CASH 2017 Annual Report

28 The Company completed the public offering of $75 million of 5.75% fixed-to-floating rate subordinated debentures during fiscal year 2016. These notes are due August 15, 2026. The subordinated debentures were sold at par, resulting in net proceeds of approximately $73.9 million. At September 30, 2017, $73.3 million in subordinated debentures, net of issuance costs of $1.7 million, were outstanding. On July 16, 2001, the Company issued all of the 10,310 authorized shares of CompanyObligatedMandatorily Redeemable Preferred Securities of First Midwest Financial Capital Trust I (preferred securities of subsidiary trust) holding solely trust preferred securities. Distributions are paid semi annually. Cumulative cash distributions are calculated at a variable rate of the London Interbank Offered Rate (“LIBOR”) plus 3.75%, not to exceed 12.5%. The Company may, at one or more times, defer interest payments on the capital securities for up to 10 consecutive semi-annual periods, but not beyond July 25, 2031. At the end of any deferral period, all accumulated and unpaid distributions must be paid. The capital securities are required to be redeemed on July 25, 2031; however, the Company has a semi annual option to shorten the maturity date. The option has not been exercised as of the date of this filing. The redemption price is $1,000 per capital security plus any accrued and unpaid distributions to the date of redemption. Holders of the capital securities have no voting rights, are unsecured, and rank junior in priority of payment to all of the Company’s indebtedness and senior to the Company’s common stock. The trust preferred securities have been includable in the Company’s capital calculations since they were issued. The preferential capital treatment of the Company’s trust preferred securities was grandfathered under recent banking legislation. From time to time, the Company has offered retail repurchase agreements to its customers. These agreements typically range from 14 days to five years in term, and typically have been offered in minimum amounts of $100,000. The proceeds of these transactions are used to meet cash flow needs of the Company. At September 30, 2017, the Company had $2.5 million of retail repurchase agreements outstanding. The Company had three capital leases as of September 30, 2017, two equipment leases and one property lease. At September 30, 2017, the portion of the liability expected to be expensed and amortized over the next 12 months is approximately $62,000, while the portion of the liability expected to be expensed and amortized beyond 12 months is $1.9 million. The majority of the $1.9 million liability is related to the Urbandale, Iowa retail branch locatio n. The following table sets forth the maximummonth-end balance and average balance of FHLB advances, retail and reverse repurchase agreements, trust preferred securities, subordinated debentures, capital leases, and overnight fed funds purchased for the periods indicated. September 30, 2017 2016 2015 (Dollars in Thousands) Maximum Balance: FHLB advances $ 415,000 $ 107,000 $ 7,000 Repurchase agreements 3,782 3,468 17,400 Trust preferred securities 10,310 10,310 10,310 Subordinated debentures 73,347 73,211 — Capital leases 2,012 2,137 2,247 Other overnight borrowings 20,000 — — Overnight fed funds purchased 987,000 992,000 540,000 Average Balance: FHLB advances $ 52,956 $ 61,454 $ 7,000 Repurchase agreements 2,225 2,179 10,884 Trust preferred securities 10,310 10,310 10,310 Subordinated debentures 73,273 9,437 — Capital leases 1,979 2,086 1,993 Other overnight borrowings 1,425 — — Overnight fed funds purchased 259,378 339,035 234,025