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Subordinated Debentures | 12 Months Ended
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Dec. 31, 2020
Subordinated Borrowings [Abstract] |
Subordinated Debentures | SUBORDINATED DEBENTURES The amounts and terms of each issuance of the Company’s subordinated debentures at December 31, 2020 and 2019 were as follows:
| Amount |  | Maturity Date |  | Initial Call Date (1) |  | Interest Rate
($ in thousands) | 2020 |  | 2019
EFSC Clayco Statutory Trust I | $ | 3,196 |  |  | $ | 3,196 |  |  | December 17, 2033 |  | December 17, 2008 |  | Floats @ 3MO LIBOR + 2.85%
EFSC Capital Trust II | 5,155 |  |  | 5,155 |  |  | June 17, 2034 |  | June 17, 2009 |  | Floats @ 3MO LIBOR + 2.65%
EFSC Statutory Trust III | 11,341 |  |  | 11,341 |  |  | December 15, 2034 |  | December 15, 2009 |  | Floats @ 3MO LIBOR + 1.97%
EFSC Clayco Statutory Trust II | 4,124 |  |  | 4,124 |  |  | September 15, 2035 |  | September 15, 2010 |  | Floats @ 3MO LIBOR + 1.83%
EFSC Statutory Trust IV | 10,310 |  |  | 10,310 |  |  | December 15, 2035 |  | December 15, 2010 |  | Floats @ 3MO LIBOR + 1.44%
EFSC Statutory Trust V | 4,124 |  |  | 4,124 |  |  | September 15, 2036 |  | September 15, 2011 |  | Floats @ 3MO LIBOR + 1.60%
EFSC Capital Trust VI | 14,433 |  |  | 14,433 |  |  | March 30, 2037 |  | March 30, 2012 |  | Floats @ 3MO LIBOR + 1.60%
EFSC Capital Trust VII | 4,124 |  |  | 4,124 |  |  | December 15, 2037 |  | December 15, 2012 |  | Floats @ 3MO LIBOR + 2.25%
JEFFCO Stat Trust I (2) | 7,752 |  |  | 7,886 |  |  | February 22, 2031 |  | February 22, 2011 |  | Fixed @ 10.20%
JEFFCO Stat Trust II (2) | 4,443 |  |  | 4,388 |  |  | March 17, 2034 |  | March 17, 2009 |  | Floats @ 3MO LIBOR + 2.75%
Trinity Capital Trust III (2) | 5,272 |  |  | 5,206 |  |  | September 8, 2034 |  | September 8, 2009 |  | Floats @ 3MO LIBOR + 2.70%
Trinity Capital Trust IV | 10,310 |  |  | 10,302 |  |  | November 23, 2035 |  | August 23, 2010 |  | Fixed @ 6.88%
Trinity Capital Trust V (2) | 7,706 |  |  | 7,543 |  |  | December 15, 2036 |  | September 15, 2011 |  | Floats @ 3MO LIBOR + 1.65%
Total junior subordinated debentures | 92,290 |  |  | 92,132 |  |  |  |  |  |  |
5.75% Fixed-to-floating rate subordinated notes | 63,250 |  |  | — |  |  | June 1, 2030 |  | June 1, 2025 |  | Fixed @ 5.75% until June 1, 2025, then floats @ Benchmark rate (3 month term SOFR) + 5.66%
4.75% Fixed-to-floating rate subordinated notes | 50,000 |  |  | 50,000 |  |  | November 1, 2026 |  | November 1, 2021 |  | Fixed @ 4.75% until November 1, 2021, then floats @ 3MO LIBOR + 3.387%
Debt issuance costs | (1,903) |  |  | (874) |  |  |  |  |  |  |
Total fixed-to-floating rate subordinated notes | 111,347 |  |  | 49,126 |  |  |  |  |  |  |
Total subordinated debentures and notes | $ | 203,637 |  |  | $ | 141,258 |  |  |  |  |  |  |
(1) Callable each quarter after initial call date. |  |
(2) Purchase accounting adjustments are reflected in the balance and also impact the effective interest rate.
The Company has 13 unconsolidated statutory business trusts. These trusts issued preferred securities that were sold to third parties. The sole purpose of the trusts was to invest the proceeds in junior subordinated debentures of the Company that have terms identical to the trust preferred securities. The subordinated debentures, which are the sole assets of the trusts, are subordinate and junior in right of payment to all present and future senior and subordinated indebtedness and certain other financial conditions of the Company. The Company fully and unconditionally guarantees each trust’s securities obligations. Under current regulations, the trust preferred securities are included in tier 1 capital for regulatory capital purposes, subject to certain limitations. The trust preferred securities are redeemable in whole or in part on or after their respective call dates. Mandatory redemption dates may be shortened if certain conditions are met. The securities are classified as subordinated debentures in the Company’s consolidated balance sheets. Interest on the subordinated debentures held by the trusts is recorded as interest expense in the Company’s consolidated statements of operations. The Company’s investment of $2.9 million at December 31, 2020, in these trusts is included in other investments in the consolidated balance sheets. The Company has fixed the interest rate on a portion of its junior subordinated debentures through a series of interest rate swaps. For further discussion of the interest rate swaps and the corresponding terms, see “Note 7 - Derivative Financial Instruments.” On November 1, 2016, the Company issued $50 million of fixed-to-floating rate subordinated notes. The notes initially bear a fixed annual interest rate of 4.75%, with interest payable semiannually in arrears on May 1 and November 1 of each year, commencing May 1, 2017. Commencing November 1, 2021, the interest rate on the notes resets quarterly to the three-month LIBOR rate plus a spread of 338.7 basis points, payable quarterly in arrears. On or after November 1, 2021, the Company will have the option to redeem the notes, in whole or in part, at a redemption price equal to 100% of the principal amount of the subordinated notes to be redeemed plus accrued interest, subject to applicable regulatory approval. The Company’s obligation to make payments of principal and interest on the notes is subordinate and junior in right of payment to all of its senior debt. Current regulatory guidance allows for this subordinated debt to be treated as tier 2 regulatory capital for the first five years of its term, subject to certain limitations, and then phased out of tier 2 capital pro rata over the next five years. On May 21, 2020, EFSC issued $63.3 million of 5.75% fixed-to-floating rate subordinated notes due in 2030 in a public offering (the “2030 Notes”). From and including the date of issuance to, but excluding, June 1, 2025, the 2030 Notes will bear interest at a rate equal to 5.75% per annum, payable semiannually in arrears on each June 1 and December 1. From and including June 1, 2025 to, but excluding, the maturity date or the date of earlier redemption, the 2030 Notes will bear interest at a floating rate per annum equal to a benchmark rate (which is expected to be three-month term SOFR (as defined in the Indenture, dated May 21, 2020, between EFSC and U.S. Bank National Association, as trustee, and subsequent First Supplemental Indenture)), plus 566.0 basis points, payable quarterly in arrears on March 1, June 1, September 1 and December 1 of each year, commencing on September 1, 2025. Notwithstanding the foregoing, in the event that the benchmark rate is less than zero, then the benchmark rate shall be deemed to be zero.

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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 -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 470 -Section 45 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6479118&loc=d3e64650-112822 + Details
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