Note 6— Deposits and Borrowings

The following tables show the components of the Company’s funding sources.

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The Company obtains certain deposits through the efforts of third-party brokers. Brokered deposits totaled $301.9 million at March 31, 2026 and December 31, 2025, and were included primarily in time deposits on the Company’s Consolidated Balance Sheets. At March 31, 2026, there were no depositors that represented 5% or more of the Company’s total deposits.

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The following table presents the carrying value and interest rate ranges for the Company’s long-term debt as of March 31, 2026 and December 31, 2025.

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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 Secured Overnight Financing Rate 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. During the first quarter of 2026, a $15.0 million FHLB advance, carrying an interest rate of 4.14%, matured and was replaced with the FHLB advance of the same principal amount at an interest rate of 3.61%.  The interest rates on three outstanding advances range from 3.61% to 3.98%.  At March 31, 2026, these three outstanding FHLB advances totaled $56.0 million.  Available FHLB borrowing capacity based on collateral value amounted to approximately $470.6 million as of March 31, 2026.

The Company also has the capacity to borrow up to $157.5 million at the Federal Reserve discount window of which none had been drawn upon at March 31, 2026. The Bank had loans pledged at the Federal Reserve discount window totaling $189.9 million as of March 31, 2026.

The Company also has federal funds lines of credit with correspondent banks available for overnight borrowing of $110 million as of March 31, 2026. None of the federal funds lines of credit were drawn upon as of March 31, 2026.

The following table shows the carrying amount of the Company’s time deposits by contractual maturity as of March 31, 2026.

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