Note 11 - Subordinated Capital Note

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Subordinated Borrowings Disclosure [Text Block]

NOTE

11

– S

UBORDINATED CAPITAL NOTE

On

July 23, 2019,

the Company completed the issuance of a

$17.0

million

10

-year subordinated note. The note carries interest at a fixed rate of

5.75%

for the

first

five

years and qualifies as Tier

2

regulatory capital. The Company contributed

$10.0

million of the proceeds to the Bank as Tier

1

capital, used

$5.0

million to reduce senior debt, and retained the remaining proceeds for general corporate purposes.