Subordinated Debentures

9 Months Ended

Sep. 30, 2020

Subordinated Borrowings [Abstract]

Subordinated Debentures

NOTE 9 - SUBORDINATED DEBENTURES AND NOTES

The following table presents the amounts and terms of each issuance of EFSC’s subordinated debentures and notes:

	Amount				Maturity Date	Initial Call Date(1)	Interest Rate
(in thousands)	September 30, 2020		December 31, 2019
EFSC Clayco Statutory Trust I	$	3,196	$	3,196	December 17, 2033	December 17, 2008	Floats @ 3MO LIBOR + 2.85%
EFSC Capital Trust II	5,155		5,155		June 17, 2034	June 17, 2009	Floats @ 3MO LIBOR + 2.65%
EFSC Statutory Trust III	11,341		11,341		December 15, 2034	December 15, 2009	Floats @ 3MO LIBOR + 1.97%
EFSC Clayco Statutory Trust II	4,124		4,124		September 15, 2035	September 15, 2010	Floats @ 3MO LIBOR + 1.83%
EFSC Statutory Trust IV	10,310		10,310		December 15, 2035	December 15, 2010	Floats @ 3MO LIBOR + 1.44%
EFSC Statutory Trust V	4,124		4,124		September 15, 2036	September 15, 2011	Floats @ 3MO LIBOR + 1.60%
EFSC Capital Trust VI	14,433		14,433		March 30, 2037	March 30, 2012	Floats @ 3MO LIBOR + 1.60%
EFSC Capital Trust VII	4,124		4,124		December 15, 2037	December 15, 2012	Floats @ 3MO LIBOR + 2.25%
JEFFCO Stat Trust I(2)	7,786		7,886		February 22, 2031	February 22, 2011	Fixed @ 10.20%
JEFFCO Stat Trust II(2)	4,429		4,388		March 17, 2034	March 17, 2009	Floats @ 3MO LIBOR + 2.75%
Trinity Capital Trust III(2)	5,256		5,206		September 8, 2034	September 8, 2009	Floats @ 3MO LIBOR + 2.70%
Trinity Capital Trust IV(2)	10,310		10,302		November 23, 2035	August 23, 2010	Fixed @ 6.88%
Trinity Capital Trust V(2)	7,665		7,543		December 15, 2036	September 15, 2011	Floats @ 3MO LIBOR + 1.65%
Total junior subordinated debentures	92,253		92,132
5.75% Fixed-to-floating rate subordinated notes	63,250		—		June 1, 2030	June 1, 2025	Fixed @ 5.75% until June 1, 2025, then floats @ Benchmark rate (3 month term SOFR) + 5.66%
4.75% Fixed-to-floating rate subordinated notes	50,000		50,000		November 1, 2026	November 1, 2021	Fixed @ 4.75% until November 1, 2021, then floats @ 3MO LIBOR + 3.387%
Debt issuance costs	(1,993)		(874)
Total fixed-to-floating rate subordinated notes	111,257		49,126
Total subordinated debentures and notes	$	203,510	$	141,258
(1) Callable each quarter after initial call date.
(2) Purchase accounting adjustments are reflected in the balance that also impact the effective interest rate.

On May 21, 2020, EFSC issued $63.3 million of 5.75% fixed-to-floating rate subordinated notes due in 2030 in a public offering (the “2030 Notes”). From and including the date of issuance to, but excluding, June 1, 2025, the 2030 Notes will bear interest at a rate equal to 5.75% per annum, payable semiannually in arrears on each June 1 and December 1. From and including June 1, 2025 to, but excluding, the maturity date or the date of earlier redemption, the 2030 Notes will bear interest at a floating rate per annum equal to a benchmark rate (which is expected to be three-month term SOFR (as defined in the Indenture, dated May 21, 2020, between EFSC and U.S. Bank National Association, as trustee, and subsequent First Supplemental Indenture)), plus 566.0 basis points, payable quarterly in arrears on March 1, June 1, September 1 and December 1 of each year, commencing on September 1, 2025. Notwithstanding the foregoing, in the event that the benchmark rate is less than zero, then the benchmark rate shall be deemed to be zero.