13. SUBORDINATED DEBT

In December 2020, the Company issued $100.0 million in aggregate principal amount of fixed-to-floating subordinated notes (the “2020 Notes”) to certain institutional investors. The 2020 Notes were non-callable for five years, had a stated maturity of December 22, 2030, and had a fixed interest rate of 3.50 percent until December 22, 2025. After December 23, 2025, the interest rate would have reset quarterly to a level equal to the then current three-month SOFR plus 326 basis points, payable quarterly in arrears. The Company fully redeemed the 2020 Notes plus $1.2 million in unpaid interest on March 2, 2026. The remaining net issuance costs of $938,000 were written off during the quarter ended March 31, 2026.