Long-term Debt

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Long-term Debt

Long-term Debt

Long-term debt consisted of the following (in thousands):

	September 30, 2020		December 31, 2019		Issue Date	Stated Maturity Date	Earliest Call Date	Interest Rate
Obligations of the Bank and its Subsidiaries:
2026 subordinated debentures	$	15,000	$	—	2016	2026	2021	5.875% through August 2021, 3-month LIBOR plus 4.70% thereafter
	$	15,000	$	—
Obligations of the Holding Company:
2022 senior debentures	$	50,000	$	50,000	2015	2022	2020	5.000% through August 13, 2020, 3-month LIBOR plus 3.814% thereafter
2027 senior debentures	35,000		35,000		2015	2027	2025	5.500% through August 13, 2025, 3-month LIBOR plus 3.71% thereafter
2030 senior debentures	100,000		—		2020	2030	2025	5.00% through June 15, 2025, 3-month SOFR plus 4.87% thereafter
Total senior debentures	185,000		85,000
2028 subordinated debentures	100,000		100,000		2018	2028	2023	4.500% through January 30, 2023, 3-month LIBOR plus 2.12% thereafter
2025 subordinated debentures	11,250		11,250		2015	2025	2020	6.250%
Total subordinated debentures	111,250		111,250
Southern Bancorp Capital Trust I	4,382		4,382		2004	2034	2009	Prime plus 1.00%
Tidelands Statutory Trust I	8,248		8,248		2006	2036	2011	3-month LIBOR plus 1.38%
Four Oaks Statutory Trust I	12,372		12,372		2006	2036	2011	3-month LIBOR plus 1.35%
Total trust preferred securities	25,002		25,002
Less discount	(9,549)		(8,588)
Total long-term debt	$	326,703	$	212,664

Interest is currently paid at least semiannually for all senior and subordinated debentures and trust preferred securities.

Senior Debentures

During the second quarter of 2020, United issued the 2030 senior debentures. The 2030 senior debentures are redeemable, in whole or in part, on any interest payment date on or after June 15, 2025 at a redemption price equal to 100% of the principal amount to be redeemed plus any accrued and unpaid interest, and will mature on June 15, 2030 if not redeemed prior to that date.

The 2022 senior debentures are redeemable, in whole or in part, on or after August 14, 2020 at a redemption price equal to 100% of the principal amount to be redeemed plus any accrued and unpaid interest, and will mature on February 14, 2022 if not redeemed prior to that date.

The 2027 senior debentures are redeemable, in whole or in part, on or after August 14, 2025 at a redemption price equal to 100% of the principal amount to be redeemed plus any accrued and unpaid interest, and will mature on February 14, 2027 if not redeemed prior to that date.

Subordinated Debentures

The Bank assumed, as part of the Three Shores acquisition, $15.0 million aggregate principal amount of subordinated debentures (the “2026 subordinated debentures”). The 2026 subordinated debentures are redeemable by the issuer, in whole or in part, on or after September 1, 2021 at a redemption price equal to 100% of the principal amount to be redeemed, plus accrued but unpaid interest, and will mature on September 1, 2026.

The 2025 subordinated debentures are due on November 30, 2025, but United may prepay the notes at any time after November 30, 2020, subject to compliance with applicable laws.

The subordinated debentures qualify as Tier 2 regulatory capital.

Trust Preferred Securities

Beginning in the third quarter of 2020, trust preferred securities qualify as Tier 2 capital for United under risk based capital guidelines, subject to certain limitations. Prior to that date, trust preferred securities qualified as Tier 1 capital. The trust preferred securities are mandatorily redeemable upon maturity, or upon earlier redemption as provided in the indentures governing such securities.