Long-Term Debt and Other Borrowed Funds

12 Months Ended

Dec. 31, 2013

LONG-TERM DEBT AND OTHER BORROWED FUNDS

A summary of long-term debt follows:



December 31,	2013		2012
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 2.24% at December 31, 2013)	15,000		15,000
4.86% note payable to FHLB, maturing October 31, 2015	225		425
8.00% capital lease obligation with term ending October 25, 2029	1,692		1,735
Total long-term debt	$	36,917	$	37,160



Maturities of long-term debt at December 31, 2013 are as follows:
2014	$	49
2015	285
2016	65
2017	71
2018	35,077
Thereafter	1,370
Total	$	36,917

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 2.24% as of December 31, 2013. The unsecured subordinated term loan qualifies as tier 2 capital under regulatory capital adequacy guidelines.

The note payable to FHLB is 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 $683,011, subject to collateral availability. As of December 31, 2013 and 2012, FHLB advances of $225 and $425, respectively, were included in long-term debt. As of December 31, 2013 and 2012 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 $1,692 and $1,735 as of December 31, 2013 and 2012, 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 $3 and $32 as of December 31, 2013 and 2012, 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 $348,984 secured by a blanket pledge of indirect consumer loans.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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