XML 28 R17.htm IDEA: XBRL DOCUMENT v3.21.2
Other Borrowings
 9 Months Ended
Sep. 30, 2021
Debt Disclosure [Abstract]  
Other Borrowings OTHER BORROWINGS
In June 2021, the Company issued $6,000 of Subordinated Debentures (the “Debentures”) that mature June 30, 2031 and are redeemable after 5 years. The Debentures carry interest at a fixed rate of 4.50% per annum for the initial five years of term and carry interest at a floating rate for the final 5 years of term. Under the debt agreements, the floating rates are based on a SOFR benchmark plus 3.78% per annum. These Debentures were issued to redeem a $6,000 Subordinated Debenture which was issued in December 2018 and which carried interest at a rate of 6.875% per annum.The balance of Subordinated Debentures outstanding at the Company, net of offering costs, amounted to $5,983 and $5,948 at September 30, 2021 and December 31, 2020, respectively.
In March 2020, the Company renegotiated the terms of their debt and combined the line of credit and term note into one amortizing note with quarterly principal and interest payments with interest at Prime (3.25% at September 30, 2021). The new note matures on March 10, 2029 and the balance of the note was $3,413 and $3,754 at September 30, 2021 and December 31, 2020, respectively. The note is secured by 100% of the stock of the Bank and requires the Company to comply with certain loan covenants during the term of the note. As of September 30, 2021, the Company was in compliance with all debt covenants.
In April 2020, the Company entered into the Federal Reserve Bank’s PPPLF. Under the PPPLF, advances must be secured by pledges of loans to small businesses originated by the Company under the PPP. The PPPLF accrues interest at 0.35% per annum and matures at various dates equal to the maturity date of the PPPLF collateral pledged to secure the advance, ranging from April 15, 2022 to August 27, 2025, and will be accelerated on and to the extent of any PPP loan forgiveness reimbursement by the SBA for any PPPLF collateral or the date of purchase by the SBA from the borrower of any PPPLF collateral. On the maturity date of each advance, the Company shall repay the advance plus accrued interest. The balances outstanding on this facility were $144,601 and $881,262 at September 30, 2021 and December 31, 2020, respectively.