Note 23 - Subsequent Event: Subordinated Notes

12 Months Ended

Dec. 31, 2018

SUBSEQUENT EVENTS - ACQUISITIONS

Subsequent Event: Subordinated Notes

Note 23. Subsequent Event: Subordinated Notes

On February 12, 2019 the Company completed an underwritten public offering of $65.0 million in aggregate principal amount of 5.375% Fixed-to-Floating Rate Subordinated Notes maturing on February 15, 2029. Net proceeds, after deducting the underwriting discount and estimated expenses, were approximately $63.5 million. Immediately following issuance, the Company repaid term notes totaling $21.4 million and the outstanding balance of $9.0 million on its revolving line of credit.  This debt is included in Other Borrowings on the December 31, 2018 Consolidated Balance Sheet with balances of $23.3 million and $9.0 million, respectively, as of that date. The Company intends to use the remaining net proceeds from this offering for general corporate purposes, including the pursuit of possible opportunistic acquisitions of similar or complementary financial service organizations, repaying indebtedness, financing investments and capital expenditures, repurchasing shares of our common stock, investing in the subsidiary banks as regulatory capital and other strategic opportunities that may arise in the future.

The Subordinated Notes bear interest at a fixed rate of 5.375% per year until and including February 12, 2024.  After this date, the interest rate will change to three-month LIBOR plus 282 points until the maturity date.