Subordinated Debentures

At March 31, 2017, the Company had nine wholly owned subsidiary grantor trusts that had issued $126.0 million of pooled trust preferred securities. Trust preferred securities accrue and pay distributions periodically at specified annual rates as provided in the indentures. The trusts used the net proceeds from the offering to purchase a like amount of subordinated debentures (the “Debentures”). The Debentures are the sole assets of the trusts. The Company’s obligations under the subordinated debentures and related documents, taken together, constitute a full and unconditional guarantee by the Company of the obligations of the trusts. The trust preferred securities are mandatorily redeemable upon the maturity of the Debentures, or upon earlier redemption as provided in the indentures. The Company now has the right to redeem the Debentures in whole (but not in part) on a quarterly basis at a redemption price specified in the indentures plus any accrued but unpaid interest to the redemption date. The Company also has a right to defer consecutive payments of interest on the debentures for up to five years.

The following table is a summary of trust preferred securities and Debentures at March 31, 2017:



Issuance Trust	Issuance Date	Trust Preferred Security Amount		Carrying Value of Subordinated Debentures		Rate Type	Current Rate	Maturity Date
		(Dollars in thousands)
Nara Capital Trust III	06/05/2003	$	5,000	$	5,155	Variable	4.28%	06/15/2033
Nara Statutory Trust IV	12/22/2003	5,000		5,155		Variable	3.87%	01/07/2034
Nara Statutory Trust V	12/17/2003	10,000		10,310		Variable	4.10%	12/17/2033
Nara Statutory Trust VI	03/22/2007	8,000		8,248		Variable	2.78%	06/15/2037
Center Capital Trust I	12/30/2003	18,000		13,684		Variable	3.87%	01/07/2034
Wilshire Statutory Trust II	03/17/2005	20,000		15,158		Variable	2.94%	03/17/2035
Wilshire Statutory Trust III	09/15/2005	15,000		10,635		Variable	2.53%	09/15/2035
Wilshire Statutory Trust IV	07/10/2007	25,000		17,275		Variable	2.51%	09/15/2037
Saehan Capital Trust I	03/30/2007	20,000		14,447		Variable	2.77%	06/30/2037
Total		$	126,000	$	100,067

The Company’s investment in the common trust securities of the issuer trusts was $3.9 million at March 31, 2017 and is included in other assets. Although the subordinated debt issued by the trusts are not included as a component of stockholders’ equity in the consolidated balance sheets, the debt is treated as capital for regulatory purposes. The trust preferred security debt issuances are includable in Tier I capital up to a maximum of 25% of capital on an aggregate basis. Any amount that exceeds 25% qualifies as Tier 2 capital.