v3.25.4
Debt
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Debt Debt
FHLB advances:
The following is a breakdown of our FHLB advances and other borrowings outstanding as of December 31,:
20252024
AmountWeighted
Average
Rate		AmountWeighted
Average
Rate
Variable rate line-of-credit advance$— N/A$— N/A
Fixed rate term advance$— N/A$135,000 4.60%
$— $135,000 
Our FHLB advances are typically considered short-term borrowings with maturities less than one year and are used to manage liquidity as needed. Maturing advances are replaced by drawing on available cash, making additional borrowings, or through increased customer deposits. The advances were collateralized by $2,761,116 and $2,733,150 of loans pledged to the FHLB as of December 31, 2025 and 2024, respectively.
As of December 31, 2025 and 2024, the Bank had total borrowing capacity with the FHLB that is based on qualified collateral lending values of $1,491,095 and $1,669,888, respectively. Our additional borrowing availability with the FHLB at December 31, 2025 was $1,350,157. These borrowings can be in the form of additional term advances or a line-of-credit.
FRB advances:
We also had a $2,269,710 line-of-credit with the FRB. The agreement bears interest at the Fed Funds target rate and is secured by municipal, agency, mortgage-related and corporate securities. The entire line was available at December 31, 2025.
Other borrowings:
We have lines-of-credit with certain other financial institutions totaling $160,000 as of December 31, 2025. No amounts were drawn on these lines-of-credit in 2025.
Subordinated Debt:
Subordinated Notes - 2020:
In June and August 2020, we issued a total of $40,000 subordinated notes. The notes pay interest at a fixed rate of 6.00% through June 30, 2025 and subsequently, until maturity, pay interest at a floating rate of three-month term SOFR plus 5.89% (10.18% as of September 30, 2025) reset quarterly. Interest is payable on July 1 and January 1 of each year. Such notes are due on July 1, 2030, but were redeemed in full on October 1, 2025.
We incurred and capitalized $933 of costs related to the issuance of the subordinated notes. As of and for the years ended December 31, 2025, 2024 and 2023, the amortization associated with the debt issuance costs totaled $514, $93 and $93, respectively.
Subordinated Note - 2022:
On January 13, 2022, we issued a subordinated note totaling $25,000. The note pays interest at a fixed rate of 3.375% through January 15, 2027 and subsequently, until maturity, pay interest at a floating rate of three-month term SOFR plus 2.03% reset quarterly. Interest is payable on July 15 and January 15 of each year. Such note is due on January 15, 2032. The note is not redeemable within the first five years of issuance, except under certain very limited conditions. After five years, we may redeem the note at our discretion.
We incurred and capitalized $534 of costs related to the issuance of the subordinated note. As of and for the years ended December 31, 2025, 2024 2023, the amortization associated with the debt issuance costs totaled $53 for all three years, respectively. Future amortization of the debt issuance costs is expected as follows:
2026$53 
202753 
202853 
202953 
203053 
Thereafter58 
Total future amortization$323 
Trust preferred securities:
We have issued $9,279 in trust preferred securities through a special-purpose trust, New Mexico Banquest Capital Trust I (“NMBCT I”). In addition, we have issued $4,640 in trust preferred securities through a special purpose trust, New Mexico Banquest Capital Trust II (“NMBCT II”, and together with NMBCT I, collectively referred to as “NMBCT Trusts”). Interest is payable quarterly at a rate of three-month LIBOR (which was amended to three-month term SOFR as of June 30, 2023) plus 3.35% (7.30% and 7.94% as of December 31, 2025 and 2024, respectively) for the trust preferred securities issued through NMBCT I and at a rate of three-month LIBOR (which was amended to three-month term SOFR as of June 30, 2023) plus 2.00% (6.14% and 6.78% as of December 31, 2025 and 2024, respectively) for the trust preferred securities issued through NMBCT II.
This subordinated debt of $13,919 was originally recorded at a discount of $4,293. As of and for the years ended December 31, 2025, 2024 and 2023, accretion associated with the fair value discount totaled $272, $383 and $286, respectively. Future accretion of the valuation discount is expected as follows:
2026$241 
2027246 
2028241 
2029240 
2030249 
Thereafter699 
Total future accretion$1,916 
The Parent Company fully and unconditionally guarantees the obligations of the NMBCT Trusts on a subordinated basis. The trust preferred securities issued through the NMBCT Trusts are mandatorily redeemable upon the maturity of the debentures on December 19, 2032 and November 23, 2034, respectively, and are optionally redeemable, in part or in whole, by the Parent Company at each quarterly interest payment date. The Parent Company owns all of the outstanding common securities of the NMBCT Trusts, which have an aggregate liquidation valuation amount of $419 and is recorded in prepaid expenses and other assets on the consolidated balance sheet. The NMBCT Trusts are considered variable interest entities. Since the Parent Company is not the primary beneficiary of the NMBCT Trusts, the financial statements of the NMBCT Trusts are not included in our consolidated financial statements.