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Note 8 - Borrowed Funds | 12 Months Ended
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Dec. 31, 2020
Notes to Financial Statements |
Debt Disclosure [Text Block] |
8. | Borrowed Funds
There were no outstanding securities sold under agreements to repurchase at December 31, 2020, and December 31, 2019. Securities sold under agreements to repurchase, if any, are accounted for as collateralized financing transactions and recorded at the amounts at which the securities were sold. The table below provides comparative data for securities sold under agreements to repurchase for the years indicated:
|  | 2020 |  |  | 2019 |  |  | 2018 |
|  | (Dollars in thousands) |
Average amount outstanding during the year (1) |  | $ | — |  |  | $ | — |  |  | $ | 49,589 |
Maximum amount outstanding at month-end (2) |  |  | — |  |  |  | — |  |  |  | 100,000 |
Balance, December 31 |  |  | — |  |  |  | — |  |  |  | — |
Rate, December 31 |  |  | — | % |  |  | — | % |  |  | — | %
Weighted average interest rate for the year |  |  | — | % |  |  | — | % |  |  | — | %
(1) | Average balances were computed using daily averages.
(2) | Highest month-end balance was January 2018.
As of December 31, 2020, there were no over-night borrowings from the FHLB compared to $450.0 million at a rate of 1.66% at December 31, 2019. As of December 31, 2020, the advances from the FHLB were $150.0 million at a weighted average rate of 2.15% compared to $220.0 million at a weighted average rate of 2.26% as of December 31, 2019. As of December 31, 2020, final maturity for the FHLB advances is $5.0 million in May 2021, $50.0 million in June 2021, $75.0 million in July 2021, and $20.0 million in May 2023. Other Liabilities. On November 23, 2004, the Company entered into an agreement with Mr. Dunson K. Cheng, pursuant to which he agreed to defer any bonus amounts in excess of $225 thousand for the year ended December 31, 2005, until the later of January 1 of the first year following his separation from service from the Company or the first day of the seventh month following his separation from service from the Company. Accordingly, an amount equal to $610 thousand was deferred in 2004 and was accrued in other liabilities in the Consolidated Balance Sheets. The Company agreed to accrue interest on the deferred portion of the bonus at 7.0% per annum compounded quarterly. The deferred amount will be increased each quarter by the amount of interest computed for that quarter. On November 23, 2014, the interest rate was reset to 5.06% based on 275 basis points above the interest rate on the ten-year Treasury Note on that date. On March 13, 2014, the Compensation Committee of the Company awarded Mr. Cheng a cash bonus in the amount of $300 thousand for the quarter ended December 31, 2013, and provided as part of the award that payment of the bonus would be deferred until the later of January 1 of the first year following his separation from service from the Company or the first day of the seventh month following his separation from service from the Company. The Company accrues interest on the deferred bonus at 5.02% per annum compounded quarterly. On March 28, 2019, the interest rate was reset to 5.72% based on 350 basis points above the interest rate on the five-year Treasury Note on that date. Interest of $105 thousand during 2020, $99 thousand during 2019, and $92 thousand during 2018 was accrued on the deferred bonuses. The balance was $2.1 million at December 31, 2020, and $2.0 million at December 31, 2019. We established three special purpose trusts in 2003 and two in 2007 for the purpose of issuing Guaranteed Preferred Beneficial Interests in their Subordinated Debentures to outside investors (“Capital Securities”). The proceeds from the issuance of the Capital Securities as well as our purchase of the common stock of the special purpose trusts were invested in Junior Subordinated Notes of the Company (“Junior Subordinated Notes”). The trusts exist for the purpose of issuing the Capital Securities and investing in Junior Subordinated Notes. Subject to some limitations, payment of distributions out of the monies held by the trusts and payments on liquidation of the trusts, or the redemption of the Capital Securities, are guaranteed by the Company to the extent the trusts have funds on hand at such time. The obligations of the Company under the guarantees and the Junior Subordinated Notes are subordinate and junior in right of payment to all indebtedness of the Company and will be structurally subordinated to all liabilities and obligations of the Company’s subsidiaries. The Company has the right to defer payments of interest on the Junior Subordinated Notes at any time or from time to time for a period of up to twenty consecutive quarterly periods with respect to each deferral period. Under the terms of the Junior Subordinated Notes, the Company may not, with certain exceptions, declare or pay any dividends or distributions on its capital stock or purchase or acquire any of its capital stock if it has deferred payment of interest on any Junior Subordinated Notes. At December 31, 2020, Junior Subordinated Notes totaled $119.1 million with a weighted average interest rate of 2.40%, compared to $119.1 million with a weighted average rate of 4.09% at December 31, 2019. The Junior Subordinated Notes have a stated maturity term of 30 years. Interest expense, excluding impact of cash flow interest rate swaps entered into during June 2014, on the Junior Subordinated Notes was $3.6 million for 2020, $5.6 million for 2019, and $5.2 million for 2018.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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