XML 32 R15.htm IDEA: XBRL DOCUMENT
v3.20.4

FHLB Advances and Other Borrowings | 12 Months Ended
--- | ---
Dec. 31, 2020
Advances from Federal Home Loan Banks [Abstract] |
FHLB Advances and Other Borrowings | FHLB Advances and Other Borrowings The Company’s funding sources include Federal Home Loan Bank advances, borrowings from other third party correspondent financial institutions, issuance and sale of subordinated debt and other capital securities, and repurchase agreements. Information regarding each of these types of borrowings or other indebtedness is as follows:
|  | December 31,
|  | 2020 |  | 2019
Long-term Advances from Federal Home Loan Bank collateralized by qualifying mortgages, investment securities, and mortgage-backed securities |  | $ | 83,000 |  |  | $ | 123,573 |
Term Loans |  | — |  |  | — |
Junior Subordinated Debentures assumed from American Community Bancorp, Inc. |  | 6,075 |  |  | 5,924 |
Junior Subordinated Debentures assumed from River Valley Bancorp, Inc. |  | 5,923 |  |  | 5,818 |
Junior Subordinated Debentures assumed from Citizens First Corporation |  | 4,105 |  |  | 4,040 |
Subordinated Debentures |  | 39,297 |  |  | 39,214 |
Finance Lease Obligation |  | 3,224 |  |  | 3,381 |
Long-term Borrowings |  | 141,624 |  |  | 181,950 |
Overnight Variable Rate Advances from Federal Home Loan Bank collateralized by qualifying mortgages, investment securities, and mortgage-backed securities |  | $ | — |  |  | $ | 124,000 |
Federal Funds Purchased |  | — |  |  | 4,311 |
Repurchase Agreements |  | 52,905 |  |  | 39,425 |
Short-term Borrowings |  | 52,905 |  |  | 167,736 |
Total Borrowings |  | $ | 194,529 |  |  | $ | 349,686 |
Repurchase agreements, which are classified as secured borrowings, generally mature within one day of the transaction date. Repurchase agreements are reflected at the amount of cash received in connection with the transaction. The Company may be required to provide additional collateral based on the value of the underlying securities.
|  | 2020 |  | 2019
Average Daily Balance During the Year |  | $ | 58,000 |  |  | $ | 35,916 |
Average Interest Rate During the Year |  | 0.30 | % |  | 0.56 | %
Maximum Month-end Balance During the Year |  | $ | 73,580 |  |  | $ | 39,425 |
Weighted Average Interest Rate at Year-end |  | 0.10 | % |  | 0.57 | %
At December 31, 2020, interest rates on the fixed rate long-term FHLB advances ranged from 1.54% to 2.23% with a weighted average rate of 1.87%. At December 31, 2019 interest rates on the fixed rate long-term FHLB advances ranged from 1.54% to 7.22% with a weighted average rate of 1.95%. At December 31, 2020 and 2019, the Company had no advances containing options whereby the FHLB may convert a fixed rate advance to an adjustable rate advance. On June 25, 2019, the Company sold and issued $40.0 million in aggregate principal amount of its 4.50% Fixed-to-Floating Rate Subordinated Notes due 2029 (the “Notes”). The Company used the proceeds from the offering to pay $15.0 million of the approximately $15.5 million of cash consideration upon closing of the Citizens First Corporation merger and the remaining balance to repay the Company’s $25.0 million term loan from U.S. Bank National Association ("U.S. Bank") dated October 11, 2018. The Notes have a ten-year term, from and including the date of issuance to but excluding June 30, 2024, and will bear interest at a fixed annual rate of 4.50%, payable semi-annually in arrears. From and including June 30, 2024 to but excluding the maturity date or early redemption date, the interest rate shall reset quarterly to an interest rate per annum equal to the then-current three-month LIBOR (provided, however, that in the event three-month LIBOR is less than zero, three-month LIBOR shall be deemed to be zero) plus 268 basis points, payable quarterly in arrears. The Notes are redeemable, in whole or in part, on June 30, 2024, on any scheduled interest payment date thereafter and at any time upon