewal date in

June

2016,

the note was amended to provide a

$10.0

million revolving line of credit note and a

$30.0

million term note commitment with a

five

-year term. Interest on the revolving line of credit is calculated at the effective LIBOR rate plus

2.50%

per annum

(3.27%

December

31,

2016).

Interest on the term note is calculated at the effective LIBOR rate plus

3.00%

per annum

(3.77%

December

31,

2016).

Upon closing of the acquisition of CSB, the Company utilized the full

$30.0

million term note commitment and borrowed

$5.0

million on the revolving line of credit note. For the term note, the Company is required to make quarterly principal payments of

$1.5

million with maturity information as of

December

31,

2016,

summarized as follows:

	As of December 31, 2016
2017		6,000,000
2018		6,000,000
2019		6,000,000
2020		6,000,000
2021		6,000,000
	$	30,000,000

As of

December

31,

2014,

the Company had Series A subordinated notes outstanding totaling

$2.7

million with a maturity date of

September

2018

and interest payable semi-annually, in arrears, on

June

and

December

of each year. This debt was at a fixed rate of

6.00%

per year. In

June

2015,

the Company redeemed all of these subordinated notes using proceeds from a common stock offering, leaving no remaining balance as of

December

31,

2015

There was no penalty related to this redemption.

Unused lines of credit of the subsidiary banks as of

December

31,

2016

and

2015

are summarized as follows:

	2016		2015

Secured	$	34,409,192	$	14,601,432
Unsecured		347,000,000		332,000,000
	$	381,409,192	$	346,601,432

The Company pledges the eligible portion of its municipal securities portfolio and select C&I and CRE loans to the Federal Reserve Bank of Chicago for borrowing at the Discount Window