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Note 12 - Borrowings | 12 Months Ended
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Dec. 31, 2016
Notes to Financial Statements |
Debt Disclosure [Text Block] | Note 12 – Borrowings Information relating to short-term and long-term borrowings is as follows for the years ended December 31:
|  | 2016 |  |  | 2015 |  |  | 2014 |
(dollars in thousands) |  | Amount |  |  | Rate |  |  | Amount |  |  | Rate |  |  | Amount |  |  | Rate |
Short-term: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
At Year-End: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer repurchase agreements and federal funds purchased |  | $ | 68,876 |  |  |  | 0.35 | % |  | $ | 72,356 |  |  |  | 0.23 | % |  | $ | 61,120 |  |  |  | 0.25 | %
Federal Home Loan Bank – current portion |  |  | - |  |  |  |  |  |  |  | - |  |  |  | - |  |  |  | 100,000 |  |  |  | 0.38 | %
Total |  | $ | 68,876 |  |  |  |  |  |  | $ | 72,356 |  |  |  |  |  |  | $ | 161,120 |  |  |  |  |
Average Daily Balance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer repurchase agreements and federal funds purchased |  | $ | 77,833 |  |  |  | 0.21 | % |  | $ | 59,141 |  |  |  | 0.22 | % |  | $ | 63,490 |  |  |  | 0.23 | %
Federal Home Loan Bank – current portion |  |  | 29,376 |  |  |  | 2.45 | % |  |  | 27,659 |  |  |  | 0.31 | % |  |  | 7,288 |  |  |  | 0.42 | %
Total |  | $ | 107,209 |  |  |  |  |  |  | $ | 86,800 |  |  |  |  |  |  | $ | 70,778 |  |  |  |  |
Maximum Month-end Balance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer repurchase agreements and federal funds purchased |  | $ | 136,689 |  |  |  | 0.16 | % |  | $ | 73,696 |  |  |  | 0.21 | % |  | $ | 80,471 |  |  |  | 0.28 | %
Federal Home Loan Bank – current portion |  |  | 100,000 |  |  |  | 0.94 | % |  |  | 140,000 |  |  |  | 0.20 | % |  |  | 100,000 |  |  |  | 0.38 | %
Total |  | $ | 236,689 |  |  |  |  |  |  | $ | 213,696 |  |  |  |  |  |  | $ | 180,471 |  |  |  |  |
Long-term: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
At Year-End: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal Home Loan Bank |  | $ | 0 |  |  |  | - |  |  | $ | 0 |  |  |  | - |  |  | $ | 40,000 |  |  |  | 2.62 | %
Subordinated Notes |  |  | 220,000 |  |  |  | 5.42 | % |  |  | 70,000 |  |  |  | 5.75 | % |  |  | 79,300 |  |  |  | 6.40 | %
United Bank Line of Credit |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total |  | $ | 220,000 |  |  |  |  |  |  | $ | 70,000 |  |  |  |  |  |  | $ | 119,300 |  |  |  |  |
Average Daily Balance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal Home Loan Bank |  | $ | 0 |  |  |  | - |  |  | $ | 8,329 |  |  |  | 2.25 | % |  | $ | 39,205 |  |  |  | 2.00 | %
Subordinated Notes |  |  | 135,164 |  |  |  | 5.54 | % |  |  | 74,117 |  |  |  | 6.06 | % |  |  | 37,875 |  |  |  | 6.59 | %
United Bank Line of Credit |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total |  | $ | 135,164 |  |  |  |  |  |  | $ | 82,446 |  |  |  |  |  |  | $ | 77,080 |  |  |  |  |
Maximum Month-end Balance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal Home Loan Bank |  | $ | 0 |  |  |  | - |  |  | $ | 40,000 |  |  |  | 0.37 | % |  | $ | 122,500 |  |  |  | 0.68 | %
Subordinated Notes |  |  | 220,000 |  |  |  | 5.42 | % |  |  | 79,300 |  |  |  | 6.52 | % |  |  | 79,300 |  |  |  | 6.52 | %
United Bank Line of Credit |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total |  | $ | 220,000 |  |  |  |  |  |  | $ | 119,300 |  |  |  |  |  |  | $ | 201,800 |  |  |  |  |
The Company offers its business customers a repurchase agreement sweep account in which it collateralizes these funds with U.S. agency and mortgage backed securities segregated in its investment portfolio for this purpose. By entering into the agreement, the customer agrees to have the Bank repurchase the designated securities on the business day following the initial transaction in consideration of the payment of interest at the rate prevailing on the day of the transaction. The Bank can purchase up to $137.5 million in federal funds on an unsecured basis from its correspondents, against which there were no amounts outstanding at December 31, 2016 and can borrow unsecured funds under one -way Certificates of Deposit Account Registry Service (“CDARS”) and Insured Cash Sweep (“ICS”) brokered deposits in the amount of $1.03 billion, against which there was $19.9 million outstanding at December 31, 2016. The Bank also has a commitment at December 31, 2016 from Promontory to place up to $700.0 million of brokered deposits from its Insured Network Deposit (“ IND”) program with the Bank, with an actual balance of $356.5 million outstanding at December 31, 2016. At December 31, 2016, the Bank was also eligible to make advances from the FHLB up to $1.25 billion based on collateral at the FHLB, of which there were no amounts outstanding at December 31, 2016. The Bank may enter into repurchase agreements as well as obtain additional borrowing capabilities from the FHLB provided adequate collateral exists to secure these lending relationships. The Bank also has a back-up borrowing facility through the Discount Window at the Federal Reserve Bank of Richmond (“Federal Reserve Bank”). This facility, which amounts to approximately $440.0 million, is collateralized with specific loan assets identified to the Federal Reserve Bank. It is anticipated that, except for periodic testing, this facility would be utilized for contingency funding only. During 2016, the Company renewed its Loan Agreement and related Stock Security Agreement and Promissory Note (the “credit facility”) with a regional bank, pursuant to which the Company may borrow, on a revolving basis, up to $50.0 million for working capital purposes, or to finance capital contributions to the Bank in whole and to ECV in part. This facility was originally entered into in August 2008 and has been renegotiated over the past eight years to its current terms. The credit facility is secured by a first lien on a portion of the stock of the Bank, and bears interest at a floating rate equal to the Wall Street Journal Prime Rate minus 0.25% with a floor interest rate of 3.50%. Interest is payable on a monthly basis. The term of the credit facility expires on September 30, 2017. There were no amounts outstanding under this credit at December 31, 2016 or December 31, 2015. 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, due 2021. During March 2015, the Company paid off its outstanding FHLB advances. A $1.1 million loss on the early extinguishment of debt was recorded in March of 2015 due to the early payoff of FHLB advances. This decision was made in light of deposit growth in the quarter and expected benefits to the cost of funds going forward. On July 26, 2016, the Company completed the sale of $150.0 million of its 5.00% Fixed-to-Floating Rate Subordinated Notes, due August 1, 2026 (the “2026 Notes”). The Notes were offered to the public at par. The notes 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 $147.35 million, which includes $2.6 million in deferred financing costs which is being amortized over the life of the 2026 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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