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Borrowings | 3 Months Ended
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Mar. 31, 2017
Borrowings |
Borrowings | Note 8 – Borrowings The following table is a summary of borrowings as of March 31, 2017, and December 31, 2016. Junior subordinated debentures are discussed in detail in Note 9:
|  | March 31, 2017 |  | December 31, 2016 |
Securities sold under repurchase agreements |  | $ | 34,731 |  | $ | 25,715 |
FHLBC advances 1 |  |  | 85,000 |  |  | 70,000 |
Junior subordinated debentures |  |  | 57,603 |  |  | 57,591 |
Senior notes |  |  | 43,982 |  |  | 43,998 |
Total borrowings |  | $ | 221,316 |  | $ | 197,304 |
1 Included in other short-term borrowings on the balance sheet. The Company enters into deposit sweep transactions where the transaction amounts are secured by pledged securities. These transactions consistently mature overnight from the transaction date and are governed by sweep repurchase agreements. All sweep repurchase agreements are treated as financings secured by U.S. government agencies and collateralized mortgage-backed securities and had a carrying amount of $34.7 million at March 31, 2017, and $25.7 million at December 31, 2016. The fair value of the pledged collateral was $42.4 million at March 31, 2017, and $43.0 million at December 31, 2016. At March 31, 2017, there were no customers with secured balances exceeding 10% of stockholders’ equity. The Company’s borrowings at the FHLBC require the Bank to be a member and invest in the stock of the FHLBC. Total borrowings are generally limited to the lower of 35% of total assets or 60% of the book value of certain mortgage loans. As of March 31, 2017, the Bank had $85.0 million advances outstanding under the FHLBC as compared to $70.0 million outstanding as of December 31, 2016. As of March 31, 2017, FHLBC stock held was valued at $3.8 million, and any potential FHLBC advances were collateralized by securities with a fair value of $91.0 million and loans with a principal balance of $173.4 million, which carried a FHLBC calculated combined collateral value of $159.6 million. The Company had excess collateral of $38.3 million available to secure borrowings at March 31, 2017. The Company completed a debt retirement and simultaneous senior debt offering in the fourth quarter of 2016. Subordinated debt of $45.0 million and $500,000 of senior debt outstanding were paid off with the proceeds of a $45.0 million senior notes issuance and cash on hand. The senior notes mature in ten years, and terms include interest payable semiannually at 5.75% for five years. Beginning December 2021, the senior debt will pay interest at a floating rate, with interest payable quarterly at three month LIBOR plus 385 basis points. The notes are redeemable, in whole or in part, at the option of the Company, beginning with the interest payment date on December 31, 2021, and on any floating rate interest payment date thereafter, at a redemption price equal to 100% of the principal amount of the notes plus accrued and unpaid interest. Debt issuance costs incurred for the senior note issuance totaled $1.0 million, and will be deferred and recorded to expense over the ten year term of the notes.

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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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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