Long-Term Debt and Other Borrowed Funds

12 Months Ended

Dec. 31, 2012

LONG-TERM DEBT AND OTHER BORROWED FUNDS

A summary of long-term debt follows:



December 31,	2012		2011
Parent Company:
6.81% subordinated term loan maturing January 9, 2018, principal due at maturity, interest payable quarterly	$	20,000	$	20,000
Subsidiaries:
Variable rate subordinated term loan maturing February 28, 2018, principal due at maturity, interest payable quarterly (rate of 2.52% at December 31, 2012)	15,000		15,000
Various notes payable to FHLB, interest due monthly at various rates and maturities through October 31, 2015 (weighted average rate of 4.83% at December 31, 2012)	425		425
8.00% capital lease obligation with term ending October 25, 2029	1,735		1,775
Total long-term debt	$	37,160	$	37,200



Maturities of long-term debt at December 31, 2012 are as follows:
2013	$	244
2014	49
2015	285
2016	65
2017	71
Thereafter	36,446
Total	$	37,160

On January 10, 2008, the Company borrowed $20,000 on a 6.81% unsecured subordinated term loan maturing January 9, 2018, with interest payable quarterly and principal due at maturity. The unsecured subordinated term loan qualifies as tier 2 capital under regulatory capital adequacy guidelines.

During February 2008, the Company borrowed $15,000 on a variable rate unsecured subordinated term loan maturing February 28, 2018, with interest payable quarterly and principal due at maturity. The Company may elect at various dates either prime or LIBOR plus 2.00%. The interest rate on the subordinated term loan was 2.52% as of December 31, 2012. The unsecured subordinated term loan qualifies as tier 2 capital under regulatory capital adequacy guidelines.

The notes payable to FHLB are secured by a blanket assignment of the Company’s qualifying residential and commercial real estate loans. The Company has available lines of credit with the FHLB of approximately $624,959, subject to collateral availability. As of December 31, 2012 and 2011, FHLB advances of $425, were included in long-term debt. As of December 31, 2012 and 2011 there were no short-term advances outstanding with the FHLB.

The Company has a capital lease obligation on a banking office. The balance of the obligation was $1,735 and $1,775 as of December 31, 2012 and 2011, respectively. Assets acquired under capital lease, consisting solely of a building and leasehold improvements, are included in premises and equipment and are subject to depreciation.

The Company had other borrowed funds of $32 and $7 as of December 31, 2012 and 2011, respectively, consisting of demand notes issued to the United States Treasury, secured by investment securities and bearing no interest.

The Company has federal funds lines of credit with third parties amounting to $115,000, subject to funds availability. These lines are subject to cancellation without notice. The Company also has a line of credit with the Federal Reserve Bank for borrowings up to $323,153 secured by a blanket pledge of indirect consumer loans.