Subordinated Debt

9 Months Ended

Sep. 30, 2011

Subordinated Debt

Subordinated Debt

12) Subordinated Debt

        In November 2009, the Company announced that it was exercising its right to defer regularly scheduled interest payments on its $23,702,000 of junior subordinated notes relating to its trust preferred securities. From the time it deferred interest payments, the Company accrued the expense of each deferred interest payment at the normal rate on a compounded basis. On June 24, 2011, the Company paid all of the deferred interest payments on its outstanding trust preferred subordinated debt securities in the amount of $3,884,000, which includes all payments due through September 8, 2011. As a result of the interest payment, the Company is current with respect to interest accrued on trust preferred subordinated debt securities.