Junior Subordinated Debentures

6 Months Ended

Jun. 30, 2011

Junior Subordinated Debentures

9. Junior Subordinated Debentures

At December 31, 2010, the Company had four subsidiary grantor trusts for the purpose of issuing Trust Preferred Securities (“TPS”) and common securities. The common securities were purchased by the Company, and the Company’s investment in the common securities of $2.1 million was included in accrued interest and other assets in the accompanying December 31, 2010 condensed consolidated balance sheet.  The weighted average interest rate of all TPS was 2.83% at December 31, 2010.  The Debentures were issued with substantially the same terms as the TPS and were the sole assets of the related trusts.  The Company’s obligations under the Debentures and related agreements, taken together, constituted a full irrevocable guarantee by the Company of the obligations of the trusts.  As of December 31, 2010 the Company had $68.6 million of Debentures and approximately $3.9 million of related accrued interest payable.

In January 2011, the TPS, Debentures and all related accrued interest were retired in connection with the completion of the Capital Raise (see Note 2).