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Note 9 - Long-term Debt | 9 Months Ended
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Sep. 30, 2020
Notes to Financial Statements |
Long-term Debt [Text Block] | NOTE 9 - LONG-TERM DEBT 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 the 3 month LIBOR plus 516 basis points thereafter. The Company can redeem these subordinated debentures beginning March 31, 2021. The subordinated debentures are considered Tier 2 capital at the Company. The Company contributed $35 million to the Bank as Tier 1 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 subordinated debentures are considered Tier 2 capital at the Company. The Company contributed $25 million to the Bank as Tier 1 capital. At September 30, 2020 and December 31, 2019, long-term debt was as follows:
|  | September 30, |  |  | December 31, |
(dollars in thousands) |  | 2020 |  |  | 2019 |
Principal |  | $ | 105,000 |  |  | $ | 105,000 |
Unamortized debt issuance costs |  | $ | 695 |  |  | $ | 951 |
The following table presents interest and amortization expense the Company incurred for the three and nine months ended September 30, 2020 and 2019:
|  | For the Three Months Ended September 30, |  |  | For the Nine Months Ended September 30, |
(dollars in thousands) |  | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
Interest Expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest |  | $ | 1,662 |  |  | $ | 1,662 |  |  | $ | 4,987 |  |  | $ | 4,987 |
Amortization |  |  | 85 |  |  |  | 85 |  |  |  | 256 |  |  |  | 256 |
In July 2017, British banking regulators announced plans to eliminate the LIBOR rate by the end of 2021, before this long-term debt and subordinated debentures mature. For these subordinated debentures, there are provisions for amendments to establish a new interest rate benchmark.

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- Definition The entire disclosure for long-term debt. + 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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