the occurrence of certain events. The Purchase Agreement contains certain customary representations, warranties and covenants made by the Company, on the one hand, and the Purchasers, severally and not jointly, on the other hand. The Notes were issued under an Indenture, dated June 25, 2019, by and between the Company and U.S. Bank National Association, as trustee. The Notes are not subject to any sinking fund and are not convertible into or exchangeable for any other securities or assets of the Company or any of its subsidiaries. The Notes are not subject to redemption at the option of the holder. The Notes are unsecured, subordinated obligations of the Company only and are not obligations of, and are not guaranteed by, any subsidiary of the Company. The Notes rank junior in right to payment to the Company’s current and future senior indebtedness. The Notes are intended to qualify as Tier 2 capital for regulatory capital purposes for the Company. At December 31, 2020, the parent company had a $15 million line of credit with U.S. Bank, which had no outstanding balance. The line of credit matures September 27, 2021. Interest on the line of credit is based upon one-month LIBOR plus 2.25% and includes an unused commitment fee of 0.30%. At December 31, 2020, scheduled principal payments on long-term borrowings, excluding the capitalized lease obligation and acquired subordinated debentures (which are discussed below) are as follows:
2021 |  | $ | 7,918 |
2022 |  | 49,834 |
2023 |  | — |
2024 |  | 24,834 |
2025 |  | — |
Thereafter |  | 39,711 |
Total |  | $ | 122,297 |
The Company assumed the obligations of junior subordinated debentures through the acquisitions of American Community Bancorp, Inc., River Valley Bancorp and Citizens First Corporation. The junior subordinated debentures were issued to ACB Capital Trust I, ACB Capital Trust II, RIVR Statutory Trust I, and Citizens First Statutory Trust I. The trusts are wholly owned by the Company. In accordance with accounting guidelines, the trusts are not consolidated with the Company's financials, but rather the subordinated debentures are shown as borrowings. The Company guarantees payment of distributions on the trust preferred securities issued by ACB Trust I, ACB Trust II, RIVR Statutory Trust I, and Citizens First Statutory Trust I. Interest is payable on a quarterly basis. These securities qualify as Tier 1 capital (with certain limitations) for regulatory purposes. $15,764 of the junior subordinated debentures were treated as Tier 1 capital for regulatory capital purposes as of December 31, 2020. $15,447 of the junior subordinated debentures were treated as Tier 1 capital for regulatory capital purposes as of December 31, 2019. As a result of the acquisitions of American Community, River Valley, and Citizens First these liabilities were recorded at fair value at the acquisition date with the discount amortizing into interest expense over the life of the liability, ultimately accreting to the issuance amount disclosed below. The following table summarizes the terms of each issuance:
|  | Date of Issuance |  | Issuance Amount |  | Carrying Amount at December 31, 2020 |  | Variable Rate |  | Rate as of December 31, 2020 |  | Rate as of December 31, 2019 |  | Maturity Date
ACB Trust I |  | 5/6/2005 |  | $ | 5,155 |  |  | $ | 3,830 |  |  | 90 day LIBOR + 2.15% |  | 2.40 | % |  | 4.09 | % |  | May 2035
ACB Trust II |  | 7/15/2005 |  | 3,093 |  |  | 2,245 |  |  | 90 day LIBOR + 1.85% |  | 2.06 | % |  | 3.76 | % |  | July 2035
RIVR Statutory Trust 1 |  | 3/26/2003 |  | 7,217 |  |  | 5,923 |  |  | 3-Month LIBOR + 3.15% |  | 3.40 | % |  | 5.10 | % |  | March 2033
Citizens First Statutory Trust I |  | 10/16/2006 |  | 5,155 |  |  | 4,105 |  |  | 3-Month LIBOR +1.65% |  | 1.88 | % |  | 3.75 | % |  | January 2037

X
- References No definition available. + Details
Name: | us-gaap_AdvancesFromFederalHomeLoanBanksAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration