SUBORDINATED DEFERRABLE INTEREST DEBENTURES

12 Months Ended

Dec. 31, 2023

SUBORDINATED DEFERRABLE INTEREST DEBENTURES

Through formation and various acquisitions, the Company has assumed subordinated deferrable interest debenture obligations related to trusts that issued trust preferred securities. Under applicable accounting standards, the assets and liabilities of such trusts, as well as the related income and expenses, are excluded from the Company’s consolidated financial statements. However, the subordinated deferrable interest debentures issued by the Company and purchased by the trusts remain on the consolidated balance sheets. The Company's investment in the common stock of the trusts is included in other assets and totaled $4.7 million at December 31, 2023 and 2022. In addition, the related interest expense continues to be included in the consolidated statements of income. For regulatory capital purposes, the trust preferred securities qualify as a component of Tier 2 Capital. At any interest payment date, the Company may redeem the debentures at par and thereby cause a redemption of the trust preferred securities in whole or in part.

The following table summarizes the terms of the Company's outstanding subordinated deferrable interest debentures as of December 31, 2023:


							December 31, 2023
(dollars in thousands) Name of Trust	Issuance Date	Rate(1)	Rate at December 31, 2023	Maturity Date	Issuance Amount		Unaccreted Purchase Discount		Carrying Value
Prosperity Bank Statutory Trust II	March 2003	3-month SOFR plus 3.15%	8.77%	March 26, 2033	$	4,640	$	732	$	3,908
Fidelity Southern Statutory Trust I	June 2003	3-month SOFR plus 3.10%	8.72%	June 26, 2033	15,464		933		14,531
Coastal Bankshares Statutory Trust I	August 2003	3-month SOFR plus 3.15%	8.81%	October 7, 2033	5,155		755		4,400
Jacksonville Statutory Trust I	June 2004	3-month SOFR plus 2.63%	8.27%	June 17, 2034	4,124		630		3,494
Prosperity Banking Capital Trust I	June 2004	3-month SOFR plus 2.57%	8.16%	June 30, 2034	5,155		1,074		4,081
Merchants & Southern Statutory Trust I	March 2005	3-month SOFR plus 1.90%	7.54%	March 17, 2035	3,093		710		2,383
Fidelity Southern Statutory Trust II	March 2005	3-month SOFR plus 1.89%	7.53%	March 17, 2035	10,310		1,616		8,694
Atlantic BancGroup, Inc. Statutory Trust I	September 2005	3-month SOFR plus 1.50%	7.15%	September 15, 2035	3,093		906		2,187
Coastal Bankshares Statutory Trust II	December 2005	3-month SOFR plus 1.60%	7.25%	December 15, 2035	10,310		2,739		7,571
Cherokee Statutory Trust I	November 2005	3-month SOFR plus 1.50%	7.15%	December 15, 2035	3,093		548		2,545
Prosperity Bank Statutory Trust III	January 2006	3-month SOFR plus 1.60%	7.25%	March 15, 2036	10,310		3,057		7,253
Merchants & Southern Statutory Trust II	March 2006	3-month SOFR plus 1.50%	7.15%	June 15, 2036	3,093		840		2,253
Jacksonville Statutory Trust II	December 2006	3-month SOFR plus 1.73%	7.38%	December 15, 2036	3,093		758		2,335
Ameris Statutory Trust I	December 2006	3-month SOFR plus 1.63%	7.28%	December 15, 2036	37,114		—		37,114
Fidelity Southern Statutory Trust III	August 2007	3-month SOFR plus 1.40%	7.05%	September 15, 2037	20,619		4,549		16,070
Prosperity Bank Statutory Trust IV	September 2007	3-month SOFR plus 1.54%	7.19%	December 15, 2037	7,940		3,403		4,537
Jacksonville Bancorp, Inc. Statutory Trust III	June 2008	3-month SOFR plus 3.75%	9.40%	September 15, 2038	7,784		825		6,959
Total					$	154,390	$	24,075	$	130,315

(1) Rate transitioned to 3-month term SOFR plus a comparable tenor spread adjustment beginning after July 1, 2023 as 3-month LIBOR ceased to be published effective July 1, 2023.