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Junior Subordinated Interest Deferrable Debentures | 6 Months Ended
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Jun. 30, 2023
Junior Subordinated Interest Deferrable Debentures |
Junior Subordinated Interest Deferrable Debentures | Note 8 — Junior Subordinated Interest Deferrable Debentures ​ As of June 30, 2023, we had four statutory business trusts under the laws of the State of Delaware, for the purpose of issuing trust preferred securities. The four statutory business trusts we formed (the “Trusts”) each issued capital and common securities (“Capital and Common Securities”) and invested the proceeds thereof in an equivalent amount of junior subordinated debentures (“Debentures”) that we issued. As of June 30, 2023 and December 31, 2022, the principal amount of Debentures outstanding totaled $108,868,000 and $134,642,000, respectively. On April 7, 2023, after receiving the regulatory approvals, we redeemed the full $25,000,000 of Junior Subordinated Deferrable Interest Debentures related to IB Capital Trust VIII. ​ The Debentures are subordinated and junior in right of payment to all present and future senior indebtedness (as defined in the respective Indentures) and are pari passu with one another. The interest rate payable on, and the payment terms of the Debentures are the same as the distribution rate and payment terms of the respective issues of Capital and Common Securities issued by the Trusts. We have fully and unconditionally guaranteed the obligations of each of the Trusts with respect to the Capital and Common Securities. We have the right, unless an Event of Default (as defined in the Indentures) has occurred and is continuing, to defer payment of interest on the Debentures for up to twenty consecutive quarterly periods on Trusts IX, X, XI and XII. If interest payments on any of the Debentures are deferred, distributions on both the Capital and Common Securities related to that Debenture would also be deferred. The redemption prior to maturity of any of the Debentures may require the prior approval of the Federal Reserve and/or other regulatory bodies. ​ For financial reporting purposes, the Trusts are treated as our investments and not consolidated in our consolidated financial statements. Although the Capital and Common Securities issued by each of the Trusts are not included as a component of shareholders’ equity on the consolidated statement of condition, the Capital and Common Securities are treated as capital for regulatory purposes. Specifically, under applicable regulatory guidelines, the Capital and Common Securities issued by the Trusts qualify as Tier 1 capital up to a maximum of 25% of Tier 1 capital on an aggregate basis. Any amount that exceeds the 25% threshold would qualify as Tier 2 capital. At June 30, 2023 and December 31, 2022, the total $108,868,000 and $134,642,000, respectively, of the Capital and Common Securities outstanding qualified as Tier 1 capital. ​ The following table illustrates key information about each of the Capital and Common Securities and their interest rate at June 30, 2023: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Junior |  | ​ |  | ​ | ​ | ​ |  | ​ |  | ​ |  | ​ | ​
​ | ​ | Subordinated | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Deferrable | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Interest | ​ | Repricing | ​ | Interest | ​ | Interest | ​ | ​ | ​ | Optional | ​
​ | ​ | Debentures | ​ | Frequency | ​ | Rate | ​ | Rate Index(1)(2) | ​ | Maturity Date | ​ | Redemption Date(1) | ​
​ | ​ | (Dollars in Thousands) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Trust IX | ​ | $ | 41,238 |  | Quarterly |  | 6.80 | % | LIBOR | + | 1.62 |  | October 2036 |  | October 2011 | ​
Trust X | ​ |  | 21,021 |  | Quarterly |  | 6.95 | % | LIBOR | + | 1.65 |  | February 2037 |  | February 2012 | ​
Trust XI | ​ |  | 25,990 |  | Quarterly |  | 6.80 | % | LIBOR | + | 1.62 |  | July 2037 |  | July 2012 | ​
Trust XII | ​ |  | 20,619 |  | Quarterly |  | 6.95 | % | LIBOR | + | 1.45 |  | September 2037 |  | September 2012 | ​
​ | ​ | $ | 108,868 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(1) The Capital and Common Securities may be redeemed in whole or in part on any interest payment date after the Optional Redemption Date.
(2) | The interest rate index on the Capital and Common Securities transitioned to the Secured Overnight Financing Rate (“SOFR”) effective July 1, 2023.

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- Definition The entire disclosure for borrowings under subordinated debt agreements that qualify as available in computing net capital under SEC's uniform net capital rule, including restrictive covenants, collateral, interest rates and due dates, amounts due by date and amount owed in total. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 942 -SubTopic 470 -Name Accounting Standards Codification -Section 45 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480876/942-470-45-1 + Details
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