SHORT AND LONG-TERM BORROWINGS

Short-Term Borrowings:

The Company did not have any short-term borrowings (borrowing with an original contractual maturity of one year or less) outstanding at December 31, 2018 or 2017.

Long-Term Borrowings:

The components of long-term borrowings (borrowing with an original contractual maturity greater than one year) were as follows.



(in thousands)	December 31, 2018		December 31, 2017
FHLB advances	$	35,252	$	36,509
Junior subordinated debentures	30,096		29,616
Subordinated notes	11,957		11,921
Total long-term borrowings	$	77,305	$	78,046

FHLB Advances: The FHLB advances bear fixed rates, require interest-only monthly payments, and have maturity dates through November 2022. The weighted average rate of the FHLB advances was 1.72% and 1.71% at December 31, 2018 and 2017, respectively. The FHLB advances are collateralized by a blanket lien on qualifying first mortgages, home equity loans, multi-family loans and certain farmland loans which had a pledged balance of $295.3 million and $313.5 million at December 31, 2018 and 2017, respectively.

The following table shows the maturity schedule of the FHLB advances as of December 31, 2018.



Maturing in:	(in thousands)
2019	$	—
2020	10,000
2021	—
2022	25,252
2023	—
	$	35,252

The Company has a $10 million line of credit with a third party bank, bearing a variable rate of interest based on one-month LIBOR plus a margin, but subject to a floor rate, with quarterly payments of interest only. At December 31, 2018, the available line was $10 million and the rate was one-month LIBOR plus 2.25% with a 3.25% floor. The outstanding balance was zero at December 31, 2018 and 2017, and the line was not used during 2018 or 2017.

Junior Subordinated Debentures: The following table shows the breakdown of junior subordinated debentures. Interest on all debentures is current. Any applicable discounts (initially recorded to carry an acquired debenture at its then estimated fair market value) are being accreted to interest expense over the remaining life of the debentures. All the debentures below are currently callable and may be redeemed in part or in full plus any accrued but unpaid interest.



		Junior Subordinated Debentures
(in thousands)	Maturity Date	Par		12/31/2018 Unamortized Discount			12/31/2018 Carrying Value		12/31/2017 Carrying Value
2004 Nicolet Bankshares Statutory Trust⁽¹⁾	7/15/2034	$	6,186	$	—		$	6,186	$	6,186
2005 Mid-Wisconsin Financial Services, Inc.⁽²⁾	12/15/2035	10,310		(3,371		)	6,939		6,739
2006 Baylake Corp.⁽³⁾	9/30/2036	16,598		(4,120		)	12,478		12,242
2004 First Menasha Bancshares, Inc.⁽⁴⁾	3/17/2034	5,155		(662		)	4,493		4,449
Total		$	38,249	$	(8,153	)	$	30,096	$	29,616


(1)	The interest rate is 8.00% fixed.


(2)	The debentures, assumed in April 2013 as the result of an acquisition, have a floating rate of the three-month LIBOR plus 1.43%, adjusted quarterly. The interest rates were 4.22% and 3.02% as of December 31, 2018 and 2017, respectively.


(3)	The debentures, assumed in April 2016 as a result of an acquisition, have a floating rate of the three-month LIBOR plus 1.35%, adjusted quarterly. The interest rates were 4.15% and 3.04% as of December 31, 2018 and 2017, respectively.


(4)	The debentures, assumed in April 2017 as the result of an acquisition, have a floating rate of the three-month LIBOR plus 2.79%, adjusted quarterly. The interest rate was 5.58% and 4.39% as of December 31, 2018 and 2017, respectively.

Each of the junior subordinated debentures was issued to an underlying statutory trust (the “statutory trusts”), which issued trust preferred securities and common securities and used the proceeds from the issuance of the common and the trust preferred securities to purchase the junior subordinated debentures of the Company. The debentures represent the sole asset of the statutory trusts. All of the common securities of the statutory trusts are owned by the Company. The statutory trusts are not included in the consolidated financial statements. The net effect of all the documents entered into with respect to the trust preferred securities is that the Company, through payments on its debentures, is liable for the distributions and other payments required on the trust preferred securities. At December 31, 2018 and 2017, $28.9 million and $28.5 million, respectively, of trust preferred securities qualify as Tier 1 capital.

Subordinates Notes: In 2015, the Company placed an aggregate of $12 million in subordinated Notes in private placements with certain accredited investors. All Notes were issued with 10-year maturities, have a fixed annual interest rate of 5% payable quarterly, are callable on or after the fifth anniversary of their respective issuances dates, and qualify for Tier 2 capital for regulatory purposes.