Deposits and Borrowings |
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| Deposits and Borrowings | Note 6— Deposits and Borrowings The following tables show the components of the Company’s funding sources.
The Company obtains certain deposits through the efforts of third-party brokers. Brokered deposits totaled $301.9 million and $276.4 million at June 30, 2025 and December 31, 2024, respectively, and were included primarily in time deposits on the Company’s Consolidated Balance Sheets. At June 30, 2025, there were no depositors that represented 5% or more of the Company’s total deposits.
The Company completed a private placement of a $25.0 million fixed-to-floating subordinated note on June 15, 2022. Subject to limited exceptions permitting earlier redemption, the note is callable, in whole or in part, commencing July 1, 2027. Unless redeemed earlier, the note will mature on July 1, 2032. The note bears interest at a fixed rate of 5.25% to but excluding July 1, 2027, and will bear interest at a floating rate equal to the three-month plus 245 basis points thereafter. The note is carried at its principal amount, less unamortized issuance costs. The Company, from time to time, uses Federal Home Loan Bank of Atlanta (“FHLB”) advances as a source of funding and to manage interest rate risk. FHLB advances are secured by a blanket floating lien on all real estate mortgage loans secured by 1-to-4 family residential, multi-family and commercial real estate properties. On September 3, 2024, the Company took out three fixed interest rate advances with terms of 18, 24, and 36 months. The interest rates on the advances range from 3.91% to 4.14%. At June 30, 2025, these three outstanding FHLB advances totaled $56.0 million. Available borrowing capacity based on collateral value amounted to approximately $416.2 million as of June 30, 2025. The Company also has the capacity to borrow up to $113.9 million at the Federal Reserve discount window of which none had been drawn upon at June 30, 2025. The Bank had loans pledged at the Federal Reserve discount window totaling $148.5 million as of June 30, 2025. The Company also has federal funds lines of credit with correspondent banks available for overnight borrowing of $93.5 million as of June 30, 2025. The Company had drawn $16.5 million of the federal funds lines of credit as of June 30, 2025. The following table shows the carrying amount of the Company’s time deposits by contractual maturity as of June 30, 2025.
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