RELATED PARTY TRANSACTIONS |
3 Months Ended |
|---|---|
Mar. 31, 2026 | |
| Related Party Transactions [Abstract] | |
| RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS 1FFC engages from time to time in transactions with related parties. Please refer to the disclosure contained in Note 12, Related Party Transactions, in the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, for additional information on related party transactions. The Company leased a portion of its properties from certain officers or stockholders (see Note 5, Leases). The remaining payments under the leases were $0.4 million at March 31, 2026. The Company has an outstanding loan to a real estate development partnership of which David Cheek (son of Ben F. Cheek, III) who beneficially owns 24.24% of the Company’s voting stock, is a partner. The balance on this commercial loan (including principal and accrued interest) was $2.5 million at March 31, 2026. The loan is a variable-rate loan with the interest based on the prime rate plus 1%. The interest rate adjusts whenever the prime rate changes. The Company also has a loan for premium payments to a trust of a retired executive officer’s irrevocable life insurance policy. The principal balance on this loan at March 31, 2026 was $0.5 million. Certain directors, officers and stockholders have funds personally invested in the Company’s debt securities. As of March 31, 2026, total related party debt was approximately $59.8 million. Of the $59.8 million of related party debt, an aggregate principal amount of $18.7 million of subordinated notes were issued on December 23, 2025 to certain stockholders through a private placement. The remaining related party debt of $41.1 million carries terms and interest rates that are consistent with the market and those offered to non-affiliates. The Company sponsors a non-qualified deferred compensation plan for executive officers and certain other key employees and members of the Board. The deferred compensation plan provides for the pre-tax deferral of compensation, fees and other specified benefits. Specifically, the deferred compensation plan permits each employee participant to elect to defer a portion of base salary or bonus and permits each eligible director participant to elect to defer all or a portion of director’s fees. The deferred compensation plan is an unfunded obligation of 1FFC with participants of the plan being general unsecured creditors of the Company.
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