Note 11 - Other Borrowings and Unused Lines of Credit

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Other Borrowings and Unused Lines of Credit

Note 11. Other Borrowings and Unused Lines of Credit

The Company prepaid two wholesale structured repurchase agreements in the second quarter of 2019 using excess funds generated by strong deposit growth. The first wholesale structured repurchase agreement totaled $5.0 million and had an original maturity date of March 13, 2020 with a rate of 2.58%. The second wholesale structured

repurchase agreement totaled $20.0 million and had an original maturity of June 13, 2020 with a rate of 2.46%. The loss on the prepayment of the wholesale structured repurchase agreements totaled $50 thousand. In addition, wholesale repurchase agreements totaling $10.0 million matured in the second quarter of 2019. The wholesale structured repurchase agreements were utilized as an alternative funding source to FHLB advances and customer deposits.

The Company had two term notes totaling $23.3 million at December 31, 2018 with original maturity dates of December 31, 2021. Interest on the term notes were calculated at the effective LIBOR rate plus 3.00% per annum (5.52% at December 31, 2018). The collateral on both borrowings was 100% of the outstanding capital stock of the Company’s bank subsidiaries. In February 2019, immediately following the subordinated note issuance, the Company repaid the term notes.

In the second quarter of 2020, the Company renewed its revolving line of credit.  At renewal, the line amount was increased from $20.0 million to $25.0 million for which there is no outstanding balance as of December 31, 2020. Interest on the revolving line of credit is calculated at the effective Prime Rate plus 2.25% per annum (5.50% at December 31, 2020). The collateral on the revolving line of credit is 100% of the outstanding capital stock of the Company’s bank subsidiaries.

Unused lines of credit of the subsidiary banks as of December 31, 2020 and 2019 are summarized as follows:

	2020		2019
	(dollars in thousands)
Secured	$	287,076	$	45,342
Unsecured		456,000		335,300
	$	743,076	$	380,642

The Company pledges select C&I, CRE and PPP loans to the Federal Reserve Bank of Chicago for borrowing as part of the Borrower-In-Custody program.