Long-Term Debt

6 Months Ended

Jun. 30, 2020

Junior Subordinated Notes Issued to Capital Trusts

The table below summarizes the terms of each issuance of junior subordinated notes outstanding as of the dates indicated:


(in thousands)	Face Value		Book Value		Interest Rate	Rate		Maturity Date	Callable Date
June 30, 2020
ATBancorp Statutory Trust I	$	7,732	$	6,832	Three-month LIBOR + 1.68%	1.99	%	06/15/2036	06/15/2011
ATBancorp Statutory Trust II	12,372		10,821		Three-month LIBOR + 1.65%	1.96	%	06/15/2037	06/15/2012
Barron Investment Capital Trust I	2,062		1,750		Three-month LIBOR + 2.15%	2.46	%	09/23/2036	09/23/2011
Central Bancshares Capital Trust II	7,217		6,808		Three-month LIBOR + 3.50%	3.81	%	03/15/2038	03/15/2013
MidWestOne Statutory Trust II	15,464		15,464		Three-month LIBOR + 1.59%	1.90	%	12/15/2037	12/15/2012
Total	$	44,847	$	41,675

December 31, 2019
ATBancorp Statutory Trust I	$	7,732	$	6,814	Three-month LIBOR + 1.68%	3.57	%	06/15/2036	06/15/2011
ATBancorp Statutory Trust II	12,372		10,794		Three-month LIBOR + 1.65%	3.54	%	09/15/2037	06/15/2012
Barron Investment Capital Trust I	2,062		1,732		Three-month LIBOR + 2.15%	4.08	%	09/23/2036	09/23/2011
Central Bancshares Capital Trust II	7,217		6,783		Three-month LIBOR + 3.50%	5.39	%	03/15/2038	03/15/2013
MidWestOne Statutory Trust II	15,464		15,464		Three-month LIBOR + 1.59%	3.48	%	12/15/2037	12/15/2012
Total	$	44,847	$	41,587

Subordinated Debentures

On May 1, 2019, with the acquisition of ATBancorp, the Company assumed $10.9 million of subordinated debentures (the "ATB Debentures"). These debentures have a stated maturity of May 31, 2023, and bear interest at a fixed annual rate of 6.50%, with interest payable semi-annually on March 15th and September 15th. The Company has the option to redeem the debentures, in whole or part, at any time on or after May 31, 2021. On July 28, 2020, the Company completed the private placement of $65.0 million of its subordinated notes with registration rights. The 5.75% fixed-to-floating rate subordinated notes are due July 2030.

The debentures and subordinated notes constitute Tier 2 capital under the rules and regulations of the Federal Reserve applicable to the capital status of the subordinated debt of bank holding companies. The debentures and subordinated notes are phased out of Tier 2 capital by 20% of the amount of the debentures or subordinated notes in each of the five years beginning on the fifth anniversary preceding the maturity date of each debenture. At June 30, 2020, we were permitted to treat 40% of the ATB Debentures as Tier 2 capital.

Other Long-Term Debt

Long-term borrowings were as follows as of June 30, 2020 and December 31, 2019:


	June 30, 2020						December 31, 2019
(in thousands)	Weighted Average Rate		Balance		Weighted Average Rate		Balance
Finance lease payable	8.89	%	$	1,162	8.89	%	$	1,224
FHLB borrowings	1.92		108,246		2.25		145,700
Notes payable to unaffiliated bank	1.93		28,000		3.44		32,250
Total	1.98	%	$	137,408	2.51	%	$	179,174

As a member of the FHLBDM, the Bank may borrow funds from the FHLB in amounts up to 45% of the Bank’s total assets, provided the Bank is able to pledge an adequate amount of qualified assets to secure the borrowings. Advances from the FHLB are collateralized primarily by one- to four-family residential, commercial and agricultural real estate first mortgages equal to various percentages of the total outstanding notes. See Note 4 . Loans Receivable and the Allowance for Credit Losses of the notes to the consolidated financial statements. At June 30, 2020, FHLB long-term borrowings included advances from the FHLBC, which were collateralized by investment securities. See Note 3 . Debt Securities of the notes to the consolidated financial statements.

On April 30, 2015, the Company entered into a $35.0 million unsecured note payable with a correspondent bank with a maturity date of June 30, 2020. As of June 30, 2020, the note was paid off.

On April 30, 2019, the Company entered into a $35.0 million unsecured note payable with a correspondent bank with a maturity date of April 30, 2024. Quarterly principal and interest payments began June 30, 2019 and, as of June 30, 2020, $28.0 million of that note was outstanding.