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Borrowings

6 Months Ended

Jun. 30, 2013

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

Short-term borrowings at June 30, 2013 and December 31, 2012 consisted of the following (dollars in thousands):

	June 30, 2013			December 31, 2012
Customer repurchase agreements	$	35,715		$	30,332
Advances from FHLB		73,400			2,000
Federal funds purchased		2,990			50
	$	112,105		$	32,382

Customer repurchase agreements are sweep accounts with next day maturities utilized by larger commercial customers to earn interest on their funds. Securities are pledged to these customers in an amount equal to the outstanding balance.

Long-term debt at June 30, 2013 and December 31, 2012 consisted of the following (dollars in thousands):

		June 30, 2013			December 31, 2012

FHLB advances		$	59,444		$	62,000
Term loan			30,000			-
Junior subordinated debentures			26,148			26,173
Total		$	115,592		$	88,173

During the first quarter of 2013, the Company prepaid and restructured $20.0 million in FHLB advances. The early repayment of the debt resulted in a prepayment penalty of $2.7 million, which will be amortized to interest expense in future periods as an adjustment to the cost of the new FHLB advances.

On April 26, 2013, the Company entered into a $30.0 million senior unsecured term loan agreement (the “Term Loan”). The Term Loan currently bears interest at 5.50% and matures on April 26, 2018. The net proceeds from the Term Loan were used to redeem the Company's Fixed Rate Cumulative Perpetual Preferred Stock, Series A. The Company was not in violation of any covenants included in the Term Loan agreement as of June 30, 2013.

On July 1, 2013, the Company exercised its redemption option and redeemed $2.4 million of its 8.00% fixed rate convertible junior subordinated debentures. These debentures were acquired from the acquisition of KeySource.

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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