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Borrowings | 12 Months Ended
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Dec. 31, 2018
Borrowings |
Borrowings | Note 10: Borrowings The following table is a summary of borrowings as of December 31, 2018, and December 31, 2017. Junior subordinated debentures are discussed in detail in Note 11:
|  | December 31, 2018 |  | December 31, 2017 |
Securities sold under repurchase agreements |  | $ | 46,632 |  | $ | 29,918 |
Other short-term borrowings 1 |  |  | 149,500 |  |  | 115,000 |
Junior subordinated debentures 2 |  |  | 57,686 |  |  | 57,639 |
Senior notes |  |  | 44,158 |  |  | 44,058 |
Notes payable and other borrowings |  |  | 15,379 |  |  | - |
Total borrowings |  | $ | 313,355 |  | $ | 246,615 |
1 Includes short-term FHLBC advances and the outstanding portion of an operating line of credit. 2 See Note 11: Junior Subordinated Debentures, below. The Company enters into deposit sweep transactions where the transaction amounts are secured by pledged securities. These transactions consistently mature within 1 to 90 days 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, collateralized mortgage obligations, mortgage-backed securities and/or highly-rated issues of State and political subdivisions, and had a carrying amount of $46.6 million at December 31, 2018, and $29.9 million at December 31, 2017. The fair value of the pledged collateral was $72.8 million and $40.0 million at December 31, 2018 and December 31, 2017, respectively. At December 31, 2018, there were no customers with secured balances exceeding 10% of stockholders’ equity. Total FHLBC advances are generally limited to the lower of 35% of total assets and the amount of acceptable collateral adjusted for applicable funding percentages as determined by the FHLBC. As of December 31, 2018, the Bank primarily had outstanding advances in the amount of $149.5 million with $130.0 million at an interest rate of 2.52% and $15.5 million at a weighted average interest rate at 1.95%. As of December 31, 2017, the Bank had outstanding advances in the amount of $115.0 million with $110.0 million at an interest rate of 1.42% and $5.0 million at an interest rate of 1.44%. As of December 31, 2018, FHLBC stock owned by the Bank was valued at $7.2 million, the fair value of securities pledged to the FHLBC was $77.6 million, and the principal balance of loans pledged was $306.2 million. The Bank also assumed $23.4 million of long-term FHLBC advances with the ABC acquisition. At December 31, 2018, these advances have a total outstanding balance of $15.4 million and are scheduled to mature over the next 7.25 years with interest rates ranging between 1.40% to 2.83%. Based on the total amount of securities and loans pledged, the Bank had total borrowing capacity of $304.8 million. Adjusting for the outstanding advances and letters of credit, the Bank had a remaining funding availability of $69.6 million on December 31, 2018. The Company also has $44.2 million of senior notes outstanding, net of deferred issuance costs, as of December 31, 2018 and $44.1 million as of December 31, 2017. 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. As of December 31, 2018 and 2017, unamortized debt issuance costs related to the senior notes were $842,000 and $942,000, respectively, and are included as a reduction of the balance of the senior notes on the Consolidated Balance Sheet. These deferred issuance costs will be amortized to interest expense over the ten year term of the notes and included in the Consolidated Statements of Income. Scheduled maturities and weighted average rates of borrowings for the years ended December 31 were as follows:
|  | 2018 |  | 2017 |
|  |  |  |  | Weighted |  |  |  |  | Weighted |
|  |  |  |  | Average |  |  |  |  | Average |
|  | Balance |  | Rate |  | Balance |  | Rate |
2018 |  |  | N/A |  | N/A |  | $ | 144,918 |  | 0.86 | %
2019 |  | $ | 196,132 |  | 1.78 | % |  | - |  | - |
2020 |  |  | 8,500 |  | 2.05 |  |  | - |  | - |
2021 |  |  | - |  | - |  |  | - |  | - |
2022 |  |  | - |  | - |  |  | - |  | - |
2023 |  |  | - |  | - |  |  | - |  | - |
Thereafter |  |  | 108,723 |  | 6.07 |  |  | 101,697 |  | 6.01 |
Total borrowings |  | $ | 313,355 |  | 3.28 | % | $ | 246,615 |  | 2.98 | %

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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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