Note (14)—Long-term debt:

As of December 31, 2015 the Company had three subordinated notes payable with the shareholder of the Company for $775, $3,300 and $6,000. On September 21, 2016 these notes were paid off in full with proceeds from the initial public offering.

The Bank had a total borrowing capacity of $671,461 and $476,562 at the Federal Home Loan Bank of Cincinnati at December 31, 2017 and 2016, respectively. The terms of the borrowings were subject to market rates at the time of the advances and contain maturities of one to twelve years. Advances from this line are secured by qualifying loans of $968,567 and $565,718 and investment securities of $0 and $60,371 at December 31, 2017 and 2016, respectively.

The Bank had $112,372 of fixed rate borrowings with the FHLB at a weighted average rate of 1.45% outstanding at December 31, 2017. At December 31, 2016 the Bank had $13,962 of fixed rate borrowings at a weighted average rate of 3.02% outstanding. This includes $100,000 borrowed in the third quarter of 2017 as part of the funding strategy of the merger with the Clayton Banks. The advances mature and reprice every 90 days. The Company also entered into three corresponding interest rate swaps to hedge.

In 2003, two separate trusts formed by the Company issued $9,000 of floating rate trust preferred securities (“Trust I”) and $21,000 of floating rate trust preferred securities (“Trust II”), respectively, as part of a pooled offering of such securities. The Company issued junior subordinated debentures of $9,280, which included proceeds of common securities purchased by the Company of $280, and junior subordinated debentures of $21,650, which included proceeds of common securities of $650. Both issuances were to the trusts in exchange for the proceeds of the securities offerings, which represent the sole asset of the trusts. Trust I pays interest quarterly based upon the 3-month LIBOR plus 3.25%. Trust II pays interest quarterly based upon the 3-month LIBOR plus 3.15%. Rates for the two issues at December 31, 2017, were 4.59% and 4.82%, respectively. Rates for the two issues at December 31, 2016, were 4.25% and 4.15%, respectively. The Company may redeem the first junior subordinated debenture listed, in whole or in part, on any distribution payment date within 120 days of the occurrence of a special event, at the redemption price. The Company may redeem the second junior subordinated debentures listed, in whole or in part, any time after June 26, 2008, on any distribution payment date, at the redemption price. The junior subordinated debentures must be redeemed no later than 2033. During the year ended December 31, 2017, the Company began hedging interest rate exposure related to the subordinated debentures through interest rate swaps designated as cash flow hedges (see Note 18).

Maturities of long-term debt as of December 31, 2017 are as follows:

	FHLB			Junior Subordinated debt		Total
Due on or before:
December 31, 2018	$	109,712	⁽¹⁾	$	—	$	109,712	⁽¹⁾
December 31, 2019		224			—		224
December 31, 2020		131			—		131
December 31, 2021		418			—		418
December 31, 2022		890			—		890
Due thereafter		997			30,930		31,927
Total	$	112,372		$	30,930	$	143,302

(1)

Includes $100,000 of advances with 90 day fixed rate repricing terms that are being hedged with interest rate swaps maturing in 2020, 2021, and 2022 in increments of $30,000, $35,000 and $35,000, respectively. As such, these advances are classified as long-term debt on the consolidated balance sheets.