v3.26.1
DEBT
 3 Months Ended
Mar. 31, 2026
Debt Disclosure [Abstract]  
DEBT DEBT
Senior Debt
Effective December 6, 2024, the Company entered into a credit agreement (the "Credit Agreement") with BMO Bank, N.A. As amended to date, the Credit Agreement provides for borrowings up to $300.0 million or 75% of the Company’s net loans, whichever is less, subject to certain limitations. All borrowings under the Credit Agreement are secured by loans of the Company. Available borrowings under the Credit Agreement were
$102.7 million and $79.3 million at March 31, 2026 and December 31, 2025, at interest rates of 6.67% and 6.87%, respectively. Outstanding borrowings on the Credit Agreement were $197.3 million and $220.7 million at March 31, 2026 and December 31, 2025, respectively. The Credit Agreement contains covenants customary for financing transactions of this type. The Company is required, under the Credit Agreement, to report on its performance as it relates to the covenants contained therein. The Credit Agreement has a commitment termination date of December 6, 2027.
Available but unborrowed amounts under the Credit Agreement are subject to a periodic unused line fee of 0.50%, based on the outstanding balance of the credit line. The interest rate under the Credit Agreement is equivalent to the greater of (a) 0.75% per annum plus the Applicable Margin or (b) the one month secured overnight financing rate (the “SOFR Rate”) plus the term SOFR adjustment (the "Adjusted Term SOFR Rate") plus the Applicable Margin. The Adjusted Term SOFR Rate is adjusted on the first day of each calendar month based upon the SOFR Rate as of the last day of the preceding calendar month. The Applicable Margin is 3.00%. The interest rate on the Credit Agreement at March 31, 2026 and December 31, 2025 was 6.67% and 6.87%, respectively.
The Company has two lines of credit available from its subsidiaries. Frandisco Property and Casualty advanced $30.0 million to 1FFC on its credit line in August 2023 and advanced an additional $15.0 million in October 2025. Frandisco Life Insurance Company advanced $5.0 million to the Company on its credit line in October 2025. The outstanding balance on the lines of credit, including accrued interest, was $53.3 million with Frandisco Property and Casualty Insurance Company and $5.3 million with Frandisco Life Insurance Company as of March 31, 2026, respectively. Outstanding balances related to credit lines with the Frandiscos are eliminated upon consolidation.
The Company’s Senior Demand Notes are unsecured obligations which are payable on demand. The interest rate payable on any Senior Demand Note is a variable rate, compounded daily, established from time to time by the Company.
Commercial paper is issued by the Company only to qualified investors, in amounts in excess of $50,000, with maturities of less than 260 days and at interest rates the Company believes are competitive in the marketplace. Additional data related to the Company's senior debt is as follows (in thousands, except % data):
As of March 31, 2026Weighted
Average
Interest
Rate
Average
Amount
Outstanding
During Period
Bank Borrowings6.68 %$204,914 
Senior Demand Notes1.87 92,078 
Commercial Paper5.41 760,526 
As of December 31, 2025Weighted
Average
Interest
Rate		Average
Amount
Outstanding
During Year
Bank Borrowings7.32 %$162,651 
Senior Demand Notes1.90 91,240 
Commercial Paper5.70 742,787 

Subordinated Debt
The payment of the principal and interest on the Company’s subordinated debt is subordinate and junior to all unsubordinated indebtedness of the Company.
Subordinated debt consists of variable rate subordinated debentures issued by the Company, which mature four years after the date of issue. The maturity date is automatically extended for an additional four year term unless the holder or the Company redeems the debenture on its original maturity date or within any applicable grace period thereafter. The debentures are offered and sold in various minimum purchase amounts with varying
interest rates with interest adjustment periods for each respective minimum purchase amount. Interest rates on the debentures automatically adjust at the end of each adjustment period. The debentures may also be redeemed by the holder at the applicable interest adjustment date or within any applicable grace period thereafter without penalty.
Redemptions at any other time are at the discretion of the Company and subject to a penalty. The Company may redeem the debentures for a price equal to 100% of the principal plus accrued but unpaid interest upon 30 days’ notice to the holder.
Additional data related to the Company's subordinated debt is as follows (in thousands, except % data):
Weighted
Average
Interest
Rate
Average
Amount
Outstanding
During Period
As of March 31, 20264.88 %$35,053 
As of December 31, 20254.99 33,759