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Long-term Debt

12 Months Ended

Dec. 31, 2019

NOTE 9 - LONG-TERM DEBT

At December 31, 2019 and 2018, respectively, long-term debt was as follows:

(dollars in thousands)	2019		2018
Principal	$	105,000	$	105,000
Unamortized debt issuance costs	$	951	$	1,292

In March 2016, the Company issued $50 million of 6.5% fixed to floating rate subordinated debentures, due March 31, 2026. The interest rate is fixed through March 31, 2021 and floats at 3 month LIBOR plus 516 basis points thereafter. The Company can redeem these subordinated debentures beginning March 31, 2021. The sub-debt is considered Tier-two capital at the Company. The Company allocated $35 million to the Bank as Tier-one capital.

In November 2018, the Company issued $55 million of 6.18% fixed to floating rate subordinated debentures, due December 1, 2028. The interest rate is fixed through December 1, 2023 and floats at 3 month LIBOR plus 315 basis points thereafter. The Company can redeem these subordinated debentures beginning December 1, 2023. The sub-debt is considered Tier-two capital at the Company. The Company allocated $25 million to the Bank as Tier-one capital.

The following table presents interest and amortization expense the Company incurred for the year ended December 31, 2019 and 2018:

	For the Year Ended December 31,
(dollars in thousands)	2019		2018
Interest Expense:
Interest	$	6,649	$	3,552
Amortization		342		162