LONG-TERM DEBT

Long-Term Debt

The table below presents all long-term debt outstanding as of September 30, 2017 and December 31, 2016:



		Effective Interest Rate	Carrying Value at
	Maturity	Effective Interest Rate	September 30, 2017		December 31, 2016
Senior Notes Payable	December 5, 2026	7.26%	$	30,000	$	30,000
Florida State Board of Administration Note Payable	July 1, 2026	2.27%	10,294		11,176
Interboro, LLC Promissory Note Payable	October 29, 2017	6.00%	8,550		8,550
BB&T Term Note Payable	May 26, 2031	2.94%	4,738		4,998
Total long-term debt			$	53,582	$	54,724

Senior Notes Payable

On December 5, 2016, we issued $30,000,000 of senior notes to private investors pursuant to an Indenture dated as of December 5, 2016, by and between the Company and the trustee. The notes bear interest at a floating rate equal to the three month LIBOR plus 5.75% per annum, with interest payable quarterly in arrears. The notes will mature 10 years after the issue date, have no scheduled amortization, and may be redeemed at par any time without a pre-payment penalty.

Florida State Board of Administration Note Payable

On September 22, 2006, we issued a $20,000,000, 20-year note payable to the Florida State Board of Administration (SBA note). For the first three years of the SBA note we were required to pay interest only. On October 1, 2009, we began to repay the principal in addition to interest. The note bears an annual interest rate equivalent to the 10-year U.S. Treasury Bond rate. The rate will be adjusted quarterly for the term of the SBA note based on the 10-year Constant Maturity Treasury rate.

Interboro, LLC Promissory Note Payable

On April 29, 2016, we issued an $8,550,000 promissory note to Interboro, LLC, the former parent company of IIC, as part of the purchase price paid to acquire our insurance affiliate. The note matured and was paid in October 2017.

BB&T Term Note Payable

On May 26, 2016, we issued a $5,200,000, 15-year term note payable to BB&T (the BB&T note) with the intent to use the funds to purchase, renovate, furnish and equip our home office. The note bears interest at 1.65% in excess of the one-month LIBOR. In the event of default, BB&T, may among other things, declare its loan immediately due and payable, require us to pledge additional collateral to the bank, and take possession of and foreclose upon our home office which has been pledged to the bank as security for the loan.

Financial Covenants

The SBA note, BB&T note, and senior notes contain representations and warranties, conditions and covenants. If these requirements were not met, all amounts outstanding or otherwise owed could become due and payable immediately and other limitations could be placed on our ability to use any available borrowing capacity. At September 30, 2017, we were in compliance with all covenants as specified in the notes. Refer to Part I; Item 2 for additional information regarding financial covenants.

Debt Issuance Costs

The table below presents the rollforward of our debt issuance costs paid, in conjunction with the debt instruments described above, during the year ended September 30, 2017:



	2017
Balance at January 1,	$	549
Additions	—
Amortization	(86		)
Balance at September 30,	$	463