Note 8 - Borrowings

6 Months Ended

Jun. 30, 2016

Note

Long-Term Borrowings

ASU 2015-03,

“Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs”

simplifies the presentation of debt issuance costs by requiring that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of debt liability, consistent with debt discounts or premiums. The Company adopted ASU 2015-03 as of the end of its fiscal year 2015, and applied its provisions retrospectively.

The following table presents information related to the Company’s long-term borrowings for the periods ended June 30, 2016, December 31, 2015 and June 30, 2015.

(dollars in thousands)	June 30, 2016			December 31, 2015			June 30, 2015

Subordinated Notes, 5.75%	$	70,000		$	70,000		$	70,000
Subordinated Notes, 8.5%		-			-			4,050
Less: debt issurance costs		(1,011	)		(1,072	)		(1,134	)
Long-term borrowings	$	68,989		$	68,928		$	72,916

On August 5, 2014, the Company completed the sale of $70.0 million of its 5.75% subordinated notes, due September 1, 2024 (the “Notes”). The Notes were offered to the public at par and qualify as Tier 2 capital for regulatory purposes to the fullest extent permitted under the Basel III Rule capital requirements. The net proceeds were approximately $68.8 million, which includes $1.2 million in deferred financing costs which is being amortized over the life of the Notes.

During 2015, the Company redeemed the remaining balance of $9.3 million of subordinated notes, with an interest rate of 8.50%, due 2021. These notes totaled $4.05 million at June 30, 2015.