Town and Country Financial Corporation and Subsidiaries Notes to Consolidated Financial Statements Note 9.
Subordinated Debentures and Junior Subordinated Debt Issued to Trusts (Continued)
In the event of certain changes or amendments to regulatory requirements or federal tax rates, the debt is redeemable in whole. The obligations under these instruments are fully and unconditionally guaranteed by Town and Country Financial Corporation and rank subordinate and junior in right of payment to all other liabilities of the Company. The Trust preferred securities qualify as Tier 1 Capital for the Company, subject to certain limitations, with the excess being included in total capital for regulatory purposes.
Note 10.
Other Borrowings
The Company's subsidiary banks had $25,522,600 and $27,406,921 in secured advances from Federal Home Loan Bank of Chicago at December 31, 2007 and 2006, respectively. Interest is payable monthly at rates ranging from 3.23 to 6.26 %. The advances are secured by the Federal Home Loan Bank of Chicago stock, approximately $22,491,000 of qualifying first mortgage loans and approximately $2,186,000 of securities. The Company's subsidiary banks had $272,747 and $475,904 in demand notes from the U.S. Treasury at December 31, 2007 and 2006, respectively. Interest is payable monthly at 25 basis points below the federal funds rate (3.06% at December 31, 2007 and 5.17% at December 31, 2006). The notes are secured by investment securities. Borrowings at December 31, 2007 and 2006 have maturity dates as follows: Maturity Year Ending December 31,
2007
2007 2008 2009 2010 2011 Thereafter
Note 11.
2006
$
5,045,347 1,000,000 7,250,000 8,500,000 4,000,000
$
6,475,904 5,906,921 2,000,000 11,500,000 2,000,000
$
25,795,347
$
27,882,825
Income Taxes
Income taxes consist of:
Federal and state: Current Deferred
2007
Years Ended December 31, 2006
2005
$
1,005,264 (12,764)
$
677,465 (343,703)
$
728,790 (334,090)
$
992,500
$
333,762
$
394,700
28