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Subordinated Debentures and Notes | 12 Months Ended
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Dec. 31, 2023
Subordinated Borrowings [Abstract] |
Subordinated Debentures and Notes | SUBORDINATED DEBENTURES AND NOTES The following table summarizes the Company’s subordinated debentures at December 31:
| Amount |  | Maturity Date |  | Initial Call Date (1) |  | Interest Rate
($ in thousands) | 2023 |  | 2022
EFSC Clayco Statutory Trust I | $ | 3,196 |  |  | $ | 3,196 |  |  | December 17, 2033 |  | December 17, 2008 |  | Floats @ 3 month term SOFR + 2.85%
EFSC Capital Trust II | 5,155 |  |  | 5,155 |  |  | June 17, 2034 |  | June 17, 2009 |  | Floats @ 3 month term SOFR + 2.65%
EFSC Statutory Trust III | 11,341 |  |  | 11,341 |  |  | December 15, 2034 |  | December 15, 2009 |  | Floats @ 3 month term SOFR + 1.97%
EFSC Clayco Statutory Trust II | 4,124 |  |  | 4,124 |  |  | September 15, 2035 |  | September 15, 2010 |  | Floats @ 3 month term SOFR + 1.83%
EFSC Statutory Trust IV | 10,310 |  |  | 10,310 |  |  | December 15, 2035 |  | December 15, 2010 |  | Floats @ 3 month term SOFR + 1.44%
EFSC Statutory Trust V | 4,124 |  |  | 4,124 |  |  | September 15, 2036 |  | September 15, 2011 |  | Floats @ 3 month term SOFR + 1.60%
EFSC Capital Trust VI | 14,433 |  |  | 14,433 |  |  | March 30, 2037 |  | March 30, 2012 |  | Floats @ 3 month term SOFR + 1.60%
EFSC Capital Trust VII | 4,124 |  |  | 4,124 |  |  | December 15, 2037 |  | December 15, 2012 |  | Floats @ 3 month term SOFR + 2.25%
JEFFCO Stat Trust I | 7,732 |  |  | 7,732 |  |  | February 22, 2031 |  | February 22, 2011 |  | Fixed @ 10.20%
JEFFCO Stat Trust II (2) | 4,604 |  |  | 4,550 |  |  | March 17, 2034 |  | March 17, 2009 |  | Floats @ 3 month term SOFR + 2.75%
Trinity Capital Trust III (2) | 5,473 |  |  | 5,406 |  |  | September 8, 2034 |  | September 8, 2009 |  | Floats @ 3 month term SOFR + 2.70%
Trinity Capital Trust IV | 10,310 |  |  | 10,310 |  |  | November 23, 2035 |  | August 23, 2010 |  | Fixed @ 6.88%
Trinity Capital Trust V (2) | 8,195 |  |  | 8,032 |  |  | December 15, 2036 |  | September 15, 2011 |  | Floats @ 3 month term SOFR + 1.65%
Total junior subordinated debentures | 93,121 |  |  | 92,837 |  |  |  |  |  |  |
5.75% Fixed-to-floating rate subordinated notes | 63,250 |  |  | 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%
Debt issuance costs | (387) |  |  | (654) |  |  |  |  |  |  |
Total fixed-to-floating rate subordinated notes | 62,863 |  |  | 62,596 |  |  |  |  |  |  |
Total subordinated debentures and notes | $ | 155,984 |  |  | $ | 155,433 |  |  |  |  |  |  |
(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 Income. The Company’s investment in these trusts of $2.9 million at December 31, 2023 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 6 – Derivative Financial Instruments.” On November 1, 2016, the Company issued $50 million of fixed-to-floating rate subordinated notes. The notes initially bore 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. On November 1, 2021, the Company redeemed the $50.0 million of subordinated debentures at par. A loss of $0.7 million on the redemption was recognized for the write-off of unamortized debt issuance costs. 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 event that the benchmark rate is less than zero, then the benchmark rate shall be deemed to be zero. 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.

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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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