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Long Term Subordinated Notes
 6 Months Ended
Jun. 30, 2022
Long Term Subordinated Notes [Abstract]  
Long Term Subordinated Notes
12.
 
LONG TERM SUBORDINATED
 
NOTES
 
The table below
 
displays Holdings’
 
outstanding fixed
 
to floating rate
 
long term subordinated
 
notes.
 
Fair value
 
is
based
 
on
 
quoted
 
market
 
prices,
 
but
 
due
 
to
 
limited
 
trading
 
activity,
 
these
 
subordinated
 
notes
 
are
 
considered
Level 2 in the fair value hierarchy.
Maturity Date
June 30, 2022
December 31, 2021
Original
Consolidated Balance
Fair
Consolidated Balance
Fair
(Dollars in thousands)
Date Issued
Principal Amount
Scheduled
Final
Sheet Amount
Value
Sheet Amount
Value
Long term subordinated notes
4/26/2007
$
400,000
5/15/2037
5/1/2067
$
223,824
$
189,012
$
223,774
$
216,289
During the fixed
 
rate interest
 
period from
May 3, 2007
 
through
May 14, 2017
, interest
 
was at the
 
annual rate
 
of
6.6
%, payable semi-annually in arrears
 
on November 15 and May 15 of each year,
 
commencing on
November 15,
2007
.
 
During the floating rate
 
interest period from
 
May 15, 2017 through
 
maturity,
 
interest will be based
 
on the
3
 
month
 
LIBOR
 
plus
238.5
 
basis
 
points,
 
reset
 
quarterly,
 
payable
 
quarterly
 
in
 
arrears
 
on
 
February
 
15,
 
May
 
15,
August 15
 
and November
 
15 of
 
each year,
 
subject to
 
Holdings’ right
 
to defer
 
interest
 
on
one
 
or more
 
occasions
for up
 
to
ten
 
consecutive
 
years.
 
Deferred
 
interest
 
will accumulate
 
interest
 
at the
 
applicable rate
 
compounded
quarterly
 
for
 
periods
 
from
 
and
 
including
 
May
 
15,
 
2017.
 
The
 
reset
 
quarterly
 
interest
 
rate
 
for
 
May
 
16,
 
2022
 
to
August 14, 2022 is
3.80
%.
 
Holdings may redeem
 
the long term subordinated
 
notes on or after
 
May 15, 2017, in
 
whole or in part at
100
% of
the principal amount
 
plus accrued and unpaid
 
interest; however,
 
redemption on or
 
after the scheduled
 
maturity
date and
 
prior to
May 1, 2047
 
is subject
 
to a
 
replacement
 
capital covenant.
 
This covenant
 
is for
 
the benefit
 
of
certain
 
senior
 
note
 
holders
 
and
 
it
 
mandates
 
that
 
Holdings
 
receive
 
proceeds
 
from
 
the
 
sale
 
of
 
another
subordinated
 
debt issue,
 
of at
 
least similar
 
size, before
 
it may
 
redeem the
 
subordinated
 
notes.
 
The Company’s
4.868
% senior notes,
 
due on
June 1, 2044
,
3.5
% senior noted
 
due on
October 15, 2050
 
and
3.125
% senior notes
due
 
on
October 15, 2052
 
are
 
the
 
Company’s
 
long
 
term
 
indebtedness
 
that
 
rank
 
senior
 
to
 
the
 
long
 
term
subordinated notes.
 
On March
 
19, 2009,
 
Group
 
announced the
 
commencement
 
of a
 
cash tender
 
offer
 
for
 
any
 
and all
 
of the
6.60
%
fixed
 
to
 
floating
 
rate
 
long
 
term
 
subordinated
 
notes.
 
Upon
 
expiration
 
of
 
the
 
tender
 
offer,
 
the
 
Company
 
had
reduced its
 
outstanding debt
 
by $
161.4
 
million.
 
In addition, during
 
2020, the Company
 
repurchased and
 
retired
$
13.2
 
million of the notes.
 
Interest
 
expense
 
incurred
 
in
 
connection
 
with
 
these
 
long
 
term
 
subordinated
 
notes
 
is
 
as follows
 
for
 
the
 
periods
indicated:
Three Months Ended
Six Months Ended
June 30,
June 30,
(Dollars in thousands)
2022
2021
2022
2021
Interest expense incurred
$
1,927
$
1,460
$
3,458
$
2,922