UNSECURED BORROWINGS

12 Months Ended

Dec. 31, 2016

NOTE 8 — UNSECURED BORROWINGS

Unsecured borrowings consist of 30-year junior subordinated notes issued in 2005 and 2006 and maturing in 2035 and 2036, for a total face amount of $100 million. In 2015 the Company retrospectively adopted ASU 2015-03, which requires debt issuance costs to be recorded as direct deductions from the carrying amounts of the related liabilities, consistent with debt discounts. Note balances net of deferred issuance costs, and related weighted average interest rates as of the indicated dates (calculated including issuance cost amortization and adjusted for effects of related Derivatives held as cash flow hedges) were as follows (dollars in thousands):

	December 31, 2016					December 31, 2015
	Borrowings Outstanding		Average Rate			Borrowings Outstanding		Average Rate
Junior subordinated notes maturing in:
October 2035 ($35,000 face amount)	$	34,276		7.91	%	$	34,234		7.91	%
December 2035 ($40,000 face amount)		39,282		7.67			39,244		7.68
September 2036 ($25,000 face amount)		24,532		7.71			24,508		8.96
	$	98,090		7.77		$	97,986		8.08

The notes are currently redeemable, in whole or in part, without penalty, at the Company’s option. Interest paid on Unsecured borrowings, including related Derivative cash flows, totaled $7.5 million, $8.4 million and $8.4 million during 2016, 2015 and 2014, respectively.