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Subordinated Notes
12 Months Ended
Dec. 31, 2015
Subordinated Borrowings [Abstract]  
Subordinated Notes
Subordinated Notes
At December 31, 2015 and December 31, 2014, the Company had outstanding subordinated notes totaling $140.0 million. In 2014, the Company issued $140.0 million of subordinated notes receiving $139.1 million in net proceeds. The notes have a stated interest rate of 5.00% and mature in June 2024. Previously, the Company borrowed $75.0 million under three separate $25.0 million subordinated note agreements. Each subordinated note required annual principal payments of $5.0 million beginning in the sixth year of the note and had a term of ten years. The interest rate on each subordinated note was calculated at a rate equal to LIBOR plus 130 basis points. In 2013, the only remaining subordinated note with a balance of $10.0 million was paid off prior to maturity.
In connection with the issuance of subordinated notes in 2014, the Company incurred costs totaling $1.3 million. These costs are included in other assets and will be amortized to interest expense using a method that approximates the effective interest method. At December 31, 2015, the unamortized balances of these costs were approximately $1.1 million. These subordinated notes qualify as Tier II capital under the regulatory capital requirements, subject to restrictions.